Firm’s board will also take a 20% pay cut

St Modwen has furloughed around a third of its workforce after pausing construction during the coronavirus outbreak.

The developer said in a trading update to the City that with many staff now at home and without work, it has been forced to furlough more than 200 employees.

st modwen park derby

One of St Modwen’s developements located in Derby

They will be paid 80% of their salaries by the government.

St Modwen said it will top up the salaries of all furloughed employees so that they are paid their usual salary, and members of the company’s board will also take a 20% cut in pay.

The company has also cancelled a 5.1p per share final dividend for 2019, saving it £11.3m.

In an announcement last week, St Modwen said that stress tests suggest it can survive a 40% fall in its portfolio value before reaching its loan-to-value covenants.