York housebuilder Persimmon cancels dividend to tackle coronavirus uncertainty

The York-based firm said it believes “conserving cash and maximising financial flexibility is in the long term best interests of the business and all its stakeholders”, following the coronavirus outbreak.

Persimmon has cancelled a proposed 125p per share interim dividend payment of surplus capital to shareholders due on April 2 and has postponed the proposed annual final dividend payment of 110p per share due on July 6.

The housebuilder added that it would reassess the final dividend payment later in the calendar year when the effects of the COVID-19 virus are clearer.

“Whilst the Company's regular annual payment of at least 110p per share has been stress tested for payment through the housebuilding industry cycle, the Covid-19 virus presents an exceptional set of circumstances,” The FTSE100 company said in a statement.

Persimmon said it has been following official Government guidance around social distancing during the current pandemic.

However, following new guidance issued earlier this week the firm said it is taking further measures including closing all of Persimmon's sales offices from March 26 until further notice.

The housebuilder added: “While we will continue to support existing and new customers on the telephone and, or online, all customer care site visits will cease except for emergencies.

“All Persimmon regional offices will also close, with only a skeleton staff to facilitate the wider workforce working from home.

“Construction sites are commencing an orderly shutdown with only essential work taking place which will be focused on making partly built homes safe and secure and where failure to complete the build could put customers in a vulnerable position.”

Dave Jenkinson, chief executive of Persimmon, said: "Our primary concern is the safety and well-being of our customers, staff, contractors and suppliers and we have today set out a number of further measures throughout the business to protect them for the duration of the pandemic.

“We will listen carefully to the Government's future advice as the situation develops and will make further adjustments where necessary.

"The group's long-term strategy of minimising financial risk and maintaining capital discipline over the long term through the housing cycle, ensures that we are well placed as we enter this period of uncertainty.

“Whilst the impacts of this pandemic go beyond the normal cyclical nature of the housing market, the group's high quality land holdings, significant liquidity and strong balance sheet will allow us to work through these challenges and emerge in a strong position for the benefit of all our stakeholders."