24th Mar 2020 15:40
(Alliance News) - Masonry products firm Forterra PLC on Tuesday suspended its final dividend for 2019 amid the Covid-19 outbreak.
Shares were 12% higher on Tuesday afternoon in London at 220.50 pence each.
Forterra two weeks ago declared a 7.5p per share final dividend for 2019. This would have cost around GBP15 million, paid in July.
However, Northampton-based Forterra no longer believes it appropriate to make this return given the uncertainty. Forterra cannot quantify what effect the pandemic will have on 2020 financials, it added.
Forterra is also halting all non-essential spending, stressing it remains committed to completing the construction of a new brick factory in Desford, near Leicester.
The company has a "strong" balance sheet, it said, with access to GBP150 million of debt which lasts until July 2022. This has now been drawn, and there is also a GBP50 million undrawn accordion.
All operations have now been suspended following UK government advice, Forterra said. It will be looking for government help to keep paying salaries.
By George Collard; [email protected]
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