1st Apr 2020 08:39
(Alliance News) - Savills PLC for now has withdrawn its planned dividend payments, the estate agent said on Wednesday, though it could declare an "enhanced" payout at a later date.
In March, Savills declared a final and supplemental dividend totalling 27.05 pence per share.
The FTSE 250 constituent also postponed its annual general meeting to June 25 from the initial May 6 date.
Savills said: "In view of the current uncertainty over the impact of COVID-19 on global real estate market activity in the coming months, Savills is withdrawing these previously announced proposed dividends in order to retain sufficient cash reserves to mitigate the effect. Instead, the Board intends to consider and, if appropriate, declare an enhanced interim dividend on or around the revised date of the AGM.
"If declared, it will take the place of both the proposed ordinary and supplemental interim dividends."
The payout amount will be based on the company's 2019 performance, and its trading in the first half of 2020.
"It will also be dependent upon the board's then assessment of the likely duration of continued market disruption as a result of Covid-19 and the level of retained cash reserves then deemed prudent," Savills added.
Shares in the company were 3.7% lower at 794.50p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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