12th Mar 2020 08:03
(Alliance News) - Berkeley Group Holdings PLC on Thursday said it would postpone an increase in its shareholder returns until it has certainty on the impact the coronavirus will have on trading.
The UK housebuilder said it "currently still intends" to deliver the shareholder return increase, which was expected to be made through a B and C share scheme, but will reassess this when the group publishes its full-year results in June.
Berkeley has reverted to its current schedule for shareholder returns, with a dividend of GBP124.8 million to be made on March 31 followed by a payment of GBP140 million every six months.
This has replaced the revised schedule which had a GBP500 million payout for the end of March 2020 and 2021 each.
Berkeley said the good trading environment has continued in the second half of its financial year to date.
With underlying demand maintained for its homes, the housebuilder remains on track to meet market expectations for the year ending April 30, as well as achieving its long-term target of GBP3.3 billion in pretax profit for the six years to April 2025.
However, Berkeley said the expectations assume a "measured outcome" to the effect of coronavirus.
"While there has been no noticeable impact on Berkeley's business to date, the ultimate impact on UK business is unknown. There is no recent historic precedent and for this reason it is absolutely right for any responsible business to approach the next six months with a reduced risk appetite and heightened sense of caution," the group stated.
By Dayo Laniyan; [email protected]
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