Travis Perkins plc is to suspend the payment of its final dividend and halt the Wickes demerger process as it makes plans for an expected deterioration in trading due to the the coronavirus crisis.
In an announcement this morning Travis Perkins, the parent company to CCF, revealed that recent trading has not yet shown a significant sales impact as a result of the coronavirus crisis (COVID-19). However, due to the rapidly evolving situation, the Group expects the trading environment to change quickly and materially in the coming weeks.
In response to this, the Board is taking prudent decisions in order to successfully navigate this period of turmoil. These include the suspension of the proposed full-year 2019 dividend and the pausing of the Wickes demerger process in light of current extreme stock market volatility.
Nick Roberts, the group’s chief executive, said: “Our highest priority is the health and safety of our colleagues, customers, suppliers and all other stakeholders, and we have taken decisive action to mitigate the risks we are facing as a business, and implementing contingency plans across the Group.
“Whilst there is unprecedented uncertainty on how the virus outbreak will directly impact our markets and our businesses, we enter this period from a position of strength and security, with a strong balance sheet and access to significant committed liquidity.”
The move to suspend the final dividend follow similar action being taken by major house builders Berkeley, Crest Nicholson and McCarthy & Stone.