Berkeley pulls £455m payout over coronavirus fears
Berkeley has postponed a £455m increase in shareholder returns over fears of the impact of coronavirus.
It will hold the £1bn programme until there is greater clarity on how the virus will affect the economy.
In January, Berkeley announced it would increase its returns over the next two years. Instead, the developer will revert to its original plan with a £125m dividend on 31 March and £140m to be paid by September 2020.
Berkeley has postponed a £455m increase in shareholder returns over fears of the impact of coronavirus.
It will hold the £1bn programme until there is greater clarity on how the virus will affect the economy.
In January, Berkeley announced it would increase its returns over the next two years. Instead, the developer will revert to its original plan with a £125m dividend on 31 March and £140m to be paid by September 2020.
In a trading update, it said: “Today’s announcement is made in the context of the current increased macro uncertainty, which has been uniquely impacted by the global spread 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.”
Berkeley said it is on track to deliver pre-tax profits of £3.3bn in six years by 30 April 2025.
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