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JD Sports pulls final dividend due to Covid-19
24th Apr 2020 16:22
(Sharecast News) - JD Sports said on Friday that it was pulling its final dividend to preserve cash and that its chairman has taken a 75% pay cut amid the coronavirus pandemic.
"Given the current highly unusual circumstances, the board believes that it is in the best interests of shareholders if the group maintains its cash reserves and so, accordingly, it does not believe that it will be appropriate to pay a final dividend this year," the sportswear retailer said.
It will look to resume payouts "when conditions allow" but said it was important to maintain flexibility in order "to maximise the available funding for future development opportunities".
In addition, JD said its board and senior management have agreed to a voluntary salary reduction of at least 25% for "the current period of disruption", while executive chairman Peter Cowgill will take a 75% pay cut.
The payment of bonuses and other contractual incentive payments has also been deferred.
"Given the current highly unusual circumstances, the board believes that it is in the best interests of shareholders if the group maintains its cash reserves and so, accordingly, it does not believe that it will be appropriate to pay a final dividend this year," the sportswear retailer said.
It will look to resume payouts "when conditions allow" but said it was important to maintain flexibility in order "to maximise the available funding for future development opportunities".
In addition, JD said its board and senior management have agreed to a voluntary salary reduction of at least 25% for "the current period of disruption", while executive chairman Peter Cowgill will take a 75% pay cut.
The payment of bonuses and other contractual incentive payments has also been deferred.