The Courier & Advertiser (Fife Edition)
Springfield drops dividend payout
An Elgin-based property developer with large scale projects across Tayside has withdrawn its interim dividend as it looks at advice from the first minister to close building sites.
Springfield Properties, which counts major developments at Dykes of Gray in Dundee and Bertha Park in Perth among its key sites, said it had entered the second half of 2019-2020 with a strong order book and was experiencing good growth across the business.
However, in a response to the Scottish Government’s call to close building sites, Springfield said: “The Covid-19 outbreak has not negatively impacted the group’s completions or reservations to date.
“However, the Covid-19 situation is rapidly evolving and the group notes the statement made by First Minister Nicola Sturgeon on Monday advising the closing of building sites across Scotland.
“Further guidance is expected to be given by the Scottish Government on this matter and the group will update the market in due course.”
The company is also withdrawing its interim dividend of 1.4p per share – a move which will allow it to conserve £1.4 million.
The firm said its net debt stood at £56m on November 30 and it had a £67m credit facility with Bank of Scotland.
The firm adding it “has maintained a very constructive dialogue over the past few weeks regarding the bank’s support and availability of additional funding if required.”
Meanwhile, housebuilder Taylor Wimpey yesterday said it had closed its construction sites, show homes and sale sites due to coronavirus.
The company said it has a “large order-book and quality long-term landbank” which provides it with increased resilience.
It said UK operations have “only been meaningfully impacted in very recent days” while its smaller Spanish operations have been disrupted by a nationwide shutdown.
Competitor Redrow said its sites remain open with “strict precautions in place including enhanced levels of cleaning, additional hygiene facilities and social distancing”.