McCarthy & Stone scraps dividend due to outbreak

Retirement housebuilder McCarthy & Stone said on Wednesday that the coronavirus would have a "material" impact on trading in the coming months, as it scrapped its dividend.

It pointed to the recommendations announced by the government on Monday, which include self-isolation for those over 70.

"At this stage, it is too early to speculate on the full extent of the resulting impact on our financial performance for the full year and beyond. However, we do anticipate an inevitable material impact on trading in the coming months."

The company said it was withdrawing a proposal to pay a final dividend of 3.5 per share "given the current need for prudent cash management". However, it said the business maintains a "strong" balance sheet and has taken action to fully draw down its £200m revolving cash facility, resulting in a current available cash balance of £127m.

"The board is currently evaluating a number of actions to balance the preservation of cash with the long-term needs of the business," it said.