HOUSEBUILDER Barratt Developments yesterday announced it has scrapped its £100m payout to shareholders over the business uncertainty caused by coronavirus.

Barratt, which has closed all of its sites, said it expects the coronavirus outbreak to have a "significant impact" on construction output and reservations and has cancelled all previous financial guidance.

The company said that due to the "uncertainties caused by the impact of Covid-19" it is appropriate to cancel the interim dividend of 9.8p per share, which was due to be paid on 11 May.

The company has suspended all land buying activity, stopped recruitment, postponed non-essential capital expenditure and is "actively managing cash flows".

In a statement yesterday the developer said: "The board recognises the importance of dividends as a part of overall shareholder returns and will consider dividends at the time of announcing the full year results in September taking into account the position on Covid-19."

Investors remained undeterred, however, with shares rising 4.5 per cent to 427.5p yesterday.

(c) 2020 City A.M., source Newspaper