JD Sports has axed its final dividend to shareholders and has also announced further measures to help protect its financial stability during the pandemic and its aftermath.
In a statement to the stock exchange, the business said: “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.
“It is the board’s current intention that the group would look to resume dividend payments when conditions allow, although it is important that we maintain flexibility around the timing and quantum of this commitment so as to maximise the available funding for future development opportunities.”
Chairman Peter Cowgill has volunteered a salary reduction of 75 per cent, with other members of the senior management team agreeing voluntary reductions of 25 per cent and over for the current period of disruption. The business has also deferred incentive and bonus payments for year ended 1st February 2020 saying that these will be paid at some point after stores have re-opened when trading levels and performance allow. JD Sports will release its final results for y/e February 2020 on July 7th.
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