Executives to take 20% pay cut
Balfour Beatty is postponing payment of its final dividend, the firm said in an update to the City this morning.
The country’s biggest contractor has postponed its AGM because of the coronavirus pandemic – but said its 300-plus UK sites will remain open.
It said: "The AGM of Balfour Beatty was due to be held on14 May. In response to limitations on gatherings of people, the board intends to postpone this event.
"As the group's proposed final dividend for 2019 of 4.3 pence per share, which was due to be paid on 3 July, requires approval at the AGM, the postponement of the AGM means the approval of this final dividend to shareholders will be postponed accordingly."
The firm said it was acting in line with the current guidance on covid-19 from the government in keeping its sites open.
It added: "Sites and contracts will remain operational where it is practical to appropriately implement the standard operating procedure issued on 24 March by the Construction Leadership Council, and endorsed by Public Health England."
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It said it was adhering to regulations on a state-by-state basis in the US and that Hong Kong operations were following local government guidance.
The firm added that its group chair, executive directors, including chief executive Leo Quinn (pictured), non-executive directors and the group’s executive committee will be taking a 20% pay cut.
Earlier this month, Balfour Beatty, which has 26,000 staff worldwide, reported that around £6bn of the firm’s increased £8.4bn turnover was from the UK and US last year with a further £900m from its Hong Kong business Gammon in which it has a 50% stake.
Pre-tax profit last year was up 12% to £138m.
In its statement this morning, Balfour Beatty said it had £395m of net cash and £375m of undrawn facilities.
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