Travis Perkins PLC (LON:TPK) said it has no plans to resume dividend payments due to the uncertain trading conditions surrounding coronavirus and Brexit.
The FTSE250 builders’ merchant fell into the red in the first half of 2020 as sales dropped by 20%.
Sales in the six months to June dropped to £2.78bn from £3.48bn, with the group posting a loss after tax of £113mln.
The group has already closed 165 branches and shed 2,500 jobs to help mitigate the impact of the pandemic, actions it said would save it £120mln annually.
Nick Roberts, chief executive, said the group had made significant strategic and operational progress against four strategic priorities outlined in March but the trading situation was still too uncertain for the dividend to be reinstated.
The demerger of Wickes also remains on hold until the markets become more stable, he added.
Travis Perkins’ focus remains on reducing borrowings he said, with covenant net debt reduced to £22mln from £322m in December.
Brokers see encouraging signs
Liberum said the results were worse than expected due to the fixed costs element in Travis Perkins' model but July and August trading was on a par with last year, which was better news.
But the first half cash inflow and a good start to the second half alongside a re-commitment to emerge Wickes and sell Plumbing & Heating were all encouraging signs said the broker, which has a 1,350p target price.
Shares eased 6% to 1,145p.
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