JD Sports axes final dividend and bosses take a salary cut in face of pandemic

Sports and leisurewear retailer JD Sports has announced a series of measures to preserve its financial stability as a result of the coronavirus pandemic.

The Bury-based retail giant has, this afternoon (April 24) declared that it will not pay a final dividend to shareholders, so as to maintain cash reserves.

It said in a statement to the stock exchange: “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.”

Among other measures announced today, it revealed that the board and the senior management team have agreed to voluntary salary reductions of at least 25% for the current period of disruption, with executive chairman Peter Cowgill personally volunteering a salary reduction of 75%.

Additionally, JD Sports announced the deferment of incentive payments.

It said the payment of bonuses and other contractual incentive payments, due or arising in respect of individual and group performance in the year ended February 1, 2020, have been deferred.

It said: “It is the intention of the board and remuneration committee that these will be paid at some point after our stores have re-opened, with the timing of these payments reflecting the evidence of our actual post re-opening performance and the projected cashflows of the group.”

JD Sports also announced that it will now release its results for the year ended February 1, 2020, on Tuesday, July 7, while the annual general meeting will now be held on Friday, July 31.

This followed an announceent by the Financial Conduct Authority (FCA) of a temporary relief for listed companies that are due to report financial results during the current coronavirus crisis.

This temporary relief extends the period in which listed businesses are required to publish their audited financial statements, from four months to six months.

In September last year JD Sports continued its impressive momentum when it announced record interim figures.

Revenues increased by 47% to £2.721bn, while pre-tax profits increased by 6.6% to £129.9m.

Click here to sign up to receive our new South West business news...
Close