Fuller, Smith & Turner not proposing final dividend as 95% of staff furloughed
Pub and hotels group Fuller, Smith & Turner said on Friday that it will not be proposing a final dividend as it furloughs the majority of its staff due to the coronavirus, with the company’s chief executive agreeing to take a 25% pay cut.
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Fuller’s, which has shut its entire managed and tenanted pub estate, said the vast majority of its employees has been placed in furlough, with a small number of key workers maintained to carry out critical functions. In addition, the company has suspended all non-essential capital spend and is negotiating across its supplier base to reduce costs further.
The group said that while it is well financed and has a healthy balance sheet and significant liquidity headroom, it will not be proposing a final dividend for the year ended 28 March 2020 "in light of the unprecedented current situation" and to ensure it is in "the best possible financial position with maximum flexibility".
Chief Executive Simon Emeny said: "We have implemented a wide range of measures that will impact all our stakeholders, but will protect the business and ensure that we emerge in a strong position to build for the future.
"We are supporting our tenants by cancelling commercial rent payments, we will not be proposing a final dividend, we have placed over 95% of our team members in furlough and my board colleagues and I have taken a 25% reduction in pay."