MJ Gleeson PLC Covid-19 Update (8184I)
April 06 2020 - 1:00AM
UK Regulatory
TIDMGLE
RNS Number : 8184I
MJ Gleeson PLC
06 April 2020
MJ Gleeson plc (GLE.L)
("Gleeson" or "the Company")
6 April 2020
Update on corporate actions in response to Covid-19
Further to the announcement of 25 March 2020 the Company has
moved swiftly to put in place a number of further actions to
mitigate the impact of the pandemic.
With immediate effect:
-- A total of 456 employees, representing 76% of the workforce
will be furloughed in-line with the Government's Job Retention
Scheme and with the Company topping-up salaries of those affected
up to a minimum of 80% and a maximum of 95% of salary.
-- All members of the Board are taking a reduction in salary/fees of 30%.
-- Senior management are taking reductions in salary of between
5% and 20%, weighted according to salary bands.
-- The Company will review the position at the end of May.
Together with the actions already taken including cancellation
of the interim dividend, pausing all build activity and land
acquisition, cutting discretionary costs and implementing a
recruitment freeze, the Company has now implemented a comprehensive
range of actions to ensure that it is well placed to restart
operationally once conditions allow.
A key priority is to reopen sites and sales offices once it is
appropriate and safe to do so and our f ocus now turns to putting
in place a programme to ensure as efficient a re-start as possible
immediately the resumption of trading is permitted.
We are keen to work with central government and local
authorities to agree what provisions might be put in place to
enable the safe resumption of building much-needed quality
affordable homes as soon as it is practicable to do so.
Gleeson builds and sells high quality, low-cost 2, 3 and 4
bedroom homes to first time buyers on average and lower incomes
across the Midlands and North of England, areas where there are
already acute supply shortages. The current situation is further
exacerbating this position.
Two-thirds of the homes we sell are to people in what are now
designated Key Worker roles. In recognition of their extraordinary
efforts in keeping us all safe, fed and healthy the Board has
decided that, when the Company is able to recommence site build
activities, it will prioritise house sales to Key Workers.
The Board continues to monitor the rapidly-evolving situation
and investigate a number of additional measures should they be
required.
ENDS
Enquiries:
Instinctif Partners
Mark Garraway 07771 860938
James Gray 07814 379412
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END
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