Taylor Wimpey PLC Notice of AGM (3610H)
March 24 2020 - 5:10AM
UK Regulatory
TIDMTW.
RNS Number : 3610H
Taylor Wimpey PLC
24 March 2020
24 March 2020
Taylor Wimpey plc
Response to COVID-19, and dividend and AGM update
The health and safety and wellbeing of our employees,
subcontractors and customers is our number one priority. We are
doing all we can to support them during this unprecedented crisis;
to help prevent the spread of the virus and to ensure they stay
safe and are following the latest Government and Public Health
guidance. In the interest of customer and employee safety, we have
taken the decision to close all of our show homes, sales centres,
and construction sites for all work except that needed to make the
sites safe and secure. Sales offices were closed with effect from
the evening of Monday 23 March 2020. We will continue to support
new and existing customers and will conduct all business by
telephone or digitally. Construction sites will begin the close
down process today.
We have operated the business with caution in recent years and
have a well capitalised balance sheet and net cash position. Our
large orderbook and quality long term landbank give us increased
levels of resilience. As we enter a period of uncertainty that may
last for several months, we have been putting contingency plans in
place to respond to the likely potential changes in customer
behaviour and reduced productivity.
Our UK operations have only been meaningfully impacted in very
recent days. Our small Spanish business also has faced disruption
over the past few days as it has responded to the government
imposed shut down.
Cash preservation and 2020 dividend update
In order to conserve cash and increase our flexibility, we are
taking measures to manage our working capital very tightly and have
stopped all discretionary land spend. In addition, we have taken
the prudent step of drawing down our previously unutilised
Revolving Credit Facility (RCF) of GBP550 million, resulting in a
gross cash position of GBP807 million and net cash of GBP165
million as at 23 March 2020.
We have taken rapid proactive measures to protect the balance
sheet in the short term. However, we are likely to face weeks or
months of uncertainty, including periods of inactivity which will
limit our ability to complete on homes and therefore generate
cash.
Until the extent and duration of the disruption is better
understood, the Board believes conserving cash is in the best
interests of the long term sustainability of the business. Whilst
our ordinary dividend of at least c.GBP250 million per annum, has
been stress tested and is payable though a 'normal' downturn, the
global COVID-19 pandemic goes beyond normal and even severe
cyclical swings and represents an exceptional case.
Accordingly, we have taken the decision to cancel the 2020 final
dividend of 3.80 pence per share (c.GBP125 million) that was due to
be paid on 15 May and the planned special dividend payment of 10.99
pence per share (c.GBP360 million) that was due to be paid on 10
July, both of which were subject to shareholder approval. As a
result of these actions; Resolutions 2 and 3 will be withdrawn from
the AGM due to take place on the 23 April.
In light of the significantly changed circumstances, we also
suspend our previous guidance for 2020. We will assess our medium
term targets when there is greater clarity on the length and impact
of the current crisis.
We remain an inherently cash generative business and will
revisit the payment of dividends and the resumption of guidance
when there is more certainty on the outlook.
Annual General Meeting update - change of venue and time
The Company's Annual General Meeting is due to be held on
Thursday 23 April 2020. In light of the Government's advice, the
Board has taken the decision to move the location of the AGM to the
Company's Head Office at Gate House, Turnpike Road, High Wycombe,
Buckinghamshire HP12 3NR and to change the time of the meeting to
9:00am.
The well-being of our shareholders is important to us and we
recommend that shareholders adhere to current Government
instruction to stay at home. To enable shareholders to listen to
the proceedings of the meeting from their homes we will be sending
a communication to all shareholders providing telephone dial-in
details. There will be an opportunity for shareholders to ask the
Board of Directors questions on the formal business of the meeting
via the telephone dial-in facilities.
The Company will ensure that the meeting adheres to the
Government's advice around social distancing and enhanced hygiene
measures will be in place. To further support these efforts there
will be only limited Company representation at the meeting. We will
also reduce the length of the meeting by limiting it to the formal
business required. There will be no corporate presentation or
refreshments available.
We encourage shareholders to submit their proxies as early as
possible. Further information on how shareholders can submit their
proxies can be found in the Notice of 2020 Annual General Meeting.
Please note the deadline for submitting proxies will be 9:00am on
Tuesday 21 April 2020.
-Ends-
For further information please contact:
Taylor Wimpey plc Tel: +44 (0) 7826 874461
Pete Redfern, Chief Executive
Chris Carney, Group Finance Director
Alice Marsden, Group Company Secretary
Debbie Archibald, Investor Relations
Finsbury Tel: +44 (0) 20 7251 3801
Faeth Birch
Anjali Unnikrishnan
Notes to editors:
Taylor Wimpey plc is a customer-focused residential developer,
operating at a local level from 24 regional businesses across the
UK. We also have operations in Spain.
For further information, please visit the Group's website:
www.taylorwimpey.co.uk
Follow us on Twitter via @TaylorWimpeyplc
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END
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