MJ Gleeson Plc - Update on Covid-19 Situation
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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.