St Modwen Properties has placed a third of its workforce on furlough after pausing construction during the coronavirus pandemic.
The developer said that with many staff now at home and without work, it has furloughed 200 members of staff.
Under the Coronavirus Job Retention Scheme, furloughed employees can have 80% of their salaries paid by the government. St Modwen will top up the salaries of all furloughed employees so that they are paid their normal salary, and members of the company’s board will take a 20% cut in pay.
The company has also cancelled a 5.1p per share final dividend for 2019, saving it £11.3m.
St Modwen said last week that stress tests suggest it can survive a 40% fall in its portfolio value before reaching its loan-to-value covenants.
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