Firms line up to scrap dividend in virus crisis

A UK school supplier of everything from exercise books to IT services was one of many firms to axe shareholder dividends on Thursday as Government shutdown plans kick in.

RM scrapped the payout after yesterday’s news that schools and colleges will be closed indefinitely and exams cancelled.

“The board is evaluating a number of actions to balance the conservation of cash with long-term needs of the business,” it said. It will no longer pay a proposed final dividend of 6p per share for the year to November 2019.

Shares in RM dropped 16p, or over 11%, to 125p.

Housebuilder Crest Nicholson and pubs and brewery group Shepherd Neame also suspended payouts immediately to preserve cash.

Crest Nicholson will not issue its final dividend of 21.8p per share. Shepherd Neame has cancelled the interim dividend of 6p per share payable on April 2