Shares in Barratt Developments fell almost 7 per cent yesterday after it said it would resume paying a dividend next year, not this.
Mark Clare, chief executive, said the builder needed to continue investing in new land and reducing the debt on its balance sheet before it could start paying a sizeable dividend to shareholders.
"We will declare a final dividend for the year to June 2013 which will be paid around the end of the year," he said.
"But we have set a target of 2015 to reduce our debt significantly, which is when we should be able to start ramping up the dividend."
The company last paid a dividend in 2008, before the financial crisis hit. Barratt's profits soared 159 per cent to £111m in the year to June, with completed sales up from 11,078 to 12,637 and average prices on private home sales up by 1.5 per cent to £201,800.
Mr Clare said Barratt would show further "good progress" this year.Reuse content