Quintain to cut dividend, sack staff and sell off property
Wednesday 06 August 2008
The company behind the regeneration around Wembley Stadium is suspending dividend payments, firing staff and selling £100m of its investment portfolio because of the slump in the property market.
Quintain Estates denied it was in crisis but insisted it was acting responsibly in preparing for what it expects to be a lengthy downturn.
Rebecca Worthington, the finance officer, said: "We are not doing this out of desperation but we do expect life to be difficult for sometime." She said three of its major shareholders, owning 30 per cent of the business, were "very supportive" of the emergency action.
The group's decision to halt dividend payments for up to two years will hit investors immediately. Last year, Quintain paid dividends totalling £15m.
Announcing the steps as part of a first-quarter trading update, Adrian Wyatt, the chief executive, said: "The company has responded to these tougher conditions and is equipped for them to continue for the foreseeable future."
Mr Wyatt said Quintain would sell another £83m of property on top of the £16.9m already raised from the sale of two properties in Wembley and one in Cardiff.
Quintain will also seek investors to help finance development of the 85-acre tract of north-west London around the stadium. The estate management team has also been cut from 29 to 13. The group has also shaved off £4.1m in running costs at its "new district" development in Greenwich, close to the O2 stadium. The group insisted that work would carry on normally.
The market responded favourably, marking the shares up 12p at 178p, although they were at a peak of 955p over the past year.
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Kenya bus attack: Primary school head teacher plays dead to escape slaughter by Islamic extremists
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
Revealed: How the world gets rich – from privatising British public services
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...