(Alliance News) - Student accommodation provider Unite Group PLC on Wednesday outlined a series of cost trimming measures including the cancellation of its final payout, as it bids to save cash during the Covid-19 crisis.
Unite said calling off the final dividend for 2019 and making no further payouts in 2020 will save it GBP124 million.
Unite however said it will not charge rent for students who do not stay in their accommodation for the remainder of the 2019-20 academic year, this will cost the company between GBP90 million and GBP125 million.
"We are implementing a number of actions to mitigate this cash shortfall, including deferring development and non-essential operational capex and cost savings," the company said.
These measures will save between GBP95 million and GBP105 million during 2020, it said.
The company expects the new academic year to start in September, like usual, and added that reservations for the year are at 78%, flat year-on-year.
Unite added that it also will delay the completion of two deliveries to 2022, instead of 2021. This will save it an extra GBP72 million this year.
Shares in the company were 3.2% higher at 808.50 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Unite (UTG)