Marshall Motors cancels dividend payments to shareholders

Marshall Motors today cancelled dividend payments to shareholders as the car seller battles a steep downturn in sales following the coronavirus outbreak.

The company will not pay the 2019 dividend and has also decided against paying an interim dividend for this year.

The decision comes as company reported a steep fall in profits for the first six months this year after it was forced to shut its forecourts from March to June.

Profits came in at £95 million, compared with £135 million at the same time last year, while revenues fell to £895 million from £1.2 billion.

But the company added that since lockdown restrictions have been lifted trading has picked up.

Marshalls said: “Since full reopening under COVID-19 secure guidelines on the 1st of June, trading has been robust and our important quarter three order take is encouraging.”

The company added that at the height of the pandemic 90% of staff were furloughed. That figure is now 12%.