QUINTAIN Estates & Development Plc, the company rebuilding the area surrounding London's Wembley stadium, said yesterday it may skip paying a dividend for as long as two years to save cash.
Ceasing dividend payments would be accompanied by a program of asset sales to raise 100 million pounds (US$196 million), the London-based company said in a statement obtained by Bloomberg News. It also planned to cut some jobs and make other savings.
"If they sell some assets, I reckon they are fine for two years," said Nan Rogers, an analyst at Arbuthnot Securities with a "neutral" rating on the shares. "People are relieved - at least they are looking at the cash flow."
Quintain's shares have declined 67 percent this year on concern that the slump in the United Kingdom's commercial and residential real-estate markets will make it struggle to finance its projects.
Quintain shares rose 5 pence, or 3 percent, to 171 pence at 10:18am in London.