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Grafton Group bosses ask for 20pc wage cut

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Request: Grafton Group CEO Gavin Slark will take a pay cut

Request: Grafton Group CEO Gavin Slark will take a pay cut

Request: Grafton Group CEO Gavin Slark will take a pay cut

The CEO of Woodie's DIY owner Grafton Group, Gavin Slark, and the company's chief financial officer, David Arnold, have asked for their salaries and pension contributions to be temporarily cut.

The two have requested a 20pc reduction to their wages and pension payments with immediate effect.

They have also voluntarily requested the suspension of Grafton's bonus scheme for this year, and the postponement of awards under the long-term incentive plan, due to be granted this month.

The company has recently been forced to shut down almost all of its DIY and builders merchanting shops across Ireland and the UK in order to help contain the spread of the coronavirus.

In March, Grafton warned that the Covid-19 outbreak will lead to a "material" decline in revenue and profitability over the coming months.

In a trading update last month, the company said it was in a "very strong" financial position, with unrestricted cash of £303m (€345m) and undrawn committed revolving bank facilities of £275m.

No refinancing of debt is due until March 2023.

Meanwhile, the company's chairman, Michael Roney, and the non-executive directors have also decided that their fees should be temporarily reduced by 20pc straight away.

Founded in 1909, Grafton is predominantly a UK and Ireland-based building materials group.

It has also been expanding operations in the Netherlands.

Grafton's shares closed 3.3pc higher at 620 pence in London yesterday.

Since the start of this year, shares in Grafton have fallen by around one third as the coronavirus impacts trading, and financial markets around the world suffer heavy losses.

Retailers across Ireland, such as Woodie's, are facing very uncertain times as the country remains on lockdown in order to try to contain the spread of the deadly virus.

Almost all shops across the country are shut, while bars, cafes and restaurants have also been forced to pull down the shutters indefinitely.

Indo Business