Building and DIY merchants Grafton Group has said it is closing all of its distribution branches and manufacturing plants in the UK for the next three weeks.
In a trading update, Grafton said the closures are subject to receiving clarification from the UK government on the supply of materials through a small number of branches to support essential repair and maintenance activity.
Grafton, which owns retail brands like Woodies and Chadwicks here, said that trading so far this year had has been broadly in line with its expectations.
It said its branches have generally operated at normal levels of activity with limited impact on the supply chain due to Covid-19.
It also noted some evidence over the last week of stronger demand in a number of its distribution businesses and in the Woodie's DIY, Home and Garden business in Ireland due to forward buying.
But it warned that the Covid-19 virus will inevitably lead to a material decline in revenue and profitability over the coming months.
"There is no previous experience of a similar pandemic and its likely extent and duration is unclear at this stage. In view of this uncertainty, it is no longer possible to provide financial guidance for the remainder of the current financial year ending 31 December 2020," the company said.
Grafton also said that is has decided to suspend payment of the second interim dividend for 2019 which was due to be paid on April 6.
"This prudent course of action, which the board believes is in the best interests of the company and its shareholders, will preserve £30m of cash in the business," the company said.
"The board recognises the importance of dividends to shareholders and intends to resume payment as soon as it has greater clarity about the impact of Covid-19 on the performance of the group," it added.
Grafton said it continues to monitor the impact of Covid-19 in each of its markets and respond to emerging conditions by making further changes as appropriate to the way we operate to ensure the continued safety and wellbeing of colleagues, customers and business partners.
Gavin Slark, Grafton's chief executive, said the company's main concern at this time is the health and wellbeing of its colleagues, customers and the communities where we operate.
"Grafton is in a strong financial position with excellent liquidity and I am confident that the group will emerge from this period of uncertainty in a position of strength," he added.
