Thirsk, North Yorkshire-based steel group Severfield said on Thursday it will after all propose a dividend for shareholders.

Last month, the firm said dividend payment decisions had been deferred until greater visibility was available over the impact of COVID-19 on its business.

On Thursday, Severfield said: “As a result of the group’s strong balance sheet and cash position, the board is recommending a final dividend for the year ended 31 March 2020 of 1.8p per share, making a total for the year of 2.9p per share (2019: 2.8p per share). 

“If the dividend is approved at the AGM on 3 September 2020, it will be paid on 11 September 2020 to shareholders on the register at the close of business on 14 August 2020.

“The group’s strong financial position also means that, whilst we furloughed some of our workforce in the first quarter of the 2021 financial year, almost all of whom have since returned to work, we will not be claiming for support under any employee-related government support packages including the Coronavirus Job Retention Scheme.”