Business
Covid 19 update
Covid 19 update.
About this update from Card Factory Plc
[{"type":"text","content":"\n \n \n RNS Number : 0391M\n Card Factory PLC\n 06 May 2020\n \n \n \n \n \n \n \n The information contained in this announcement is deemed by\n \n \n the Company to constitute inside information for the purposes of\n \n \n Article 7 of the Market Abuse Regulation (EU) No. 596/2014\n \n \n \n \n \n \n \n \n \n 6 May 2020\n \n \n Card Factory \n plc\n \n \n \n \n \n Financial and operational update on response to COVID-19\n \n \n \n \n \n \n \n \n Further to the announcement made on 23 March 2020 in relation to the Coronavirus situation, Card Factory plc \n (\"Card Factory\" or the \"Group\") \n provides the following updates.\n \n \n \n \n \n Financial \n update\n \n \n \n \n \n Cash management has been a key area of focus during these uncertain times, whilst we have looked to protect the longer-term prospects of the business and its stakeholders. These measures have included utilising relevant government schemes where applicable, managing stock intake and supplier terms and controlling the cost base during this period.\n \n \n \n \n \n The business has in place an existing £200m Revolving Credit Facility (\"RCF\"), maturing in October 2023, with our commercial banks, who have remained supportive of the business during this period. \n \n \n \n \n \n In addition, we have now received confirmation from the Bank of England that we have access to additional funding under the Covid Corporate Financing Facility (\"CCFF\").\n \n \n \n \n \n \n We continue to focus on reducing operating expenses and managing our cash flows. Actions include:\n \n \n \n \n \n - furloughing of over 90% of our colleagues;\n \n \n - a significant reduction in non-essential capex including deferral of replacement equipment in our manufacturing plant, with investment in a small number of key projects that support the Group's long term strategic objectives; \n \n \n - new store openings have been reduced to seven in FY21, being those that we are legally committed to opening;\n \n \n - we have taken a number of steps including negotiating rental payments and having ongoing discussions with landlords to reduce net cash outflow;\n \n \n - operational spend being restricted to essential for maintaining operations and supporting busine...