Business
Update on trading and impact of COVID-19
Update on trading and impact of COVID-19.
About this update from Marks And Spencer Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9701G\n Marks & Spencer Group PLC\n 20 March 2020\n \n \n \n \n \n \n \n Marks and Spencer Group Plc\n \n \n UPDATE ON TRADING AND IMPACT OF COVID-19\n \n \n The board of M&S has carefully considered the impact of 'COVID-19' on the outlook for the next 12 months trading and longer-term impact on the business. Each day we are learning more about its effects and running a range of scenarios as to possible impact on sales, profit, and cash flows. Whilst we remain confident that the post crisis future of the business and our transformation programme remains as strong as ever, trading over the next 9-12 months in our Clothing and Home and International businesses is likely to be severely impacted. As a result, it is not possible to provide meaningful guidance on future earnings, although we are taking every step to secure future value for shareholders, colleagues, and suppliers.\n \n \n Supporting our customers and colleagues\n \n \n Our first priority is to support our customers and colleagues. M&S has served customers without cease through two world wars, terrorist bombings and numerous local disasters and we are determined to support our customers now as we always do. We have one of the most loyal and committed workforces in retailing and are very grateful for the extraordinary cheerfulness and dedication they are showing in difficult times. We are seeing substantial sales declines in Clothing and Home and we have to manage our costs accordingly but expect to be able to redeploy significant numbers of colleagues to support the Food business.\n \n \n FY 2019/20 financial year outlook on track until the current week\n \n \n The forecast outturn for Group Profit Before Tax and adjusting items, quarter to date has been adversely affected by the virus but was within the range of market expectations and in line with the guidance issued in January until the current week. Our Food business has so far remained strong illustrating the resilience we derive from having the combination of related businesses under one umbrella. The final result could be at or below the bottom end of the range of PBT of £440-460m, given probable very depressed trading in Clothing and Home.\n \n \n Steps being taken to secure the balance sheet and future trading potential in FY 2020/21 and beyond\n \n \n It is ...