Business
COVID-19 update
COVID-19 update.
About this update from Marshalls Plc
[{"type":"text","content":"\n \n \n RNS Number : 7918H\n Marshalls PLC\n 27 March 2020\n \n \n \n \n \n \n \n 27 March 2020\n \n \n \n \n LEI: 213800S21IFC367J5V62\n \n \n \n \n \n \n COVID-19 update\n \n \n Marshalls plc, the specialist landscape products group, issues an update on the impact and the measures it is taking in response to the COVID-19 outbreak.\n \n \n \n \n \n In view of the Government's increasing measures to contain the spread of the virus in the current challenging environment, the Group is taking actions to ensure the health and wellbeing of employees, customers and suppliers and to support the long-term interest of the business.\n \n \n \n \n \n Operational actions\n \n \n \n \n \n The Group is implementing an agile, operational plan to manage all parts of the business safely, whilst continuing to support customers where there is demand. We are continuing to distribute product where demand exists, but in those parts of the business where demand has fallen we are managing the manufacturing facilities carefully and commencing a process of temporary suspension of operations. These actions will protect cash flow generation and contain costs. Non-essential capital expenditure has been deferred, but not at the expense of health and safety. Our operational planning is dynamic and able to react to the changing environment. The majority of our office-based employees are now safely working from home. We are adhering closely to official UK Government guidance.\n \n \n \n \n \n Financial position\n \n \n \n \n \n The Group has a strong balance sheet supported by a flexible capital structure and we maintain significant headroom against bank facilities. We conduct deep stress testing on a regular basis to support this position. We have a range of committed facilities in place with a spread of maturity dates that extend out to 2024. The Group's total bank facilities are currently £165 million of which £140 million are committed. As at 25 March the Group had £93 million of net debt (on a pre-IFRS 16 basis) of which £82 million was committed. Consequently, £72 million of facilities remain unutilised of which £58 million is committed.\n \n \n \n \n \n Our bank covenants are for the ratio of EBITA to interest charge to be greater than 2.5 times and for the ratio of net debt to EBITDA to ...