Business
COVID-19 Financing and Dividend Update
COVID-19 Financing and Dividend Update.
About this update from Marston's Plc
[{"type":"text","content":"\n \n \n RNS Number : 8359M\n Marston's PLC\n 14 May 2020\n \n \n \n \n \n \n \n 14 May 2020\n \n \n \n \n \n MARSTON'S PLC \n \n \n (\"Marston's\" or \"the Company\")\n \n \n \n \n \n COVID-19 Financing and Dividend Update\n \n \n \n \nFurther to Marston's announcement on 18 March 2020 and the subsequent directive from the UK Government on 20 March regarding the enforced temporary closure of all pubs and \n other hospitality venues to contain the spread of the COVID-19 virus,\n the Company today provides the following update.\n \n \n We continue to take a highly prudent approach in our management of the business during this period. All Board members have volunteered significant cuts in pay and fees for the time being and recognise that Marston's many stakeholders, including employees, tenants and lessees, retailers, customers and communities are facing major challenges.\n \n \n \n \n \n As described in our previous announcement,\n the impact of COVID-19 on our financial and trading performance will \n depend upon how the situation develops and over what timescale, which remains uncertain. The Government has recently announced a recovery strategy to lift lockdown restrictions in phases, including the potential for pubs to reopen in early July. However, this timing is by no means certain and is, of necessity, subject to meeting targets relating to containing the virus and the ability to meet 'Secure COVID-19 guidelines'. We await more detail from the UK Government in due course.\n \n \n \n \n \n In order to ensure that Marston's is best placed to navigate this period of uncertainty, management has taken additional steps to strengthen its balance sheet to provide additional liquidity headroom and financial flexibility.\n \n \n \n \n \n We have agreed £70 million of additional liquidity through an increased bank facility, subject to final documentation. We believe that this additional 180 day financing facility, together with ongoing Government support on employment costs, deferred tax payments and rent and rates relief, as well as continued income from beer sales into the off-trade, provide us with sufficient liquidity to meet our obligations beyond the end of the financial year even if pubs were closed until then. We have reached agreement with our banks to amend ...