Business
Update on trading and impact of COVID-19
Update on trading and impact of COVID-19.
About this update from Mulberry Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 2982H\n Mulberry Group PLC\n 24 March 2020\n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n 24 March 2020\n \n \n \n \n \n \n \n \n Mulberry Group plc\n \n \n (\"Mulberry\" or the \"Company\")\n \n \n \n \n \n Update on trading and impact of COVID-19\n \n \n \n \n \n The board of Mulberry (the \"Board\") today provides the following business update in light of the ongoing and rapidly evolving situation regarding COVID-19. \n \n \n \n \n \n The welfare of the Company's staff and customers is the Board's main priority and it has been taking all appropriate action to mitigate the impact of COVID-19 in line with Government advice. \n \n \n \n \n \n The Board is also working to protect Mulberry's cash and to secure future value for its stakeholders by proactively managing its capital as well as identifying opportunities for cost savings.\n \n \n \n \n \n Current trading \n \n \n \n \n \n The Board has carefully considered the potential impact of COVID-19 on the Company's trading performance, including running various scenarios as to the possible impact on sales, profits, and cash flows. \n \n \n \n \n \n Whilst the Board remains confident in the strength of the Mulberry brand, recent trading in our stores, particularly in the UK, has been severely impacted by the COVID-19 crisis. On 21 March 2020, the Board took the decision to close Mulberry stores in the UK until further notice. It notes the latest UK Government advice and is working on its implementation throughout the Company's operations. In addition, the Company is reviewing its international portfolio of stores on a case by case basis.\n \n \n \n \n \n The Company's current financial year ends on 28 March 2020. In its half year results announcement released on 13 November 2019, the Company highlighted that it expected to be profitable and cash generative in the second half of the year. As a result of the impact on the Company's trading of COVID-19, the Board now expects the Company to make a small loss in the second half.\n \n \n \n \n \n Given the rapidly evolving nature of the situation, is not possible to provide meaningful guidance on the Company's future performance.\n \n \n \n \n \n Financing\n \n \n \n \n \n Mulberry has a robust balance sheet with net cas...