Business
COVID-19 Update
COVID-19 Update.
About this update from Topps Tiles Plc
[{"type":"text","content":"\n \n \n RNS Number : 6356H\n Topps Tiles PLC\n 26 March 2020\n \n \n \n 26 March 2020\n \n Topps Tiles Plc\n COVID-19 Update\n \n Topps Tiles plc (\"Topps\" or the \"Group\") is today providing an update on the impact of the COVID-19 pandemic.\n In response to the UK Government's announcement of 23 March 2020, the Group has ceased normal store operations in order to protect colleagues and customers. The Group's online business remains in operation and we are working to fulfil existing customer orders to the extent possible within the constraints of the UK Government restrictions. \n The Board is taking prudent steps to ensure the business is protected through this period in order that it remains well positioned to recover, once the situation has normalised.\n Current Trading\n Like for like sales in the Group's Retail business for the 12 weeks ended 21 March 2020 were down 3.1%.\n Financial Liquidity\n Topps remains in a good financial position, with a robust balance sheet. The Group's committed £39 million revolving credit facility has been fully drawn down, and the Group has approximately £20 million of cash liquidity immediately available. In addition to the above committed facilities, the Group has an £11 million accordion facility which is subject to lender approval. The Group expects total net debt at the half year end on 28 March 2020 to be approximately £19 million.\n The Group welcomes the emergency support measures already announced by the UK Government, which will help retain cash liquidity in the business. Specifically, the cessation of business rates for a period of 12 months will save us £9.5 million, and the deferral of the VAT quarter payment will improve cashflow by £3.1 million. We will utilise the Job Retention Scheme to furlough colleagues who are unable to work due to store closures and we estimate that this will benefit cashflow by at least £2.0 million per month while this situation continues. A number of additional steps are being taken to reduce costs, preserve cash and provide the business with maximum flexibility.\n The Group has modelled a number of trading scenarios for the balance of the current financial year but is planning its finances around the most pessimistic expectation, which assumes that stores remain closed for a prol...