Shepherd Neame Limited Update and cancellation of interim dividend (7278G)
19 Mars 2020 - 8:00AM
UK Regulatory
TIDMSHEP
RNS Number : 7278G
Shepherd Neame Limited
19 March 2020
Shepherd Neame Ltd
Update and cancellation of interim dividend
Events have moved extremely rapidly since we reported our
interim results on 11(th) March culminating in the Government's
advice on Monday 16(th) March to the general public to "avoid pubs,
theatres and other hospitality venues" in order to contain the
spread of the COVID-19 virus.
We had seen some volatility in trading towards the end of the
last week as media coverage of the crisis intensified. However,
following the Government's advice, the Company's and the industry's
situation has changed materially and now it is inevitable that
trading will deteriorate rapidly too. Until a semblance of clarity
returns it remains impossible to gauge the impact on the years'
results.
We welcome the Chancellor's comments on Business rates and small
business grants, but need more detail urgently. The overall
provisions so far announced do not go far enough to support UK
hospitality businesses. We want immediate cancellation of all taxes
and support for staff overheads.
In light of these changed circumstances, we are now implementing
a number of precautionary measures to protect our employees,
licensees and to conserve cash. These measures include:
-- cessation of all non-contractual capital expenditure in the
brewery and pub estate for the foreseeable future
-- minimising all expenditure to the lowest level possible
-- suspension of rent receipts from Monday 16(th) March to support our tenants
-- all office staff moving to home working. The brewery will
continue to produce beer under new and strict access and hygiene
controls including deep cleans between shifts, workplace distancing
measures and monitoring the temperature of employees at the
beginning and end of each shift
-- the Board of Directors voluntarily agreeing to take a temporary 20% pay reduction
-- and one further action to cancel the interim dividend of 6p
per share which was announced on 11(th) March and would have been
payable on 2(nd) April 2020.
The Board is proud of the part that the dividend has played in
the history of the Company's relationship with shareholders and
considers this decision to be in the best interest of the company,
its people and shareholders.
The company entered a new long term financing debt structure in
October 2018 providing GBP107.5m of committed facilities with net
debt at the 28(th) December 2020 of GBP83.9m.
The above actions are precautionary at this stage and will be
reviewed on a weekly basis to preserve maximum headroom on our
facilities and in the hope that we can return to normal business in
the near future.
[19(th) March]
Enquiries:
Instinctif Partners | Matthew Smallwood | 07831379122
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END
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