Whitbread PLC Covid-19 Update (4150H)
24 Marzo 2020 - 8:40AM
UK Regulatory
TIDMWTB
RNS Number : 4150H
Whitbread PLC
24 March 2020
COVID-19 Update
24 March 2020
Whitbread provides the following update in light of the rapidly
changing COVID-19 situation.
Whitbread's financial performance for the year ended 27 February
2020 is expected to be in-line with expectations. However, trading
in the period subsequent to the year-end has been materially
adversely impacted by COVID-19.
Following the Government's recent announcements on social
distancing, all our pubs and restaurants were temporarily closed
with effect from 20 March 2020. In light of the announcement and
clear guidance from the Prime Minister yesterday, we are expecting
to begin the process of temporarily closing all our Premier Inn
hotels in the UK with immediate effect. Our hotels in Germany will
also close. We are in discussions with the UK Government regarding
the use of some hotels, in locations near hospitals, to support
front-line key workers.
The situation is rapidly changing and at this point it is not
possible to predict the full extent of the market down-turn and the
impact on the business's revenues. Whitbread entered the year with
a strong balance sheet and access to significant liquidity. There
is material headroom on our funding facilities, and we will be
paying all our rent payments this quarter. In addition, the
business is backed by a valuable freehold property estate. However,
given the unprecedented situation, we have taken a number of
decisive actions to reduce cash outflows during this period:
-- All discretionary P&L spend has been eliminated,
including our room refurbishment plans, marketing, non-essential
training and staff recruitment and the postponement of the
previously announced incremental investment of GBP25m;
-- We are planning to place a significant number of our site
teams on a temporary furlough. All employees remain on full pay,
and we are working through the details of the recently announced
Government support package, which should pay up to 80% of the
salaries of those furloughed employees.
-- Repairs and maintenance capital expenditure has been reduced
to a minimum, with the business now only incurring costs where
there is a legal or health and safety requirement to do so;
-- All non-committed development capital expenditure has been
cancelled. This includes all refurbishments, extensions, freehold
builds and acquisitions in the UK and Germany. Capital expenditure
will only be incurred where there is a contractual obligation to do
so, and / or a site is significantly complete;
-- The Board has decided not to declare a dividend for the full year FY20.
The details of these proposals are still being confirmed and
further information will be provided at our full year results
presentation, currently scheduled for the end of April.
It is possible that closure of our hotels and restaurants (other
than those which will stay open to support key workers), as a
result of the Government's instructions, may amount to a technical
event of default under our banking arrangements and certain other
financial obligations of the Group. We are working with all
relevant parties to seek waivers wherever this is required or
prudent.
Whitbread warmly welcomes the recently announced Government
support measures for the hospitality industry. In particular, the
12-month business rates relief, which is expected to save the
business c.GBP120m in FY21, and the contribution to salary costs of
furloughed employees, the details of which are still being worked
through. Both these measures will have a material positive impact
on cashflow during the year.
Whitbread is a strong and much-loved business that has
successfully navigated numerous turbulent periods during its proud
278-year history. Today, the combined strengths of its people,
business model and its brands, alongside a strong balance sheet and
the decisive action being taken, means Whitbread is well-placed as
we face into this uncertain period.
The person responsible for arranging the release of this
announcement on behalf of the Company is Chris Vaughan, General
Counsel and Company Secretary.
This announcement contains inside information.
For more information please contact:
Investor queries | Whitbread | investorrelations@whitbread.com | +44 (0) 1582 888 633
Media queries | Tulchan Communications, David Allchurch / Jessica Reid | +44 (0) 20 7353 4200
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDEALDLADPEEFA
(END) Dow Jones Newswires
March 24, 2020 10:40 ET (14:40 GMT)
Whitbread (LSE:WTB)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Whitbread (LSE:WTB)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024