John Lewis Of Hungerford PLC COVID-19 Statement (9584H)
30 Marzo 2020 - 12:00AM
UK Regulatory
TIDMJLH
RNS Number : 9584H
John Lewis Of Hungerford PLC
30 March 2020
30 March 2020
John Lewis of Hungerford plc
(the "Company")
COVID-19 Statement
John Lewis of Hungerford Plc (AIM: JLH), the specialist
manufacturer and retailer of kitchens, bedrooms and freestanding
furniture, announces a trading update in relation to COVID-19.
Further to the Prime Minister's broadcast on 16 March 2020 in
relation to the worsening impact of COVID-19, the Company's
showrooms had been operating effectively on an appointment only
basis since 18 March 2020. Following the broadcast by the Prime
Minister on 23 March 2020 and in accordance with the UK
Government's edict requiring all non-essential retail to close, the
Board took the decision to temporarily close its showroom estate
with immediate effect, continuing to operate remotely, together
with instituting an orderly wind down of operations at the
Company's factory facility in Wantage, Oxfordshire and accordingly
ceasing production with effect from 27 March 2020.
The showroom and factory closures will remain in place initially
for a three week period. Production for orders against which a
deposit has already been received from customers will be resumed
when Government guidance confirms it is safe for employees to
return to the Company's manufacturing facility.
The Company's immediate focus is on cash preservation. The
Company is exploring all available options to mitigate the revenue
loss by implementing cost-cutting measures including cessation of
capital expenditure and seeking preferential terms from landlords
and suppliers. In addition, the Company intends to utilise UK
Government support measures, where appropriate for the Company,
including VAT payment holidays and PAYE deferral if required, while
evaluating additional bank funding via the Government guarantee
schemes. The Company will be furloughing staff, utilising the
Government's employment retention scheme thereby seeking to retain
all employees, wherever possible, as requested by the UK
Government.
At this time, it is very difficult for anyone to forecast when
the COVID-19 pandemic will abate such that normal life can
re-commence. The Company's revenues, as with many other UK
businesses in the home improvement and construction sector, will be
significantly impacted by the shutdown and the overarching
uncertainty in the global economy. Accordingly, we now have reduced
visibility on the financial implications for our Company.
On 27 March 2020, the Company had liquidity of GBP350k. The
Company had recently completed a formal independent revaluation of
its freehold properties, which resulted in an increased valuation
of GBP1.9m (compared with a balance sheet net book value of
GBP1.2m). We are now in advanced discussions with a new liquidity
provider in relation to increasing our net facilities against the
freehold, if required. The Company is also in discussions with its
existing bank in relation to liquidity.
In addition, the Company is preparing documentation in order to
apply for a loan under the Coronavirus Business Interruption Loan
Scheme for SMEs through the British Business Bank. It is not yet
known whether the Company would be eligible for such a loan.
The Company will provide further updates to the market, as and
when there is greater clarity on the impact of COVID-19 on the
business and wider trading environment, and the UK Government's
further public health policy measures.
Enquiries:
John Lewis of Hungerford plc
Kiran Noonan - Chief Executive Officer 01235 774300
Cenkos Securities plc
Katy Birkin/Russell Cook 0207 397 8900
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No. 596/2014 until the release of this
announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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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
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March 30, 2020 02:00 ET (06:00 GMT)
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