Topps Tiles PLC COVID-19 Update (6356H)
26 Marzo 2020 - 01:00AM
UK Regulatory
TIDMTPT
RNS Number : 6356H
Topps Tiles PLC
26 March 2020
26 March 2020
Topps Tiles Plc
COVID-19 Update
Topps Tiles plc ("Topps" or the "Group") is today providing an
update on the impact of the COVID-19 pandemic.
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.
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.
Current Trading
Like for like sales in the Group's Retail business for the 12
weeks ended 21 March 2020 were down 3.1%.
Financial Liquidity
Topps remains in a good financial position, with a robust
balance sheet. The Group's committed GBP39 million revolving credit
facility has been fully drawn down, and the Group has approximately
GBP20 million of cash liquidity immediately available. In addition
to the above committed facilities, the Group has an GBP11 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 GBP19 million.
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 GBP9.5 million, and
the deferral of the VAT quarter payment will improve cashflow by
GBP3.1 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 GBP2.0
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.
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 prolonged period. In the event of a 12 week
closure of retail premises, followed by a further quarter of
materially reduced sales, when combined with the support detailed
above, the Group believes that its cash reserves will provide it
with good levels of liquidity for the remainder of the current
financial year. The Group has shared details of its modelling with
its lending bankers, who remain supportive.
Full Year Outlook
While assessing the outlook with accuracy is impossible, it is
clear that the COVID-19 pandemic will result in a material
reduction to our expectations for revenue and profit for the second
half of the financial year. In these circumstances, the Group is
withdrawing its financial guidance for FY20 and does not expect to
pay an interim dividend this financial year.
While the immediate outlook is challenging and uncertain, Topps
remains a resilient, market-leading business with good levels of
cash liquidity and a strong management team and the Board is
confident that the Group is well positioned to recover once the
situation normalises.
The Board continues to monitor the situation closely and will
provide a further update when appropriate.
Enquiries:
Topps Tiles Plc 0116 282 8000
Rob Parker, Chief Executive Officer
Citigate Dewe Rogerson 020 7638 9571
Kevin Smith / Nick Hayns
Note to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated products, targeting the UK domestic refurbishment
and commercial market and serving a retail and trade customer base
from 361 nationwide retail stores and four commercial
showrooms.
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy - inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service.
For further information, please visit
http://www.toppstilesplc.com/
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
UPDFZGZFGKMGGZZ
(END) Dow Jones Newswires
March 26, 2020 03:00 ET (07:00 GMT)
Topps Tiles (LSE:TPT)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Topps Tiles (LSE:TPT)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024