Forecourt retailer Applegreen has outlined several measures to protect the company’s profitability and conserve cash amid uncertainty due to the coronavirus pandemic.
The company listed a set of short-term initiatives to conserve cash in a COVID-19 update on 24 March.
It includes, among others, tight management of working capital, freeze on recruitment, and negotiations with landlords for rental holidays.
The company’s board has decided not to recommend a final dividend in relation to 2019 at its forthcoming AGM, Applegreen added.
Impact Of Coronavirus
The roadside convenience retailer traded in line with expectations in the first 10 weeks of 2020, before business was impacted in the past two weeks due to measures implemented to control the virus outbreak.
The company added that presently all Applegreen stores will remain open to ensure the supply of essential products in areas where it operates.
It has also implemented an extensive range of measures to safeguard the health of its employees and shoppers.
Outlook
Applegreen expects a material reduction in profitability for the financial year 2020, although at present it is unable to quantify the impact of COVID-19 on its financial and trading performance.
However, the company's added that, "The Group has a strong management team in place with an excellent track record of delivery and the capability to respond and adapt quickly to changing market conditions.”
The Group also said that it expects to release its preliminary results for FY 2019 on Friday (27 March 2020), when it will provide a detailed briefing on its annual performance and current trading.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
