20th Mar 2020 11:07
(Alliance News) - Electra Private Equity PLC on Friday said measures taken by the UK government to combat the spread and effects of Covid-19 will hurt the trading performance of its portfolio companies.
The investment trust said all casual restaurant chain TGI Fridays will close from Friday in line with government advice to practice social distancing. Production in retailer Hotter Shoes factory in the UK has been temporarily suspended, however dispatches from its warehouse will continue to serve the company's UK and US direct to consumer businesses.
Although Sentinel's business will be hurt, the negative impact will be mitigated by the company's business model and winter seasonality, Electra said.
The trust noted the UK government's announcement that all retail, hospitality and leisure businesses will be given a 100% business rates holiday for the next 12 months. It said it believes that the government's support combined with its cash balances, and the ongoing support of banking partners will help each business to survive and "emerge strongly".
"I congratulate and thank our management teams and all staff at both TGI and Hotter for their sensible and timely response to the evolving crisis. We will continue to work tirelessly with our colleagues and business partners to do everything we can to ensure our businesses come through this very difficult situation successfully," said Electra Private Equity Chair Neil Johnson.
The stock was trading 0.6% higher at 238.42 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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