3rd Apr 2020 11:14
(Alliance News) - Fuller, Smith & Turner PLC has furloughed a "vast majority" of its staff and withdrew its final dividend, the pub operator said on Friday, as it grapples with the financial hit from the Covid-19 outbreak.
Pubs are among the venues which have been forced to close due to lockdown measures imposed by the UK government.
The company said said: "Fuller's is grateful for the government's financial assistance to employees in furlough and, where 80% of their regular wage exceeds the government cap of GBP2,500 per month, the company has committed to top up the payment to the 80% level.
"During the current closure of the entire estate, steps have been taken to minimise all outgoings and to preserve cash. The company has suspended all non-essential capital spend and is negotiating across its supplier base to reduce costs further."
Included in its cost savings is the company cancelling its proposed final dividend. Fuller's said this will save it GBP6.8 million.
Chief Executive Simon Emeny said: "We have implemented a wide range of measures that will impact all our stakeholders, but will protect the business and ensure that we emerge in a strong position to build for the future. We are supporting our tenants by cancelling commercial rent payments, we will not be proposing a final dividend, we have placed over 95% of our team members in furlough and my board colleagues and I have taken a 25% reduction in pay."
Shares in the company were 2.0% lower at 685.92 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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