9th Apr 2020 13:25
(Alliance News) - Bakery chain Greggs PLC on Thursday said it has "partially" accessed the UK government's Covid Corporate Financing Facility scheme by securing GBP150 million and continues to keep "all options" open to address current and future financing needs.
Shares in the bakery and food-on-the-go company were down 4.0% at 1,775.00 pence each in London.
Chief Executive Roger Whiteside said: "The board considers that the credit available to Greggs under the scheme is sufficient to meet the company's liquidity needs for a prolonged closure period, including a scenario where our shops are unable to trade for the rest of the year".
Greggs, after receiving clarification of UK government's Job Retention scheme and following further examination of cost base, expects to record net cash outflow of GBP3.5 million per week until June-end whilst its 2,050 retail outlets remain closed.
From July-onwards, cash outflow is anticipated to be GBP4.5 million per week.
Previously, the company predicted weekly outgoings of GBP5 million. It has kept its stores closed since March 24.
The FTSE 250-listed company currently has GBP47 million in the bank, before the receipt of GBP150 million government funding.
"Whilst many uncertainties remain, we have ensured that Greggs and its many stakeholders will be well-supported through this difficult period and that the Company will be in a position to return to profitable growth as soon as conditions allow," Whiteside said.
By Tapan Panchal; [email protected]
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