13th May 2020 09:58
(Alliance News) - Marshalls PLC said Wednesday that sales for the first four months of 2020 declined due to the effects of the Covid-19 pandemic, despite attempts made by the group to mitigate the damage.
For the four months to the end of April, the landscape products maker's sales fell 27% at GBP131 million from GBP180 million, with activity suffering a steep drop in the last week of March and throughout April.
However, Marshalls noted an improvement of daily levels of activity in early May, and it currently is at 50% of its daily revenue compared to the same period in 2019.
To mitigate the effects of the pandemic, the company has taken steps to cut costs and maintain its liquidity. As part of these actions, the board and executive management have agreed to a 20% remuneration reduction, while senior managers have taken a 15% pay cut.
In addition, Marshalls has taken further steps to restructure its operations, putting forward proposals which include selective site closures, changes in shift patterns, and also to the size and structure of support functions.
The group noted that 400 positions, which represents 15% of its workforce could be impacted by these changes.
"Our operational planning continues to be dynamic and capable of reacting to the changing environment. We are closely monitoring cash flows to ensure that the business is in a strong position for eventual recovery. Our priority is to ensure the health and safety of our employees, and consequently detailed additional safety standards and procedures have been put in place, which are in line with current government Covid-19 guidance, to allow our sites to operate safely," Marshalls stated.
Shares in Marshalls were down 0.2% at 619.00 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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