14th Apr 2020 11:01
(Alliance News) - Mitchells & Butlers PLC on Tuesday said it has implemented cost-cutting measures as it also secured a waiver from its lenders to prevent a breach of its financing arrangements.
The FTSE 250-listed pub owner - which operates the Harvester, Toby Carvery, All Bar One and Miller & Carter chains - said that over 99% of its employees have been put on furlough. It added that pay for the remaining employees and for the board has been cut by between 60% to 80%. Additionally operating costs have been reduced to the minimum, and all discretionary capital expenditure projects have been stopped.
Mitchells & Butlers noted that the government-enforced closure of its pub sites could result in a breach of its financing arrangements. However, it said its lenders have granted a waiver until May 15 in order to avoid a breach.
"Great uncertainty remains not only as to the extent of the current shutdown but also the profile of any reopening and recovery period back to normality. The group has material cash resources which we believe should be sufficient to fund obligations well into the second half of the year," the company said.
The stock was trading 7.9% lower at 204.95 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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