2nd Nov 2020 09:30
(Alliance News) - Associated British Foods PLC on Monday said its estimates a GBP375 million loss of sales as a result of Primark store being forced to close again in England and the rest of Europe.
All Primark stores are temporarily closed in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia - accounting for 19% of the FTSE 100-listed company's total retail selling space.
On top of this, the UK government now intends to close non-essential stores in England for one month starting Thursday this week and ending December 2. Should this plan obtain parliamentary approval, it would mean that 57% of the company's total selling space would be temporarily closed from Thursday, with 156 Primark stores trading and 231 stores not trading.
Closure periods vary by market. Stores in France and Ireland are planned to reopen December 1, stores in Wales on November 9, stores in Spain on November 14, and stores in Belgium on December 13. The reopening date for Slovenia is yet to be confirmed.
AB Foods estimated that its loss of sales for the stores, including those in England, for the announced closure periods would be GBP375 million.
"Trading hours are also restricted in a number of other markets. Uncertainty about further temporary store closures in the short-term remains," AB Foods said.
"We are implementing the operational plans developed to manage the consequences of these closures and appropriate action will be taken to reduce operating costs. All orders placed with our suppliers will be honoured," it added.
The company's financial year ended September 12, at which time AB Foods had GBP1.56 billion of net cash before lease liabilities.
Excluding debt, it had gross cash before lease liabilities of GBP2.03 billion and, combined with its GBP1.09 billion of undrawn committed revolving credit facilities, liquidity of GBP3.12 billion.
AB Foods will announces its annual results on Tuesday.
Shares were down 2.2% at 1,659.73 pence early Monday in London.
By Anna Farley; [email protected]
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