21st Aug 2020 13:33
(Alliance News) - Greencore Group PLC on Friday said it has temporarily ceased production at its Northampton facility due to the ongoing Covid-19 outbreak at the site and in the Northampton area.
Shares in Greencore were down 4.2% at 120.28 pence in London in afternoon trading.
Convenience foods manufacturer Greencore said the decision was made in consultation with government bodies including the UK Department of Health & Social Care and Public Health England.
This closure means all remaining colleagues at the Northampton site can self-isolate as a precautionary measure and is part of regional ongoing efforts to reduced the spread of Covid-19.
On Thursday last week, Greencore - which has its headquarters in Dublin, Ireland - reported that a significant number of employees had tested positive for Covid-19 and were self-isolating.
With the facility now closed, a proportion of production from Northampton has been moved to other Greencore network sites and the company said it is "working with the affected customer to help mitigate any production shortfall".
The temporary closure its expected to have only a "modest impact" on Greencore's adjusted earnings before interest, tax, depreciation, and amortisation in financial 2020. The company's current estimate is that the site will resume a "substantial level of production within 14 days".
"Greencore has been in constant contact with PHE East Midlands, Northamptonshire County Council, Northampton Borough Council and other government bodies, who have been hugely understanding and supportive of the group's response. The group will continue to work closely with them in order to bring the site back safely into production as soon as possible, as colleagues who are self-isolating begin to return," said Greencore.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Greencore