24th Mar 2020 12:56
(Alliance News) - Automotive retailer Vertu Motors PLC said on Tuesday all dealerships have closed with immediate effect in the UK.
The firm added it is unlikely to declare a final dividend for its financial year ended February 29.
Shares were 8.4% higher on Tuesday afternoon in London at a price of 18.71 pence each.
This follows advice from the government that all non-essential stores close to try and stop the spread of Covid-19.
Vertu said it has a "very strong" balance sheet with low debt, significant assets, and liquidity.
However, it has still drawn a further GBP10 million from a revolving credit facility and is using additional used vehicle stocking loans.
Further, Vertu said it is in advanced talks with lenders over ensuring the availability of peak working capital facilities as well as covenant waivers.
Vertu is still taking a number of measures to try and reduce immediate costs. It will be asking for government financial help to pay staff, and is talking with landlords over rent.
The company said it is unlikely to pay a final dividend for its recently-ended financial year, which finished on February 29.
"Given these unprecedented and rapidly evolving events and the uncertainty over the duration of the disruption, it is not possible at this stage to predict the financial impact on the group for the year ending February 2021 and beyond," said Vertu.
On Monday, peer Lookers PLC also decided against a 2019 dividend, while Marshall Motor Holdings PLC withdrew a final dividend declared for 2019. Both automotive retailers have shut their entire estate.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Vertu