19th Mar 2020 11:27
(Alliance News) - Young & Co's Brewery PLC on Thursday said it too early at this stage to quantify the impact on earnings from the Covid-19 pandemic for the remainder of the year to April-end without knowing how long its pubs will be affected.
Young's said it has commenced a programme to reduce costs and has decided to provide a rent holiday for tenanted pubs for three months.
"We do expect closure of some or all of our pubs, at some time, but hopefully only for a short period. Closure will inevitably impact earnings, but to some extent this would be mitigated by welcome government relief on business rates," the company commented.
Young & Co's currently has committed facilities totalling GBP235 million from banks and private placement lenders.
Patrick Dardis, chief executive of Young's, said: "We have a resilient business underpinned by great people who we will support through this crisis. However, let's be in no doubt that with pub closures imminent, albeit hopefully for only a short period, all businesses in our sector will be severely impacted. We remain confident in our strategy for the business."
Shares in the company were trading 6.3% lower at 900.00 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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