Mulberry Group PLC Update on trading and impact of COVID-19 (2982H)
24 March 2020 - 6:00PM
UK Regulatory
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RNS Number : 2982H
Mulberry Group PLC
24 March 2020
FOR IMMEDIATE RELEASE
24 March 2020
Mulberry Group plc
("Mulberry" or the "Company")
Update on trading and impact of COVID-19
The board of Mulberry (the "Board") today provides the following
business update in light of the ongoing and rapidly evolving
situation regarding COVID-19.
The welfare of the Company's staff and customers is the Board's
main priority and it has been taking all appropriate action to
mitigate the impact of COVID-19 in line with Government advice.
The Board is also working to protect Mulberry's cash and to
secure future value for its stakeholders by proactively managing
its capital as well as identifying opportunities for cost
savings.
Current trading
The Board has carefully considered the potential impact of
COVID-19 on the Company's trading performance, including running
various scenarios as to the possible impact on sales, profits, and
cash flows.
Whilst the Board remains confident in the strength of the
Mulberry brand, recent trading in our stores, particularly in the
UK, has been severely impacted by the COVID-19 crisis. On 21 March
2020, the Board took the decision to close Mulberry stores in the
UK until further notice. It notes the latest UK Government advice
and is working on its implementation throughout the Company's
operations. In addition, the Company is reviewing its international
portfolio of stores on a case by case basis.
The Company's current financial year ends on 28 March 2020. In
its half year results announcement released on 13 November 2019,
the Company highlighted that it expected to be profitable and cash
generative in the second half of the year. As a result of the
impact on the Company's trading of COVID-19, the Board now expects
the Company to make a small loss in the second half.
Given the rapidly evolving nature of the situation, is not
possible to provide meaningful guidance on the Company's future
performance.
Financing
Mulberry has a robust balance sheet with net cash as at 20 March
2020 of GBP8.8m. The Company has additional liquidity through its
GBP19.0m of undrawn bank facilities and maintains a positive
dialogue with its lenders with regard to optimising its operational
flexibility and banking covenants. The Company has a supportive
majority shareholder and welcomes the measures announced by the
Government to support UK businesses through this challenging time.
Given the current circumstances, the Board has determined that it
is appropriate to suspend all shareholder distributions until
further notice.
Thierry Andretta, Mulberry's Chief Executive Officer, said: "Our
highest priority at this time is the health and safety of our
colleagues, customers, and all other stakeholders. Whilst it is
uncertain how long the virus will directly impact our markets and
our businesses, we remain confident in the strength of our brand,
and in our strategy over the long term".
For further information please contact :
Mulberry
Charles Anderson Tel: +44 (0) 20 7605 6793
Headland (Public Relations)
Lucy Legh / Emma Ruttle Tel: +44 (0) 20 3805 4822
GCA Altium Limited (NOMAD)
Tim Richardson Tel: +44 (0) 20 7484 4040
This announcement is released by Mulberry and contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR. This
announcement is being made on behalf of the Company by Charles
Anderson, Group Finance Director of Mulberry.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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