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Stobart Group withdraws guidance 50pc of workforce on furlough
6th Apr 2020 12:51
(Sharecast News) - Stobart Group updated the market on the measures it has taken to date in response to the Covid-19 coronavirus pandemic on Monday, confirming that it had frozen all capital expenditure spend other than where it was considered critical for safety reasons.
The London-listed firm said its discretionary spend had also been deferred.
It said it has utilised the UK government's Job Retention Scheme to put around 50% of its more-than-1,500 employees on furlough as of 1 April, with all employees in continuing roles that allowed them to work from home now doing so.
The board and senior leadership had also agreed to 20% pay reductions, with all other non-furloughed management accepting 10% pay reductions.
A recruitment freeze had been in place since early March, Stobart said, with all variable pay awards deferred to August at the earliest.
Stobart Group also said it had utilised "all measures" made available by the government to help conserve cash.
"These steps have been taken both to maintain the operational capability of our core businesses and ensure they are well placed to gear back up when the recovery takes place," the Stobart Group board said in its statement.
"At all times we have committed, as a responsible business, to follow all government advice.
"The safety and wellbeing of our staff and the communities we operate in have been at the forefront of the board and management's thinking."
The company said the cumulative effect of the actions was to preserve its liquidity, and provide cash headroom.
Given the level of current uncertainty, particularly regarding the potential duration of the crisis, the board said it was also taking prudent steps to explore further funding options.
The board added that it was not possible to provide financial guidance for the full year at present, withdrawing all of its previously-made guidance.
"The challenges presented by the rapid spread of the Covid-19 virus have been significant," said chief executive officer Warwick Brady.
"However, I am immensely proud and humbled by the response of our people to this global crisis.
"We have acted at pace to put in place steps to safeguard our business in the immediate term, and our people have consistently understood and supported the actions we have taken."
Brady said that, despite the current challenges presented by the pandemic, Stobart still owned and operated aviation and energy assets with "significant" underlying value.
"There remain significant medium and long-term opportunities to further increase the value of the assets for our stakeholders.
"We are maintaining regular communication with our partners and ensuring we are well placed to get back to full operation quickly once this exceptionally challenging time has passed."
At 1241 BST, shares in Stobart Group were up 9.13% at 50.2p.
The London-listed firm said its discretionary spend had also been deferred.
It said it has utilised the UK government's Job Retention Scheme to put around 50% of its more-than-1,500 employees on furlough as of 1 April, with all employees in continuing roles that allowed them to work from home now doing so.
The board and senior leadership had also agreed to 20% pay reductions, with all other non-furloughed management accepting 10% pay reductions.
A recruitment freeze had been in place since early March, Stobart said, with all variable pay awards deferred to August at the earliest.
Stobart Group also said it had utilised "all measures" made available by the government to help conserve cash.
"These steps have been taken both to maintain the operational capability of our core businesses and ensure they are well placed to gear back up when the recovery takes place," the Stobart Group board said in its statement.
"At all times we have committed, as a responsible business, to follow all government advice.
"The safety and wellbeing of our staff and the communities we operate in have been at the forefront of the board and management's thinking."
The company said the cumulative effect of the actions was to preserve its liquidity, and provide cash headroom.
Given the level of current uncertainty, particularly regarding the potential duration of the crisis, the board said it was also taking prudent steps to explore further funding options.
The board added that it was not possible to provide financial guidance for the full year at present, withdrawing all of its previously-made guidance.
"The challenges presented by the rapid spread of the Covid-19 virus have been significant," said chief executive officer Warwick Brady.
"However, I am immensely proud and humbled by the response of our people to this global crisis.
"We have acted at pace to put in place steps to safeguard our business in the immediate term, and our people have consistently understood and supported the actions we have taken."
Brady said that, despite the current challenges presented by the pandemic, Stobart still owned and operated aviation and energy assets with "significant" underlying value.
"There remain significant medium and long-term opportunities to further increase the value of the assets for our stakeholders.
"We are maintaining regular communication with our partners and ensuring we are well placed to get back to full operation quickly once this exceptionally challenging time has passed."
At 1241 BST, shares in Stobart Group were up 9.13% at 50.2p.