Marks & Spencer: drops guidance due to coronavirus
(CercleFinance.com) - British retailer Marks and Spencer said on Friday that it has withdrawn its guidance, removing its current profit forecasts due to the impact of the COVID-19 pandemic.
In a statement, M&S said its pre-tax profit forecast for the current financial year was, until this week, within the range of market expectations and in line with the guidance issued in January.
However, the final result could be at or below the bottom end of the range of 440 million to 460 million pounds, given "very depressed" trading in clothing and home, it said.
In the current crisis, the company said that it does not expect to make a final dividend payment for this financial year, resulting in an anticipated cash saving of about 130 million pounds.
The group said it has access to liquidity through its 1.1 billion pound revolving credit facility, maturing in April 2023.
"It appears the group has access to significant liquidity but the scale of the impact on clothing & home is a concern considering an 800 million pounds annual rent roll," analysts at Liberum said.
The M&S share was down over 5% in London after this trading update.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
In a statement, M&S said its pre-tax profit forecast for the current financial year was, until this week, within the range of market expectations and in line with the guidance issued in January.
However, the final result could be at or below the bottom end of the range of 440 million to 460 million pounds, given "very depressed" trading in clothing and home, it said.
In the current crisis, the company said that it does not expect to make a final dividend payment for this financial year, resulting in an anticipated cash saving of about 130 million pounds.
The group said it has access to liquidity through its 1.1 billion pound revolving credit facility, maturing in April 2023.
"It appears the group has access to significant liquidity but the scale of the impact on clothing & home is a concern considering an 800 million pounds annual rent roll," analysts at Liberum said.
The M&S share was down over 5% in London after this trading update.
Copyright (c) 2020 CercleFinance.com. All rights reserved.