COVID-19 Update

RNS Number : 4606J

Marshalls PLC

14 April 2020

 

14 April 2020

LEI: 213800S21IFC367J5V62

COVID-19 update

Marshalls plc, the specialist landscape products group, issues a further update on the measures it is taking in response to the COVID-19 outbreak.

The Group is continuing to monitor the current situation and is taking all appropriate steps to support the long-term interests of the business, its employees and other stakeholders.

Operational actions

Marshalls has now implemented a detailed operational plan which includes the temporary cessation of certain operations across its manufacturing network. Our operational planning continues to be dynamic and capable of reacting to the changing environment.

We are closely monitoring cash flows to ensure that the business is in a strong position for eventual recovery. Discretionary expenditure is being controlled and non-essential capital expenditure has been deferred. No actions are being taken at the expense of health and safety.

The Group is utilising the Government's scheme which allows the deferral of tax payments that would normally have been payable in the period to 30 June 2020 and is also utilising the furlough arrangements that are now in place.

Board and Executive Remuneration

With effect from 1 April 2020 until further notice, the Board has unanimously agreed to take an immediate 20 per cent reduction in its remuneration for the duration of the crisis. The effect of this will be to reduce the salary of the Executive Directors by 20 per cent, including pension contributions, salary supplement and 2020 bonus payments which are calculated as a percentage of salary, and to reduce the annual fees of the Chair and Non-Executive Directors by 20 per cent. Other members of senior management have also voluntarily agreed similar reductions.

Bank facilities

Our banking partners, NatWest, Lloyds and HSBC, continue to be supportive. Each bank has confirmed its full support for an additional £30 million, 12 month committed RCF facility to be provided. The discussions held have been positive and, subject to the finalisation of documentation, are now well advanced. We anticipate the documentation process to be completed by the end of April. These additional facilities comprise £90 million in total and will strengthen the Group's headroom as we continue to manage the current situation.

Including these additional facilities, the Group will have total bank facilities of £255 million of which £230 million will be committed.

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Enquiries:

Martyn Coffey	Chief Executive	Marshalls plc	[phone]
Jack Clarke	Group Finance Director	Marshalls plc	[phone]
Andrew Jaques		MHP Communications	[phone]
Charlie Barker

Note to the Editor:

About Marshalls:

Established in the late 1880s, Marshalls is the UK's leading manufacturer of superior natural stone and innovative concrete hard landscaping products, supplying the construction, home improvement and landscape markets.  Marshalls provides the product ranges, design services, technical expertise, innovative ideas and inspiration to transform gardens, drives and public and commercial landscapes.

Marshalls operates its own quarries and manufacturing sites throughout the UK, including a national network of manufacturing and distribution sites, and has operations in Belgium and sales representation in other international markets.  As a major plc, Marshalls is committed to quality in everything it does, including the achievement of high environmental and ethical standards and continual improvement in health and safety performance.

Forward-Looking Statements:

Any statements in this release, to the extent that they are forward-looking, are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the markets in which Marshalls operates.  It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated.  More information about the factors that may affect Marshalls' performance is contained in the Annual Report to shareholders for the year ended 31 December 2019.

 

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