North West businesses respond to coronavirus lockdown

Companies across the North West have responded to the lockdown imposed by Boris Johnson last night.

The Prime Minister ordered that only essential services can carry on working, leaving many businesses in limbo.

Among companies in the region making stock exchange announcements today was Bury-based leisurewear and sportswear retailer JD Sports.

It said it is closing all its stores in the UK, US and Europe and has postponed publication of its preliminary results until a date to be decided, in recognition of the Financial Conduct Authority’s call at the weekend for all firms to hold off from publishing results for at least two weeks.

JD Sports said today: “The board is satisfied that the combination of a strong balance sheet, net cash resources and the substantial working capital facilities available to the group in its various territories are more than adequate to meet the cash deficiencies which may reasonably be anticipated during the closure periods in our various territories.”

Executive chairman, Peter Cowgill, said: “Along with everyone else, the group is experiencing major disruption to our business operations as we seek to protect our colleagues and customers from the effects of COVID-19.

Peter Cowgill

“Their safety remains our number one priority and we continue to take all appropriate action in line with government advice in our various territories.”

Law firm Gateley said it remains highly resilient, with a strong client base and a well-balanced and diversified service offering.

It has mobilised staff to work from home in line with all Government guidelines and many parts of the business are currently busy assisting clients with COVID-19-related issues as well as other ongoing matters.

Gateley said trading until the end of February was in line with the board’s expectations, but activity has, understandably, reduced since March 1, 2020, as a result of the disruption caused by the COVID-19 pandemic to clients and to staff.

The board has decided to suspend financial guidance going forward until both the impact and duration of the COVID-19 pandemic becomes clearer, and said it believes that it would be prudent and in the best interests of all stakeholders to maximise the group’s short-term liquidity, which includes cancelling the interim dividend which was due for payment on March 31.

Chief executive Michael Ward said: “As a board, we consider these measures to be in the best interests of all our stakeholders. Gateley is a resilient and well-balanced business and our economic and geographically diversified business model is well-placed to withstand difficult economic conditions.”

Cheadle-based financial services firm Together said most of its staff are now working remotely from home, ensuring it can continue to provide service and support to customers and business partners during this difficult time.

It said: “For a temporary period we will not be accepting any new loan applications across our product range and we will focus our attention on those customers currently in our pipeline, ensuring an assessment of their current situation is undertaken whilst honouring our commitment of mortgage offers as appropriate.”

Together also confirmed the adoption of measures to support the Government’s recent announcement on three-month payment holidays.

Haulage firm Eddie Stobart Logistics said the firm is witnessing unprecedented demand for its services.

The Warrington firm said: “Economic uncertainty has led to market disruption, but we have implemented pragmatic measures to support our preparedness and ongoing ability to deliver services to customers to the same consistently high standards.

 “Like other key members of the supply chain, we are all experiencing exceptional volumes that we would typically see around Christmas. Due to effective planning, our business is well placed to continue supporting all our customers’ needs, fulfilling all work as usual, while also safeguarding the wellness of our employees.

“We applaud the Government’s recent announcement for recognising the key role the logistics sector are providing in such turbulent times.”

Meanwhile, building firm Redrow became the latest firm to cancel its dividend.

The Flintshire company said trading remained resilient in the first 12 weeks of the second half to 20 March 2020, with the value of net reservations up £121m at £525m compared to last year.

The firm’s order book is very strong, currently standing at over £1.4bn.

A statement said: “As the Government’s escalating measures to contain the spread of the virus take effect, it is inevitable our sales rate will be seriously impaired over the coming weeks and build output will be significantly affected by labour and material shortages. We also expect outlet openings to slip 2as local authorities delay planning committee meetings.

Given the ongoing uncertainty, we have also decided to cancel our 10.5p interim dividend amounting to £37m which was due to be paid on 9 April 2020 to holders of ordinary shares on the register at the close of business on 6 March 2020.”

Manchester-based business recovery, financial advisory and property services consultancy Begbies Traynor also put out an update.

The firm said it has a breadth of service lines with multiple sources of revenue and retains a strong counter-cyclical focus (accounting for 65% of income).

A statement said: “In these challenging times we will be working to ensure businesses and all stakeholders receive the appropriate advice to assist them in working through these difficult circumstances.

“As we reported with our half year results issued in December 2019, the group is in a strong financial position including having significant headroom on its committed bank facilities. We will provide an update on Q4 trading following the group’s year-end, 30 April 2020.”

Haydock plastics firm Coral Products said it will continue to make goods which are linked to helping overcome the present crisis, at the same time as releasing a trading update today.

It said trading for the current financial year ending April 30, 2020, currently remains in line with management’s expectations, despite the very difficult conditions arising from the current coronavirus pandemic.

However, it said it is unable to offer, with any confidence, any guidance for the following financial period to April 30, 2021.

And it said it is encouraged by the recently announced government measures, provided that those charged with their implementation act promptly and as the measures are intended.

As a group it derives around 70% of sales from products with uses related to the efforts to overcome the present crisis, such as home waste collection and recycling bins, food packaging, home delivery online totes, personal care and hygiene, and other products that support the infrastructure build for broadband and railways.

Joe Grimmond, non-executive chairman, said: “We are entering completely unknown trading, financial and social conditions, certainly in my 50 years of management. We must, as a nation, maintain our productive capacity whilst keeping at the forefront the health and well-being of our people.”

Pets at Home

Cheshire-based pets goods retailer Pets At Home is able to remain trading to provide essential pet products and emergency health care at a time when, it says, pets will play an increasingly vital role in our daily lives.

However, it has closed all its grooming salons, with those colleagues redeployed to support store teams.

The group said: “The welfare of our colleagues, partners, customers and pets remains our first priority.

“We have implemented all Government advice regarding social distancing across our business, and are fully commited to serving the needs of UK pet owners through this unprecedented period.”