(Sharecast News) - Window and door manufacturer Safestyle said on Tuesday that it is temporarily closing its locations across the country and will halt all installation activities amid the Covid-19 outbreak - a move that could have a "material" impact on 2020 trading.
Safestyle said it had modelled the impact of temporary closure over a prolonged period, making certain assumptions about the application of the measures announced by the government to support businesses and its colleagues, including the Coronavirus Jobs Retention Scheme and the VAT Deferral programme.
"The group is also awaiting an update from the government, which it expects to have within the next few days, of the support that it will help the group provide to its self-employed colleagues which it feels is crucial to so many people impacted as a result of this pandemic in both the group and wider country alike," it said.
The company said it was removing cost, including marketing costs and non-critical capital expenditure from the business.
"Based on these modelling assumptions and with the continued support of the government and the group's key funding partner, the board believes the group has the financial capacity to withstand the impact of a closure of its sites beyond the end of June 2020," it said.
Providing guidance for the year ending 31 December 2020 is "impossible" in the current environment, it said, until there is more certainty over the length and extent of the situation.
"The group will keep its temporary site closures and installation cessation under continuous review and provide further updates when appropriate," it said.
12 Jun 2014 08:50
Tuesday broker round-up UPDATE
Afren: Oriel downgrades from buy to hold with a target price of 145p. Aggreko: RBC Capital downgrades to neutral with a target price of 1700p. Betfair Group: Morgan Stanley raises target price from 1150p to 1260p and keeps an overweight rating. BG Group: Nomura downgrades to neutral with a target
Read more