(Alliance News) - NewRiver REIT PLC said Monday its community pub business, Hawthorn Leisure, has closed all its sites with immediate effect, following the UK government's announcement on Friday last week of the temporary closure of entertainment and hospitality venues.
The FTSE 250-listed real estate investment trust said it has improved its financial position to GBP75 million in cash and GBP45 million in committed undrawn credit facilities, providing GBP120 million in available liquidity.
NewRiver REIT also said it has undertaken scenario testing for the loss of income from its pub portfolio, one of which assumes no pub income for the next six months, and a reduction in the company's retail portfolio for the next 12 months.
In this scenario, the group will still have in excess of GBP50 million in cash and GBP45 million in credit after 12 months, meaning it will remain compliant with its financial covenants.
Looking ahead, NewRiver REIT is looking to apply for the Covid Corporate Financing Facility programme, and noted that the UK government's business rates holiday will apply to its entire pub portfolio, which will save the company GBP5 million in cash flow over the next 12 months.
Shares in NewRiver REIT were 11% lower at 62.50 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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NewRiver (NRR)