Inchcape PLC - COVID-19 Business Update
This announcement contains inside information
COVID-19 Business Update
The Board continues to closely monitor and assess the rapidly evolving COVID-19 situation in all our markets. The safety of our colleagues and customers is of paramount importance and we are taking all necessary precautions to safeguard them.
Trading in a large number of our markets has been impacted by closures or significantly lower business activity.
The Company has taken swift action to reduce discretionary costs and capex (benefiting from the flexibility of our Distribution model), and the Board/ senior management are taking a 20% reduction in fees/ salary during the second quarter to help support the business. Our strong relationships with OEMs are enabling us to manage our inventory across markets and we are well-advanced in reducing stock orders and extending payment terms.
We have stress-tested the impact of various conservative scenarios - including a prolonged period of global shutdowns followed by materially reduced activity throughout the second half of 2020 - and are comfortable that we have sufficient financial resources to navigate an extended period of disruption.
Given the high level of uncertainty around the duration and impact of COVID-19, we are exploring other debt options to further increase our liquidity and flexibility, including the Coronavirus Corporate Financing Facility launched by the
The Board announced on
Looking beyond the current environment, we believe
The Company will publish its trading update on
+44 (0) 20 7546 0022
+44 (0) 20 7457 2020
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Quick facts: Inchcape
Market Cap: £1.79 billion
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