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Greggs receives £150mln in government help, cash burn is slower than expected

The group's weekly cash burn until the end of June will be £3.5mln, unlike the £5mln it estimated last month

Greggs PLC (LON:GRG) has withdrawn £150mln from a financial support initiative launched by the Bank of England and HM Treasury.

The Covid Corporate Financing Facility (CCFF) scheme provides a short-term loan to large UK businesses hit by the coronavirus pandemic

READ: Greggs rises despite closing all its stores, cancelling final 2019 dividend as coronavirus pandemic bites

In a statement, the group said the credit available under the scheme is enough to provide cash for a prolonged closure period, even the whole year.

The FTSE 250-listed baker added that its weekly cash burn until the end of June will be £3.5mln, unlike the £5mln it estimated last month. From July onwards, the burn will be £4.5mln, which includes rentals.

As of Thursday, the food-to-go chain had £47mln in the bank.

Greggs shares were 5% lower at 1,760p on Thursday afternoon.

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