Joules bins dividend to save cash
Joules has become the latest in a growing line of retailers to cancel dividends and draw down cash in a bid to ride out the coronavirus pandemic.
The high street retailer this morning said that since the outbreak of Covid-19 in the UK it had experienced a decline in store footfall and revenue which had “significantly accelerated” over recent days.
It said it expected the outbreak of the virus to continue to have an impact on its business and the retail sector over the coming months, but given the level of continued uncertainty, it was not able to provide financial guidance at this stage.
Joules has become the latest in a growing line of retailers to cancel dividends and draw down cash in a bid to ride out the coronavirus pandemic.
The high street retailer this morning said that since the outbreak of Covid-19 in the UK it had experienced a decline in store footfall and revenue which had “significantly accelerated” over recent days.
It said it expected the outbreak of the virus to continue to have an impact on its business and the retail sector over the coming months, but given the level of continued uncertainty, it was not able to provide financial guidance at this stage.
However, in a bid to navigate the anticipate decline in income, it said it was taking prudent actions to make sure it remained well positioned to deliver its long-term growth plans. Measures include removing cost and non-critical capex from the business and cancelling its proposed interim dividend, saving it £700,000 of cash.
Joules said it had £16m cash headroom, a strong relationship with Barclays Bank, and a supportive founder and major shareholder, Tom Joule.
Chief executive Nick Jones said: “The challenges that all retailers are currently facing are unprecedented in modern times. Our immediate and over-riding objective is to ensure the wellbeing and protection of our colleagues and our customers.
“Our teams continue to demonstrate a flexible, can-do attitude during this testing time, and I would like to thank my colleagues across the world for their continued commitment and positivity.
“While the group’s near-term profitability will be impacted by the sector-wide effects of Covid-19, the board is remaining focused on protecting long-term value for its stakeholders and managing the near-term pressures on the business.
“We have an outstanding, unique brand and a fantastic team. I am very confident that Joules will successfully emerge from this very difficult period in a position to continue to deliver its exciting long-term growth plans.”
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