Wetherspoon soars pc after saying it has enough liquidity
S hares in Wetherspoon climbed by a quarter in early trading after the low-cost pub chain said it has “sufficient liquidity to maintain operations at a substantially lower level of sales.”
The group said it will cancel its dividend and delay most capital projects in an attempt to save cash reduce expenditures where possible, including the cancellation of the interim dividend
Combined with the Government’s announcement on business rates relief and credit guarantee facilities, this allows for sufficient liquidity, the company said.
Speaking to Bloomberg TV, boss Tim Martin, said Wetherspoon pubs remain open but sales had been “very low for the last three to four days”.
He said keeping the pubs open poses a “very minimal risk” to health once precautionary measure are taken, adding that a widespread lockdown of the economy is not a “viable long-term policy”.
The comments came after the company posted an increase in pre-tax profits and revenue for the six months to Jan 90.
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