PERFORMANCE AND FINANCING
· Pre-COVID-19 revenues in line with last year
- COVID-19 had a material impact on revenues estimated at c£40 million
· Net cash flow improvement of £55 million reflecting progress on debt reduction plans
- Achieved despite COVID-19 impact on earnings
- Includes £61 million disposal proceeds through sale of 168 pubs.
· Additional liquidity secured and covenants amended beyond end of financial year
- £70 million additional facility to November 2020; £118 million headroom on facilities
- Covenant amendments and waivers on all finance facilities
- Cash burn of £10m per month in closure period following swift action on cost reduction
- Cash flow supported by very strong off-trade sales - up 55% since half year
OUTLOOK
· Transformational joint venture transaction
- Long-term joint venture between Marston's Beer Company ("MBC") and Carlsberg UK
- Retain 40% stake in a high quality beer business with significant synergy opportunity
- Receive up to £273 million equalisation payment - valuing MBC at £580 million
- Proceeds used to further reduce debt, target ongoing cash flow broadly cash neutral
- Transaction approved by shareholders 25 June and expected to complete in Q3 2020, subject to competition clearance
And later;
In addition, as previously announced, the Board believes that given the uncertainty surrounding COVID-19 it would be prudent to plan for no dividends to be paid in respect of financial year 2020. We recognise that the dividend is important to many of our shareholders and we plan to revisit the payment of dividends only when the business is generating sufficient cash flow to cover the dividend and it is appropriate to do so.
https://www.investegate.co.uk/marston-- ... 00041436R/