StockMarketWire.com - Furniture and flooring retailer ScS said it had temporarily closed its stores and distribution network as the UK government tightens measures to restrict the spread of Covid-19.
ScS had it had been building a strong balance sheet, having drawn down £12m from its revolving credit facility on 17 March.
The facility was subject to covenants in respect of fixed charge cover, leverage and capital spending, it added.
The company also had £74.8m in cash at 23 March.
'In order to protect our financial position, we are reducing cash expenditure to protect our liquidity in the short term,' ScS said.
'The group has and will continue to evaluate existing capital expenditure plans.'
'The group also welcomes the government's swift action in suspending business rates for a year and the support for continued employment through the job retention scheme.'
ScS said it was impossible to provide clarity on the outlook for the weeks and months ahead.
'However, the board believes the group is as well positioned as it can be,' it added.
Story provided by StockMarketWire.com
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