Applegreen performance ahead of 'baseline assumptions' for Q2 as virus restrictions ease

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Convenience food and beverage retailer Applegreen said current trading levels were ahead of its 'baseline assumptions' for the second quarter as the recent easing of movement restrictions across its markets had resulted in increased traffic volumes.

The company also beefed up its credit lines after reaching an agreement with its lenders to extend its credit facility.

The company converted €52.5m of the accordion facility in its existing Applegreen banking facilities into its revolving credit facility, which represented an increase to the committed funding available for the remaining term through to October 2023.

'Applegreen's lenders have also agreed to substantially relax or remove covenant conditions for the tests arising in each quarter up to and including June 2021,' the company said.

'The Welcome Break estate has been the most heavily impacted by the crisis and, as anticipated in our scenario modelling, has experienced a higher rate of cash burn as the UK emerges from lockdown,' the companhy said.

'We are anticipating a gradual recovery in volumes and are in the process of re-opening some of our food offers to meet that increased demand. The core Applegreen estate in the Republic of Ireland, UK and US is performing ahead of our original assumptions at the outset of the pandemic, and we expect to be cash positive from June onwards as working capital levels start to rebuild,' it added.

At 8:37am: (LON:APGN) Applegreen PLC share price was +10p at 280p