Bakkavor Group (BAKK)

Sector:

Food

Index:

FTSE Small Cap

 69.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 149.60
  • 52 Week Low: 58.60
  • Currency: UK Pounds
  • Shares Issued: 579.43m
  • Volume: 0
  • Market Cap: £399.80m
  • RiskGrade: 398

Bakkavor pullls guidance, suspends dividend amid Covid-19 outbreak

By Michele Maatouk

Date: Thursday 02 Apr 2020

LONDON (ShareCast) - (Sharecast News) - Fresh foods provider Bakkavor withdrew its 2020 guidance and scrapped its final dividend on Thursday due to the coronavirus pandemic.
The company said that following an "encouraging" start to the new financial year, the Covid-19 outbreak has created "significant" operational challenges, initially in China and more recently in the UK and US. This has led to increased volatility in daily order levels as well as some disruption to labour availability.

"While our colleagues and infrastructure have responded well in ensuring excellent service levels for customers, trading has been impacted and overall sales are below expectations," it said.

In the UK, which represents around 90% of group adjusted EBITDA, there has been a reduction in orders across all of its categories due to the outbreak, most notably in its salads and food-to-go products. In the US, orders have declined and the group said it is taking "appropriate actions" to limit complexity in its ranges, adapt its shift systems and review resourcing requirements.

In China, the outbreak had a significant effect on Bakkavor's business in the early months of this year. However, the situation has now stabilised, its customers have reopened most of their stores and its sites are resuming service as orders gradually rebuild.

Bakkavor withdrew the 2020 guidance it issued in February "given that market conditions are likely to remain highly uncertain for the foreseeable future". The company also said that all non-essential capital investment and discretionary expenditure has been placed on hold.

"We are reviewing capacity across our facilities to better match the current levels of demand and, wherever possible, we will be supporting any impacted colleagues by making use of the Job Retention Scheme (furlough) introduced by the Government in the UK," it said.

The company has decided to suspend the proposed final dividend and said it will review the dividend policy in due course. In addition, members of the board and management board have agreed voluntary reductions in remuneration for the coming three months. The chairman and non-executive directors have agreed to a 50% cut to their base salaries and fees, while the founders - CEO, Agust Gudmundsson and non-exec director Lydur Gudmundsson - have volunteered not to take a salary in the period.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Bakkavor Group Market Data

Currency UK Pounds
Share Price 69.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 149.60
52 Week Low 58.60
Volume 0
Shares Issued 579.43m
Market Cap £399.80m
RiskGrade 398

Bakkavor Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
98.02% above the market average98.02% above the market average98.02% above the market average98.02% above the market average98.02% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
75.86% below the market average75.86% below the market average75.86% below the market average75.86% below the market average75.86% below the market average
79.31% below the sector average79.31% below the sector average79.31% below the sector average79.31% below the sector average79.31% below the sector average
Income
90.26% above the market average90.26% above the market average90.26% above the market average90.26% above the market average90.26% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
55.41% below the market average55.41% below the market average55.41% below the market average55.41% below the market average55.41% below the market average
93.1% below the sector average93.1% below the sector average93.1% below the sector average93.1% below the sector average93.1% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 6
Sell 0
Strong Sell 1
Total 9
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bakkavor Group Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Sep-19 02-May-19
Paid 11-Oct-19 29-May-19
Amount 2.00p 4.00p

Trades for --2020

Time Volume / Share Price
0 @ 0.000p

Bakkavor Group Key Personnel

CEO Agust Gudmundsson
CFO Peter Gates

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