NewRiver moves to calm panicked shareholders

Retail and pub landlord NewRiver issued a stock exchange statement after its share price fell nearly 70% to 60p in the month to 23 March. The company pointed out that it had £72m of unrestricted cash reserves and £45m of undrawn revolving credit facilities, giving available liquidity of £117m.

The company said it was also taking a “prudent approach” to preserving cash flow and reducing operational costs including suspending all non-essential capital projects, which would save £24m over the next 12 months.

“NewRiver remains a financially sound business with significant covenant headroom and a capital structure that is well placed to absorb a prolonged period of uncertainty,” it said.

The company has frozen dividend payments until further notice.

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