Apple green cuts executive pay but predicts recovery as travel ban send
FORECOURT giant Applegreen has announced it is cutting base salaries for its executive directors by around 20 per cent for the next three months but expects business to recover from June.
Applegreen currently has eight filling stations in Kerry with four in the Tralee area; two in Killarney and one each in Listowel and Rathmore.
The group has also implemented graduated salary cost reductions on a temporary basis for support staff across the organisation.
In addition, it has extended its revolving credit facility (RCF) to allow it greater liquidity flexibility as it navigates the COVID-19 crisis, according to a statement from the group.
Applegreen said its lenders have also agreed to “substantially” relax or remove covenant conditions for the tests arising in each quarter.
All Applegreen sites have remained open and current trading levels are ahead of predictions.
The recent easing of movement restrictions in each of Applegreen’s markets has resulted in increased traffic volumes.
“The core Applegreen estate 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 said.
In March Applegreen temporarily reduced headcount by more than 4,800 employees in Ireland and the UK, as well as deferring executive director bonuses, implementing a recruitment freeze and suspending its 2019 final dividend.