Telford-based Luceco cuts staff pay
Telford-based lighting products maker Luceco has made temporary pay cuts and furloughed a number of its employees to minimise the impacts of coronavirus.
The company, which is based on Stafford Park, has suspended its dividends, cancelled bonus payments, made temporary pay cuts, furloughed sales, administration and distribution employees, and stopped all discretionary spending.
The group sources nearly all of its products from China, but said there have been no infections in its worldwide workforce to date.
The coronavirus has not adversely impacted sales of the group's products and profit is expected to be in line with budget in the first quarter of the year despite supply disruption.
But it added the increasing constraints being placed on free movement by governments to contain the spread of the virus will have an "inevitable adverse impact on near‐term demand" across the industry.
Chief executive John Hornby said: "We enter this period of unprecedented uncertainty with our highest profitability, lowest leverage and with significant liquidity headroom.
"We have a comprehensive plan to minimise the disruptive impact of the coronavirus on our business.
"The plan ensures that we retain maximum flexibility to respond to a range of possible short-term outcomes to maximise long-term value.
"I believe our business model, healthy balance sheet and good financial performance provide a strong starting point.
"The group has already proven its ability to withstand challenges and I have the utmost confidence it will do so again."
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