# Marshalls plc utilising Government’s differed tax scheme

- Link: https://www.directorstalkinterviews.com/marshalls-plc-utilising-governments-differed-tax-scheme/412812338
- Published: 2020-04-14T07:26:26+01:00
- Author: Giles Arbor

**Marshalls plc** (LON:MSLH), the specialist landscape products group, has today
issued a further update on the measures it is taking in response to the COVID-19
outbreak.

The Group is continuing to monitor the current situation and is taking all appropriate
steps to support the long-term interests of the business, its employees and other
stakeholders.

**Operational actions**

Marshalls has now implemented a detailed operational plan which includes the temporary
cessation of certain operations across its manufacturing network. Our operational
planning continues to be dynamic and capable of reacting to the changing environment.

We are closely monitoring cash flows to ensure that the business is in a strong 
position for eventual recovery. Discretionary expenditure is being controlled and
non-essential capital expenditure has been deferred. No actions are being taken 
at the expense of health and safety.

The Group is utilising the Government’s scheme which allows the deferral of tax 
payments that would normally have been payable in the period to 30 June 2020 and
is also utilising the furlough arrangements that are now in place.

**Board and Executive Remuneration**

With effect from 1 April 2020 until further notice, the Marshalls Board has unanimously
agreed to take an immediate 20 per cent reduction in its remuneration for the duration
of the crisis. The effect of this will be to reduce the salary of the Executive 
Directors by 20 per cent, including pension contributions, salary supplement and
2020 bonus payments which are calculated as a percentage of salary, and to reduce
the annual fees of the Chair and Non-Executive Directors by 20 per cent. Other members
of senior management have also voluntarily agreed similar reductions.

**Bank facilities**

Our banking partners, NatWest, Lloyds and HSBC, continue to be supportive. Each 
bank has confirmed its full support for an additional £30 million, 12 month committed
RCF facility to be provided. The discussions held have been positive and, subject
to the finalisation of documentation, are now well advanced. We anticipate the documentation
process to be completed by the end of April. These additional facilities comprise
£90 million in total and will strengthen the Group’s headroom as we continue to 
manage the current situation.

Including these additional facilities, the Group will have total bank facilities
of £255 million of which £230 million will be committed.

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