The chief executive of North East food business Greggs has hailed the resilience of the company, despite it posting its first ever full-year loss as a listed company.
The Newcastle firm, which has more than 2,070 shops across the 海角视频, has published full year results for 2020 in which sales fell to 拢811.3m, down on the previous year鈥檚 拢1.167bn.
Pre-tax losses came in at 拢13.7m, which included Government support for job retention and relief from business rates - a marked change on last year鈥檚 拢108.3m profit.
Greggs said like-for-like sales in its company-managed shops were down 36.2% on the previous year鈥檚 levels, but it ended the year in a positive cash position, with additional liquidity available under a new 拢100m revolving credit facility.
While its shops are open for click-and-collect and takeaway, the business has been particularly affected by sales falling in city centre locations and transport hubs such as train stations.
It also made 820 staff redundant as a result of falling demand, but worked to keep redundancies down by asking staff to reduce their hours.
Trade at retail parks and in suburban locations has fared better, and the business has also benefited from investment in technology, including the delivery service it runs in conjunction with Just Eat. 9.6% of total sales in the first 10 weeks of 2021 have come via deliveries.
The latest lockdowns and restrictions since the start of the year have hit overall sales, with like-for-like sales down 28.8% in the 10 weeks to March 13.
Despite the challenges, chief executive Roger Whiteside remains positive for the future and has committed to opening 100 new stores this year, which will result in around 1,000 extra jobs.
Greggs is targeting more London locations, where it is under-represented, and said it would be taking advantage of opportunities while rents have been reduced because footfall is low.
And Mr Whiteside said there are still plenty of opportunities in a range of other locations around the 海角视频, saying: 鈥淭here are 13,000 retail parks in the United Kingdom - we鈥檙e got a Greggs in 100 of them. 鈥淭here are 8,000 petrol stations - we鈥檝e got a Greggs in 224. There are 2,000 large supermarkets in the United Kingdom run by the top three brands - we鈥檙e in 13. So we think there are plenty of new opportunities.鈥
During the Covid-19 pandemic the company reverted to only offering best-selling lines, but he said innovation will return, following on from successful launches of its vegan steak bakes and doughnuts. More vegan versions of bestsellers will soon be added, as well as new coffee machines offering more varieties.
He added: 鈥淕reggs has made a better-than-expected start to 2021 given the extent of lockdown conditions and is well placed to participate in the recovery from the pandemic. It has a clear strategy to extend its digital capabilities and to grow further in new locations, channels and dayparts. These opportunities will benefit all of its stakeholders in the years to come.
鈥淚n a year like no other I believe that the Covid crisis has in many ways demonstrated the strength of Greggs.
鈥淚t has shown the resilience of our business model, but most of all the strength of our people who have worked hard throughout to maintain an essential service providing takeaway food to customers unable to work from home, many of whom were themselves key workers. I would like to take this opportunity to thank all of our people, who can be proud of the part we played in our nation鈥檚 time of need.鈥
Chairman Ian Durant revealed Greggs is working up a succession plan for executives and non-executives, including Mr Whiteside, who turns 63 this summer having taken the helm in 2013. Under the 海角视频 Corporate Governance Code, Mr Durant would have been expected to step down, having served for nine years.
