I have looked at Adair's survivability should the Covid-19 pandemic continue.
I have assumed a worst case scenario of all stores not trading and no increase in online sales. I have also conservatively assumed there is no rent abatement for any stores.
Based on its business profile, its creditor terms and assuming a complete shutdown of store operations Adair's has enough cash and undrawn lending facilities to survive for 6 months. This assumes no dividends are paid in this period as well. If online sales increase to 30% then Adairs has enough cash and banking facilities to survive indefinitely.
Given my calculations on some of my other holdings Adair's is the not on the list of entities likely to require a capital raising.
ADH Price at posting:
$1.22 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)