BWP Management Limited (ASX:BWP) - Managing Director, Michael Wedgwood
Managing Director, Michael Wedgwood
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  • Retail showroom owner BWP Trust (BWP) is withdrawing its 2020 distribution guidance, due to the economic effects of COVID-19
  • The company owns 75 retail plots across Australia, 68 of which are home to Wesfarmer’s Bunnings franchise
  • Since the outbreak’s economic effects began to take hold in late February, BWP’s market share has dropped by around 33 per cent
  • BWP was eager to point out the strength of its balance sheet and currently has $129 million in cash and undrawn credit
  • The company is waiting for the current market volatility to subside before it will announce a revised guidance
  • BWP Management is up 9.89 per cent today, with shares trading at $3.00 apiece

Retail showroom owner BWP Trust (BWP) has followed numerous other companies by withdrawing its 2020 distribution guidance.

BWP has withdrawn the guidance due to the severe market downturn that has resulted from COVID-19’s prolonged economic impact over the past few weeks. 

The company owns 75 retail plots across Australia, 68 of which are home to Wesfarmer’s Bunnings franchise.

Since the pandemic’s economic effects began to take hold in late February, BWP’s market share has dropped by a third. 

Michael Wedgwood, BWP’s Managing Director, believes this step is necessary, given the unpredictable nature of the current market.

“As the impacts of the COVID-19 pandemic continue to escalate across our community and economy, we are acting swiftly, to not only protect our employees and stakeholders, but to ensure our business is financially robust, for what could be a sustained period of disruption,” he said. 

Despite withdrawing the guidance, the company referenced the strength of its assets and balance sheet. BWP currently has $129 million in cash and undrawn credit. 

The company was also quick to point out that it has no debt maturing in the next twelve months. 

Despite the announcement, BWP did not provide an expected date for a new guidance. Many companies are choosing to withhold any predictions or forecasts until the outbreak has come under control and the proceeding weeks regain some normality.

However, lockdown measures are continuing to ramp up around the world, and new confirmed cases in Australia still rising at an exponential rate. Precisely how long businesses and investors are supposed to operate blindly without any forecasts remains unclear. 

BWP Trust is up 9.89 per cent today, with shares trading at $3.00 apiece at 11:52 am AEDT.

BWP by the numbers
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