Bakkavor, which has locations in Spalding with China and the United States, says COVID-19 has created significant operational challenges and has seen reduced orders in the UK, particularly in salads and takeout food products.
Despite an “encouraging start” to the fiscal year, the firm has committed to taking a number of measures, including strict cost control.
In a statement, the firm says, “We are reviewing the capacity of our facilities to better meet current demand levels and, where possible, will support all of the colleagues involved using the job retention program (Furlough) set up by the government. the UK.
“In addition to the proactive cash and investment measures we are taking, the Board has decided to suspend the proposed final dividend. We will review our dividend policy in due course.
“The members of the Management Board and the Management Board have also agreed to voluntary reductions in remuneration for the next three months: the Chairman and the non-executive Directors have agreed to a reduction of 50% in base salaries and fees, while the founders of the Group (CEO, Agust Gudmundsson and non-executive director, Lydur Gudmundsson) volunteered not to take wages during the period. The wider board has also agreed to a voluntary 20% cut in base salaries. ”