Fuel forecourt and service station operator Applegreen said it has implemented pay cuts across the organisation for a three month period, including cuts of 20% for executives. 

In a trading update, Applegreen said it has put new credit facilities in place as it converted €52.5m of its existing banking facilities into its revolving credit facility.

But it said it does not expect to draw them down as it has sufficient cash to get it through to the end of 2021.

"We reiterate our view that we have sufficient cash to get us through this cycle based on a scenario where movement continues to be severely restricted to the end of May with the expectation that restrictions will then ease gradually before normalising in Q4," the company said in a statement. 

"We also expect to have adequate existing cash resources to trade through a downside scenario where the recovery period is more prolonged, to the end of 2021," it added.

Applegreen said all its outlets remained open throughout the Covid-19 restrictions, adding that it has noted increased traffic volumes in recent weeks.

It said its core Applegreen estate in the Republic of Ireland, UK and US is performing ahead of its original assumptions at the outset of the pandemic.

The company said it expects to be cash positive from June onwards as working capital levels start to rebuild.

Buts its Welcome Break estate has been the most heavily impacted by the crisis and is seeing a higher rate of cash burn as the UK emerges from lockdown. 

"We are anticipating a gradual recovery in volumes and are in the process of re-opening some of our food offers to meet that increased demand," it stated.

Applegreen said its priority remains the welfare of its staff and customers. 

"We closely monitor government guidance in all the countries in which we operate in order to ensure the safety of our colleagues around the world as we continue to provide the essential service to the communities we serve," it added.

Shares in the company closed 7.8% higher in Dublin trade today.