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The Aim 100 2020: part 2

Does a solid balance sheet matter if Covid-19 wipes out your business model?
The Aim 100 2020: part 2

Amid the Covid-19 pandemic, there can be no doubt that cash is king. Companies with low or no debt have trumpeted their foresight in keeping a steady balance sheet in preparation for this rainy day. But what if the cash buffers we discussed last week in part 1 of the Aim 100 aren't all they're cracked up to be?

The number three Aim company by market capitalisation, Fevertree Drinks (FEVR), has said it would “not be unaffected” by the pandemic, a clumsy way to tell shareholders the bar and pub side of the business’s sales would plummet through March and beyond. The on-trade side of the company brought in 45 per cent of sales in 2019. Fevertree is in a net cash position, and said last month it was “well positioned” coming out of the shutdown. 

The novelty of this crash compared with the last one is that the recovery will bring a different world, however. 

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