Simonds Farsons Cisk plc - ‘COVID-19’ Market Update

On 8 April 2020, Simonds Farsons Cisk plc issued an announcement providing an update on how ‘COVID-19’ is impacting its business and operations. In this respect, Farsons explained that due to the high degree of uncertainty surrounding the potential duration of the current crisis and the travel, quarantine and other restrictions that have been (or which may be) put in place, it is not possible for the company to accurately assess the full extent of the potential impact on revenues and profitability going forward. However, the suspension of international travel and the closure of hotels, restaurants, bars and other outlets will have a material impact on both the food and beverages sectors of its business.

Farsons also explained that as part of its mitigation plans, it has already started implementing important measures to address the situation, including strict cost control, HR and working capital measures, lower production runs and the deferral of a number of capital expenditure programmes. At the same time, a freeze on all new recruitment as well as on the engagement of subcontracted and casual employment have also been implemented.

Farsons concluded by stating that the measures being taken are directed at protecting and preserving the financial strength and integrity of the Group, and in so doing upholding the interests of all its many stakeholders.

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