Brief: Solocal Group Forecasts Slow COVID-19 Recovery In May And June

Solocal SE

18/05/2020 17:16

May 18 (Reuters) - SOLOCAL GROUP SA  LOCAL.PA :
    * FIRST ESTIMATE OF HEALTH CRISIS IMPACTS ON 2020-2023
TRAJECTORY
IMPACT ON THE FINANCING AND CASH SITUATION OF THE GROUP
    * FORECASTS A VERY SLOW RECOVERY IN MAY AND JUNE
    * IN TERMS OF ORDER INTAKE, THE HEALTH CRISIS IMPACT SHOULD
TRANSLATE INTO A DECREASE OF € 150 MILLION COMPARED TO THE
INITIAL 2020 BUDGET
    * OUTLOOK: 2020 FY EBITDA IS EXPECTED AT C. € 130 MILLION
    * SEPTEMBER SHOULD BE THE MILESTONE OF A PROGRESSIVE RETURN
TO
NORMALIZED BUSINESS ACTIVITY
    * EXPECTS A € 100 MILLION ORDER INTAKE DECREASE IN 2020
COMPARED
TO 2019
    * GROUP WILL BE FACING A LIQUIDITY NEED AS FOLLOWED: FROM
SUMMER
2020 UNTIL THE END OF THE YEAR: € 40 MILLION
    * GROUP IS EXPECTED TO RECORD A DECREASE OF AROUND 20% IN
SALES
OVER 2020 AND A DECLINE OF AROUND 15% IN DIGITAL SALES ALONE
    * GROUP WILL BE FACING A LIQUIDITY NEED AS FOLLOWED: AN
ADDITIONAL
REQUIREMENT OF € 35 MILLION IN THE FIRST HALF OF 2021
    * 2021 EBITDA WILL BE AFFECTED BY THE DECREASE IN 2020 ORDER
INTAKE AND THE END OF THE PRINT ACTIVITY, AND SHOULD THEREFORE
AMOUNT TO C. € 120 MILLION
    * FROM 2022 ONWARDS, THE GROUP SHOULD GENERATE OPERATING
FREE CASH
FLOW OF C. € 90 MILLION PER ANNUM
    * INITIATED DISCUSSIONS WITH ITS PARTNER BANKS AND THE
GOVERNMENT
AUTHORITIES TO BENEFIT FROM A “STATE GUARANTEE SCHEME” LOAN
    * SLOWDOWN WILL BE PARTIALLY OFFSET IN 2020 BY COST
REDUCTIONS AND
SUPPORT MEASURES ANNOUNCED BY THE GOVERNMENT, FOR TOTAL
CUMULATED AMOUNT C. € 40 MILLION
    * ANNOUNCES THAT IT MUST SUSPEND THE PAYMENT OF THE BOND
COUPON
DUE 15TH JUNE 2020
    * WILL BE ABLE TO DELIVER A RETURN TO GROWTH FROM 2021
ONWARDS
AFTER BEING AFFECTED BY COVID-19 HEALTH CRISIS IN 2020

Source text: https://bit.ly/2ZgmGSQ
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