ESPI Report 35/2020: Information concerning monthly sales and operational activities of Sescom Group

The Management Board of Sescom S.A. (“the Company”, “the Issuer”) shall provide the information concerning monthly sales and operational activities together with current impact of coronavirus outbreak on Sescom Group. At the same time the Company announces that since the beginning of the new financial year 2020/2021 it begins to publish monthly information about the Issuer’s sales value.

According to estimated, unaudited figures, consolidated revenue for October 2020 amounted to 11,2 million PLN, which means a 21% decrease over the same period of last year (y-o-y).

The lockdown imposition in a few European countries made an impact on the postponing of planned technical reviews at the end of the year. That was the key factor which affects the October sales level.

The consequence of imposed restrictions, known from second quarter of 2020, was a decline in tasks volume from clothing retail shops located in shopping galleries. On the other hand, increase in number of orders from groceries was also noticeable, which was the result of an extension of working hours.

Without regard to uncertain situation in European markets, Sescom Group provides operational activities aiming at achieving the goals outlined in the Sescom Strategy 2020 – 2030. Current situation across various Sescom business lines was presented below.

Facility Management

In Poland, work scheduled for October was realized normally: Sescom provided typical autumn AC technical reviews and prepared trade venues for upcoming heating season. Only when the restrictions appeared 7 November, the technical orders and reviews could be reduced in fashion stores located in shopping galleries. All planned work is provided normally for clients from other sectors. All tasks were realised under current health regime, along with technicians and customer’s staff maximum safety.

In Europe, in the first half of October the markets remained open. HoReCa and fashion sectors operated without obstacles and all scheduled work for them was provided. In the second half of the month, a few European countries imposed restrictions for trade venues. Sescom’s relevant foreign market – Germany implemented a light lockdown, which struck gastronomy and cultural facilities just at the beginning of November. Trade facilities in other significant European countries: the Netherlands, Slovakia, Czech Republic, Belgium, and Hungary, operated normally for the first three weeks of October. After that period shops were placed under restrictions concerning traffic limitations and working hours. In most of European countries restaurants are allowed to provide meal takeaway only. Possible effects of imposed restrictions may be seen in the Issuer’s sales for November. However, in the opinion of Management Board, the current restrictions will have a much less harsh effect on the level of sales than in March – May 2020 period.

Sescom IT Infrastructure

The work which relies on maintaining of IT infrastructure and installing new hardware and technological solutions, was provided on October as scheduled. The main customers were retail companies from grocery and chemist sectors and these enterprises operated without obstacles. The Issuer continued providing planned installation orders – implementation of self-cash-outs which support automatization in customers’ venues.

Sescom Store

In accordance with the return of restrictions imposing risk, the customers from retail sector limited investment in conventional modernisations. A new demand for re-fits supporting technological changes is actually generated by groceries and petrol stations. At the end of October, the team responsible for Sescom Store projects, have secured a contract pipeline until the end of January 2021.

Sescom Energy

As a result of return to trade restrictions, there is a noticeable increase in demand for optimalization services, as a method for reducing costs of trade facilities’ maintenance and increasing their operational efficiency. During October specialists from Sescom Energy business line provided efficiency services for existing retail customers, as well as performed pilot projects for potential clients. In October the team realised 2 new projects for hypermarkets chain and international fashion retailer. Other pilot projects were also scheduled for November.

Sescom Logistics Processes Support

The business line including technical maintenance for warehouse vehicles realised all planned work on October. The impact of business restrictions on main clients’ sectors: manufacture, storage, hypermarkets, was less relevant than in retail chains.

Sescom Digital

Business line responsible for developing technological solutions that support asset and inventory management, continues its B+R activities. The pandemic affects retail’s raised demand on support in implementing new technologies for processes efficiency improvement in the following areas: logistics, optimal stock volume, local warehouses management, and effective shipment and returns management. In October, the Digital line ended a pilot project for customer from petrol sector. During the project, customer’s equipment was marked by RFID tags in order to accelerate inventory checks and equipment identification. During next 3 months the Issuer is going to provide 2 pilot projects for groceries chain. The aim of projects is to present a service of dynamic stock management in numerous dispersed trade facilities.

Legal Basis: Article 17(1) MAR – confidential information

Signatures of the Company’s representatives:

Sławomir Halbryt – President of the Management Board