ESPI Report 17/2020: Information on current impact of coronavirus outbreak on activities of Sescom Group

In connection with the ESPI current report No. 6/2020, No. 10/2020 and No. 12/2020 The Management Board of Sescom S.A. (“the Company”, “the Issuer”) shall provide the report concerning current impact of coronavirus outbreak on operational activities of Sescom Group.

According to preliminary estimates of the Issuer, consolidated sales generated in May, 2020 will decrease approx. 10% compared to sales generated in May, 2019 and will reach 9,1 million PLN. The reduction of work in foreign countries had the greatest impact on the difference y-o-y. The foreign subsidiaries responsible for FM work reached 1,6 million PLN sales in May, compared to 3,4 million PLN corresponding month of 2019.

The phasing out of trade restrictions in Poland and other countries leading in terms of sales: Germany, Czech Republic, Hungary, Slovakia and the Netherlands, is a fostering phenomenon for operational activities of Sescom Group. Since May shopping centres have operated in new sanitary regime, what resulted in relaunch of revision and service work scheduled in first quarter of 2020. That positive tendency reflects the value of Sescom sales – which had, back in April 2020, amounted to 7,2 million PLN (-25,8% y-o-y).

The all Sescom business lines operate normally, comply with hygienic conditions during operational work. Due to closure of borders between particular UE countries and risk of quarantine, tasks and projects which required international business trip have been limited.

Since 1 June office workers return to stationary work gradually. Sescom offices work in compliance with governmental recommendations concerning sanitary standards: the workers have access to cleaning supplies, protective masks and gloves or helmets. An access to common spaces has been restricted.

The Management Board of Sescom recognise an increase in the volume of work as a consequence of progressive release of restrictions concerning particular economy sectors in UE countries. Sescom Group maintains income level allowing for stable existence and continuous growth. In the Management Board opinion, there is no risk of the inability to collect the outstanding claims of significant value.

Temporary shutdowns of trade facilities across countries, which are the area of the Company’s commercial activities, may have a negative impact on the Issuer’s business and may affect its financial results. Therefore, the Company monitor the current impact of coronavirus outbreak and local governments’ decisions on operational activities of Sescom Group in order to effectively prevent negative trends and use governmental instruments in particular countries. The information on incidents that may be crucial to economic situation of the Company and its Capital Group, will be provided immediately as ESPI current reports.

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

Signatures of the Company’s representatives:

Sławomir Halbryt – President of the Management Board