Steinhausen, 13. March 2020, Following the global spread of the coronavirus (‘COVID-19’) Selecta Group (‘Selecta’ or ‘the Group’) provides the following update.
The scale and impact of COVID-19 is expanding in a number of our end markets, particularly Italy. Despite this, the Group continues to operate in all countries including Italy. As the effects of the outbreak are significant especially in Italy, we are assessing different scenarios and are taking proactive measures to reduce the overall financial impact.
Due to the fast-moving nature of the situation and uncertainty around the course and duration of the virus, it is too early to provide any guidance as to the financial impact of COVID-19 on our business. We will continue to monitor developments closely.
Safeguarding the health and safety of our staff, customers and all our stakeholders is of the utmost importance to us and we continue to follow governmental and World Health Organisation guidance to implement protective measures across our operations.
Addressing and responding to this outbreak is the top priority across the whole Group and we will continue to work closely with our customers, stakeholders and local partners as the situation develops. We will provide further updates as we develop a clearer view of the potential impact on our business.
A key priority for 2020 is to generate positive free cash flow following financing and we started the year in a very disciplined way with a view that we would achieve this goal in the second half of the year. The COVID-19 situation has made this goal more challenging but we are actively putting in place extensive mitigation plans to improve cash flow and liquidity in the short-term. These plans include actions such as reductions in discretionary spend and temporary staff as well as adapting hiring plans and contract roll-outs to fit the changing demand.