May 18, 2020 / 4:20 PM / 15 days ago

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

May 18 (Reuters) - SOLOCAL GROUP SA:

* 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: bit.ly/2ZgmGSQ Further company coverage: (Gdansk Newsroom)

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