The impact on the Addtech Group companies due to the Covid-19 pandemic has so far been limited. Demand in the fourth quarter has remained good in many markets and geographies. Addtech has a strong balance sheet and good financial stability.
The pandemic affects markets across the whole world and will also affect Addtech's coming financial year. There will be challenges in the supply chain and uncertainties exist around some of our customers' abilities to keep their businesses running at full capacity. It is currently not possible to say to which extent the Addtech companies will be affected, but we are preparing for assumed slowdown in sales in the coming period.
In order to be able to act quickly in the event of a slowdown, all the Addtech Group companies have prepared action plans and cost-cutting programs ready to be executed to protect earnings, liquidity and cash flow. The Addtech Group's companies have already taken a number of measures such as short-term working in accordance with the supporting measures that have been introduced in many countries. The CEO and Group Management have also decided to temporarily waive their fixed salary by 15% as of April 1, 2020 and all business unit managers have voluntarily committed a corresponding salary waiver of 10%.
"Of course we are really taken by the power of the pandemic, especially on a human level. We take relevant health precautions and try to keep us constantly updated on how our employees are doing in these circumstances. Our staff is our most valuable asset and these employees have often proven through Addtech's decentralized organization that they are good at adapting quickly in times of crisis," says Niklas Stenberg, president and CEO of Addtech. "We continue to monitor developments closely and adapt, and deploy, our action programmes and action plans as the situation changes", continues Niklas Stenberg.
Stockholm, April 7, 2020
Addtech AB (publ)
For further information, contact
Niklas Stenberg, President and CEO, +46 8 470 49 00
Malin Enarson, CFO, +46 705 979 473
This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact person set out above
on April 7, 2020 at 8.00. a.m (CET).
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