1Q 2020 Financial Notification of the company has submitted to the Financial Supervision Commission.
Through the explanatory notes:
Statement on the impact of COVID-19
This statement is made on recommendation of ESMA of 11.03.2020 to the financial market participants with respect to the impact of COVID-19.
We are taking measures to ensure the health and work fitness of employees, the continuous operation of our business and the activities related to regulatory obligations. In the period after 13.03.2020, the enterprises of Stara Planina Hold Plc group continue to operate with minimum deviations from the established operational mode while following the protective measures for limiting the contagion and spread of COVID-19. The group enterprise most affected is Elhim Iskra AD, where the production process had to be stopped multiple times due to order cancellations coming mainly from Italy, France and Russia.
The effect of the measures introduced by governments with respect to COVID-19 is having a major negative impact on the economic sentiments and global business environment. The information we have been getting from our customers over the last weeks is very uncertain and frequently changing.
The horizon of our forecasts in conditional upon the duration of the restrictive measures imposed by the governments due to the pandemic. Should the time frame of the measures be prolonged and the governments fail to strike the right balance between the restrictions that are having a negative impact on the business and the efforts to improve the conditions for industrial manufacturing, this could result in a devastating effect on the EU economy, including economic and financial collapses as an aftermath. That is why we cannot commit to any long-term forecasts going beyond a two-month period, let alone for the second half of 2020.
As at the date of this report, we have already projected worsening of the April and May results. The expected sales revenues in Stara Planina Hold Plc group for April are BGN xxx million, and for May we expect these to reach BGN ХХ million. The projected revenue for the period April-June 2020 suggests that we will be reporting a negative deviation of approximately BGN ХХ million below the business plan level and a ХХ% drop compared to Q2 2019.