Corona/COVID-19 pandemic

30 March 2020

On February 26th 2020, we activated our Pandemic Continuity Plan. Separate Corona/COVID-19 response teams were established in SD Worx.

Our Corona/COVID-19 response teams participate in daily calls to plan, monitor, respond effectively as the situation develops and evolves.

With concerns over spreading the illness, we have implemented protective measures applying all initiatives taken by the relevant authorities, including:

  • restrictions on the movement of people;
  • cancellation of conferences and large meetings;
  • work-from-home arrangements for personnel;
  • closures of facilities, head offices, operating branches; and
  • limits on non-essential travel.

We have a clear focus on protecting our people and our customer-facing services. To date, all our customer services have been up and running and customers receive the service they expect from us. We expect these trends to continue. Our service center in Mauritius is able to continue operations as usual. Our infrastructure has been designed to ensure that our business operations can quickly move to alternatives sites or locations when required, while remaining GDPR compliant, so that we can continue to confidently meet our obligations and protect our customer data.

We believe our people solutions will also benefit clients as we help them navigate the unprecedented challenges of COVID-19 and its effects on their employees and their businesses. We collaborate with our clients and their employees in an even more digital way, making full use of smart technologies to provide an excellent experience, wherever they are.

At this stage, it is impossible to assess the impact of the epidemic on consolidated revenue. The global fight against the novel coronavirus (COVID-19) has triggered an unprecedented impact on economic activity in some industries, including temporary staffing. In our most important markets (payroll related), we estimate a less severe impact. As it is impossible at this time to predict the length and depth of the effects, capital preservation is one of our most important objectives. Therefore, we have developed a plan to partly mitigate impacts on revenue by reducing costs and capital expenditure.

We have included measures (such as utilization of committed credit lines, …) to further secure the liquidity of the company. We expect to end 2020 with a healthy net cash position.

With significant liquidity headroom, there is no danger of breaching a debt covenant.