The board of
The Group expects the first quarter revenue and EBITDA to be largely in line with expectations.
The Group expects revenue for second quarter to be comparable to Q2 2019. Furthermore, the Group expects to see a material contraction in second quarter EBITDA as a direct result of restrictions upon the public and ability to maintain services.
The Group expects to see a gradual recovery of EBITDA during third quarter with an expected return to largely normalised trading patterns during the final quarter of the year, subject to current uncertainties in economic recovery.
The Group's recently issued 3-year guidance stands firm for now, implying that
The Group's revenues and EBITDA from discretionary and elective services will be impacted, in particular in the second quarter, in the wake of public advice to stay away from clinics, general lock-downs and patient's reluctance to visit for non-emergency conditions, and may continue in subsequent quarters for 2020. There is considerable uncertainty of the scale and duration of these impacts. The group is taking prudent actions to minimize the financial impact where needed and will reduce investment activities over the rest of 2020.
The Group has in excess of €200m of undrawn credit lines. As investment will be prudently curtailed in 2020 the group has sufficient liquidity to manage a further protracted downturn scenario than currently foreseen. During the second half of 2019 the group issued €140m of long-term debt that significantly increased the Groups average debt maturities.
To ensure the Group has the maximum available financial resources to manage the uncertain outlook, as well as to take advantage of opportunities expected to arise in this macro-economic crisis, the Board of Directors have not recommended any dividend payment to the AGM, reversing the intention announced in the Group's year-end report.
For further information, please contact:
+46 703033272
hanna.bjellquist@medicover.com
This information is information that
https://news.cision.com/medicover/r/dividend-withdrawn-and-potential-effects-of-covid-19-virus-on-q1-2020-and-remainder-of-2020,c3068847
https://mb.cision.com/Main/15662/3068847/1218025.pdf
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