Management Board of IMS S.A. (“Company”, “Issuer”), with reference to current report no. 12/2020 of 16th March 2012, informs about current situation of IMS Group:
I. Sales and liquidity
January and February were the “standard” sales months. In March, with the lockdown lasting for 58% of the month days, IMS Group companies recorded a decrease in sales compared to February at the level of 5%-20%. The exception is IMS Events, where due to the specifics of the industry, basically all events were cancelled. Here, the decrease was over 80% (however, only by 77 thousand PLN in money terms). The key factor from the point of view of IMS Group is that we are maintaining the level of subscription locations. Customers generally do not terminate their subscription contracts, they expect mainly price discounts or temporary suspension of service – this applies to customers who, as a result of a decision of the state authorities, have had to close their outlets. On the other hand, a large number of advertising customers declare that the money unspent so far will be spent as soon as the shopping centres begin to operate normally.
IMS Group has unused credit lines of PLN 15 million available at the time of publication of this current report. Despite their maturity being in July this year, the Issuer’s Management Board, in order to ensure the financial security for the organization, has already started taking actions concerning extension of the said credit lines’ periods.
II. Austerity measures
The following austerity measures have been widely and efficiently implemented:
A/ Restructuring of employment. Employment in the entire IMS Group was reduced by 30 people (approx. 20% of the total). In addition, salaries were reduced for all employees in the entire IMS Group. Estimated savings from the above mentioned employment reduction measures are PLN 480 thousand per month. Applications for the government workplace subsidies have been submitted for the period between April and June. The estimated monthly subsidy amount is PLN 70 thousand. The total savings concerning the employment plus the subsidy for workplaces constitute more than 50% of the IMS Group’s monthly expenditure on fixed wages. The payment of all previously unpaid bonuses was suspended.
B/ Negotiations with suppliers. In the second half of March, we started renegotiating all possible costs in all the Group companies. Most of the companies cooperating with were very cooperative and agreed to various discounts and rebates. The discounts we obtained at the moment amount nearly to 100 thousand PLN/month in the period between April and June.
The Issuer’s Management Board follows the information concerning the so-called anti-crisis shield and the possibility of using various types of public support by IMS Group companies on a current basis.
III. Employees, functioning of the organisation
The IMS Group is functioning normally. The vast majority of our employees are working from. We are working all the time with our customers regarding sales and payments. Even in times of crisis we are acquiring new customers and signing contracts for new subscription locations.