The coronavirus pandemic has had a serious impact on the market and the restaurant industry. The sudden change in the market has also considerably affected the operations of NoHo Partners.
As expected, the Group’s result for the second quarter of 2020 was negative due to the impact of the COVID-19 pandemic. Approximately 90% of the Group’s restaurants were closed in April–May. The business losses were minimised by quick and purposeful adjustment measures as well as government compensation.
We estimate that this financing package, together with other financing arrangements, is sufficient to ensure the company’s working capital for the next 12 months in spite of the potential prolongation of the uncertain market situation caused by the COVID-19 pandemic.
Since early June, the company has focused on the gradual resumption of its business in a restricted operating environment and financing operations through cash flow. We are currently operating in a restricted operating environment and moving ahead in accordance with our basic scenario, in which sales will be approximately 70–85 per cent of the normal level and the operating cash flow will be positive for the rest of the year. The time for reassessing the company’s strategy will come once the COVID-19 pandemic has been survived and business has resumed.
We announced on 9 June 2020, in conjunction with the publication of the result for the first quarter of 2020, that we will cancel our financial targets which were previously set for 2021. We will specify them and our profit guidance for 2020 later this year. We will also provide monthly reports on the development of our business during these exceptional circumstances.
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