EAB Group Plc starts a substantial cost-savings programme, postpones development investments and refrains from giving a guidance for full year 2020
EAB Group Plc, Inside Information, Stock Exchange Release, 19 March 2020, 9:00 a.m. (EET)
EAB Group Plc starts a substantial cost-savings programme, postpones development investments and refrains from giving a guidance for full year 2020
EAB Group Plc (EAB, Company) has following the Corona virus pandemic’s effect on markets and particularly its negative effect on stock markets started a substantial cost-saving programme. The programme aims at total additional savings of at least 1,3 million during 2020.
The goal is to achieve at least 0,7 million euros of savings through reduction of personnel costs. Due to this the Company starts co-operation negotiations with the personnel regarding the planned cost-savings programme. According to a preliminary estimate the plan would, if carried through, involve e.g. temporary lay-offs and the lay-off of at maximum 9 persons, if their tasks are not continued.
In addition, the Company postpones certain IT related development investments, resulting in a decrease in investments of 0,6 million euros during 2020. This is done to ensure that the Company’s capability to meet its financial obligations remains at a good level, if the market disturbance lasts longer or becomes worse. Also, the Company will reduce outsourcing of investment activities to enhance fee revenue. The goal is to achieve additional 0,3 million in fee revenue without increasing client fees.
In total the Company aims at achieving cost-savings of 1,3 million euros, 0,3 million euros of increased fee revenue and in addition a positive cash-flow effect of 0,6 million euros.
The purpose of the measures described above is the aspiration to be able to produce a positive result, despite of the negative market development. In the financial statements bulletin published on 14 February 2020, the Company forecasted that the result for 2020 will be positive and the ongoing turnover will increase slightly from 2019 level. However, as a result of the current market crisis, the future development of both the result and the turnover are very much dependent on external factors, and can fluctuate substantially, and are therefore very hard to forecast. As a result of this we will for now refrain from giving a forecast regarding the development of the Company result and turnover.
EAB GROUP PLC
Board of Directors
Further information:
EAB Group Plc
Daniel Pasternack, CEO
+358 50 569 3416
daniel.pasternack@eabgroup.fi
Elite Alfred Berg offers responsible investment and asset management services for private investors, institutions and professional investors. EAB Group uses the name Elite Alfred Berg as its marketing name. The Group's parent company EAB Group Plc’s share is listed on the Nasdaq Helsinki stock exchange. The Group companies include EAB Asset Management Ltd offering asset management activities, and EAB Fund Management Ltd acting as a fund company and authorised alternative investment fund manager. The Groups’ customer base consists of individuals and corporations that are served nationwide in 13 different locations. The Group employs 88 investment professionals, and over 20 tied agents provide its services. On behalf of its clients, the Group manages assets of over EUR 3 billion in total. Check out EAB Group’s services at www.eabgroup.fi.
DISTRIBUTION:
Nasdaq Helsinki Oy
The main news media
www.eabgroup.fi