Nanogate expects significant negative effects from coronavirus pandemic, applies for financial aid from KfW Promotional Bank
Nanogate SE (Göttelborn, Germany), a leading global technology company for design-oriented, multifunctional components and surfaces, is expecting the coronavirus pandemic to have significant negative effects on sales, earnings and liquidity in the 2020 fiscal year. To ensure the continued existence of the group, Nanogate is applying for financial aid from the promotional bank KfW and is planning considerable cost cutting, including government-subsidised short-time work.
It is not yet possible to assess the full extent of the effects of the coronavirus pandemic on Nanogate’s sales, earnings and liquidity. At the same time, the management board assumes that sales and EBITDA in the 2020 fiscal year will fall significantly below the figures from 2019 (see publication of the preliminary, as-yet unaudited figures for 2019 from 17 March 2020) and that the liquidity situation will become even tighter. The expected decline in sales will mostly result from production stops from automotive manufacturers and flagging sales for nearly all customers and products. Nanogate is thus applying for financial aid from the promotional bank KfW in order to ensure the continued existence of the group. In addition, personnel and material costs are to be cut considerably, for example through the announcement of government-subsidised short-time work and limited employment of temporary workers. Temporary plant closures can also not be ruled out.
The management board is constantly, extensively monitoring the situation and will adopt further measures if necessary. Nanogate will inform the capital market, as required by law, about further developments.
Caption: The coronavirus epidemic has a significant impact on the industry (photo: @padrinan – pixabay.com)