AI assistant
EXPERIENCE CO LIMITED — Capital/Financing Update 2020
Mar 22, 2020
64892_rns_2020-03-22_ba57136a-8553-4811-bfc2-10ca4e0eb69d.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
23 March 2020
==> picture [245 x 69] intentionally omitted <==
EXPERIENCE CO LIMITED (ASX: EXP) COVID 19 OPERATING UPDATE
Experience Co Limited (ASX: EXP) today issues this update in relation to the impact of COVID-19 (‘coronavirus’) on our operations.
COVID-19 continues to be a significant and unknown quantity for the tourism industry, and domestic and global economies.
After reviewing Australian and NZ government advice with regards to non-essential services and social distancing all EXP operations have been suspended indefinitely. This will be reviewed on a weekly basis. The safety of the broader community, our customers, staff members and contractor workforce is our number one priority.
Since the emergence of the COVID-19 event in January 2020, the Group has been pro-active on mitigating the impacts of this event by enacting the following:
-
Improving our balance sheet quality announced as part of the Strategic Review in 2019 with the sale of GBR Helicopters in January 2020 reducing pro forma net debt to $7.3 million (as at 31 December 2019);
-
Accelerating and extending the operating cost saving initiatives flagged as part of the Strategic Review across the business. Included in this has been the staggered reduction of operating services, continued restructure of our operations, reduction and cessation of third-party consultants, cancellation of all non-essential travel and capital expenditure and permanent staff stand-down;
-
Continuing open dialogue and working cooperatively with our lender, NAB, as the strategic review and market conditions have progressed; and,
-
Working with Federal, State and Local Governments to secure direct assistance to alleviate EXPs cost base such as the recent announcement by the Queensland State Government to suspend all commercial charges associated with the Reef Fleet Terminal in Cairns.
These initiatives are all part of the Group stringently managing cash flow through the upcoming period.
The Group has not issued earnings guidance for FY20 and given the significant uncertainty in market conditions will be refraining from issuing any earnings guidance in the near term.
John O’Sullivan, CEO said “recent events are unprecedented for the tourism sector across Australia and New Zealand. We will continue to be proactive and mitigate the impact of these events on how we manage our business day to day. I am pleased to have a supportive board and committed workforce working in a measured approach to actioning contingency plans and navigating the business through these most uncertain of times.”
John O’Sullivan added “the safety of the community, our workforce and customers across activities remains paramount. We have proactively enacted this shut down to ensure that we comply emerging government and regulatory operating guidelines. While we cannot forecast with any level of certainty the duration nor recovery profile from this pandemic, our unwavering strategy is to minimise short term cash outflows and ensure we have a viable business and balance sheet at such times that conditions improve.”
This announcement has been authorised by the EXP board.
www.experienceco.com [email protected] T: 1300 601 899
Experience Co Limited ABN 56 167 320 470 ASX:EXP PO Box 5361 Wollongong NSW 2500
==> picture [245 x 69] intentionally omitted <==
Contact information:
John O’Sullivan Chief Executive Officer p: 1300 663 634 e: [email protected]
Owen Kemp Chief Financial Officer p: 1300 663 634 e: [email protected]
About Experience Co Limited (ASX: EXP)
Experience Co Limited (EXP) is an adventure tourism and leisure company. Founded in 1999 in Wollongong, Australia the Group has grown to a diversified adventure tourism business with core activities that include skydiving in Australia and New Zealand and Great Barrier Reef tour and diving and snorkeling experiences. The Group’s operations are located primarily on Australia’s eastern seaboard from the Great Ocean Road in Victoria, to Tropical North Queensland’s Port Douglas, complimented by the skydiving operation in New Zealand located in the world-renowned Queenstown region.
www.experienceco.com [email protected] T: 1300 601 899
Experience Co Limited ABN 56 167 320 470 ASX:EXP PO Box 5361 Wollongong NSW 2500