Incoming goods

The incoming flow of goods, although different for each Business Unit, may stagnate due to restrictive measures introduced by government authorities or supply problems at suppliers.

Stocks of steel, strip steel, zinc ashes and zinc are, for the time being, adequate to maintain trading and/or production activities in the coming weeks. It goes without saying, however, that a downturn in, or even cessation of, regular deliveries will disrupt the operations of ROTO companies or even bring them to a halt.

Outgoing goods

Although it is becoming more difficult to find haulage companies, it is still possible to supply customers. If client operations stagnate, deliveries will be delayed and invoicing will be affected. ROTO expects clients to ask for extensions of supplier credit. ROTO can be flexible due to its strong liquidity position on the one hand and due to more flexible conditions from its credit insurers on the other.

The nature and extent of the risks referred to here will depend in part on the duration of the restrictive measures and the possible intensification of the measures, both of which are impossible to predict at present.

The zinc price is under pressure as a result of coronavirus but steel prices continue to be stable for the time being. A lower zinc price has a negative effect on the Business Unit Zinc recycling and it reduces cost prices in the Business Unit Surface treatment. The ROTO companies have pursued a conservative purchasing policy in which the current stock positions are appropriate for the volume of business operations.

“ROTO has robust solvency and liquidity.

Thanks to a sound and conservative financial policy that has been pursued for a long time and the fact that tangible fixed assets are mostly owned, ROTO has a robust financial position in terms of both solvency and liquidity. The group has limited loan capital financing and it expects to be able to continue to comply with the bank covenants. The obligations involving an outflow of cash and cash equivalents are limited as at the date of the 2019 financial statements, as a result of which the organisation expects to have adequate financial resources to meet its financial obligations. The directors confirm that the 2019 annual accounts of Roto B.V. give a true and fair view of the organisation as at 31 December 2019 and that continuity is assured for the time being.

ROTO will make use of government support measures in good time when and where that is necessary. The Dutch government has now put a robust package of support measures into place. This is important because 45% of ROTO revenue comes from the Netherlands.

In view of the exceptional situation, ROTO cannot make any statements about the longer term. Nevertheless, the board is confident that ROTO will also come through this exceptional crisis.

Incoming goods

The incoming flow of goods, although different for each Business Unit, may stagnate due to restrictive measures introduced by government authorities or supply problems at suppliers.

Stocks of steel, strip steel, zinc ashes and zinc are, for the time being, adequate to maintain trading and/or production activities in the coming weeks. It goes without saying, however, that a downturn in, or even cessation of, regular deliveries will disrupt the operations of ROTO companies or even bring them to a halt.

Outgoing goods

Although it is becoming more difficult to find haulage companies, it is still possible to supply customers. If client operations stagnate, deliveries will be delayed and invoicing will be affected. ROTO expects clients to ask for extensions of supplier credit. ROTO can be flexible due to its strong liquidity position on the one hand and due to more flexible conditions from its credit insurers on the other.

The nature and extent of the risks referred to here will depend in part on the duration of the restrictive measures and the possible intensification of the measures, both of which are impossible to predict at present.

The zinc price is under pressure as a result of coronavirus but steel prices continue to be stable for the time being. A lower zinc price has a negative effect on the Business Unit Zinc recycling and it reduces cost prices in the Business Unit Surface treatment. The ROTO companies have pursued a conservative purchasing policy in which the current stock positions are appropriate for the volume of business operations.

“ROTO has robust solvency and liquidity.

Thanks to a sound and conservative financial policy that has been pursued for a long time and the fact that tangible fixed assets are mostly owned, ROTO has a robust financial position in terms of both solvency and liquidity. The group has limited loan capital financing and it expects to be able to continue to comply with the bank covenants. The obligations involving an outflow of cash and cash equivalents are limited as at the date of the 2019 financial statements, as a result of which the organisation expects to have adequate financial resources to meet its financial obligations. The directors confirm that the 2019 annual accounts of Roto B.V. give a true and fair view of the organisation as at 31 December 2019 and that continuity is assured for the time being.

ROTO will make use of government support measures in good time when and where that is necessary. The Dutch government has now put a robust package of support measures into place. This is important because 45% of ROTO revenue comes from the Netherlands.

In view of the exceptional situation, ROTO cannot make any statements about the longer term. Nevertheless, the board is confident that ROTO will also come through this exceptional crisis.