In general, it is still possible to deliver customers as agreed. Many customers are in the same position: with a slower performance and reduced revenue, but relatively reasonable results compared to other sectors. For the time being, therefore, the risks and consequences have remained limited. ROTO is flexible, due to its strong liquidity position on the one hand and due to the more flexible conditions of its credit insurer on the other.
The nature and extent of the risks referred to here will depend in part on the duration and any intensification of the restrictive measures, both of which are impossible to predict.
“ The covid pandemic and the economic consequences are unpredictable
Zinc and steel prices are determined on the world market and are not insensitive to the consequences of the covid pandemic. The fluctuation of the zinc price has a direct opposite effect on the Business Unit Zinc recycling and Surface treatment. The fluctuation of the steel price has a direct effect on the Business Units Grating technology and Steel and Steel processing. Based on the existing revenues and inventory positions, ROTO has an unchanged purchasing policy that matches the size of the business activities.
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, both in terms of solvency and liquidity. The group has limited loan capital financing and it expects to continue to comply with the banking covenants. The obligations are limited as at the date of the 2020 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 2020 financial statements of Roto B.V. give a true and fair view of the course of events during the financial year 2020 and the organisation as at 31 December 2020 and that continuity is assured.
In view of the exceptional situation, ROTO cannot make any statements about the longer term. Nevertheless, the board is confident that ROTO will also withstand this exceptional crisis.