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NAFPAKTOS TEXTILE INDUSTRY SA
Correcting note according to par. 2 ed. (H) of article 23 of law 3556/2007 on the interim semi-annual financial statements of the period from 1 January to 30 June 2020.
Considering the information mentioned in the Public Statement of ESMA (20 May 2020 ESMA32-63-972) and following the letter no. 2302/27.10.2020 of the Hellenic Capital Market Commission, regarding the impact of the pandemic in the operation of the company, we proceed to the following corrective note of paragraph G of the semi-annual Report of the Board of Directors as well as of note 22 of the interim financial statements as follows:
Since March 2020, when the World Health Organization declared COVID-19 as a pandemic, the company’s management has been closely monitoring all the relative developments and has been strictly following the instructions of the competent state authorities, taking the necessary measures for the safety of both its employees and the continuation of its business activity.
During the first two and a half months of 2020, the company was operating at 100% of its capacity and showed increased operating profitability compared to the same period last year. From the middle of March, following the decision of the Board of Directors from March 16, the temporary suspension of the operation of its production unit was decided. The suspension was deemed necessary due to the shutdown of most of its customers in Greece and abroad during the same period. For this purpose, it utilized programs to support employees in companies affected by the pandemic and put most of its staff on temporary suspension of employment until May 15, 2020.
The company restarted the production in the factory on May 18, taking all the necessary protection measures for the staff, modifying the arrival / departure times of the staff where possible and putting 50% of its administrative staff in telework mode. We estimate that the annual turnover, based on the available data so far, will be reduced by 30-35%, compared to last year, a percentage corresponding to the reduction of the operating time of the production unit. We must emphasize, however, that during the second wave of the pandemic, the future results of the company’s operations and its possible financial consequences cannot be estimated reliably at this stage.
The sound financial structure of the company, the “zero” bank lending and the constant vigilance of the management make sure the viability of the company and allow us an optimistic assessment that: by the time the effects of the pandemic subside, the company will return to its dynamic course.