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4 NEWS 27.5.2021 A world-disruptive pandemic, rapid changes in consumer behav- iour, lower margins and economic storms have exerted pressure on local businesses to re-think their strategic models and operational processes. Moreover, the signifi- cant growth in digital buyers dur- ing the pandemic turbocharged companies' digital plans, particu- larly in the payments sphere. Bank of Valletta saw nearly 40% increase in local businesses shift- ing to its digital batch-payments system, compared to the same period last year. "Over these past months, we've seen a drastic move towards digital payments by companies of all sizes, from small family business to large corporates. Cheque payments have also decreased by nearly 50% when compared to last year, rapidly taken over by payments over internet banking and other channels," stated Franco Xuereb, Executive eBanking at BOV. e business sector has been severely hampered by COVID-19. According to Tonia Naudi, Head Business Payments at Bank of Valletta, forward-looking business operators have moved from the traditional and costlier cash or cheque-based payments into more effi- cient and cheaper digital payments. In a scenario where cost manage- ment is crucial for sound busi- ness profitability, embracing digital payment solutions can translate in augmented cost-ef- fectiveness, speed and efficien- cy. "Habitual use of tradition- al payment methods may give the perception of convenience, and until companies switch, the hidden costs of cash and cheques borne by such compa- nies are rarely calculated," Naudi said. "Let's say a company with 50 employees shifts its monthly salary payments from cheques to digital payments. Cheque pay- ments would cost the company €600, whereas through the BOV Batch-Payments, it would incur just €72 – that's a cost saving of €528. And this without taking into ac- count slow payment turnaround, se- curity risks, errors from manual inter- vention, storage space requirements and manual recording, filing and rec- onciliation of accounts." rough the BOV Batch-Payments, supplier payments and salaries are batched into one file by the company issuing payments and uploaded as a single file on the BOV Internet Bank- ing. BOV to BOV payments are instant, whereas payments to beneficiaries whose account is held by other banks are carried out within 24 hours. Bank of Valletta has a wide range of options for B2B payments and payments to and from other parties such as employees and customers. Additional solutions include contactless EPOS terminals, internet and mobile banking and mo- bile to mobile payments. All digital services come at a competitively priced structure to encourage a business dig- ital plunge. Businesses targeting a more efficient and cheaper payment strategy can reach out to a BOV Payments special- ist on paymentsbusiness@bov.com or can apply online through https://www. bov.com/content/salaries-and-batch- payments-main. Further information can also be found on https://www.bov. com/Business. 40% increase in businesses shifting to BOV's digital batch payments PAUL COCKS SIMONDS Farsons Cisk plc recorded €4.4 million in profit before tax for year ended 31 January 2021, reflecting a decrease of €7.9 million - or 64% - when compared to that reported for the previous year. Group turnover for the year 2021 amounted to €73 million compared with €103.5 million the previous year, a decrease of 29.4%. This reduction in turnover was ex- perienced across all segments, with the higher drops being registered in the beverages importation operations and the franchised food retailing es- tablishments both of which were heavily impacted by the lack of tourist traffic and the closure of bars and res- taurants at various times during the year together with the cancellation of all mass events. However, the drop in the franchised food retailing establishments was par- tially mitigated by higher drive thru and home delivery volumes. The Group yesterday published its financial results for year ended 31 Jan- uary 2021 which was characterised by the declaration and evolution of the Covid-19 pandemic. The Group's vigilance throughout this difficult and unprecedented year to contain costs, seek alternative op- portunities to replace part of the lost customer base together with the assis- tance received from the Government of Malta under the wage supplement scheme have yielded a better than ex- pected result in this pandemic year. The Group has retained its full work- force throughout the year despite sig- nificant reductions in its turnover and profitability. Earnings before interest, tax, depre- ciation and amortization (EBITDA) amounted to €14.95 million, com- pared to €22.7 million last year. The Group's net indebtedness de- creased by €15.6 million and now stands at €18.6 million due to meas- ures taken by the Board and manage- ment to curtail capital expenditure, destocking of inventory and a strong focus on trade collections, as well as certain VAT and social security pay- ment deferral schemes introduced by government. The gearing ratio reduced from 25.9% to 16.8%. The tax charge in this year's results amounts to €1.1 million, an increase over the previous year despite the decreased profit. This is due to a reduction in the recognized deferred tax asset results due to the subdued profit outlook over the post COVID-19 recovery period. Profit after taxation amounts to €3.3 million. Farsons Group Chief Executive Of- ficer Norman Aquilina said the pan- demic had interrupted the Group's year-on-year growth in turnover and profitability levels. "Nonetheless, there is room for us to be reasonably satisfied when one considers the context of the very chal- lenging and complex environment in which we have had to operate," he said. "As the spread of the contagion is contained and COVID-19 restrictive measures are lifted, we are preparing for better days. We remain focused, motivated and hopeful – not only in overcoming the pandemic and regain- ing lost ground but also to pursue our long-term growth strategy." The Farsons Group will be holding its Annual General Meeting remotely on 24 June 2021. Farsons reports subdued results

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