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maltatoday | SUNDAY • 6 JUNE 2021 18 COMMERCIAL Farsons reports subdued results SIMONDS Farsons Cisk plc has announced its financial results for year ended 31 January 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 alter- native opportunities to replace part of the lost customer base together with the assistance re- ceived from the Government of Malta under the wage sup- plement scheme have yielded a better than expected result in this pandemic year. The Group has retained its full workforce throughout the year despite sig- nificant reductions in its turno- ver and profitability. The Group reported profit before tax for the year of €4.4 million reflecting a decrease of €7.9 million, i.e. 64% lower than that reported for the pre- vious year. Group turnover for the year 2021 amounted to €73 million compared with €103.5 million the previous year, a de- crease of 29.4%. This reduction in turnover was experienced across all segments, with the higher drops being registered in the beverages importation operations and the franchised food retailing establishments both of which were heavily impacted by the lack of tour- ist traffic and the closure of bars and restaurants at various times during the year togeth- er with the cancellation of all mass events. However, the drop in the franchised food retailing establishments was partially mitigated by higher drive thru and home delivery volumes. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to €14.95 million, compared to €22.7 million last year. The Group's net indebtedness decreased by €15.6 million and now stands at €18.6 million due to meas- ures taken by the Board and management to curtail capital expenditure, destocking of in- ventory and a strong focus on trade collections, as well as certain VAT and social secu- rity payment 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 re- covery period. Profit after tax- ation amounts to €3.3 million. Farsons Group Chief Exec- utive Officer Norman Aqui- lina said, "The pandemic has unfortunately interrupted our 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 environ- ment in which we have had to operate." "Faced with this scale of dis- ruption and decline in con- sumption, our Group immedi- ately undertook a number of measures to ensure a safer, yet productive working environ- ment, whilst re-aligning our cost structures to preserve the financial strength we have de- veloped over the decades. As the spread of the contagion is contained and COVID-19 re- strictive measures are lifted, we are preparing for better days. We remain focused, motivated and hopeful – not only in over- coming the pandemic and re- gaining lost ground but also to pursue our long-term growth strategy," explained Mr Aquili- na. He also gave due apprecia- tion to the Group's employees who not only understood, but fully supported and collabora- tively responded to the meas- ures taken to mitigate the im- pact of the pandemic. Commenting on the Group's performance, Farsons Group Chairman Louis A. Farrugia said: "Given the extraordinar- ily difficult circumstances that the past year has presented to the Group, the Board is quiet- ly satisfied with these results and clearly is looking forward to better times. The decision to defer or suspend the decla- ration of regular dividends has not been taken lightly. How- ever, given the huge uncer- tainty that prevailed last year, the Board does not feel able to recommend a dividend with re- spect to the financial year un- der review. Should things go well, as it is hoped will be the case, then the Board hopes to favourably consider the declaration of an interim dividend at the time of the announcement of our half yearly results in September 2021." Mr Farrugia also referred to the Old Brewhouse invest- ment, reporting progress of this keenly awaited project. When completed, this pro- ject will promote the Group's proud industrial heritage and will house revenue earning fa- cilities such as the creation of a micro-brewery on the lines of specialized craft breweries which will enable the Group to tap into a new sector in the beer brewing industry as well as other innovative spaces and outlets. The Farsons Group will be holding its Annual General Meeting remotely on the 24th June 2021. Open a term deposit with BNF Bank and enjoy higher interest rates BNF Bank customers can watch their hard-earned savings grow without locking funds for years on end and benefit from ad- vantageous interest rates when opening a BNF Term Deposits account. One can opt between a Term Deposit or a Flexi-Term Deposit account with a guaran- teed return of interest on capi- tal. For traditional savers the classic term deposit account comes in a variety of terms starting from three months up to five years with very attrac- tive interest rates. The Flexi- Term Deposit Account offers clients the flexibility to with- draw funds before maturity if required, on set availability dates, whilst still receiving in- terest depending on when the funds are withdrawn. While choosing from a 1-year, 2-year or a 3-year term for the Flexi- Term Deposit, clients can earn interest of 0.75% p.a., 1.00% p.a. and 1.20% p.a. respectively. Further information is avail- able on the Bank's website w w w . b n f . b a n k / t e r m _ d e p o s - it_account and www.bnf.bank/ flexi_term_deposit. Custom- ers can chat with BECS, BNF's eCustomer Service agent ac- cessible through the website or Facebook Messenger or send a secure message through Inter- net Banking. Terms and conditions apply. The Bank reserves the right to amend or withdraw this prod- uct from the market at any time, at its sole and absolute discretion and without any prior notice. BNF Bank p.l.c. is a credit institution licensed to undertake the business of banking by the MFSA in terms of the Banking Act 1994 and is a member of the Depositor Compensation Scheme estab- lished under the Depositor Compensation Scheme Reg- ulations (Legal Notice 383 of 2015). Registered in Mal- ta C41030 - 203, Level 2, Rue D'Argens, Gzira, GZR1368, Malta.