In its January 11 announcement, the company mentioned a liquidity risk, actually its ability to absorb late payments and continuing its business being partly due to, on the one hand the realization of the 2018 plan, while securing orders from some historical customers, and on the other hand the implementation of medium-term solutions for the reinforcement of its operating funds.
Concerning the current fiscal year, the corporate management of a historical customer, completely renewed during the first quarter, has decided to postpone one of its strategic programs.
In this context, on May 31, 2018, the liquidity risk is increased. The unaudited financial statements show accounts payable as well as tax and social due debts, respectively amounting to € 2 M and € 3.4 M (versus € 1.1 M and € 2.5 M respectively at the close of the half-year financial statements as of September 30, 2017, and versus € 1.5 M and € 1.8 M respectively, at the close of the financial statements for the year ended March 31, 2017).
In order to overcome this situation, the company, as a key supplier, is implementing a bridging solution to compensate this lag-time of the delayed program mentioned herein above, by relying on other historical customers able to accelerate their programs. Currently, the Revenue for the current fiscal year (recorded billings and billings of signed contracts in process) thus is secured at around 40% of the annual F19 target.
Furthermore, in the context of the authorization given to the Board of Directors by the mixed General Assembly of Shareholders on February 8, 2018, in order to carry-out a capital increase or bank financing, the company’s initiatives are in process for strengthening its operating funds.