The Fiji Times » FHL to reduce SIL business operations; layoff talks begin

0

Fijian Holdings Limited will reduce the business operations of Serendib Investment Pte Limited (SIL) in which it holds majority shares, citing a significant loss of revenue at the height of the COVID-19 pandemic.

FHL had acquired majority shares of SIL – formerly known as the Government Printery and Stationery Department – ​​in 2019, with the aim of capturing local printing and exploring the export market with a diverse range of printing services. impression.

This was however interrupted by the COVID-19 outbreak in March 2020, and equipment purchased to build capacity was not brought into service due to the travel restriction.

The company said revenue was also largely impacted during this time as schools remained closed and this further limited business opportunities for the company.

“Rising cost of doing business driven by high material costs is further hampering post-COVID business growth,” FHL Group said in a statement via the South Pacific Stock Exchange (SPX) on Wednesday.

SIL has yet to report a profit since acquiring shares in 2019, but the group said that according to the management account, the company had accumulated losses of $6.719 million as of June 30; and net assets are $0.280 million, “which is likely to turn negative due to ongoing losses.”

FHL said that in consultation with stakeholders, SIL’s directors had agreed to wind down operations to ensure the company did not continue operations in the event of insolvency.

“The SIL Board and FHL management have entered into a dialogue with employees and will follow due process under the Labor Relations Act to resolve the termination issue. This includes exploring opportunities at the within the group and assistance to personnel for external recruitment.

“FHL’s decisions to scale back its operations were intended to ensure that FHL’s investment portfolio provides strong returns to its shareholders and that underperforming entities are treated accordingly.”

He said SIL’s Board of Directors and FHL’s management will actively participate in the transition for the best outcome of the company and employees.

Share.

Comments are closed.