‘Several Initiatives To Offset Declining Revenue’
With Polaris Holding Company having seen a 25% decline in container cargo and a 43% decline in breakbulk cargo, the company said they are taking several initiatives to offset their declining revenue, with the company saying that “if SSL were to do nothing, we would suffer a loss in the region of $1M.”
In a filing with the Bermuda Stock Exchange [BSX] said, “Like the rest of the island, SSL has been severely impacted by the Covid-19 pandemic.
“Our financial projections for fiscal 2021, following the ‘shelter in place’, suggested a 10 – 15% decline in cargo volumes for the year. The reality is that over the first quarter of this fiscal year, we have seen a 25% decline in container cargo and a 43% decline in breakbulk cargo.
“We have considered several initiatives to offset our declining revenue and it is our intent to implement these on or before 01 September:
- “Suspend Lunchtime ‘Over the Road Service’ – This will provide a saving of $120K per year.
- “Outsource the Garage – SSL presently supports a garage of 8 staff who have responsibility for the maintenance and repair of our dock handling equipment. The cost of maintaining payroll and benefits for this operation is just under $840K per year. It is our intent to outsource the garage function.
- “Suspend the hiring of new staff – Between January 2020 and December 2021, SSL has 9 staff retiring or retired; they will not be replaced. This represents a saving of just over $1M.
“SSL’s priority is to do everything possible to maintain the employment of our staff and to sustain the business. If SSL were to do nothing, we would suffer a loss in the region of $1M.
“We believe that the impact of Covid-19 will last through the next two to three years. These steps position SSL to stand firm through this period and to come out of it in a solid financial position.”
Maybe cutting the upper executives pay 50% would help.