Warning

The content on this page has been converted from PDF to HTML format using an artificial intelligence (AI) tool as part of our ongoing efforts to improve accessibility and usability of our publications. Note:

  • No human verification has been conducted of the converted content.
  • While we strive for accuracy errors or omissions may exist.
  • This content is provided for informational purposes only and should not be relied upon as a definitive or authoritative source.
  • For the official and verified version of the publication, refer to the original PDF document.

If you identify any inaccuracies or have concerns about the content, please contact us at [email protected].

COVID-19 Infographic

Reporting during times of uncertainty

Five current questions investors seek information on...

The following questions for investors are grouped into three categories: Resources (covering questions 1 and 2), Action (covering questions 3 and 4), and The future (covering question 5).

1. How much cash does the company have?

Helpful disclosure might include:

  • The amount and nature of cash and liquid resources.
  • Where the cash is located within the group (legal entities, countries, currencies etc).
  • Whether there are any barriers to accessing the cash (capital controls, regulatory issues).
  • Whether there is an impact from accessing the cash, such as tax or other liabilities.

2. What cash and liquidity could the company obtain in the short-term?

Helpful disclosure might include:

  • Information about the company's short-term financing arrangements, facilities and other obligations and likely changes.
  • Information about the credit lines (committed and uncommitted, drawn and undrawn) the company has access to.
  • Whether the company has additional support e.g. from related businesses, shareholders, suppliers.
  • Whether there are any covenants that are being imposed or waived.

3. What can the company do to manage expenditure in the short-term?

Helpful disclosure might include:

  • Whether the company is changing its dividend policy or cancelling a dividend.
  • Information on the extent to which supplier financing schemes are being used, and what commitment the provider has given to maintain access to these schemes.
  • Information about the nature and timing of capital expenditure commitments, and whether there is any flexibility.
  • Information about any payments that may be deferred e.g. tax payments.
  • Information about the company's approach to its pension funding.

4. What other actions can the company take to ensure its viability?

Helpful disclosure might include:

  • Information of the nature of any government-backed support, by country and any conditions that attach to this.
  • Information about any stress testing/reverse stress testing carried out and how the viability of different parts of the group are being affected.
  • Whether there are any intergroup guarantees and commitments.
  • Details of how the board is monitoring the situation.

5. How is the company protecting its key assets and value drivers?

Helpful disclosure might include:

  • Plausible scenarios on revenue and costs over the short-term and into a longer transition period.
  • Details of the likely impact of shorter-term decisions on the company's key assets and longer-term drivers of value, e.g. people, brands, licences.
  • Approach to support for employees.
  • Information about how the company is managing commitments with customers where services are delayed.
  • Information about how the company might adapt its business model and strategy in the short/medium term.

More guidance is available on the FRC website - https://www.frc.org.uk/about-the-frc/covid-19

File

Name COVID-19 Infographic
Publication date 27 September 2023
Format PDF, 129.4 KB
Download original
Back to top