SERSTECH AB: Serstech reduces cost to adapt to new market conditions
Serstech has initiated a cost-cutting program to reduce the impact of the changing market conditions after the Corona outbreak. All essential functions will remain intact, but the program has several contingencies which can quickly be activated if the current situation remains for a prolonged period.
Serstech’s customers are mainly within the security industry and all sales are done through tenders. Many customers have announced delays of the tenders, due to the fact that suppliers and resellers cannot deliver on-site demonstrations, which are mandatory components of the procurement process.Due to the recent rights issue, Serstech has strong financials and limited debt. Serstech will continue development of the new products, which are due to be launched this summer. The new products will place the company in a strong position to resume sales, as soon as travelling is possible and end-customer meetings can be scheduled.“Sales will be low for the coming months and we are taking actions to lower our spending fast. Since predictions are hard to make, we are taking every precaution so that we can remain in good shape”, says Stefan Sandor, Serstech CEO.For further information, please contact:
Stefan Sandor,
CEO, Serstech AB
Phone: +46 739 606067
Email: ss@serstech.comThomas Pileby,
Chairman of the Board, Serstech AB
Phone: +46 702 072643
Email: tp@serstech.com
Company website: www.serstech.comThis is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above at 08:45 CET on March 23, 2020.Certified advisor to Serstech is Västra Hamnen Corporate Finance AB, phone: 040-20 02 50, e-mail: ca@vhcorp.seAbout Serstech
Serstech delivers solutions for chemical identification and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com
