(Alliance News) -Â Immotion Group PLC on Tuesday said it is cutting operating costs and closely managing cash amid Covid-19 disruption.
Trading at a number of sites has been "significantly impacted" the last few days as attendances fell and a number of partners reduced opening hours, in some cases closing completely.
"As a consequence, the company will see a substantial reduction in revenue and contribution from these sites, which will, in the short term, affect our ability to reach our targeted monthly breakeven and, if the situation prevails or worsens, is likely to impact significantly on the full-year numbers," said Immotion.
A significant proportion of revenue is made during the summer school holidays, and on the expectation, normal service is resumed by July "we would expect to see a quick recovery in trading", said Immotion.
In this "challenging period", the company said it has started to reduce operating costs and has a "healthy" cash balance. Immotion said it will continue to "closely" manage cash in anticipation of a return to normal conditions.
"We are confident in our business model and demand remains strong but we are, unfortunately to a large extent at the mercy of events," said Martin Higginson, chief executive
"Many of our partners are looking to install in early June for the summer period," said Higginson.
"As with many leisure businesses, a significant proportion of our revenues are generated during holiday periods; as such we hope the current situation will, as it is in China, be under greater control by then and some normality will have returned."
Shares in the immersive virtual reality company closed down 47% at 1.40 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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