The year 2020-2021 will be marked by an exceptional health context.
How does this crisis affect CGP COATING INNOVATION in the field?
FREDERIC FROISSART | Managing Director
The economic crisis triggered by Covid-19 has turned the situation of economic players upside down. VSEs and SMEs seem to be the hardest hit, but this time the major groups, which generally fare better, have also seen their results collapse in the first part of 2020, even though their balance sheets remain solid.
While in 2008 the economic and social crisis rapidly led to a large number of redundancies and a further weakening of French industry, the situation is different this time. Many companies are now on a ‘drip-feed’ from the financial system, with the State able to support private agents thanks to the abundance of liquidity provided by zero interest rate debt, which was not the case in 2008.
For our part, we quickly learned three lessons from the crisis:
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Being an international and diversified group is a major advantage
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It’s essential to rely on collective intelligence
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We need to be agile in order to adapt in difficult times and maintain our ability to bounce back.
Since the start of the crisis, CGP COATING INNOVATION has been careful to honour its payment deadlines with all its suppliers so as not to risk weakening them. At the same time, we have set up a system for monitoring suppliers at risk, as well as customers at risk, in order to anticipate any crisis situation that could be detrimental to everyone.
Our good results for the 2020 financial year, including an increase in operating profit, have demonstrated the Group’s performance and resilience.
Our financial indicators remain in good shape, and the Group is benefiting from the confidence of its customers, which is not necessarily the norm in these turbulent times.