The year 2020-2021 is marked by an exceptional health context.
How does this crisis affect CGP COATING INNOVATION?
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.
Whereas 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 around. Many companies are now on a “drip” from the financial system, with the State able to support private agents thanks to the abundance of liquidity made possible by zero-interest 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, diversified group is a major asset
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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 beginning of the crisis, CGP COATING INNOVATION has been careful to honor 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 all concerned.
Our good results for the 2020 financial year, notably an increase in operating income, have demonstrated the Group’s performance and resilience.
Financial indicators remain on a positive trend, and the Group benefits from customer confidence, which is not necessarily the norm in these turbulent times.