In many of the markets where Sectra operates, COVID-19 related restrictions are being lifted or completely removed. Sectra is continuously reviewing the situation and adapting our operations in line with local restrictions. Given Sectra’s critical role in ensuring functioning health care and infrastructure, we are dedicated to ensuring we can avoid disruptions in our customers’ operations, ensure the health and safety of our employees as well as find new ways to add value for our customers.
Below you find answers to frequently asked questions (FAQ).
As we are a provider of medical imaging IT solutions for healthcare as well as cybersecurity services for government agencies and critical infrastructure, we have a decisive role to play in keeping our solutions, services and support available to our customers. They depend on our systems to function flawlessly so that they in turn can provide their services in this challenging situation. Accordingly, our number one priority is keeping our systems operational. We are in close contact with customers to ensure we are well-prepared to address their needs so that they can concentrate on helping their patients and safeguarding society.
We are ensuring that we continue to assist our customers, add value and protect the health and safety of our employees. This includes:
- Keep our solutions, services and support available to customers so they can ensure functional health and medical care as well as infrastructure.
- Safeguard the health of employees (and their families), customers and visitors to Sectra’s offices.
- Act calmly, preserve stability and keep a high standard in contingency planning.
- Maintain cybersecurity internally and among our customers.
- Ensure that customers, employees and other stakeholders understand how we are handling the situation and what measures we are taking.
- Continually evaluate and develop our approach to working remotely, both internally and with customers.
- Continually monitor and review the situation in order to adapt operations and avoid disruptions.
Our business continuity plans are in effect to support our systems, enabling our customers to focus on patient care and cybersecurity while also endeavoring to slow the spread of the coronavirus. Secure remote support will remain unchanged for the foreseeable future. We have the infrastructure in place to run 100% of our support remotely. Even if Sectra offices were to be quarantined, this would not impact our service delivery model. Support and service teams work remotely to reduce the risk of infection and to comply with restrictions from government authorities.
When Sectra secures a contract, meeting our established timelines and honoring our commitments is of the utmost importance for the company. Go-lives are planned months in advance and involve multiple staff members. We will continue deliveries according to existing deployment schedules where possible. We are continuously evaluating and developing our way of working and some of the ongoing deployments are being implemented remotely.
That said, for some hospitals, preparing and installing, or acquiring, new IT systems is not a priority at this time. This may, in some instances and in some regions, lead to delivery delays due to customer demands or limitations.
More than half of Sectra’s invoicing comprises recurring revenue, and as communicated in our financial reports, we see no reason to believe that this portion of the Group’s revenue would be affected more than marginally even if the situation were to worsen.
As per fiscal year 2020/2021, Sectra’s geographic markets as a share of Group net sales are as follows:
- USA 29%
- Sweden 24%
- United Kingdom 13%
- Netherlands 9%
- Rest of Europe 19%
- Rest of the world 6%
Sectra has a strong balance sheet with a positive net cash funds and a high level of creditworthiness. As of April 30, 2021, cash and cash equivalents and unutilized credit facilities totaled SEK 469.9 million and interest-bearing liabilities in the form of convertible debt instruments totaled SEK 2.9 million. Sectra routinely monitors the cash flow from operations, investments and financing to ensure that the Group has sufficient funds available to meet future anticipated and potential demands. For quarterly updates of our financial figures, see Financial reports.
Regional and national restrictions continue to apply to various extents. These restrictions entail an increased risk of delivery fluctuations, which could lead to significant variations in financial outcomes between quarters. The pandemic has promoted greater uncertainty than normal, which means that predicting what effects COVID-19 will have on Sectra’s financial performance going forward is more difficult than usual for management and the Board. Sectra are not unaffected, but we are well equipped to handle the situation with a strong balance sheet, positive cash funds and significant recurring revenue. Sectra has neither needed nor received any support in the form of reduced rent, furlough assistance or business transition support. No need for impairment is deemed to exist owing to the pandemic.
In our Annual Report and Sustainability Report 2020/2021 we provide an update on risks related to the outbreak. Potential consequences for Sectra that could impact future financial outcomes include, but are not limited to:
- Delays in installation projects.
- Temporary pauses in procurements.
- Temporarily decreased demand for Sectra’s products.