Softlogic Holdings PLC Chairman Ashok Pathirage recently stated that their immediate focus is on extending the cash runway and consequently, the company has converted inventory to cash where possible with exciting promotions that were enthusiastically received by worry-weary customers.

“Cash is king amidst prolonged uncertainty and our strategy is to manage EBITDA in the short term,” Pathirage told shareholders in the annual report 2019/20.

Speaking further, Pathirage stated that they have undertaken a Group-wide initiative to streamline costs which continues to be monitored and reinforced to support cash flow management.

“We have also renegotiated our interest rates with banks to reflect market rates which have declined sharply, supporting the bottom line and cash flow,” he said.

Pathirage further announced that the company signed contracts with third parties to expand and build their retail operations and added that work has commenced on many projects which will be completed in the near future.

“Our largest project on hand is the Odel Mall and the completion of this landmark has been deferred for 2023 in view of the delays experienced during the year. Our landmark hypermarket in Mount Lavinia opened in November 2020, realising part of our long-term retail strategy to build destinations offering unique retail experiences to consumers on par with developed markets. This retail utopia brings together three of our brands Softlogic Glomark, Odel and Softlogic Max in a sprawling 25,000 sq ft purpose built retail space offering a heady combination of chic, glamour, technology, choice and convenience for the entire family. This is expected to stimulate revenue growth as it appeals to a wider consumer segment, driving synergies and cost efficiencies in our exciting new retail model,” he said.