Ley Choon for now unable to determine size of financial hit from virus for upcoming FY

CATALIST-listed Ley Choon Group said on Monday that it is "unable to quantify nor determine the true extent of the financial impact" of the safe-distancing measures on its earnings per share and net asset value per share of the group for the financial year ending March 31, 2021.

The group, which does underground utilities infrastructure construction and road works, said that it has been able to continue operations in respect of limited urgent repair works that support the supply of essential services to the public, or that are essential to maintain public safety.

In an update on the group's operations and measures taken in response to Covid-19, the group is assessing the potential impact of the safe-distancing measures, government support and temporary relief measures on its business. It is also assessing and reviewing the Covid-19 (Temporary Measures) Act, which was passed on April 7, 2020 and is intended to offer temporary relief and support to local businesses and individuals affected by the pandemic.

The group has also implemented various initiatives for its workers living in dormitories, following the release of advisories by the Ministry of Manpower (MOM).

Key developments include the use of location-services apps, with the costs covered by the group to enable supervisors to track the location of team workers; the group is also sponsoring catering and laundry services for the welfare of its workers, monitoring their health and will create dedicated isolation facilities for those who become unwell.

Last Saturday,  the group said that government officials inspected its on-site dormitory at 3, Sungei Kadut Drive and interviewed the residents there, and expressed satisfaction with the measures taken and the living conditions; the officials raised some minor issues, which the group said it would address.

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Ley Choon said that as of Monday, April 27, none of the workers in its on-site dormitory had tested positive for Covid-19.

In view of the impact of the pandemic on global supply chains, the group has sought to increase stockpiles ofpipes and fittings "capable of lasting several months". After lockdown measures were implemented in China, the group obtained the bulk of its supplies from India and Malaysia. Upon lockdown measures being implemented in India and Malaysia and with the lifting of certain lockdown measures in China, the group turned to China as the source for the majority of its supplies.