It's not a great time to be trying to reduce debt through disposals with asset prices under pressure due to the impact of Covid-19 on the global economy and uncertainty over how long the pandemic will last. And yet that's the situation many companies find themselves in.

Ascendis Health has hired advisers as it pushes forward with the sale of more business to reduce rising debt, which pushed up its interest bill last year. Having restructuring its debt and improved its liquidity, hopefully it doesn't need to resort to a fire sale.

EPP also plans to sell some of its properties or introduce joint-venture partners to lower its debt. However, the Polish shopping centre owner says it will only do so at the right price and to the right partner.

Both companies released results yesterday and, unsurprisingly, neither is paying a dividend. After withholding its interim dividend, Netcare is unlikely to pay a final dividend either due to the impact of Covid-19 on its network of private hospitals. Still, it has reported an improvement as the year progresses and it re-evaluates how to deal with the pandemic - and how many beds to leave empty for prospective patients.

Meanwhile, Combined Motor Holdings and Calgro M3 have both warned that they will report interim losses as a result of the lockdown.

And ending with some good news: ArcelorMittal SA is restarting a blast furnace at its Vanderbijlpark site due to increased steel demand as stalled construction projects resume and due to a destocking of steel prior to the lockdown. Hopefully it continues.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

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