USP key management takes 30% pay cut amid Covid-19

KEY management personnel of USP Group have voluntarily taken a 30 per cent reduction in remuneration, with the middle management and the rest of staff taking a pay cut ranging from 10 to 20 per cent amid the Covid-19 pandemic, the watch-listed company said in a bourse filing late on Monday night.

These measures have taken effect from June 1 and will remain until further notice, said the company, which provides oil blending and property development services.

Other cost saving measures such as a headcount freeze have also been implemented to "tide the company through this difficult period", USP said.

Based on the firm's third-quarter financial results, with staff costs accounting for close to 48 per cent of its general and admin expenses, the pay cut measure will allow USP to save nearly S$1 million in a year, it said.

USP said the key priority now is to "conserve its financial resources", although it is unable to determine the financial impact of the outbreak at this time, due to the uncertainty of the operating environment for the group's various businesses.

It added that even with the "circuit-breaker" measures coming to an end and the gradual reopening of the Singapore work premises, "the company recognises that the economic and financial resources will remain challenging for the near future". USP said it remains committed to explore new business growth and will provide shareholders with information should there be material updates.

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Separately, USP has applied to the Singapore bourse for a two-month extension to announce its full-year financial results for FY2020 by July 31, instead of May 31. It has also applied for a two-month extension to hold its annual general meeting for fiscal 2020 by Sept 30, instead of July 31.

The company said it needs more time to consolidate the reporting figures for the company's financial statement in view of the "circuit-breaker" measures. It is now in the process of appointing its statutory auditors for FY2020 and will need more time to perform and complete the audit for this period, USP said.

In April this year, a substantial shareholder of USP applied for the company to be wound up. In response, USP said it will be resisting the application.

Shares in USP last traded at 7.5 Singapore cents on May 22.