AX Group has provided an update on the state of the business across its four major sectors: construction, development, healthcare and hospitality, amid the COVID-19 pandemic.

The announcement was made on the Malta Stock Exchange pursuant to listing rules and sheds light on the kind of cost containment measures being actioned.

AX Group’s various business sectors have been affected to different degrees by the pandemic, with the hotel arm of the Group bearing the brunt of restrictions taken by the authorities to protect people and contain the spread of the virus, reads the company statement.

“This segment has historically been the largest of the AX Group’s businesses and thus the suspension of international travel will continue to have a material impact on this division.”

It currently has various four and five star hotels in Sliema, Qawra and Valletta.

With regard to the construction sector, the business continues to operate. While some restrictions have impacted efficiency, these constraints are not deemed material by the group.

The Group’s construction business focuses on civil engineering works, turnkey assignments and restoration works. It has overseen landmark projects such as the restoration of St Paul Catacombs and the super structure of the Parliament in Valletta.

As for the care arm of the business, with AX Group having built the first retirement village in Malta (Hilltop Gardens, Naxxar), it was said while impacts by restrictive measures have been experienced the commercial effects are overall positive.

“The development sector has experienced pressure on income from rental of residential and commercial property which are not deemed material but the dividend stream from its investment in Valletta Cruise Port has been significantly impacted.”

AX Group’s development arm is best known of Verdala Mansions or The Falcon house apartments.

Following an update across its sectors, an update was provided on strict cost management, including changes to work patterns and a reduction in working times, a freeze on sub-constructed labour as well as the delay of certain capital expenditure projects.

“Based on the forecasts prepared by management, the Board expects the company to meet its payment obligations to bondholders, as announced to the market in its recent company announcement.”

The company has also set up a help line for its bondholders who may have queries. The contact number 79010592.

The Group was established 44 years ago by Angelo Xuereb is owned by the Xuereb family, with the second generation actively involved in the business.