Downsizing of Serendib Investment Pte. Limited to see job losses by Aug 6th

About 60 people are likely to lose their jobs next month as Fijian Holdings Limited, the major shareholder of Serendib Investment Pte Limited (SIL) has announced the downsizing of the business operation of SIL (formerly known as “The Government Printery and Stationary Department").

FHL acquired majority shares of SIL in 2019.

FHL says the business venture into the printing business was to capture local printing and exploring the export market with a diversified range of printing services.

This was interrupted by COVID-19 in March 2020 as equipment bought to create capacity was not commissioned due to travel restrictions.

FHL says revenue was largely impacted during this time as well as schools remained closed, further limiting business opportunities for the company.

The rising cost of business driven by high material costs is further restraining business growth post COVID.

Serendib Investment is yet to report a profit since acquisition and as per the management account has accumulated losses of $6.719 million as at 30th June. The Net Assets stand at $0.280 million which is likely to be depleted to negative as a result of on-going losses.

The Directors of SIL in consultation with the shareholders have agreed to progressively downsize business.

This is to ensure that the company doesn't continue trading under insolvency.

FHL says the Board of SIL and FHL Management have started engagement with the employees and will follow due process under the Employment Relations Act to address the issue of redundancy.

This includes exploring opportunities within the group and assisting staff with external recruitments.

FHL says it’s decision to downsize business was to ensure the FHL Investment portfolio gives sound returns to its shareholders and non-performing entities are addressed accordingly.

We have been contacted by some employees saying that they were told on the 6th of this month that their last day at work will be on the 6th of next month.

Legend FM News has asked FHL how many workers will be affected by the closure, whether alternative employment will be found within the FHL Group, will there be a redundancy package and will the company close down.