The Tyro Payments Ltd (ASX: TYR) share price will be one to watch on the ASX on Monday.
This follows the release of a trading update this morning in relation to COVID-19.
What did Tyro Payments announce?
This morning Tyro Payments released its third trading update of the month, which appears to be an indication of how quickly things are changing because of the coronavirus outbreak.
Last week the company's shares surged higher when it revealed that its month to date transaction value (as of March 20) was up 20% to $1.19 billion.
However, given the significant number of restaurants and retailers that have closed since that update was released, you won't be surprised to learn that it has experienced a sharp slowdown in transaction growth.
According to today's update, Tyro's month to date (as of March 27) transaction value growth has slowed to 11% to $1,489 billion. Though, it is worth noting that year to date its transaction value is still up a solid 27% to $16.168 billion.
Prospectus forecasts withdrawn.
In light of this slowdown in its growth, management has decided to withdraw its prospectus forecasts.
Tyro's Managing Director and CEO, Robbie Cooke explained: "We had been on track to deliver our Prospectus forecast, however the unfortunate reality of the measures being implemented to contain COVID-19 have compressed our transaction growth rates and, with the current uncertainty both as to the duration of the pandemic and the extent to which it will continue to impact our merchants, we can no longer be assured of achieving our forecast."
"In addition, given the considerable uncertainty that remains, we are not in a position to provide a reliable forecast at this time. We will however endeavour to provide a trading conditions update when appropriate and plan to continue to provide weekly updates of actual transaction values as previously indicated," he added.
Positively, the company remains in a strong financial position. At the end of February, it had cash, cash equivalents, and financial investments of $154 million (excluding net banking funds).
