The SeaLink Travel Group Ltd (ASX: SLK) share price has come under pressure in recent weeks.
Since this time last month the travel company’s shares have lost around 8% of their value.
This appears to have been driven by concerns over the impact that the devastating bushfires were having on its business.
In order to address these concerns, this morning the company released an update on the situation.
What did SeaLink announce?
This morning SeaLink announced that significant damage has been sustained to the SeaLink owned Vivonne Bay Lodge on Kangaroo Island as a result of recent bushfire activity.
At this stage, the full extent of the damage is not yet known. Management advised that a further assessment of the damage will be undertaken in the coming days when access is more readily available.
Thankfully, all guests and personnel were evacuated successfully from the Vivonne Bay property on Thursday in line with emergency service warnings and well ahead of the recent bushfire activity.
SeaLink advised that it carries appropriate insurance for the Vivonne Bay property and has access to alternative sites from which its operations and tours on Kangaroo Island may be operated.
As a result, it doesn’t believe the damage to Vivonne Bay Lodge will have a materially adverse impact on its earnings.
In the meantime, it is working with emergency services to assist and support emergency services, authorities, residents and staff impacted by the bushfires.
It is also working actively with governments to rebuild the island infrastructure and the tourism industry. This includes re-establishing operations from Vivonne Bay Lodge as soon as practical.
Also impacted by the dreadful fires on Kangaroo Island has been Kangaroo Island Plantation Timbers Ltd (ASX: KPT).
Its shares have been in a trading halt for a week whilst it assesses the damage to its plantations. Its latest update reveals that around 90% of the plantations on the island have been fire-affected.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.