Solution Dynamics Limited (NZX:SDL) applied for NZ government wage subsidy based on the forecast that indicated revenue decline for more than 30% due to COVID-19. This application was lodged, and the wage subsidy received. However, initial results indicate that the company generated significantly better than expected revenue during the Level 4 lockdown.
As a result, the decline in revenue was about half the level required to be eligible for the wage subsidy and the move back to Level 3 means the wage subsidy threshold will not be met. The company has commenced the process to return the subsidy to the NZ government.