The Management Board assumes that 2016 will be another year of the growth of the Group’s sales and profits. Sales revenue and profits will be higher, and acquisitions are being considered. Particular segments forecast the following sales revenue:
Consolidated sales revenue will amount to 2,145 million PLN and will be ca. 6% higher than the revenue generated in 2015. The Management Board is projecting that consolidated operating profit will amount to 250 million PLN, i.e. it will be higher than in the previous year by 5%. EBITDA (operating profit less depreciation and amortisation) will amount to 360 million PLN, i.e. it will increase by 9%. The expected financing activities balance in 2016 will amount to -16.5 million PLN and it is based solely on the calculation of loan costs. In addition, when calculating the net profit for 2016, the Company took account of 50 million PLN of a deferred income tax asset related to the business activities in the Special Economic Zone. As a result, consolidated net profit will amount to 245 million PLN.
The table below shows the forecast of basic consolidated financial figures for 2016 in million PLN as compared to preliminary results for 2015:
| 2015* | 2016** | change | |
|---|---|---|---|
| Sales revenue | 2 027 mill. PLN | 2 145 mill. PLN | + 6% |
| EBIT | 239 mill. PLN | 250 mill. PLN | + 5% |
| EBITDA | 331 mill. PLN | 360 mill. PLN | + 9% |
| Net profit | 207 mill. PLN | 245 mill. PLN | + 18% |
| Capital expenditure | 205 mill. PLN | 359 mill. PLN *** |
The above forecasts were prepared on the basis of the following macroeconomic ratios:
Financing: According to the Company’s estimates, at the end of 2016, the interest-related debt due to bank loans and lease will amount to ca. 564 million PLN, so it will be higher by ca. 250 million PLN than at the end of 2015, mainly due to the record-level investment programme (359 million PLN), assumed dividend payment (as per the dividend policy) and the needs related to the financing of working capital. The Management Board expects that credit lines held by the companies of the Group along with cash generated during the year satisfy the needs for the financing of the assumed expenditure.
Dividend policy: Despite the record level of investments, the the Management Board upholds its decision to increase the dividend payment ratio to 60% of consolidated net profit.
Potential acquisitions: The forecasts for 2016 do not include any effects of potential acquisition projects. However, the Management Board is considering two directions of potential acquisitions:
In the Extruded Products Segment – they may be related to the development of existing competences or the acquisitions of new competences in the area of profiles processing and the production of components based on aluminium profiles. Potential projects may be related to entities with sales revenue of up to 50 million EUR.
In the Aluminium Systems Segment – they may be related to the geographic or product-related development on new markets. Potential projects may be related to entities with sales revenue of up to 20 million EUR.
Conclusion:
The year 2016 will be the second year of the implementation of the new strategy for 2015-2020, approved of by the Supervisory Board of Grupa Kęty S.A. at the beginning of 2015. The projected economic values presented in this forecast reflect the implementation (planned for a given year) of the strategy, which will lead eventually to a significant increase in the Company’s capitalization.
