The Management Board of Grupa Kęty S.A. hereby informs that the Supervisory Board, at its meeting held on 9 February 2015, approved of the Company’s and of the Capital Group’s budget for 2015. In relation to the presentation, on 10 February 2015, of the forecast of financial results for 2015, and the presentation of comparable data, the Management Board also publishes preliminary financial results for 2014.
The Company’s Management Board assumes that, in 2015, the global economy will improve further. As a result, all segments forecast better results, both as regards sales revenue and operating profit. On the basis of adopted assumptions concerning the levels of the prices of raw materials and of exchange rates, particular segments are forecasting the following sales revenues:
The Management Board is projecting that consolidated operating profit will amount to 226 million PLN, i.e. it will be higher than in the previous year by 2%. The main factors affecting its level will be as follows: an increase in sales volume in three largest business segments and improved profitability in the BSS.
The expected balance on financial activity in 2015 will amount to -10 million PLN and is based solely on the calculation of loan costs. In addition, when calculating net profit for 2015, the company included 15.8 million PLN of the deferred tax asset due to carrying out activities in the Special Economic Zone. As a result, consolidated net profit will amount to 201 million PLN.
The table below shows the forecast of basic consolidated financial figures for 2015 in millions of PLN as compared to preliminary results for 2014:
2014* 2015** Change
Sales revenue 1,820 mill. PLN 1,962 mill. PLN + 8%
EBIT 222 mill. PLN 226 mill. PLN + 2%
EBITDA 308 mill. PLN 321 mill. PLN + 4%
Net profit 168 mill. PLN 201 mill. PLN +18%
Capital expenditure 85 mill. PLN 255 mill. PLN***
* preliminary results prior to a certified auditor’s audit
** forecast
*** ca. 40 million PLN of payments carried forward from investment projects in 2014
The above forecasts were prepared on the basis of the following macroeconomic ratios:
Financing:
According to the Company’s estimates, at the end of 2015, the interest-related debt due to bank loans and leasing will amount to ca. 393 million PLN, so it will be higher by ca. 159 million PLN than at the end of 2014, mainly due to a major investment programme (255 million PLN), the assumed dividend payment (pursuant to the adopted policy) and the needs related to the financing of the working capital. The Management Board expects that the credit lines held by the companies of the Capital Group along with the cash generated during the year satisfy the needs for the financing of the assumed expenditure.
Dividend policy: Owing to the present, very good financial situation of the Company, advantageous forecasts and the necessity of streamlining the capital structure, the Management Board decided to increase the dividend payment ratio to 60% of consolidated net profit.
Conclusion:
As a result of accomplishing in 2014 of the majority of the objectives of the strategy for 2010-2015, the Company’s Management Board is optimistic about the company’s prospects for the incoming years. Therefore, in the second half of 2014, they took measures to develop and present to the Supervisory Board a new strategy for the years 2015-2020. The forecasts for 2015 presented above are the first step in the implementation of “Strategy 2020”; its basic objectives will be published in a separate announcement.
The Company will assess the possibility of accomplishing the forecasted results and make any appropriate adjustments on a quarterly basis.
