INFORMATION 19 MAR W. PIWOCKI – DOWNLOAD
The Board of Directors of IMS S.A. informs of the receipt on 03 October 2023 of the notification pursuant to Article 19 paragraph 1 of the MAR from the Vice President of the Board IMS S.A. Mr Wojciech Piwocki regarding the acquisition shares of IMS S.A.
The notification constitutes an attachment to this report.
Management Board of IMS S.A. (“Issuer”) announces that on 11 May 2023, its subsidiary Closer Music Sp. z o.o. (the “Company”, “Closer Music”), which deals in the construction and commercialisation of its own music libraries, signed an Agreement on Collective Management of Copyrights (the “Agreement”) and an Additional Agreement to the Agreement (the “Agreement”) with the Authors’ Association ZAiKS (ZAiKS). Closer Music and ZAiKS agreed on the principles of cooperation relating to commercial music (licensed by ZAiKS) and DML (Direct Music Licensing – music licensed directly by Closer Music), as well as the principles determining ZAiKS’ settlements with Closer Music in respect of copyrights for works owned by Closer Music for the years 2020 – 2022 as well as those relating to 2023 and subsequent years.
The signed Agreement and Covenant are a very important step in the development of Closer Music and will also have a significant impact on the implementation of the strategy and development prospects of the entire IMS Group. The Issuer estimates that Closer Music’s net profit from the settlement for the years 2020 – 2022, which will be included in the 2023 report, will exceed 20% of the IMS Group’s consolidated net profit for the 2022 financial year. In the following periods, the Issuer expects even higher revenues and profits due to the growth of Closer Music’s repertoire in playlists, the increase in the number of commercial locations and the planned expansion of the cooperation with ZAiKS worldwide.
Management Board of IMS S.A. (“Company”, “Issuer”), with reference to current report no. 12/2020 of 16th March 2012, informs about current situation of IMS Group:
I. Sales and liquidity
January and February were the “standard” sales months. In March, with the lockdown lasting for 58% of the month days, IMS Group companies recorded a decrease in sales compared to February at the level of 5%-20%. The exception is IMS Events, where due to the specifics of the industry, basically all events were cancelled. Here, the decrease was over 80% (however, only by 77 thousand PLN in money terms). The key factor from the point of view of IMS Group is that we are maintaining the level of subscription locations. Customers generally do not terminate their subscription contracts, they expect mainly price discounts or temporary suspension of service – this applies to customers who, as a result of a decision of the state authorities, have had to close their outlets. On the other hand, a large number of advertising customers declare that the money unspent so far will be spent as soon as the shopping centres begin to operate normally.
IMS Group has unused credit lines of PLN 15 million available at the time of publication of this current report. Despite their maturity being in July this year, the Issuer’s Management Board, in order to ensure the financial security for the organization, has already started taking actions concerning extension of the said credit lines’ periods.
II. Austerity measures
The following austerity measures have been widely and efficiently implemented:
A/ Restructuring of employment. Employment in the entire IMS Group was reduced by 30 people (approx. 20% of the total). In addition, salaries were reduced for all employees in the entire IMS Group. Estimated savings from the above mentioned employment reduction measures are PLN 480 thousand per month. Applications for the government workplace subsidies have been submitted for the period between April and June. The estimated monthly subsidy amount is PLN 70 thousand. The total savings concerning the employment plus the subsidy for workplaces constitute more than 50% of the IMS Group’s monthly expenditure on fixed wages. The payment of all previously unpaid bonuses was suspended.
B/ Negotiations with suppliers. In the second half of March, we started renegotiating all possible costs in all the Group companies. Most of the companies cooperating with were very cooperative and agreed to various discounts and rebates. The discounts we obtained at the moment amount nearly to 100 thousand PLN/month in the period between April and June.
The Issuer’s Management Board follows the information concerning the so-called anti-crisis shield and the possibility of using various types of public support by IMS Group companies on a current basis.
III. Employees, functioning of the organisation
The IMS Group is functioning normally. The vast majority of our employees are working from. We are working all the time with our customers regarding sales and payments. Even in times of crisis we are acquiring new customers and signing contracts for new subscription locations.
The Board of Directors of IMS S.A. informs about the change of the date for publication of the separate and consolidated annual reports for year 2019. Both reports will be published on 29th April 2020 and not on 31st March 2020 as the Company originally informed (according to current report No. 1/2020 of 20th January 2020).
Detailed legal basis: §80 paragraph 2 of the Regulation on current and periodic information.
