ESPI 6/2020 Estimated financial results of the IMS Capital Group for the year 2019 and the recommendation of the Board of Directors of IMS S.A. regarding payment of dividends

Oferta zakupu akcji IMS S.A. – pobierz

The Board of Directors of IMS S.A. (“Company”, “Issuer”) submits the estimated financial results of the IMS Capital Group (“IMS Group”) for the year 2019:

 

1. Revenue from sales: PLN 58.9m

2. EBITDA: PLN 18.0m

3. EBIT: PLN 11.9m

4. Net profit attributable to shareholders of the parent company: PLN 9.5m.

 

Year 2019 was the year of investments in the IMS Group. The key ones are as follows:

– increasing human potential in the sales departments, mostly in Mood Factory Sp. z o.o. which acquires subscription locations in the local markets;

– extensive communication and marketing activities;  

– the project to build and commercialise own music libraries;

– the Aroma Next Generation project regarding creation of own, modern device for aroma marketing. 

In the opinion of the Board of Directors of the Issuer, taking into consideration extensively carried out investment operations, the IMS Group generated very good financial results in 2019. These investments have already brought first results. Year 2019 was record-high when it comes to the number of organically acquired subscription locations. The IMS Group increased the number of subscription locations held by 2,463. It was the first year in history when the organic growth of subscription locations exceeded 2,000. Out of 2,463 above mentioned locations as many as 1,494 (61%) were acquired in the period from August to December 2019, which means that their effect on 2019 results was relatively insignificant, whereas their effect on 2020 and further years results will be stronger. A similar investment year in the IMS Group, though on a much smaller scale when it comes to diversity of projects as well as incurred expenses, was year 2016. It resulted later in extremely good financial results in 2017 and 2018.

Generated results regarding EBITDA and numbers of acquired subscription locations are within the limits of targets published nearly four years ago in ESPI 27/2016 report of 23 May 2016. In the opinion of the Board, it illustrates the strength of the adopted and consistently implemented Issuer’s development strategy. 

Year 2019 was the first full financial year of APR Sp. z o.o. (“APR”) functioning within the IMS Group structure, the company was acquired in October 2018. In the opinion of the Board, this acquisition was a success for the Issuer. The preliminary financial results of APR for 2019 are as follows:

1. Revenue from sales: PLN 4,965,000 (an increase of 52% as compared to 2018)

2. EBITDA: PLN 1,254,000 (an increase of 136% as compared to 2018)

3. EBIT: PLN 966,000 (an increase of 238% as compared to 2018)

4. Net profit: PLN 914,000 (an increase of 533% as compared to 2018).

At the same time, the Board of Directors of IMS S.A. informs that, taking into consideration very good estimated results of the IMS Group for 2019 and the very good financial position of the the Issuer and the Group, it will recommend to the Supervisory Board and the Annual General Meeting (“AGM”) of the Company to pay out dividends for 2019 in the amount of PLN 0.20/share. The above mentioned recommendation means that the amount of PLN 6,284,817.20 will be allotted to payment of dividends to Shareholders. The dividend rate, considering the closing price of 07.02.2020, is 5.18%. The dividend will cover the maximum of 31,424,086 shares (i.e. the number of Issuer’s shares less shares deemed for redemption under resolution no. 4 of the Extraordinary Shareholder Meeting of 21.01.2020).  Due to the fact that the buyback of own shares which do not participate in the dividend is pending, the ultimate number of shares held by the Shareholders and giving right to dividend for 2019 as well as the amount of paid out dividends will be determined by the Board of Directors of the Company after the dividend has been approved by the AGM as at the dividend record date. It is the intention of the Board to recommend to the AGM to maintain the fixed value of the dividend of PLN 20/100 per share for the year 2019.

The above mentioned recommendation is in line with the dividend policy implemented in the IMS Group and published in 26/2016 current report  of 17.05.2016, which states that every year at least 60% of the consolidated net profit attributable to the parent company is allotted to be shared among the Shareholders.

 

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