Stara Planina Hold posted strong January 2017 group results, the Company announced in a statement to the stock exchange. Consolidated revenues are up 8.3% y/y to BGN 16.8m on strong sales performance for three of its major subsidiaries all of which post double digit growth.
Stara Planina Hold subsidiaries with income growth over 10%
M+S Hydraulic (5MH BU) posted 10.3% y/y rise in the top line to BGN 8.2m while Hydraulic Elements & Systems (4HE BU) reported 15.4% y/y rise to BGN 4.4m. Lead acid car batteries producer Elhim Iskra (52E BU) posted 17.7% y/y rise to BGN 3.3m.
The mother company, Stara Planina Hold, expects growth to slightly decelerate for the hydraulic manufacturers in February and accelerate for the lead acid batteries producer.
Stara Planina in Q4 2016
The net profit of the holding for 2016 is BGN 5146 thousand compared to BGN 4734 thousand for 2015, an increase of 8.7%. At the annual general meeting of shareholders, the Board of Directors will propose to continue the tradition of allocating part of the financial result to shareholders as dividends.
Dividend to be paid in July
The published Corporate Events Calendar provides for the general meeting of shareholders to be held on 23 May, and the payment of dividends, if it will be decided, to begin two months earlier than usual – from 10 July.
At the end of 2016 available cash holdings are nearly BGN 8.7 million. The management of Stara Planina Hold is researching the market for new acquisitions.
Last year dividend
In 2016 Stara Planina Hold management proposed 90% payout from 2015 profits or BGN 4.3m to be distributed as dividends. This entailed BGN 0.205 dividend per share or twice the previous dividend and a 5.58% dividend yield at the market quotes.
About Stara Planina Hold
Stara Planina Hold was found in 1996 and participated in the mass privatization in Bulgaria. It restructured its portfolio of assets in the next years to focus on machine building, electrical equipment, pharmaceutical and cosmetics and textile sectors. The Holding is active in the management of its subsidiaries and provides financial support for the investment project of the different companies. The policy to redistribute funds for the subsidiaries proved to be the key factor for the development of the Group as it managed to increase several times the revenues without acquisitions of new assets.