Speedy

Speedy held regulatory shareholders’ meeting on Friday June 23rd, 2017. Shareholders approved BGN 1.13 dividend per share, yielding 2.6% at current market quotes and an ex-div day of July 5th, 2017.

Speedy is increasing capital for an employee plan

Speedy shareholders also approved a change in the incorporating documents of the Company to reflect the share capital increase with 41 700 new shares issued as an employee share based compensation plan. Employers are allowed to subscribe to the new shares at a nominal value of BGN 1 per share.

The new share capital has been registered with the Trade Registry and is expected to start trading on the stock exchange shortly. Now Speedy’s share capital is to be BGN 5.38m distributed in 5 377 619 ordinary shares.

20% revenue growth in 2016 but lowering profit

Speedy reported revenues of BGN 146.6 in its 2016 consolidated report, which is up 19.5% compared to 2015 performance. Q4 revenues are accelerating 25.6% on annual basis to BGN 42.5. However, Speedy net income is down 39.8% amounting at BGN 5.586 mln.

Investment in capacity and new services boosted revenues in 2016 but increased operational and marketing cost reduced profits – this was the company comment on 2016 financial year results.

2016 Financial statements

Q1 2017 continued the trend

Speedy’s Q1’17 net profit slashed on rising operating and one off costs. The company booked 38.4% y/y drop in net income on rising operating and one off costs, according to the unconsolidated financial statement for Q1 2017. Net income dropped 38.4% y/y to BGN 1.2m despite top line growth sustained at 11% y/y to BGN 24.8m.

Domestic courier revenues rose 12.7% y/y to BGN 20.3m while international courier services added 8% y/y to BGN 3.4m. Number of delivered parcels rose 19% y/y to 4.3 million which weighted in on costs.

Accordingly, subcontractor costs, which represent 43% of all operating expenses, increased 19.4% y/y to BGN 10.3m. Wages expanded 23.7% y/y to BGN 5.95m as Speedy raised salaries in mid-16 in line with the rising volumes. Vehicle maintenance and spare parts costs add 40 y/y to BGN 725k in Q1’17 while one off indemnities surged 135% to BGN 348k.

Majority owner sold 0.83% stake

In the end of June 2017, majority shareholder in courier Speedy – Speedy Group, sold a 0.83% stake, according to a regulatory filing by the Company. Speedy Group is controlled by Speedy’s CEO Valeri Mektupchiyan and post the sale controls 65.59% on the Company.

GeoPost, France has 25% in Speedy with an option to increase its stake to 70% in 2020.

The rest is free float, helped by mostly by local and international institutional investors.

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