Allterco

IoT-focused company Allterco (A4L BU) proposed to distribute between BGN 2.5m and BGN 2.7m in dividends, the Company announced in a filing to the BSE. Allterco’s management announced it would pay annual dividends for the financial years 2015, 2017 and 2018 as well as an interim dividend for 2019. At a GSM scheduled for 25th October 2019, shareholders will vote dividends distribution of either BGN 2.5m or BGN 2.7m depending on which of the two available options they would choose.

The first option envisions the distribution of BGN 1.5m for FY2015, FY2017 and FY2018 as well as an interim dividend of BGN 1.1m for 2019.

The second option includes a BGN 1.4m dividend for FY2015, FY2017 and FY2018, and an interim dividend of BGN 1m for the first half of 2019. In addition, the shareholders will vote the distribution of BGN 0.1m from reserves as a supplement to the aforementioned sums.

As a result, shareholders are to receive dividend per share of either BGN 0.167 (yielding 5.60% at current quotes) or BGN 0.18 (yielding 6.04% at current quotes).

Over 30% surge of sales in H1 2019 for Allterco

Allterco’s consolidated sales surged 32.4% y/y, profit margins improved considerably in H1’19, according to interim financials published by the Group. The staggering growth in revenues in H1’19 was mainly driven by the Group accelerating sales of IoT products, namely kid’s watches and household appliances, the segment contributing BGN 6.8m, up almost fourfold y/y in H1’19.

Revenues from telecommunications services added BGN 17.3m, increasing 5.9% y/y for the same period.

Overall costs grew slower than revenues, adding 24.5% y/y to BGN 22.7m as a result of higher COGS related to accelerated production, thus boosting profitability. Accordingly, gross margin arrived to 58.2%, up twice y/y.
Both operating and net profit turned positive, the former arriving to BGN 1.2m, while the latter coming to BGN 0.9m.

It should be noted that at the end of Jul’19 Allterco completed the sale of its European telecommunications business in order to focus on its IoT product development.