ICT-focused Telelink Business Services Group (TBS Group) reported preliminary results for FY2019: net profit reached BGN 8.2m, up 7% y/y, of which BGN 4m will be distributed as dividend, the Company announced in a filing to the Bulgarian Stock Exchange.
TBS Group, which is going public in Jan’20, said it generated BGN 110.1m in sales, down 5% y/y, in FY2019. The management disclosed that the latter was a result of slowdown in low-added-value product sales in the Western Balkans, yet management said that sales from this region are expected to recover, at the same time increasing their added value in 2020.
Telelink Business Services Group: FY2019
Profitability in FY2019, on the other hand, improved substantially with EBITDA reaching BGN 11.6m, up 18% y/y (EBITDA margin of 10.5%) and net income arriving to BGN 8.2m, up 7% y/y, (net income margin of 7.4%). The boost in profit was a result of growth in high-margin product and service sales in Bulgaria combined with higher sales in Western Europe and the US.
The Company also disclosed that it planned to distribute BGN 4m of its FY2019 net profit as dividend. This entails BGN 0.32 per share, yielding 4.21% at the IPO price of BGN 7.60.
In addition, TBS Group reported interest-bearing debt of BGN 6.4m and cash & cash equivalents of BGN 2.1m as at the end of Dec’19.
The offering of Telelink Business Services Group
Minchev and the rest of the selling shareholders Spas Shopov and Ivo Evgeniev are considering to sell up to 30% (3 750 000 shares) of the existing shares by the end of 2020. The latter shareholders have additionally agreed to sell no shares below BGN 7.60 per share. By the end of 2021 for Minchev and 2020 for the rest of the selling shareholders. All existing shareholders have also signed a Lockup agreement outlining what shares all of them are allow to sell by the end of 2020. Only three of the existing shareholders will take part in the offering and the number of shares on offer is not to exceed the fixed size by the end of 2020.
About Telelink Business Services Group
TBS Group is a comprehensive international ICT power house, system integration leader in Bulgaria and key ICT player on the Balkans. It has subsidiaries in Serbia, Montenegro, Slovenia and Bosnia and Herzegovina and recently established two outlets in Albania and Macedonia.
The Group focuses in seven major technological groups which include service provider (telecom) specific and enterprise networking solutions, private and cloud based data center offerings, application services, office productivity and information security. It services an extensive client list from 30+ countries and well positioned in the telecom, banking, healthcare, utility and the public sectors.