2010 Anticipations
23.12.2009
Board of Directors announces an address to the shareholders and investors of Stara Planina Hold Plc and its subsidiaries, informing about 2010 anticipations:
Dear Shareholders and Investors,
Stara Planina Hold Plc and the enterprises from our group bid good bye to a tough year. This forecast is based on the results from the very hard months in the beginning and middle of 2009 and the apparent stabilization of the markets in the last quarter.
Being moderately optimistic, we expect stabilization of the enterprises from the Stara Planina Hold Plc group and we expect the profit from sale of production in the next year to closely match or be slightly above the levels reached in 2009.
A priority task in 2010 in an environment of continuing economic and financial crisis will be to retain the major markets and clients.
We count on a faster recovery of the economies of the developed countries, in particular, the recovery of our main distributors and clients. We will continue to work towards reducing the cost of produced goods in terms of lowering the labour intensity of each operation and optimizing the production process. The companies work to optimize their expenses by taking into account the expected increase in the cost of energy sources.
The planned investments in their main portion are allocated for the purchase of new production equipment, finalization of already started investment projects and product range upgrade. The companies will rely on their own funds, bank loans or alternative forms of financing for the respective programs. We expect to gradually utilize the funds granted to our companies under the project Technological Modernization in Large Enterprises as well as to overcome the adverse factors related to delayed payments on the part of state and municipal entities.
The financial expenses tend to increase due to the improvident interest rate policy of the domestic bank system.
The enterprise personnel will remain unchanged or at a lower number. The main concern will be to keep the highly qualified employees and workers. This can be achieved through increasing the workload of the own production units while decreasing external cooperative services. We do not expect growth in remunerations and social expenses.
In the given conditions, the achievement of positive financial result with the expected production volume is a main task in order to wade through the crisis period and for the purpose of avoiding decrease in the market capitalization thus guaranteeing shareholders’ investments and their profitability.
Sofia, 23 December 2009
Stara Planina Hold Plc
Board of Directors
Dear Shareholders and Investors,
Stara Planina Hold Plc and the enterprises from our group bid good bye to a tough year. This forecast is based on the results from the very hard months in the beginning and middle of 2009 and the apparent stabilization of the markets in the last quarter.
Being moderately optimistic, we expect stabilization of the enterprises from the Stara Planina Hold Plc group and we expect the profit from sale of production in the next year to closely match or be slightly above the levels reached in 2009.
A priority task in 2010 in an environment of continuing economic and financial crisis will be to retain the major markets and clients.
We count on a faster recovery of the economies of the developed countries, in particular, the recovery of our main distributors and clients. We will continue to work towards reducing the cost of produced goods in terms of lowering the labour intensity of each operation and optimizing the production process. The companies work to optimize their expenses by taking into account the expected increase in the cost of energy sources.
The planned investments in their main portion are allocated for the purchase of new production equipment, finalization of already started investment projects and product range upgrade. The companies will rely on their own funds, bank loans or alternative forms of financing for the respective programs. We expect to gradually utilize the funds granted to our companies under the project Technological Modernization in Large Enterprises as well as to overcome the adverse factors related to delayed payments on the part of state and municipal entities.
The financial expenses tend to increase due to the improvident interest rate policy of the domestic bank system.
The enterprise personnel will remain unchanged or at a lower number. The main concern will be to keep the highly qualified employees and workers. This can be achieved through increasing the workload of the own production units while decreasing external cooperative services. We do not expect growth in remunerations and social expenses.
In the given conditions, the achievement of positive financial result with the expected production volume is a main task in order to wade through the crisis period and for the purpose of avoiding decrease in the market capitalization thus guaranteeing shareholders’ investments and their profitability.
Sofia, 23 December 2009
Stara Planina Hold Plc
Board of Directors
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