The Board of Directors announces an address to the shareholders and investors of Stara Planina Hold Plc and its subsidiaries, informing about 2018 anticipations. The annual sales of the enterprises of the group will reach BGN 214 m. This would lead to a 14% growth compared to 2016.
We expect around 20% increase in the financial result of the business group. At the same time we project Stara Planina Hold's net profit to reach BGN 5500 thousand which will give us assurance that for a 21st consecutive year a part of it will be distributed as a dividend to the shareholders of the holding.
The Board of Directors expects the 2018 consolidated income from sales to exceed the peak sales seen this year and to reach BGN 226.5 million, which means an increase of 5.8% compared to the expectations for 2017. We also expect quicker than originally predicted rise in labor costs, which will lead to a reduced financial result in 2018 of about 8% year-on-year.
In 2018 we will continue to have an active investment policy and we expect investment growth of 44% reaching BGN 28 million.
This year the number of employees increased by 9.6% and the increase in the average monthly salary in the enterprises of the group is 15.2%, while labor productivity rose by 4.1%. In 2018 we plan to increase the number of our employees by 1.0% and the labor costs by 5.8%.
CONSOLIDATED SALES ( BGN million)