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Korado Bulgaria aiming to join SOFIX index by 2019

Author Mario Tanev
Korado Bulgaria aiming to join SOFIX index by 2019 Korado Bulgaria/All rights reserved.

SOFIA (Bulgaria), March 29 (SeeNews) - Steel radiator manufacturer Korado Bulgaria [BUL:4KX], part of Czech Korado Group, announced on Thursday that the company has set its sights on entering the blue-chip SOFIX index of the Bulgarian Stock Exchange (BSE) this year or next.

The market making services agreement which Korado signed last October with Bulgarian brokerage Elana Trading is already affecting positively the liquidity of the company's shares on the BSE, which is among the criteria for joining the SOFIX, Vojtech Chamek, CEO of Korado Group, said during a presentation of Korado Bulgaria's 2017 financial results.

Korado Bulgaria plans to distribute 3.4 million levs ($2.1 million/1.7 million euro) as dividend for 2017, or a gross dividend of 0.26 levs per share. Korado paid a gross dividend of 0.26 levs per share for 2016.

Korado Bulgaria's net profit in 2017 rose to 4.78 million levs in 2017 from 2.93 million levs in 2016.

Some 915,000 levs from Korado Bulgaria's net profit in 2017 will be allocated to the company's reserves, while another 439,000 levs will be kept as retained earnings.

The company's shareholders will vote on these proposals at a general meeting scheduled for May 23.

The shareholders will also vote on a proposal to authorise the company to distribute six-month dividend - an option introduced through recent changes to Bulgarian legislation.

In 2018, the Korado Bulgaria's major goals will be to increase sales on the domestic market and maintain the sales levels on traditional markets such as Romania, Bosnia and Herzegovina, France, Hungary and Ukraine.

The company has also identified Germany as a potential new market, as it is currently working on finalising a major deal with a client for steel panel radiators. The negotiations are expected to be finalised within the next one or two months, Jiri Reznicek, managing director of Korado Bulgaria, said during the presentation.

Korado Bulgaria is also considering investing in a new paintshop, which will significantly improve its output capacity. The company has invested around 11 million levs in the past four years, in new production lines for steel panel and towel rail radiators, as well as other related projects.

(1 euro = 1.95583 levs)