Warsaw (Puls Biznesu) - Drozapol-Profil, Poland's listed distributor of steel products, has been promising acquisitions for quite a while. Nothing has happened.
We are currently talking to three companies, not one. We want all the mergers to become one process, Wojciech Rybka, Drozapol-Profil CEO said.
He added that one of these companies is smaller than Drozapol, while the two others are bigger. Drozapol has sales of PLN 100m (EUR 26.1m). The annual sales of the new group should amount to PLN 400-500m. The group may be complete in the middle of next year.
We may tell you about the first acquisition soon, at the beginning of January. In the first quarter, we will execute the next acquisition, Wojciech Rybka said.
Drozapol-Profil has had quite a difficult year. It had only PLN 50,000 of net income in the first half of the year and PLN 675,000 of net loss in the third quarter. Last year, the company had PLN 14m of net income. Shares are traded PLN 2.5, or 22 percent below the IPO price. Meanwhile, the planned acquisitions are to be financed via new shares issue.
(PLN 1 = EUR 0.261)