Extra dividend or acquisition may come

The revenue of the Masterplast Group increased by 7 percent, meaning that is was above €25 million in the last quarter until the end of December. The efficiency of the Group improved more significantly than its turnover dynamics. The EBITDA exceeded the previous year’s by almost a quarter and the operating result did so by over 70 percent. The profit after taxation surpassed the reference period by 45 percent which meant €660 thousand profit for the construction company. At the most significant domestic market, the increase in turnover was 12 percent at the end of year. From the exporting countries, the construction company realised higher profit in Romania, Serbia, Ukraine and Slovakia as well.

“The economic and industrial atmosphere was supportive not only here but also in Central Europe, whereas the foreign currency exchange rates were favourable to us. The outstanding annual result throughout the year is partly because of this and also because of the fact that our own production expanded coupled with improving effectiveness. – David Tibor, the CEO and big owner of Masterplast said to World Economics.

Retaining its momentum in the fourth quarter too, the Group had reached its most successful year of the decade in 2019, achieving all its goals in accordance with its schedule for this year. The annual turnover increased 10 percent to €107 million and at the same time its profitability also improved considerably. Compared to the previous year’s €6 million, EBITDA raised to € 7.27 million while the Group’s net profit increased almost one-and-a-half times, to €4.8 million.

“Although it way surpassed the expected profit, Masterplast sticks to its announced dividend policy, hence the payment of 44 forints per share seems to be realistic. In an ordinary case of business there will not be any obstacles to paying the scheduled dividend. Of course a higher capital-intensive acquisition or investment can influence the benefits of investors, but it will turn out until the General Assembly.”, the CEO of Masterplast emphasised.

The construction company expects this year to be good, since not only the regional prospects are favourable but the building-materials industry is in a healthy phase in the whole European Union. Though the new housing constructions are likely to slow down in Hungary, this will probably not affect the current and the next years of Masterplast owing to the slippage in the execution of the 5 percent VAT investments.

“The external insulation of many houses will be finished this year and next year, therefore the predicted slowdown of new housing constructions will not be felt in our figures of 2020 and 2021.” – David Tibor explained. Besides, in Hungary and also in the surrounding region renovations and energetic modernisations are becoming more and more important, which can also counterweigh the shrinking of the new housing market.

As a result of the coronavirus, the Group has not experienced any major disruptions in the supply chain yet, which they cannot substitute. Although in the case of some Asian manufacturers the deliveries delayed and a Chinese supplier had to switch production to medical masks because of state command, there was no breakdown. According to the CEO, it is quiet difficult to map the impact of European spread of the virus, but it is advisable to reduce the volume of Italian sales in case the crisis becomes permanent, resulting in the standstill of construction investments there.

The manager of the company confirmed to our newspaper that in order to enhance liquidity big holders reduced their share in the Group from 57,7 per cent to 50 per cent, however, Balazs Acs and David Tibor are not planning to sell their shares. Free float can rise by capital increase at the Group, which will be registered this year or at the latest in 2021 in the BUX stock market.