Estimated 2020 earnings and recommendation to distribute profit to shareholders

The Management Board of KRUK S.A. has issued today a current report presenting preliminary estimates of the KRUK Group’s 2020 performance: net profit of PLN 81m and cash EBITDA of PLN 1,236m. The Management Board of KRUK S.A. has also announced that it recommends dividend payment of PLN 8 per share, which given the number of KRUK shares today, means PLN 152 in total dividend. The dividend will be paid from profits generated by the Company in previous years and in 2020.

Given the outbreak of the pandemic and its consequences in 2020, I view our preliminary estimate of net profit rather than a net loss as positive news. Unfortunately, the profit figure is materially – by almost PLN 200m – below our 2019 results, but given the exceptional circumstances in the year gone by, I believe 2019 levels should now remain the basis for comparison. It should be stressed that our liquidity position is very good, primarily due to the high level of recoveries, which totalled 1.8bn in 2020, and due to our conservative policy of maintaining low debt levels. According to our estimates, we achieved a record cash EBITDA of PLN 1.3bn. It was possible thanks to the efforts of the entire Group, which successfully reorganised its way of work in the environment of rapid change caused by the pandemic, and also thanks to the cost saving measures we have implemented,” said Piotr Krupa, CEO of KRUK S.A.

This is the seventh consecutive time the Management Board has recommended to the Supervisory Board distribution of profit to shareholders. KRUK S.A. is currently one of the world’s least indebted companies in the credit management sector and one of the best performing listed companies in Poland.

“This year will mark the 10th anniversary of KRUK’s listing on the Warsaw Stock Exchange, as well as the 10th anniversary of its presence on the Catalyst market. It fills me with pride to look back at our history and at the fact that KRUK is one of those companies which have made a vital contribution to the development of the capital market in Poland. However, my focus is on the future and what is yet to come. I am pleased with the strong interest from investors, both as shareholders and bondholders. We are consistently working to ensure that KRUK grows its value and business while being able to make profit distributions to the shareholders. 2020 was a difficult year in terms of earnings, but the Group has a stable liquidity and cash position and good access to financing, and our recommendation to pay dividend concerns accumulated profits from previous years and allows for safe investment in debt portfolios in the future,” said Piotr Krupa.

KRUK will announce its final and detailed performance figures for 2020 in its annual report on March 25th 2021.

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