Management Board of Qumak S.A. ('Company') informs that on 15 January 2017 the Supervisory Board of the Company adopted a resolution concerning the adoption of a Strategy of Qumak S.A. for the years 2017-2020 ('Strategy').

  • Implementation of the adopted Strategy for the development of the Company and its capital group assumes achieving the following goals within the period of time until 2020:
  • PLN 20 million of operating profit;
  • 20% margin on own products;
  • 20% margin on outsourcing;
  • 20% share of sales abroad;
  • 60% share of sales on a commercial market;
  • Achieving a positive operating profitability starting from the year 2017.

Key strategic objectives include:

  • Benefiting from strong sides and competitive advantages developed by the Company during the last years;
  • Developing a new organizational and operational model with a maximum effectiveness and flexibility;
  • Significant improvement of profitability in a short and medium term;
  • Adapting the offer of products and services to current market trends;
  • Preparing the Company to be able to function independently from business cycles as well as independently from availability of EU funds in particular segments: market and geographical diversification as well as portfolio of own innovative products;
  • Commercialization of existing own products and services as well as creating new ones through an internal development and technological partnerships on the basis of mutual benefit, using complementarity without capital engagement.

The Strategy includes three stages of its implementation and creating individual strategies for every segment of the Company's operations.

Total investment in pro-development activities planned for the years 2017-2020 amounts to ca. PLN 7 million. An expected result of these investments will be achieving additional income on sales at the level of PLN 100 million as well as additional PLN 24 million gross margin on sales.

Success of the realization of the Strategy's objectives is based on:

  • Innovative products and services;
  • Rapid development of outsourcing;
  • Effective excellence of the organization;
  • Foreign markets.

The Company's strategy is based on assumptions concerning macroeconomic and market environments which in accordance with prognoses for the year 2017 are:

  • Annual average GDP growth above 3%;
  • Significant increase in investments in the public sector and enterprises, in particular looking at the 2nd half of 2017;
  • Stable inflation at the level of 1.5%;
  • Stable ratio of unemployment at the level of 8%;
  • Salary growth dynamics not greater than 4-5%;
  • Realization of market prognoses regarding key areas of operations;
  • Introducing planned and announced legislative changes concerning selected areas.

The financial objectives presented in this current report are not a forecast of financial results.

Qumak SA published this content on 16 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 February 2017 08:57:10 UTC.

Original documenthttp://www.qumak.pl/en/informacje-gieldowe/current-report-32017-of-16-january-2017-adoption-of-qumak-s-a-strategy-for-the-years-2017-2020/

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