The Management Board of Orzeł Biały S.A. (“The Company”) announces that on March 21, 2017 by the Resolution No 24/2017, the Management Board of the Company decided to disclose write-offs in the Issuer’s annual financial statement. The write-offs will have a significant impact on the financial result for 2016 in both individual and consolidated financial statements of the Orzeł Biały Biały SA Group.
As regards the individual financial statement of Orzeł Biały S.A. for the financial year ended 31 December 2016, the tests carried out indicated the appropriateness of the following write-downs, after tax:
- Impairment allowance for shares in the subsidiary of Orzeł Surowce sp. z o.o. to the amount of PLN 14 052 thousand;
- Impairment allowance for shares in the associate of PPT EkoPark sp. z o.o. to the amount of PLN 954 thousand;
- Impairment allowance for inventories to the amount of PLN 1 371 thousand.
The aggregate estimated value of these write-downs as per impairment loss tests will result in a decrease in the net profit by PLN 16,377 thousand.
As regards the consolidated financial statements of the Orzeł Biały Group for the financial year ended 31 December 2016, the tests conducted indicated the appropriateness of the following write-downs, after tax:
- Impairment allowance for loss of goodwill to the amount of PLN 8,157 thousand;
- Impairment allowance for shares in the associate of PPT EkoPark sp. z o.o. to the amount of PLN 872 thousand;
- Write-down of receivables recognised as doubtful to the amount of PLN 2,101 thousand;
- Impairment allowance for inventories to the amount of PLN 1,371 thousand.
The total estimated value of the above impairment charges as per impairment loss tests will result in a decrease in the consolidated net result by PLN 12,501 thousand.
The write-downs of shares in subsidiaries and associates and write-down of goodwill are of non-monetary nature and do not affect the liquidity position of the Group.
The above-mentioned write-downs are the result of actions taken by the Issuer’s Managing Board to re-organise the Group’s structure.
The Company makes the reservation that the Company’s financial statement for 2016 is being verified by an auditor and, therefore, the amounts presented above are not final and subject to change. The publication of the annual report of Orzeł Biały S.A. for 2016 will take place on April 5, 2017.
Legal basis: Article 17 para. 1 MAR