This could potentially be the highest dividend in history for cyber_Folks shareholders. The company’s board has recommended to the General Meeting the distribution of the entire unit profit for 2023, which amounted to 28 million PLN, including a dividend payment of 21.2 million PLN and a buyback of own shares worth 6.8 million PLN. The dividend per share is set to be 1.50 PLN, marking over a 60% increase compared to last year’s dividend. The proposed share buyback is part of the ongoing ESOP program and may cover no more than 48,000 shares. The buyback price could reach up to 141 PLN per share.
cyber_Folks regularly shares profits with its investors. In 2023, shareholders received a total of 13.1 million PLN in dividends, equating to 0.93 PLN per share. It appears that this year, the total distribution amount to shareholders will be more than twice as large.
“Since our debut on the Warsaw Stock Exchange, we have been sharing profits with our shareholders. We make every effort to ensure that the dividend amount we distribute each year is increasing. Therefore, as the management board, we recommend that practically all of the net unit profit from last year be distributed to them,” says Jakub Dwernicki, CEO of cyber_Folks.
The cyber_Folks board has recommended a dividend payment of 21.2 million PLN, equating to 1.50 PLN per share. This proposal has been positively reviewed by the company’s Supervisory Board, and the final decision regarding the dividend payment and the share buyback will be made by the shareholders.
“Last year we achieved record results, which allow us to share profits with shareholders. Moreover, the current reduction in debt levels and anticipated revenues from the sale of shares in Profitroom, which after transaction costs and taxes should net us approximately 83 million PLN, provide us with a comfortable margin to fully distribute the unit profits for 2023 to our shareholders. The recommended dividend is in line with our dividend policy, which will remain unchanged. In the coming years, the dividend should continue to increase,” adds Robert Stasik, Vice President of cyber_Folks.
The management proposes to the AGM that the remaining part of the net unit profit for 2023, amounting to 6.8 million PLN, be allocated to the buyback of no more than 48,000 own shares at a price not higher than 141 PLN. The buyback would be completed by the end of September 2024, and the shares purchased by the company would primarily be allocated for the existing ESOP program.
“The buyback price values cyber_Folks at 2 billion PLN, which is 20% above the current valuation. We strongly believe that the consistent execution of our strategy will ensure that our business continues to grow dynamically, and our shareholders will be the beneficiaries of these gains. It’s worth noting that historically, each share buyback has proven to be very profitable for the company. In 2019, we conducted a buyback at 25 PLN per share, and in 2022 at 50 PLN per share. The current market price of the shares is close to 120 PLN, and the proposed buyback price is up to 141 PLN. We expect this operation to also be profitable for the company,” adds Robert Stasik.
In 2023, the cyber_Folks Group generated 480 million PLN in revenue, and its adjusted EBITDA was 141.3 million PLN. During this period, the net profit was 87.4 million PLN, more than double the previous year. The dynamic growth of the company’s business and record financial results are thanks to an expanded product portfolio and strong international market position in the small and medium-sized enterprise sector.
