Prognosis of 2011 results

On march 30th 2011, the Executive Board of LUG S.A. presented a prognosis of financial results for the year 2011. The prognosis created according to MSSF/MSR assumes recording a 89,7 mln PLN income and a 3,06 mln PLN net profit. In 2010 LUG S.A. recorded 78,8 mln PLN income and 1,76 mln PLN net profit (according to MSSF/MSR). Currently LUG S.A. is finishing work on the prospectus for transferring into the main index of the Warsaw Stock Exchange.

-„In 2011 we expect a nearly 75% increase of profitability compared to 2010. Such significant improvements are to a large extent an effect of our dynamic expansion in the domestic and foreign markets as well as of many new innovative products in our port folio, thanks to which we can benefit from the revival in the business. Important were also the optimizations undertaken during the deepest crisis, which allowed to reduce costs in many areas of operation. First effects of these processes were visible in the form of net profits for 2010 which amounted to 1,76 mln PLN compared to the 1,5 mln PLN loss in 2009. This year we plan over 3 mln PLN in net profit, whereas this is a conservative estimation.” - says Ryszard Wtorkowski, CEO of LUG S.A.

-„In 2011 we plan to record an 89,7 mln PLN sales income, which is 15% more than in 2010. However it is worth noticing that the structure of our income is constantly changing with an increased share of exclusive products, the sale of which allows to achieve significantly higher mark-ups.” – adds Ryszard Wtorkowski, CEO of LUG S.A.

Recently LUG S.A. informed about plans of increasing the share of exports in income for 2011 to over 50%. Moreover LUG S.A. will try to augment its market position in the Western Europe and Middle Eastern markets, where the company’s products are already known. This year the company is planning geographical expansion to Australia and South American markets. The Company’s offer has been expanded with modern LED lighting systems with LUG MASTER LED software based on DMX standard and with modern luminaires from the White Concept line. Moreover, the Issuer won the Best Fair Stand contest during ŚWIATŁO 2011, ELEKTROTECHNIKA 2011, CENERG 2011, whereas the PROXIMA luminaire won the second prize at the ŚWIATŁO 2011 fair.