Following the successful first two tranches of the offering of shares of Telelink Business Services Group AD (TBS Group AD) carried out in 2020, between June 8 and 15 2021, selling shareholders will offer on the Bulgarian Stock Exchange (BSE) a new lot of up to 875,000 shares representing up to 7% of the company’s registered capital. The offering price of BGN 13.50 per share is in line with the selling shareholders’ commitment not to sell at prices below 8.5 x EBITDA – Net Debt. The investment intermediary in charge of the offering is ELANA Trading.

Upon successful placement of this third tranche, the selling shareholders will have realized 21% of the planned 30% of the company’s capital on the BSE.

Sustainable growth in the first quarter of 2021

The Group ended the first quarter of 2021 with consolidated growth of 11% in revenues, 40% in net profit and 36% in EBITDA over the same period of 2020.

Major growth drivers included local market sales in Bulgaria and Macedonia and the Hybrid Cloud and Modern Workplace technology groups, wherein the Group realized its biggest projects for the period.

In absolute figures, consolidated revenues for the period reached BGN 40,857 thousand, and net profit and EBITDA – respectively BGN 4,969 thousand and BGN 6,370 thousand at improving respective margins of 12.2% и 15.6%.

According to the audited consolidated results published at the end of April, the Group ended 2020 with revenues of BGN 135,495 thousand, net profit of BGN 12,600 thousand and normalized EBITDA of BGN 17,390 thousand, achieving respective growth rates of 23%, 55% and 47% above the previous 2019.

On a digital investor event to be held on June 2 2021 (registration), the management of TBS Group will deliver a detailed presentation of financial results for the first quarter of the current year and will be available to answer questions about the company.

Company outlook until 2025

In line with good public company practices, in March 2021, TBS Group presented its business development expectations for 2021-2025 (presentation). Projections indicate doubling results by 2025, with revenues and net profit expected to grow respectively by 27% and 16% year on year in 2021. While forecasts were based on expected organic growth, the company is also considering potential acquisitions to promote expansion across product and geographical areas.

A year of successful track record as a public company

TBS Group AD’s public offering started exactly one year earlier, with selling shareholders realizing a first tranche of 7.86% of the company’s capital at a price of BGN 7.60 per share. Together with the sale of additional 6.14% at a price of BGN 11.10 per share within Tranche 2, total shares sold in 2020 reached 14% of the company existing capital.
The company attracted both individual and institutional investors, with London-based fund Utilico Emerging Markets Trust plc becoming the first big foreign financial investor to enter the Bulgarian stock market in 10 years.

Since March 2021, TBS Group has been included in the main index SOFIX as one of the biggest and most liquid companies on the BSE.

Consistent dividend policy

Based on the semi-annual interim financial statements as of June 30 2020, in October 2020 the company paid out dividends in the amount of BGN 6.2 million equivalent to 76% of the Group’s consolidated net profit for 2019.

The company plans to propose the distribution of dividends in the second half of the year based on the interim results of TBS Group AD for the first six months of 2021 (same as the process implemented in 2020). In determining the dividend amount, together with other Group indicators, factors taken into account will include retained earnings for 2020 in the amount of BGN 678 thousand, as well as the consolidated net profit for 2020 in the amount of BGN 12,600 thousand.

Additional information about the company and the offering

Investor page: https://www.tbs.tech/investors/
Investor page: https://telelink.elana.net/
Registration for the event „Financial Overview Q1/2021”: https://bit.ly/3eKdhuo

Detailed information about the third tranche of the offering will be made available in the updated Offering procedure approved by Selling shareholders Lyubomir Minchev, Ivo Evgeniev and Spas Shopov and Elana Trading as Offering manager, which will be published on the above investor pages at the beginning of next week.