Raporty

27/2011 Adjustment of the financial forecast for 2011

The Management Board of Centrum Medyczne ENEL-MED S.A. (“Company”) would like to inform you that based on the analysis of financial results it adjusted result forecasts of Centrum Medyczne ENEL-MED S.A., published in the prospectus of the Issuer approved by the Financial Supervision Authority on 30 March 2011 (Chapter III, point 13 of the Registration Document).

Adjustment of the financial forecast for 2011:

Sales: initial forecast – PLN 167 million, current forecast – PLN 167 million
(growth by over 20% vs. 2010)
EBITDA: initial forecast – PLN 21.9 million, current forecast – PLN 18.8 million
(growth by over 29% vs. 2010)
EBIT: initial forecast – PLN 9.5 million, current forecast – PLN 7.7 million
(growth by over 69% vs. 2010)
Net profit: initial forecast – PLN 5.7 million, current forecast – PLN 4.4 million
(growth by 350% vs. 2010)

Factors that contributed to the need to adjust the forecast:

The profit margin on subscription contracts concluded in the second half of 2010, which is lower than expected, resulted in the profit margin growth dynamics of the whole company below expectations. In spite of activities aimed at improving profitability of these contracts, undertaken in 2011, in particular in the third quarter of 2011, their profitability is still lower than expected. Results of the aforementioned activities will fully materialise not before 2012. The actual tax rate after the third quarter 2011, higher than assumed, has also contributed to the adjustment of the net profit forecast. The Company is waiting for the interpretation pertaining to classifying certain expenses related to the IPO as tax-deductible. A positive answer in this case may result in the improvement of this parameter.
Additionally, the Management Board of the Issuer would like to note that the adjusted result forecast assumes a significant growth of the Company’s profit for 2011 on all levels vs. 2010. Unadjusted sales revenue forecast (PLN 167 million) is based on the assumption of growth by over 20% in 2011 vs. 2010. EBITDA forecast has been adjusted to PLN 18.8 million, which means growth by over 29% vs. 2010. EBIT forecast has been adjusted to PLN 7.7 million, which means growth by over 69% vs. 2010. Net profit forecast has been adjusted to PLN 4.4 million, which means growth by 350% vs. 2010.

At the same time, it should be noted that the sales growth has been based, to a great degree, on the existing potential. The ratios, describing the utilisation of this potential, show significant opportunities to increase sales, while maintaining unchanged high quality parameters.

Simultaneously, the Management Board of the Issuer would like to emphasise that the economic situation in Europe did not have any negative impact on activities of ENEL-MED, which confirms that the medical services market remains unaffected by macroeconomic disturbances. The Management Board does not expect the crisis in Europe to weaken the Issuer’s development dynamics in any way.

Achievement of the forecast values is monitored on a continuous basis. In case of variances with respect to at least one of the forecast items by at least 10%, the Company will immediately adjust this forecast.