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Investments and capital expenditure

Investment expenditure

As at 31 December 2017 investment expenditure made by the Group amounted to 19 894 thousand PLN and included:

  • expenditure for fixed tangible assets 12 031 thousand PLN,
  • expenditure for intangible assets 7 863 thousand PLN.

The expenditure was financed from the resources owned by the entities of the Group, only to a small degree by proceeds from sale of fixed asset items.

Investment expenditure for fixed tangible assets:

A part of the expenditure for non-financial fixed assets was earmarked for further modernization and current reproduction of fixed tangible assets and for modernization of building structures. The expenditure in the group of buildings and structures amounted to 1 007 thousand PLN. The equipment to streamline the production and assembly processes was bought for the sum of 4 143 thousand PLN. Outlays earmarked for vehicles amounted to 5 106 thousand PLN.
Renewal and modernisation of the IT infrastructure involved spending of 1 775 thousand PLN.

Investment expenditure for intangible assets:

Purchase of licences and rights to modern software costed 901 thousand PLN. Expenditure incurred for implementation of the new integrated IT system to support enterprise management (ERP system) amounted to 2 178 thousand PLN. The Company also incurred the expenses for research and development in the amount of 4 784 thousand PLN.

Investment expenditure planned by the Group for the first half of 2018 assume spending of 14 764 thousand PLN. Basically, it will cover the replacement purchases and modernisation of machine fleet, technical equipment and office and production facilities.

Taking into account the financial standing of the Group it must be underlined that realization of the investment plans is not at risk. As in the previous year, the Group intends to finance the investments from its own funds, which finds confirmation in the gathered resources.

Capital expenditure

Capital expenditure of the Group for the year 2018 result from the plan for growth and extension of its offer of products and services. The Group is implementing the adopted strategic plans with consideration to changes happening in its environment. The Management of the parent company is of the opinion that further growth of the Group could be accelerated owing to acquisition of entities with experience and references in those market segments where the Group has not offered its products or services yet, or where its share was insignificant. To implement its growth plans the Group will have to gain enough relevant knowledge and experience, what usually takes a long time. This time could be significantly reduced through acquisition of appropriate entities. As such process is complex and timeconsuming and because of difficulties in indicating the value of target companies, the budget for 2018 does not account for the effects of such a transaction.

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