The management of Turbomecanica proposes that 80% of the profit go to dividends

The Board of Directors of the aircraft components manufacturer Turbomecanica Bucharest (TBM) convened the shareholders, on April 29, with the proposal that, from last year's net profit of approximately 11.15 million lei, the amount of 9 million lei should go to dividends, according to the company's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

The issuer's management proposal equates to a dividend distribution of 80% of last year's result. The unit dividend is 0.024361032 lei, which, compared to yesterday's TBM share price in the first part of the trading session, 0.313 lei, is equivalent to a gross yield of 7.8%. The record date, which defines the shareholders who will receive dividends if the proposal passes the AGM, is October 11, while the proposed payment date is October 24, 2024.

Also on April 29, the shareholders will also have on the table the approval of the extension of the mandates of the members of the Board of Directors of the company, namely Radu Viehmann, President/General Manager, Dana Maria Ciorapciu, Radu Ovidiu Sârbu and Niculae Havrileţ for a new period of four years. It is also proposed to appoint Gheorghe Alexandru Man as the administrator of the company, in the position occupied by Henriette Spinka, under the same conditions as the other members of the board.

For last year, Turbomecanica reported preliminary revenues from contracts with customers of 131.3 million lei, down 5.6%. According to the company, Turbomecanica's business did not rise to the budgeted level in the spring of 2023.

"In the aeronautical industry there is a volatility of production, especially regarding the delivery schedule related to the maintenance of engines and mechanical assemblies. Most of the time these appear as a result of changes requested by customers following operational emergencies, without changing the values contracted. Concretely, in 2023 there were several such requests from our partners, which generated changes in the financial indicators, both in terms of income and expenses", according to Turbomecanica.

The company's largest shareholder is Radu Viehmann, who at the end of last year had 25.9% of Turbomecanica's capital, while Dana Maria Ciorapciu owned 15.2% of the company.