New Risk • 24m
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 20% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 68% per year over the past 5 years. Market cap is less than US$10m (zł10.1m market cap, or US$2.76m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 20
First quarter 2026 earnings released First quarter 2026 results: Revenue: zł20.3m (down 62% from 1Q 2025). Net loss: zł11.9m (loss widened zł10.2m from 1Q 2025). New Risk • May 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Polish stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 42% per year over the past 5 years. Market cap is less than US$10m (zł11.5m market cap, or US$3.18m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Feb 10
LUG S.A. to Report Q4, 2025 Results on Feb 12, 2026 LUG S.A. announced that they will report Q4, 2025 results on Feb 12, 2026 Reported Earnings • Nov 18
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: zł35.9m (down 41% from 3Q 2024). Net loss: zł10.3m (loss widened zł9.16m from 3Q 2024). Announcement • Nov 11
LUG S.A. to Report Q3, 2025 Results on Nov 13, 2025 LUG S.A. announced that they will report Q3, 2025 results on Nov 13, 2025 New Risk • Jun 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Earnings have declined by 3.7% per year over the past 5 years. Market cap is less than US$10m (zł29.5m market cap, or US$7.98m). Minor Risks Dividend is not well covered by earnings (dividend per share is over 11x earnings per share). Share price has been volatile over the past 3 months (7.5% average weekly change). New Risk • May 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 16% per year over the past 5 years. Market cap is less than US$10m (zł31.7m market cap, or US$8.43m). Minor Risks High level of debt (106% net debt to equity). Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (7.5% average weekly change). Reported Earnings • May 19
First quarter 2025 earnings released First quarter 2025 results: Revenue: zł52.9m (up 13% from 1Q 2024). Net loss: zł1.64m (loss widened 70% from 1Q 2024). New Risk • May 18
New major risk - Revenue and earnings growth Earnings have declined by 3.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 3.7% per year over the past 5 years. Market cap is less than US$10m (zł31.7m market cap, or US$8.28m). Minor Risks High level of debt (98% net debt to equity). Paying a dividend despite being loss-making. Reported Earnings • Feb 19
Full year 2024 earnings released: zł0.95 loss per share (vs zł1.05 profit in FY 2023) Full year 2024 results: zł0.95 loss per share (down from zł1.05 profit in FY 2023). Revenue: zł223.2m (down 18% from FY 2023). Net loss: zł6.83m (down 191% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Nov 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Polish stocks, typically moving 8.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.5x net interest cover). Share price has been highly volatile over the past 3 months (8.6% average weekly change). Market cap is less than US$10m (zł38.9m market cap, or US$9.74m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). New Risk • Sep 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.5x net interest cover). Market cap is less than US$10m (zł36.4m market cap, or US$9.46m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). New Risk • Sep 11
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: zł37.4m (US$9.62m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.5x net interest cover). Market cap is less than US$10m (zł37.4m market cap, or US$9.62m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Upcoming Dividend • Sep 04
Upcoming dividend of zł0.21 per share Eligible shareholders must have bought the stock before 11 September 2024. Payment date: 19 September 2024. Trailing yield: 3.6%. Lower than top quartile of Polish dividend payers (7.6%). Lower than average of industry peers (6.2%). New Risk • Aug 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.7% Last year net profit margin: 1.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.4x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (zł41.0m market cap, or US$10.6m). Reported Earnings • Aug 18
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: zł55.5m (down 15% from 2Q 2023). Net loss: zł1.81m (down 188% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Jun 05
LUG S.A., Annual General Meeting, Jun 27, 2024 LUG S.A., Annual General Meeting, Jun 27, 2024. Reported Earnings • May 19
First quarter 2024 earnings released First quarter 2024 results: Revenue: zł46.8m (down 25% from 1Q 2023). Net loss: zł967.0k (down 204% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 16
Full year 2023 earnings released: EPS: zł1.01 (vs zł0.43 in FY 2022) Full year 2023 results: EPS: zł1.01 (up from zł0.43 in FY 2022). Revenue: zł267.9m (up 12% from FY 2022). Net income: zł7.26m (up 135% from FY 2022). Profit margin: 2.7% (up from 1.3% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Nov 17
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: zł73.7m (up 27% from 3Q 2022). Net income: zł1.81m (up 146% from 3Q 2022). Profit margin: 2.5% (up from 1.3% in 3Q 2022). The increase in margin was driven by higher revenue. New Risk • Oct 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Polish stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (zł51.8m market cap, or US$11.8m). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to zł7.85, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 11x in the Electrical industry in Poland. Total returns to shareholders of 33% over the past three years. Reported Earnings • Aug 13
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: zł65.6m (up 9.8% from 2Q 2022). Net income: zł2.07m (up 144% from 2Q 2022). Profit margin: 3.2% (up from 1.4% in 2Q 2022). New Risk • Jun 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.3% Last year net profit margin: 2.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 2.3% per year over the past 5 years. Market cap is less than US$10m (zł41.4m market cap, or US$9.97m). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Announcement • Jun 02
LUG S.A., Annual General Meeting, Jun 28, 2023 LUG S.A., Annual General Meeting, Jun 28, 2023, at 12:00 Central European Standard Time. Reported Earnings • Feb 18
Full year 2022 earnings released: EPS: zł0.43 (vs zł0.61 in FY 2021) Full year 2022 results: EPS: zł0.43 (down from zł0.61 in FY 2021). Revenue: zł238.5m (up 17% from FY 2021). Net income: zł3.10m (down 30% from FY 2021). Profit margin: 1.3% (down from 2.2% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 20
Investor sentiment improved over the past week After last week's 18% share price gain to zł6.70, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 11x in the Electrical industry in Poland. Total returns to shareholders of 84% over the past three years. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improved over the past week After last week's 19% share price gain to zł6.00, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 11x in the Electrical industry in Poland. Total returns to shareholders of 89% over the past three years. Announcement • Jun 02
LUG S.A., Annual General Meeting, Jun 27, 2022 LUG S.A., Annual General Meeting, Jun 27, 2022, at 12:00 Central European Standard Time. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: zł0.12 (vs zł0.11 in 1Q 2021) First quarter 2022 results: EPS: zł0.12 (up from zł0.11 in 1Q 2021). Revenue: zł57.0m (up 52% from 1Q 2021). Net income: zł844.0k (up 9.6% from 1Q 2021). Profit margin: 1.5% (down from 2.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 12
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: zł0.51 (down from zł0.96 in FY 2020). Revenue: zł202.6m (up 11% from FY 2020). Net income: zł3.67m (down 47% from FY 2020). Profit margin: 1.8% (down from 3.8% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.6%. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment improved over the past week After last week's 16% share price gain to zł7.30, the stock trades at a trailing P/E ratio of 18.8x. Average trailing P/E is 12x in the Electrical industry in Poland. Total loss to shareholders of 5.9% over the past three years. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS zł0.10 (vs zł0.25 in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: zł58.9m (up 40% from 3Q 2020). Net income: zł746.0k (down 59% from 3Q 2020). Profit margin: 1.3% (down from 4.3% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 22% share price gain to zł7.48, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 14x in the Electrical industry in Poland. Total loss to shareholders of 9.2% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS zł0.11 (vs zł0.37 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: zł47.4m (up 5.0% from 2Q 2020). Net income: zł244.0k (down 91% from 2Q 2020). Profit margin: 0.5% (down from 6.0% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Reported Earnings • May 18
First quarter 2021 earnings released: EPS zł0.11 (vs zł0.27 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: zł37.5m (down 17% from 1Q 2020). Net income: zł770.0k (down 60% from 1Q 2020). Profit margin: 2.1% (down from 4.2% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • May 07
Investor sentiment deteriorated over the past week After last week's 20% share price decline to zł5.84, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 13x in the Electrical industry in Poland. Total loss to shareholders of 34% over the past three years. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS zł1.05 (vs zł0.65 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: zł183.2m (up 7.3% from FY 2019). Net income: zł7.52m (up zł12.2m from FY 2019). Profit margin: 4.1% (up from net loss in FY 2019). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improved over the past week After last week's 23% share price gain to zł9.80, the stock is trading at a trailing P/E ratio of 53.6x, up from the previous P/E ratio of 43.8x. This compares to an average P/E of 27x in the Electrical industry in Poland. Total return to shareholders over the past three years is a loss of 8.4%. Is New 90 Day High Low • Jan 22
New 90-day high: zł7.85 The company is up 22% from its price of zł6.45 on 23 October 2020. The Polish market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 5.0% over the same period. Announcement • Sep 26
LUG S.A. (WSE:LUG) and Tomasz Guzowski acquired 49% stake in BIOT Sp. z o.o. from Toka - Burzynski, and Guzowski Spólka Jawna. LUG S.A. (WSE:LUG) and Tomasz Guzowski acquired 49% stake in BIOT Sp. z o.o. from Toka - Burzynski, and Guzowski Spólka Jawna on September 9, 2020. LUG S.A. acquired an additional 24.5% stake in BIOT Sp. z o.o. from Toka - Burzynski, and Guzowski Spólka Jawna. Under the terms, LUG S.A. and Tomasz Guzowski each acquired 980 shares of BIOT Sp. z o.o. from Toka - Burzynski, and Guzowski Spólka Jawna. Post completion, LUG S.A. holds 75.5% stake in BIOT Sp. z o.o.
LUG S.A. (WSE:LUG) and Tomasz Guzowski completed the acquisition of 49% stake in BIOT Sp. z o.o. from Toka - Burzynski, and Guzowski Spólka Jawna on September 9, 2020. 
