Memorandum

Dear Shareholder:

The year 2020 has been marked almost entirely by the pandemic caused by Covid-19. A large part of the decisions taken have been conditioned by this fact, which has interfered in a large part of the business management. Despite this, we managed to close the year with a good level of activity and profitability, as shown in the following summarised data:

Consolidated revenues were 66.5 million, which represents a difference of 10% compared to the 2019 financial year, EBITDA was 8.1 million (12% of revenues) and profit before tax (PBT) was 6.5 million, which represents 10% of ordinary revenues. Net Financial Debt amounted to -0.9m, in line with what we have been achieving in recent years. Two aspects must be taken into account when analysing these figures: the extraordinarily complicated circumstances in which we have worked throughout the year, given the complex environment in which we have been forced to develop our activity due to the pandemic; and also, in 2019 we had achieved the best results in the recent history of the Company.

Our revenues have continued to be based mainly on sales outside Spain, with exports accounting for 88% of the total. It should be noted that our sales are very diversified geographically, although China continues to be our main market. The Group´s order backlog at the end of the year was 28.2 M compared to 31.1 M at the same date in 2019.

Taking into account the results achieved in FY2020 and the Group´s cash position, the Board will propose to the AGM a dividend of €0.17 per share.

Trusting that we will soon overcome the circumstances that still affect us, and with my deep gratitude to all those who have contributed to bringing the Company to its current situation, I would like to reiterate my personal commitment to continue growing and offering shareholders a magnificent and profitable business project that will continue to remunerate, via dividends, their investment in the coming years.

 

With the illusion and enthusiasm to achieve this, I send you my warmest greetings,

 

Mr. José Nicolás-Correa Barragán

President