Underground business on the Warsaw bourse
The Famur Group is no stranger to tough markets. Despite being dependent on what many see as a declining industry, the firm is full of optimism, and next month it will become the first company from the mining sector to enter the Warsaw Stock Exchange.
The company supplies mining machinery, and surging demand for energy has meant rising demand for coal. Famur already enjoys a substantial share in the market in Poland as well as in Czech Republic, Russia and Spain.
"Our final goal is making Famur the leader in the European market of mining machinery and equipment, and the number-two producer and provider in the world," says Waldemar Łaski, the company's CEO. To achieve this, about zł.300 million raised from its IPO will be spent on further growth, with some 70 percent of this going on acquisitions.
"Our strategic goal is the further widening of the capital group," stresses Łaski. "In the last four years the capital group has grown considerably and we don't want to let it go at that," he adds.
Famur fighting fit
Katowice-based Famur was founded over 80 years ago, but the Famur capital group was set up as recently as 2002. Currently, apart from Famur, it comprises Nowomag and Fazos, which also produces machines used in mining, and the Pioma mining-machine factory.
All three companies were acquired between 2003 and 2005. At the same time, Famur's sale revenues grew from zł.68.2 million in 2003 to zł.649.4 million last year. The forecast for this year stands at zł.703.87 million and in Q1 2006 the firm registered a net profit of zł.22.33 million.
Last year saw 37 percent of the firm's revenues coming from exports. The group wants to strengthen its position on the European and Eastern markets, and in 2007 it plans to expand in Australia, and North and South America.
Famur published its issue prospectus on July 5 and will debut on the WSE in August. Individual investors can sign up for shares between July 18 and 21, and institutional investors between July 24 and 26.
