In 2014, the subsidiary Aluprof System USA, Inc with its registered office in the USA entered into a joint venture agreement with two US partners and a new company was established for that purpose, i.e. Aluprof USA LLC with its registered office in New York. The company share capital is USD 220,000, whereas Grupa Kęty S.A., through its subsidiary Aluprof System USA, Inc., took up 45.5% of shares in the company of the initial value of USD 100,100.
The company was involved in the distribution of aluminium systems. The establishment of the company was an element of the Group strategy of systematically increasing the share of export sales in the total sales of all Group segments. In the Aluminium Systems Segment, this strategy is implemented additionally through the establishment of subsidiaries on the markets to which products are exported, which allows the Group to better adjust the products offer to the specific nature of the particular markets and meet their technical and legal requirements more precisely. In 2021, a decision was made with regard to a change in the model of presence on the USA market and closure of the operations of Aluprof USA LLC.
In the Group financial statements, the company is recognised using the equity method. The Group presents net operating profit, as the nature of the investment complies with its business. The Group plans that the company winding-up process will have been completed in 2022. A lower value of investment in the associate results mainly from the dividend received in 2021.
Interests in associates
The company basic financial figures:
| STATEMENT OF PROFIT OR LOSS | 2021 | 2020 |
|---|---|---|
| Operating income | 7,933 | 8,287 |
| Operating costs | (8,584) | (9,931) |
| Loss on operating activities | (651) | (1,644) |
| Financial revenue | 0 | 0 |
| Finance costs | 0 | 0 |
| Loss before tax | (651) | (1 ,644) |
| Income tax | 0 | 0 |
| Net loss on continued operations | (651) | (1,644) |
The Group share in the net loss of the company valued using the equity method amounts to PLN (296,000) [45.5%*651]. In 2020: PLN (748,000) [45.5%*1,644].
| ASSETS | 31.12.2021 | 31.12.2020 |
|---|---|---|
| I. Non-current assets | 4 | 15 |
| Property, plant and equipment | 4 | 15 |
| II. Current assets | 3,808 | 7,318 |
| Trade and other receivables | 3,321 | 5,713 |
| Cash and cash equivalents | 487 | 1,605 |
| Total assets | 3,812 | 7,333 |
| EQUITY/LIABILITIES | 31.12.2021 | 31.12.2020 |
| I. Equity | 2,797 | 4,728 |
| Share capital | 893 | 827 |
| Retained earnings | 1,904 | 3,901 |
| II. Long-term liabilities | 0 | 537 |
| III. Short-term liabilities | 1,015 | 2,068 |
| Trade payables and other liabilities | 1,015 | 2,068 |
| Total equity/liabilities | 3,812 | 7,333 |
