The 100 richest Bulgarian businessmen own more than BGN 1.4 billion, PARI daily’s unique ranking of the legal wealth in Bulgaria shows. Half of the amount is held by the top 10 businessmen. With more than BGN 240 million the owner of 47% of Petrol Holding, Mitko Sabev, is well ahead of the others in the ranking. He is followed by Petar Petrov (Rodopaimpex) with BGN 70 million; Georgi Gergov (Slanchev Den) with BGN 42 million; Petya Slavova (Festa Holding) with BGN 41 million; Borislav Dionissiev (Sopharma) with BGN 40 million; Vassil Bozhkov (Nove Holding) with BGN 37 million; Emil Ivanov (Ruzhie) with BGN 34 million; Fuat Gyuven (Shipka-Fuat Gyuven Istanbul) with BGN 25 million; Svilen Krastanov (Metizi) with BGN 22 million; and Borislav Boyanov (Dekotex) with BGN 21 million
Source: Pari (06.03.2006)

Bulgarian textile company Decotex said it will raise capital from 406,530 to 15,041,610 levs. The operation will be sourced from the company's reserves and undistributed profit. The news bumped up the stock of the publicly traded firm by 17.99% on Wed, Mar 23. Preliminary financial data indicates that Decotex was headed for a '05 net profit of 1.765 mln levs, up 15.5% y/y. Revenues fell to 23.723 mln levs in '05 from 24.056 mln levs a year earlier.
Source: Dnevnik (23.03.2006)

A May 31 general meeting of the shareholders of Sliven-based textile company Decotex will vote on a proposal to distribute 0.20 levs per share as dividend for '05. The company intends to use 1.683 mln levs from its '05 net profit and 12.9 ml levs from reserves to raise capital to 15 mln levs. Decotex posted a net profit of 1.766 mln levs last year, up 15.5% over '04, shows the preliminary financial statement of the company.
Source: Dnevnik (12.04.2006)

Bulgaria's Decotex will raise its capital to BGN 15.041 million. At a general meeting on May 31 the shareholders are also expected to decide on the distribution of BGN 81,000 of the company's profit as dividend, or BGN 0.20 per share. The remaining BGN 1.683 million will be used for raising the capital, which currently stands at BGN 406,530. A total of 14,635,080 shares will be issued with a par value of BGN 1 and each shareholder will receive 36 new shares. Nearly BGN 13 million of the reserve fund will be used together with the profit for the increase. Decotex is one of the biggest carpet producers in Europe. The majority owner, Kappa Technology, holds 91.94% of the company. The remainder is free float.
Source: Pari (12.04.2006)

The net income of Decotex – Sliven for 2005 is BGN 1.763 mln, up by 15.4 percent from BGN 1.528 mln in 2004. The net sales revenues of the company last year were BGN 23.019 mln, 1 percent down from BGN 23.276 mln in 2004. The company exports 80.45 percent of its production. Sales in the USA have the biggest share in the export of the company with 54.5 per cent; Europe comes second with 37 percent. The financial revenues for the year rose to BGN 1.114 mln, as BGN 1.094 mln came from forex gains. Established in 1909, Decotex is one of the leading textile companies in Bulgaria and Europe. Majority owner of the Sliven-based company is Kappa Technology JSC – Sofia.
Source: Monitor (10.05.2006)

Decotex JSC - Sliven, Bourse code DEKOT, the annual general meeting of which was held on May 31, 2006, will distribute gross dividend for the year 2005 of BGN 0.20 per share (net amount BGN 0.186). Decotex JSC - Sliven reported a profit for 2005 in the amount of BGN 1,763,000. The company shall allocate the residual part of the profit totaling BGN 1,683,419.60 for capital increase.
Source: Capital market (02.06.2006)

One of the proposals that will be voted at the Sept 16 general meeting of shareholders of Varna-based Odessos Ship Repair Yard is for a capital raise sourced from undistributed profits. If the proposal is approved, the company will perform a share split. According to the audited financial statement, the ship repair yard is sitting on an undistributed profit of BGN 11.063 mln. The main shareholder in the company is KRZ Invest with 47%.
Source: Dnevnik (18.07.2006)

The textile producer Decotex JSC of Sliven reported a profit of BGN 701,000 for the first half of 2006, compared to a profit of BGN 544,000 y/y. The net sales revenues for the reported period increased to BGN 11.92 mln compared to BGN 10.14 mln as to the end of June 2005. Financial incomes dropped to BGN 510,000 from BGN 820,000 a year ago. The total company’s expenditures also upped to BGN 11.73 mln compared to BGN 10.42 mln for the same period last year.
Source: Banker (24.07.2006)

Sopharma, the Sofia-based drug maker, will double its capital to BGN 132 mln, the company said in a filing with the Bulgarian stock exchange. The exercise, to be sourced form company reserves which exceed BGN 95 mln, will be put to a vote at the September 29 general meeting of shareholders. The new shares will be distributed among shareholders in a 1:1 ratio to their current holdings. The Sopharma shares rallied on the cap hike news to BGN 10.09 on Monday, August 7. The capital raise will ensure Sopharma the no.2 spot in terms of share capital among the nation's public corporations after telco BTC with BGN 288.7 mln and fuel retailer Petrol with BGN 109.25 mln. Sopharma has added 40% to its market capitalisation so far in 2006 and now it stands at just over BGN 660 mln. Sopharma is the latest in a string of public companies to announce in 2006 plans to enlarge their capital at their own expense. Oil and Gas Prospecting Company, the Odessos Ship Repair Yard, hydraulic equipment maker M+S Hydravlik and Decotex are among the companies that have made identical cap hike proposals to their shareholders
Source: Dnevnik (08.08.2006)

Decotex of Sliven is among the leading carpet manufacturers in the Balkans. The company manufactures wool and synthetic rugs and runners, wall-to-wall carpets, bath sets and rugs, printed rugs, car sets, blankets and other textile products. Decotex holds an ISO 9001 standard for quality, as well as a Woolmark licence providing the company access to foreign markets. Carpet sales accounted for 61% of the overall sales of the company in 2005. Tufted product sales grew from 19% in 2004 to 29% in 2005. The company racked up BGN 22.7 million sales revenue in 2005 with exports accounting for 80% of the figure. Exports to North America accounted for 50% of overall exports, followed by exports to Europe (37%). Spain, Greece and Belgium are the main European markets of the company. Decotex's domestic sales are carried out through the distribution networks of METRO, Praktiker, Mr. Bricolage etc. The company forecasts an 8.6% year on year increase in sales for 2006, which would contribute to a BGN 25 million sales revenue for the same year. Decotex has been investing in manufacturing equipment upgrade over the recent years, which helped the company achieve a higher productivity and increase profit margin from 3.9% in 2002 to 7.8% in 2005. US Kappa Technology, which specialises in carpet imports and trade, is the major shareholder in Decotex with a 92% stake. The remaining 8% of the capital of Decotex is traded on the Bulgarian Stock Exchange (BSE). The market capitalisation of the company amounts to BGN 25.7 million at present. The present financial condition of Decotex is very stable. Liabilities were reduced to 35% of the total asset value after the capital of the company was raised with own funds on June 30, 2006. The move will allow debt financing of future investments. STRENGTHS - Long-standing traditions in carpet manufacturing; - international certificates for quality; - well-established positions on international markets; - vertical business integration through the trade network of the majority owner. WEAKNESSES - Revenue depends on the value of the US dollar. OPPORTUNITIES - Increasing production capacity; - strengthening positions on the European market after Bulgaria's EU accession. THREATS - Asian countries intensifying competition in the sector;
Source: Pari (20.09.2006)

The Bulgarian producers of clothing founds new market niche, in which to settle their products and develop their business on the domestic market. More and more companies begin to make a name for their own marks in Bulgaria as they come out as direct competition to foreign clothing from the rang of Mango, Teranova, Tom Tailor, etc. This happens due to the new trade-entertainment centres of Mall type, in which the Bulgarian producers hire areas and open own representative shops. The companies see in this way the opportunity to attract bigger number clients and to establish loyalty to Bulgarian marks in them. In the new malls in Sofia, the shops of Ninka, Dafne, Nia and Dorado and other Bulgarian chains line up to the trade objects of Boss, Mex and Stefanel. Bulgarian marks are not competitive to the foreign only because of their prices. They are accentuating on quality and materials and actuality of the models more and more. The presence of Bulgarian marks in the malls is opportunity for reaching bigger consumer’s group. This was announced by the manager of the Plovdiv based company Veni Style Veselin Slavchev, which is the creator of the ladies’ clothing mark Etere. The companies can not only rely on their shops in these centres but this is access to more clients, explained the manager. We have serious expectations for the activity of our shop in one of the malls in Sofia and we will see if they will be confirmed. This was said by one of the managers of other Plovdiv based company, which successfully sells its mark on the Bulgarian marker – Nia and Dorado, Mr. Lyubomir Slavov. The company has shop in trade centre Sky City in the capital’s district Geo Milev. According to Slavov’s opinion, during bad weather or hot weather, the clients will prefer to go shopping in the malls, where all shops are in one place. More than five Bulgarian marks are represented in the biggest for now mall in Sofia – Mall of Sofia. Shops there have the Bulgarian companies Denil, Dafne, Kapaska, Etere, Ninka, etc. In Sky City there are shops of Batibaleno, Ladies fashion Rosita, Ladies fashion Tani, Etere, Markam, Nia and Dorado, Kadife, etc. We have received offers from other malls that are now constructing in some smaller Bulgarian cities but we have not yet decided if we are going to open shops in them too, said the manager of Nia and Dorado. For more than a year, the representatives of the textile sector in Bulgaria are willing to make name for their own marks not only on the domestic market but in the countries from the EU and the other regions. This way, Bulgarian producers find the mechanism to survive on the competitive West market. The trend shows that more and more companies in the country orientate their activity from tailoring with materials supplied by the clients to making of own models. This also leads to strengthening of the market positions of Bulgarian companies on the domestic market. Proof for this statement is the data of the Bulgarian Association of Producers and Exporters of Clothing and Textile, according to which, during the first half of the year, the domestic trade in clothing and textile has increased by more than 10 per cent compared to the first six months of the previous year. For the stable development of the sector matter also the realized export of clothing and textile for the first half of the year. According to association’s data, the export of Bulgarian products has raised by about 7 per cent and is with a total value of BGN 1.7 bln. The export of textile is with significantly bigger growth than the increase of the clothing’s export – respectively 14 per cent and 5.5 per cent more exported products compared to the first six months of 2005. A significant growth in the value of the export of textile and clothing for the countries from the EU has also been reported – 10 per cent compared to the same period of the previous year. The second biggest export market of Bulgaria after the EU is Turkey, but the value of the export for there continues to decrease (minus 3 per cent). Third biggest is Romania with 6 per cent growth compared to the same period of the last year. This result, however, due to the fact that big European companies organize their production in Romania, from where give errands to Bulgaria. The share of Romania in the Bulgarian export of textile and clothing is already 3 per cent. Switzerland and the Bulgarian duty free zones are on fifth and sixth place and mark growth and the export for Switzerland has increased 2.5 times compared to the same period of 2005. Significant increase compared to the first six months of 2005 marks the export for Poland, Estonia, Slovakia, Slovenia, Finland, Moldova, and Ukraine. Germany is again our main market for ready-to-wear clothes and Greece – for knitwear.
Source: Dnevnik (04.10.2006)