Some positive news from Kleemann today: the company has called an Extraordinary General Meeting on February 4th to decide on a return of capital to shareholders of €4.0 million (about €0.17 per share, I think). That’s a substantial amount for a company with a €35.5m market cap.
This news is another sign that Kleemann’s financial position is strong. The company’s income statement doesn’t look pretty due to provisions for doubtful debtors, as I described in last month’s update on Kleemann, but I think the cash flows are what really matter here. Kleemann’s solid cash flow generation has helped them reduce their debt and already allowed them to return to shareholders €4.5m in dividends plus a return of capital in 2014. It looks like the company will look to do more of the same in 2015.
Kleemann’s stock price is up about 10% to €1.50 on the back of this news.
Disclosure: long Kleemann Hellas