Information on provisions and write-offs in the annual financial statements
(Current Report No. 8/2019)
21 .02.2019 / Issuer/
Legal basis:
Article 17 sec. 1 of MAR - confidential information
The Management Board of CCC S.A. (hereinafter: the Issuer, the Company) hereby informs that as part of the work related to the preparation of the separate financial statements of the Company and the consolidated financial statements of the Group CCC S.A. for the year 2018, they acquired knowledge regarding the necessity to recognize provisions and write-offs in the financial statements, which may have a significant impact on the financial result for the year 2018, and their estimated value.
The creation of provisions and write-offs is related to the sale of 100% of shares in the Issuer's subsidiary, CCC Germany GmbH, as reported by the Issuer in Current Report No. 5/2019 as of January 31, 2019 and results from the initial value of the sold subsidiary of the Issuer prepared by the external advisor of the Issuer received on 20.02.2019.
Expected impact on the financial result for 2018 caused by the recognition of the abovementioned provisions and write-offs in the annual separate financial statements will amount to ca. PLN 79 million, whereas in the consolidated financial statements of the Group CCC S.A. will amount to a total of ca. PLN 68 million (which will result from creating provisions due to the negative fair value of CCC Germany in the amount of ca. PLN 12 million and recognizing impairment losses on fixed assets in the amount of approx. PLN 56 million) and will be included in discontinued operations. The described impact on the financial result for 2018 as at 31 December 2018 is not of a cash nature.
The Company reserves the unconsolidated and consolidated financial statements for the year 2018 are being verified by the auditor, therefore the recognition presented above as well as the amounts are not final and may change.
Release of the CCC S.A. annual report for 2018 will take place on March 14, 2019.
Signatures:
1 / Marcin Czyczerski - Vice President of the Mnagament Board
2 / Karol Półtorak - Vice President of the Management Board