July 24, 2015

Polish LS Tech-Homes, a producer of innovative construction materials, is willing to consider investor offers, the CEO of the firm told EMIS.

The company, however, is only willing to sell a minority interest. "The company is open to minority stake offers from strategic or financial investors," Leszek Surowiec said

LS Tech-Homes' strategic development plans do not include any acquisitions for the time being. It plans to open subsidiaries in the Middle East, in the U.S. and in South America. As Surowiec said, LS Tech-Homes will have a majority stake in these firms.

"The company plans to move to the main floor [of the Warsaw Stock Exchange] within the next 3 years. In this period, all of our production plants should become fully operational and our sales should grow to PLN 15-20mn," Surowiec also said.

The CEO added that if the company manages to get larger contracts, it could raise as much as PLN 40mn from the share issue accompanying the uplisting.

LS Tech-Holmes specialises in the production of magnesium oxide boards, hard boards with a core based on magnesium oxide and magnesium chloride, perlite and wood fibres that are used as casings for walls, roofs and partitions. It also makes pultrusion profiles made of glass fibre reinforced resins, acoustic insulation panels and polyester based lining grids.

LS Tech-Holmes reported a revenue of PLN 2.3mn and a loss of PLN 3.9mn in 2014. In Q1/2015 the firm reported revenues of PLN 1.57mn and a loss of PLN 419,000. The firm is still making losses due to investments in production facilities (to be completed in late 2015), investments in new products for foreign markets, and marketing costs. "The company expects to break even by the end of 2015," Surowiec said.