Sirma Group Holding plans to buy back up to 5.3 million of its own sharеs to enhance shareholder value and support strategic growth
We are pleased to announce that Sirma Group AD will hold a general meeting of shareholders to consider a resolution for a share buyback through the Bulgarian Stock Exchange (BSE) over the next three years. Sirma plans to repurchase up to 5.3 million shares by the end of 2028, with a proposed price range of BGN 0.85 to BGN 4 per share. The maximum buyback price aligns with our expectations for stock growth in the coming year.
This resolution is subject to shareholder approval and will be voted on at the extraordinary general meeting scheduled for April 8, 2025, in Sofia. The maximum buyback amount is capped at BGN 21.2 million, allowing Sirma to repurchase up to 3% of its shares each year. The purpose of the share buyback is to create a pool of shares for management and employee bonus schemes.
Tsvetan Alexiev, CEO of Sirma, stated,
We believe that the opportunity to own shares in the company is a key motivation for our employees. Additionally, the repurchased shares will serve as a strategic tool for future acquisitions, further solidifying Sirma’s position in the technology sector.
Despite undergoing significant corporate restructuring, the company reported a 24% increase in consolidated operating income for 2024 to over BGN 100.75 million from nearly BGN 81.3 million for 2023. Gross profit more than doubled, exceeding BGN 3.4 million, and cash reserves totalled over BGN 15.2 million. Furthermore, Sirma’s shares rose by 42% over the past year, resulting in a market capitalization of nearly BGN 57.6 million. For this year, our target is EUR 70 million in revenue, along with a significant increase in EBITDA and overall profit. This is particularly important as we begin preparations to list the company on the Frankfurt Stock Exchange.
Sirma operates in North America, Europe, and Asia, with subsidiaries in the USA, UK, Germany, Romania, Albania, Brazil, Israel, and Sweden. It serves high-profile clients like the European Central Bank, FMO, KBC, DHL and many more.
