- The updated strategy provides development which we will be able to finance from our own funds. Raising a credit at the Bank Ochrony Środowiska and the related recapitalization of the company, as well as the one-off payment of our existing credit will allow us to significantly decrease the total debt amount by approximately PLN 10 million on account of interest write-off. At BOŚ, we also gain the privilege of credit distribution for the period of 7 years and a grace period of one year which will allow us to generate from our ongoing activities funds sufficient to finance our development. The pace of adjusting our debt will also be fully tailored to the networks' development. The next year's pace is expected to be slightly less dynamic than we initially assumed, but the realization of the strategic objectives will not cause the necessity to seek additional sources of financing, such as issue of shares or convertible bonds - explains Sylwester Cacek, President of the Management Board of Sfinks Polska S.A.

- Our ambitions in the field of development pace, in the current favorable market conditions, are, however, much greater than it results from the forecasts. That is why we undertook additional actions which will allow us to increase the scale of investments in a safe way, without having to raise capitals. We are conducting dialogues with investment funds and we established a limited partnership, the goal of which is to obtain financing for real estate purchase. The task is to provide premises ownership of approximately 20% in relation to the whole network. We are also analyzing the market on a regular basis in terms of acquisition. According to the strategy's assumptions, our debt-to-EBITDA ratio will decrease annually to reach 0.5 in 2020. If, however, it would be maintained at 3.5 which is allowed by our strategy, in 2017 we could have PLN 60 million of spare funds at our disposal for investments and in 2020 the amount of PLN 190 million. Those funds can be spent on investments if we safely encumber the company with credits. With positive equities we have such opportunities - says Sylwester Cacek.

Sfinks still considers purchasing a network from the fast casual dining, pizzeria or café segments. The strategy provides for the possibility of acquisition in the case of acquiring an entity with a strong brand, wide range or having the potential to develop in the Italian cuisine area and, in consequence, that allows the creation of a second strategic network - next to Sphinx. The company does not rule out developing abroad by way of selling master-franchise.

According to the strategy's assumptions, the company will continue to concentrate on developing the Sphinx brand and the investments in those restaurants are supposed to deliver ROI of at least 30%. The network is to be developed based on the operative and franchise models. Also the Chłopskie Jadło and WOOK networks are to be developed. The company is expecting at least doubling of the number of restaurants from each network by 2020.

The financial forecasts presented in the strategy do not take into account the influence the franchise-based restaurants may have on the network's development results. The forecasts included however one-time events resulting from execution of annexes with PKO BP and ING Bank Śląski and the full payment of credit debts together with the interest write-offs in those banks, as well as financing of the development from the credit obtained at BOŚ S.A.

distributed by