The profit of Kaolin AD has increased nearly 350% in the first quarter of this year reaching 5.52 mln leva from 1.23 mln leva a year earlier, the company’s website, published today on BSE’s website, showed.

The good financial result is due to the significant increase in Kaolin’s revenues which grew 37.4% to 28.45 mln leva from 20.7 mln leva in the first quarter of 2006.

Revenues were boosted by higher sales of goods and services, as well as other gains which increased to 2.53 mln leva from 419,000 leva a year ago.

Positive differences from financial assets and instruments operations amounted to 2.55 mln leva, while a year ago there were no such differences, the consolidated report shows.

Costs were up from 19.4 mln leva to 22.82 mln leva mainly due to operating costs.

Kaolin raised 61.838 mln leva from its IPO in end-April. After the bookbuilding the issue value of the executed bids was set at 13.50 leva with a total of 4.58 mln shares subscribed and paid for.
A total of 1,186 persons participated in the subscription with total IPO costs reaching 2.502 mln leva. The main shareholder in Kaolin is Alfa Finance Holding AD.

The company intends to use the funds raised in its IPO to refinance part of its debts to banks and leasing companies and to finance its own investment programme, its prospect shows.

Kaolin is the biggest producer of industrial materials in Southeast Europe. Its core activities include extraction and processing of kaolin, quarts sands, limestone, ceramic materials and others.

Almost 17,500 shares on this position changed hands today down 0.3% to a level of 13.97 leva/share.