(Alliance News) - Confinvest Spa on Wednesday approved the draft financial statements for the year to Dec. 31, 2022 reporting a net profit stands at EUR450,000 an improvement over the loss of EUR100,000 in 2021. The board also resolved to propose to the shareholders' meeting the distribution of a gross dividend of EUR0.10 per share.

Revenues amounted to EUR43.1 million, up from EUR30.3 million in 2021. The increase, the company explains in a note, is mainly attributable to "a volume effect driven by the volatility that the price of gold experienced throughout 2022, especially during the first half of 2022, particularly up to the peaks in March and April 2022, stimulating client interest and promoting overall business volume growth."

In addition, the global instability caused by the conflict in Ukraine, the continued rise in inflation, and the sharp increase in gold purchases by central banks "have prompted savers to seek safety in physical gold habitually regarded as a refuge in times of international tensions. In the latter part of the year, however, starting in September 2022, the price began a downward phase, resulting in lower volumes traded, which inevitably slowed the company's sales in the second half."

Ebitda stands at EUR870,000 compared to EUR63,000 in 2021.

Ebit stands at EUR64 million compared to minus EUR128,000 in 2021.

Net financial position is cash negative EUR130,000 which compares to a cash positive EUR1.05 million as of 2021, mainly attributable to an increase in the value of inventories of about EUR2 million. In addition, the company explains, "a planned transaction with a trusted historical counterparty resulted in a temporary receivable of approximately EUR350,000, which arose at the end of December 2022 and was financially settled by the first ten days of January 2023."

The increase in inventory values "is due to market dynamics that led the company to have a more substantial inventory position at the end of the year partly as a function of some purchase transactions from customers in the last weeks of 2022, as the volatility of the gold market allowed new lots to be acquired at systematically decreasing prices."

Confinvest's stock on Wednesday closed 2.4 percent in the red at EUR2.00 per share.

By Chiara Bruschi, Alliance News reporter

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