NETSU SA intends to share the generated profit
The Management Board of NETSU SA – a producer of heat pumps, whose majority shareholder is listed on NewConnect Berg Holding SA – intends to recommend a dividend payment in the amount of 75% of the generated net profit, starting from 2023. The company is currently running a crowdfunding campaign promoted by the Crowdway platform. In the first two weeks, the company acquired 50 investors for the amount of over PLN 300,000. The company plans to debut on NewConnect by May 2022 at the latest.
The company assumes that this year it will achieve sales revenues of PLN 17 million, of which PLN 12 million from wholesale and PLN 5 million from retail. This will allow to generate a gross profit of PLN 3.4 million. In 2022, revenues will increase to PLN 32 million (PLN 20 million from wholesale and PLN 12 million from retail), which will translate into a gross profit of PLN 7.3 million.
Purpose of the issue – total PLN 2.01 million
• production of the fourth batch of offered products: PLN 1,210,000
The proceeds from the issue will be used to finance the production costs of a new batch of Fehu Split and Uruz Monoblok heat pumps.
• development of the franchise network and expansion to foreign markets: PLN 350,000
Adaptation of the NETSU master franchise model to foreign markets, focusing in the first place on Great Britain, Ireland, Germany and France.
• employment related to the dynamics of the Company’s development: PLN 225,000
Strengthening the sales department and building an internal customer service department.
• advertising and marketing: PLN 225,000
Investment in the recognition of NETSU SA and its brand in order to increase the group of recipients of the company’s services and products.
With the publication of NETSU, we want the company to regularly share the profit generated with its shareholders. We believe that investors who trust us should receive a dividend. We are in the process of a crowdfunding campaign in which we have already acquired 50 new investors. After the closing of the issue addressed to social investors, we will continue the work related to our debut on NewConnect – says Dr. Ofka Piechnicznek, President of the Management Board of Berg Holding, and also a member of the Management Board of NETSU SA.
By investing in NETSU SA, a potential investor becomes a shareholder of a company that has a high growth potential due to the government guarantee of the payment of subsidies from the “Clean Air” program over the next 9 years. Under the “Clean Air” program of the National Fund for Environmental Protection and Water Management, until 2029 a heat pump subsidy in the amount of PLN 32,000 (PLN 37,000 with an additional photovoltaic installation to power the pump) can be obtained. Clean air is a government subsidy for owners or co-owners of residential buildings who plan to replace ineffective heat sources with modern heat pumps. The state allocated PLN 103,000,000,000 for this purpose in the program planned until 2029.
Sales channels and franchise
NETSU sells B2B and B2C via the online store at www.netsu.pl, which allows you to quickly and easily purchase the appropriate device. Sales are also conducted in a stationary outlet located in Katowice at ul. Kopernika 6/2. A distribution network in specialized wholesalers and points of sale of heating devices is also under construction. The company has two large warehouses, one in the north of the country in Gdańsk and the other in the south in Ruda Śląska.
In April this year, the company launched a franchise network offering a business model in the area of heat pump sales with the necessary equipment. In order to implement the franchise network project, the company NETSU Dystrybucja Sp. z o.o., in which NETSU SA acquired 100% of shares. The plans for the development of the franchise network include the opening of 50 new distribution points in Poland by the end of 2021 and 120 new distribution points in 2022. Ultimately, the company plans to open about 300 distribution points, which will effectively cover the territory of the country and build a sales network. In addition, in 2021, it is planned to start expansion into foreign markets, mainly in Great Britain, Ireland, Germany and France in the master franchise model. Interestingly, in April, the company signed a pilot distribution agreement in Lithuania, which has already started selling the devices.
In May this year. the company signed the first agreement with a franchisee, which provides for the exclusive operation of the company’s showroom in the city of Tarnowskie Góry and the Tarnowskie Góry district. The contract provides for cooperation in the sale of heat pumps with the necessary equipment under the NETSU brand. In June, three more agreements were concluded with franchisees in Gdańsk, Bielsk-Biała and Namysłów.
Renewable energy sources are the youngest, but extremely dynamically developing branch of the activities of Berg Holding SA. NETSU is a producer and distributor of ecological and efficient heat pumps, which are an alternative to emission heat sources. The manufacturer also gives a long, 7-year warranty. The company’s solutions are targeted at both individual and corporate customers. The NETSU offer includes devices, i.e. indoor and outdoor units and other necessary components, whose joint work guarantees much lower heating bills, comfort of use and a safe future for generations. The company guarantees comprehensive service – from consultation to assembly, all under one brand and one delivery.
Heat pump market and development prospects
Heat pumps are a strongly growing segment of the Renewable Energy Sources market. In 2019, over 20,000 water-air devices were sold in Poland. For 9 years in a row, the recorded increases have been record-breaking. Compared to 2018, sales of this type of pump increased by 91%. It is estimated that over 128,000 devices have already been installed in Polish homes. An important factor is the “Clean Air” program with the amount of PLN 103,000,000 until 2030, of which nearly 18,000 applications related to the installation of heat pumps, NETSU is on the green reference list, which means that the manufacturer’s equipment is subject to reimbursement. The promotion of technology among installers and designers, a decrease in device prices and relatively low investment costs, the possibility of effective cooperation with photovoltaic installations, as well as an increase in the ecological awareness of Poles are also important. Already the first quarter of 2020 showed a two-fold increase in sales compared to the first quarter of 2019 and amounted to 108%. A factor that will significantly affect the further development of the market is the strategy announced by the European Commission, which assumes the share of heat pumps in private construction at the level of 40% by 2030.
More about the Netsu SA issue at www.crowdway.pl
Last Updated on June 28, 2021 by Karolina Ampulska