| The Management Board of Work Service S.A. (the "Issuer") informs that on August 3, 2020, in relation to three companies from the Issuer's capital group (the "Companies"), i.e.: (i) Work Express Sp. z o.o. based in Katowice ("WEx"), in which the Issuer is the sole shareholder, and whose main activity is the activity of a temporary employment agency, including the delegation of temporary workers to work in the European Union countries, (ii) Outsourcing Solutions Partner Sp. z o.o. based in Katowice (in which WEx is the sole shareholder, and whose main activity includes the activity of a temporary employment agency, including the posting of temporary workers to work in the European Union countries), (iii) Support And Care Sp. z o.o. with its registered office in Warsaw (where WEx is the sole shareholder, and the main activity of which includes the provision of logistic and coordination support services for the above mentioned companies), the relevant Shareholders Meetings of the Companies', pursuant to art. 270 sec. 2 of the Code of Commercial Companies, adopted a resolution on the dissolution of the Companies and the opening of relevant liquidation proceedings (as well as appointing an appropriate liquidator to conduct these proceedings, who has been authorized to represent each of the Companies in liquidation independently). The adoption of the above resolutions resulted from the recognition of both the lack of real prospects for achieving the appropriate levels of profitability of the Companies' business (in particular in the context of changes in the legal environment related to the posting of employees to EU countries) and the legitimacy of the need to further simplify the structure of the Issuer's capital group ("Group"). The full write-off of the value of WEx shares in the amount of PLN 67,604,819.00 was included in the Financial Statements of the Issuer for 2019 and decreased the standalone net profit for 2019. Full goodwill write-off in the amount of PLN 35,733,471.00 was included in the Group's Report for 2019 and decreased the consolidated net profit of 2019. As at June 30, 2020, the Issuer had receivables from the Companies in the amount of PLN 8,225,410.58. In total, Polish entities from the Group together with the Issuer as at June 30, 2020 had receivables from the Companies in the amount of PLN 13,047,790.78. In connection with the decision to dissolve the Companies, these receivables will be covered by an update in the financial statements as at June 30, 2020. As a result of the analysis, the Issuer decided that it is justified to classify the above-mentioned information as confidential information within the meaning of Art. 17 sec. 1 of MAR, subject to publication in the form of this report. | |
