Enterprise Investors Venture Fund invests in Euro-Tax.pl

EVF’s latest investment is the seventh company operating in the thriving SME sector in this fund’s portfolio. The total amount invested to date by EI’s youngest fund is €20 million.

For eight years, Euro-Tax.pl SA Capital Group has been operating on the Polish market, providing overpaid tax recovery consultancy for Polish workers legally employed abroad. The company renders its services almost exclusively on an e-commerce basis. Since its inception, Euro-Tax.pl has recovered more than PLN 100 million in overpaid taxes for 40,000 clients.
The company recovered half of this amount in 2009 alone, which proves its very dynamic development. Euro-Tax.pl owes this fast development to its management team as well as its business strategy. The latter, being based on the internet channel, allows for the minimization of risk and cost and the maximization of profit.

“We have decided to invest in Euro-Tax.pl because this company is the clear leader on the market and operates through the very efficient internet channel,” said Rafał Bator, an Enterprise Investors partner who manages the venture capital team.
“We have established very good contacts with the company’s dynamic management team. This is very important for our effective cooperation in years to come, when we will be working together to build the value of the company further,” he added.

In January 2010, Euro-Tax.pl had its debut on the NewConnect market on the Warsaw Stock Exchange. The company’s attractiveness was attested by the reduction in orders and the involvement of a financial investor who bought 50% of the shares offered. In the years ahead, the company plans to increase its range of services and offer them to a broader group of clients.
It also plans to expand its operations beyond Poland’s borders and to move to the Warsaw Stock Exchange’s main market (in 2012).

“This sale of shares to Enterprise Venture Fund will first of all support the Euro-Tax.pl Capital Group’s further development,” said Adam Powiertowski, Euro-Tax.pl president, commenting on signing the investment contract. “The priority in our cooperation with EVF will be to significantly increase the company’s value for shareholders. Winning over an experienced partner will allow our company to meet expansion plans on the Polish market and in the Central and Eastern European region as well as enable the company to prepare to sell to a strategic investor within the next five years. Even though Euro-Tax.pl has already performed very well, we can see huge potential for the further dynamic growth of our sales services and thus for the capital group’s growth in value. We want the company to move into the Warsaw Stock Exchange’s main market within the next two years.”

In 2009, Euro-Tax.pl’s consolidated revenues amounted to PLN 9 million (approx. €2 million) and were more than two times higher than 2008 revenues. In line with earlier forecasts, in 2009 the company generated a consolidated net profit of
PLN 2.3 million (€0.5 million). In 2010, Euro-Tax.pl expects to increase its sales by several dozen percent and to achieve net profit at a level of PLN 3 million.