The year 2014 was the first year, after a very long period, when recycling fees for lamps were decreased. This step was a result of a long-term increase in effectivity of EKOLAMP, and it was also related to the expectations on the market and of the participants of the company. The decreased recycling fee led to a drop in our turnover if compared to 2013 by approx. CZK 26 million. Such drop did not hinder our company to have profit, as expected, of about CZK 3 million. The profit was transferred to reserves for future collection, transport and recycling of used lamps, in compliance with the Articles of Association and internal rules.
None of the negative expectations predicting the overall drop of the market of lighting equipment came true and the trend of sales of lighting equipment remained positive also in 2014. After settling claims for returns of recycling fees on exported items, the market of lighting equipment grew by approx. 6.5% and we can see that especially producers of luminaries are very successful. Increased sales led to more received recycling fees for EKOLAMP, because each piece of lighting equipment should later be collected and recycled.
Like in previous years, we were not able to keep revenues from free cash, because interest rates promulgated by the central bank kept decreasing. As EKOLAMP has strict investment policies and invests in safe products only, in this economic situation we were unable to maintain our interest yields or to even increase them.
Our financial reports show a significant decrease in the total balance which was due to the decreased recycling fees of lamps (significantly lower receivables at the end of the year), continuous depreciation of most assets (their net book value is decreasing) and dramatic drop in liabilities at the end of the year (the end of a big marketing campaign in Christmas time). The drop is, therefore, caused by no unexpected facts but, instead, by planned events which should further increase the effective operation of EKOLAMP.