A detailed bottom-up analysis of every sales channel points to €52.1M in revenue for 2026 — up 9.1% from 2025. This is well below the CEO's +20% target (€57.3M). The €5.2M gap is not backed by any identified source: no current channel produces that kind of growth. The Board needs a clear answer from the CEO: where does the extra money come from — a new market, a new product line, or a price increase? The plan should not be approved without that answer.

The business is performing well: operating profit as a share of revenue grew from 12.2% in 2024 to 19.3% in 2025, and could reach 21.3% in 2026. But there is a contradiction: the Commercial Director believes the gross margin will fall to 41%, while the Board targets 14% operating profit. These three goals — revenue +20%, margin 41%, profit 14% — cannot all be true at the same time. The Board needs to decide which matters most before approving the plan.

Six topics worth discussing at this meeting. Each of them directly affects what the business will look like in a year.

1. The company has become significantly more profitable — and it is not an accident
   For every euro of sales, the company keeps more each year: 46 cents in 2024, 51 in 2025, forecast 53 in 2026. Three consecutive years of improvement is not a coincidence — it reflects better pricing or more favourable purchasing terms. If the Commercial Director believes this will suddenly drop to 41 cents, he needs to explain why. Without a clear explanation, that number should not go into the plan.
2. Direct online sales are the fastest-growing channel — and they need dedicated funding
   The direct-to-consumer channel launched just 10 months ago and already brings in €4.85M. In 2026 it could reach €10.8M and become the second largest channel after retail in Spain and the EU. Selling direct is more profitable than going through intermediaries. Yet the overall marketing budget does not allocate enough attention to this channel. Dedicated funding for the online channel should be considered.
3. Growing 20% requires something fundamentally new — and the Board needs to know what that is
   Adding up all current channels with realistic growth gives +9%, or +14% at best. The CEO's +20% target is short by €5.2M. That money does not appear by itself — it requires either a new market (France, Poland), a new product line, or a significant price increase. The Board should ask the CEO to name the specific source. Approving the plan without this is a risk.
4. The 2026 investment plan is sound — but there is no buffer
   The business generates €7.5M in cash from operations. Of that, €2.9M goes to new stores and IT systems, another €1.4M to debt repayment and lease payments. The remainder is around €3.2M. If one store opens later than planned or sales come in slightly lower — the company is still fine. But opening a third store beyond the plan would require additional financing.
5. The tax issue needs to be resolved before the accounts are signed
   The 2025 accounts show only 9.8% income tax, while the statutory rate is 25%. The difference is approximately €1.2M — this needs to be accrued before the accounts close. It is better to raise this now and inform the Board than to wait for the external auditor to find it. The CFO should prepare an explanation and action plan by end of week.
6. A dividend can be paid — but it is better to wait for the audit to complete
   By end of 2026 the company will hold more cash than debt. Financial health is strong. From a purely financial standpoint, paying €500k in dividends is entirely feasible. However, the 2025 accounts are not yet closed and some accounting items remain open, so the final profit figure may change slightly. It is better to make the dividend decision after auditors sign off on the accounts. The Board's intention can be recorded in the minutes today.

Four places emerged during forecast preparation where numbers from different stakeholders contradict each other. Nothing was removed or silently "fixed" — all conflicts are shown openly. The model uses the conservative scenario, but the decision on each point belongs to the Board.

Working Capital & Leverage Metrics

✓ Closing cash €7,979k ties exactly to the Balance Sheet cash balance.