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MECANICA CEAHLAU - MECF

2018 Q3 report

Release Date: 11/5/2018 6:11:06 PM

IRIS Code: 7E8C9

 

 

To:                 BUCHAREST STOCK EXCHANGE

 

                       FINANCIAL SUPERVISORY AUTHORITY

 

 

A.   Quarterly report of the Board of Directors on September 30th, 2018

                       

             Report date: 05.11.2018

Trading company name:

SC “MECANICA CEAHLAU” S.A. PIATRA NEAMT

Registered office: Piatra Neamt, 6, Dumbravei St., Zip code 610202

Telephone / fax number: 0233-21.58.20 / 0233-21.60.69

Sole Registration Code with the Trade Register: RO 2045262

Running number with the Trade Register: J.27 / 8 / January 8th, 1991

Subscribed and paid-up share capital: RON 23,990,846

Regulated market on which the issued securities are traded: Bucharest Stock Exchange.

Trading symbol: MECF.

 

1.    Summary of the Economic-Financial Indicators on September 30th, 2018

 

The information on the economic-financial status of SC MECANICA CEAHLAU SA in the 3rd quarter of 2018 are presented in the individual financial Statements concluded on September 30th, 2018, elaborated in compliance with Order no. 2844 as of 2016, for the approval of the accounting regulations compliant with the international financial reporting standards. The reporting currency of the financial statements is LEU. The individual financial Statements concluded on September 30th, 2018 have not been audited.

 

The structure and evolution of the assets, liabilities and equity items of the company, as compared to the same period of the previous year, appear thus:

 

 

1.a   Situatia individuala a pozitiei financiare

 

Balance sheet items

September 30th

2018

September 30th

2017

 

Total non-current assets, of which

23.704.984

24.699.020

 

Tangible assets

21.949.775

23.628.229

 

Intangible assets

146.802

536.118

 

Real estates investments

1.608.408

534.673

 

Total current assets, of which:

38.774.095

40.105.478

 

Inventories, of which:

20.988.551

15.446.094

 

           -  Finished products

14.312.836

9.933.815

 

            - Commodities (products in distribution)

4.678.415

2.372.122

 

 

Balance sheet items  (continued)

 

September 30th

2018

 

September 30th

2017

 

- Raw materials and materials

2.513.346

1.838.047

 

- Others (production in progress, semi-finished products)

516.613

1.381.136

 

-          Impairment adjustments

(1.032.659)

(79.026)

 

Trade receivables and other receivables

14.241.102

17.183.398

 

Expenses registered in advance

277.746

140.011

 

Financial assets at the fair value (fund units)

744.659

3.089.788

 

Cash and cash equivalents

2.522.037

4.246.187

 

TOTAL ASSETS

62.479.079

64.804.498

 

Total equity, of which:

49.921.808

53.129.182

 

Share capital

23.990.846

23.990.846

 

Reserves

19.485.629

19.816.025

 

The result of the exercise

1.750.212

2.814.871

 

Result carried forward

7.198.462

9.193.413

 

Other equity items

(2.503.342)

(2.685.973)

 

Total liabilities

12.557.271

11.675.316

 

Long-term liabilities, of which:

3.431.983

4.225.269

 

Long-term loans

1.465.551

1.632.604

 

Provision for pensions

221.215

193.621

 

Deferred tax liabilities

1.745.217

2.399.044

 

Total current liabilities, of which:

9.125.287

7.450.047

 

Short-term loans

424.735

485.658

 

Business debts and other debts

7.399.073

6.555.020

 

Deferred income

-

569

 

Provisions

1.301.479

408.800

 

TOTAL EQUITY AND DEBTS

62.479.079

64.804.498

 

 

 

The equity are in the amount of 49.921.808 lei.

 

Current assets decreased by 3% compared to the third quarter of 2017 and consist of:

 

The total inventories in net amount of LEI 20.988.551,  up 36 % as compared to the inventories over the period of 2017, made up of:

 

 

September 30th

2018

September 30th

2017

%

Raw materials and materials

2.513.346

1.838.047

137

Production in progress

451.833

1.317.205

34

Semi-finished products

64.780

63.931

101

Finished products

14.312.836

9.933.815

144

Commodities (products in distribution)

4.678.415

2.372.122

197

Adjustments and price differences

(1.032.659)

(79.026)

1307

Net value inventories

20.988.551

15.446.094

136

 

 

 

 

·         The net trade receivables amounting to LEI 13.689.787, decreased by 18% and are considered totally performance.

The net trade receivables are made up of:

- commercial receivables and settlements in relation to internal and external customers for products, goods sold, services rendered on invoices in the amount of LEI 13.558.216.

-       customers who are in doubt or are litigated in the amount of LEI 2.066.453. To hedge the risk of non-recovery of amounts representing doubtful debts, the Company recorded adjustments for the impairment of unqualified customers, amounting to LEI 1.934.882.

 

On September 30th, 2018, the company received from clients in the form of guarantee, promissory notes and checks according to the contractual clauses amounting to LEI 752.334.

 

·         The provisions amounting to LEI 1.522.694 increased compared to September 30th, 2017  and are made up of:

 

-       Provisions for guarantees

145.953 lei

-       Provisions for the employees’ benefits upon retirement

221.215 lei

-       Provisions for unpaid distribution commissions according to the concluded contracts

 

906.442 lei

-       Provisions for return risk

138.161 lei

-    Provisions for rights not granted under the contracts concluded

32.718 lei

-    Provision for the marketing campaign

 

78.205 lei

 

Long-term debts decreased by 19% compared to the same period of the previous year.

 

The current liabilities, as compared to September 30th, 2017 increased by 22% and the largest share is held by commercial debts and other 13% debts, which consist of:

 

 

September 30th

2018

September 30th

2017

%

Business debts – providers

3.368.762

2.549.917

132

Business debts - distribution providers

 

657.552

 

1.566.313

42

Social security and other taxes and duties

580.690

1.256.085

46

Provider – unreceived invoices

399.807

107.110

373

Performance bonds for works and tenants

26.768

11.077

242

Payable dividends

87.079

87.079

100

Other creditors

114.586

977.439

12

Land sales warranty

2.163.829

-

-

Total commercial debt and other liabilities

7.399.073

6.555.020

113

 

·         The current provider business debt has increased through outsourcing policy. In the third quarter of 2018, close contacts with all "outsourcing" partners were maintained to provide the necessary components / components for the smooth running of the production (especially with OFAS Spa Italia, Agrotech Distribution Stefanesti, Tokes Sandor Gheorghieni, Mecom Prod Tecuci, etc.) ;

 

·         The distribution provider business debt are for the products we distribute (Steyr, Projet, Stoll), their balance reaching 42% compared to the previous year.

Other receivables, including the tax liabilities and social security liabilities of LEI 580.690  

mainly comprise the current liabilities related to the staff, social security budget and State budget.

 

·         1.b  Individual situation of the global result

 

SC MECANICA CEAHLAU SA ended the 3rd quarter of 2018 with a turnover of RON 26.595.789.

 

INDICATORS

 

 

September 30th

2018

 

 

September 30th 2017

Continuous activities

 

 

Revenues from the current activity (Turnover)

 

26.595.789

 

33.438.712

Other revenues

79.901

105.585

Revenues from Inventory variance

3.216.159

217.930

Total operating revenues

29.891.849

33.762.227

Inventory expenses, of which:

(16.100.025)

(15.785.443)

  - Production cost

(8.778.761)

(8.501.244)

 - Cost of the commodities sold in distribution

(7.321.264)

(7.284.199)

Utility expenses

(759.558)

(520.773)

Expenses on salaries, contributions and other benefits

(4.830.464)

(5.516.068)

Expenses on the amortization and impairment of non-current assets

 

(1.079.448)

 

(1.390.211)

Current asset value adjustments

(191.308)

(610)

Adjustments on provisions

(707.324)

(230.678)

Other expenditure (including the distributors’ fees and Marketing expenses)

 

(4.388.830)

 

(6.998.918)

Total operating expenses

(27.616.562)

(29.980.125)

Result of the operating activities

2.275.288

3.782.102

Financial revenues

89.026

128.480

Financial expenditure

(255.125)

(622.160)

Net financial result

(166.099)

(493.680)

Result before taxation

2.109.188

3.288.422

Current corporate tax expenses

(63.613)

(415.051)

Deferred corporate tax expenses

(617.145)

(150.210)

Deferred corporate tax gains

 

321.781

 

91.710

Result from continuous activities

(Net profit)

 

1.750.212

 

2.814.871

 

 

 

 

The turnover recorded in the 3rd quarter of 2018 is 20% lower compared to the same period of the previous year.

 

The structure of the turnover was mainly achieved by selling 65% of its own production.

The share of distribution product sales of Steyr tractors, Projet sprayer equipment, Stoll front loaders in the company's turnover is 23% in the third quarter of 2018 and the share of other products in the distribution is 9%.

The share of rental income, services and other sales represents 3% of the turnover registered in the third quarter of 2018.

 

 

 

Turnover

September 30th

2018

September 30th

2017

%

Sales from sold production

17.254.512

25.098.007

69

Sales from distributed products

8.574.663

7.917.590

108

Service supplies

726.222

304.459

239

Revenues from other sales

40.392

118.656

34

Total revenues

26.595.789

33.438.712

80

 

Operating Expenses

 

Expenditures from the current activity amounted to LEI 27.616.562, down 8% over the corresponding period of the previous year.

 

The structure of the costs at September 30, 2018 is as follows:

 

 

September 30th

2018

September 30th

2017

%

Expenditure on raw materials and consumables for production

8.778.761

8.501.244

103

Cost of the sold distributed commodities

7.321.264

7.284.199

101

Expenditure on salaries, contributions and other benefits

4.830.464

5.516.068

87

 

 

 

 

1.     Expenditure on raw materials and consumables increased by 3% both as a result of the outsourcing of some landmarks (with a direct labor cost impact of 15% lower than in the corresponding period of the previous year) and due to the increase in the cost of materials (steel, cast iron and derivatives)

2.     Expenditure on distribution goods registered an increase over the previous year in order to sustain the sales of goods in distribution by 8% higher compared to the same period of the previous year, in the conditions of maintaining the sales margin;

3.     Expenditure on salaries and employees' contributions is down 13%;

 

September 30th

2018

September 30th

2017

%

Expenses on external services

3.919.615

6.674.089

59

Expenses on taxes, duties and assimilated payments

290.148

106.906

271

Other operating expenses

179.067

217.923

80

Total other expenditures

4.388.830

6.998.918

63

4.     Expenses on the external services decreased by 41% over the corresponding period of the previous year as a result of the renegotiation of contracts;

5.     Expenses with taxes and duties have increased mainly as a result of the increase of local taxes

 

The financial revenues comprises for the most part the earnings related to the valuation of the unitholders held by the Company at fair value and the income from the revaluation of debts and debts in foreign currency on 30 September 2018.

 

The financial expenses comprise the granted rebates or discounts, the interests and exchange rate differences on September 30th, 2018

 

Net profit as at 30 September 2018 is LEI 1.750.212.

 

 

 

1.c. Economic-financial indicators set forth in Annex 30B / Regulation of the Financial Supervisory Authority no. 1 / 2006

 

 

Indicator name

Computing method

September 30th

2018

 September 30th

 2017

 

 

1.

 

Current liquidity indicator

Current assets /current liabilities

 

4,92

 

5,68

2.

 

Indebtedness degree indicator

Borrowed capital /Equity x 100

6,43

7,60

 

 

Borrowed capital /Invested capital x 100

6,04

7,05

 

3.

Turnover speed for client debit items (no. of days)

Average balance of the net trade receivables /Turnover x 270

120

98

 

4.

Turnover speed for intangible assets

Turnover /Non-current assets

1,12

1,35

           

 

 

 

 

2.     Quarterly Report on September 30th, 2017 – the full version is available on our own website www.mecanicaceahlau.ro and on the link below (PDF document attached );

 

 

 

 

PRESIDENT OF THE BOARD OF DIRECTORS,

Trifa Aurelian Mircea Radu

 

 

 

GENERAL MANAGER,                                                              FINANCIAL MANAGER,

            Sorin Ion Molesag                                                                  Oana Chirila

 

 



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