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MECANICA CEAHLAU - MECF

2017 Q3 report - English version

Release Date: 10/27/2017 1:22:51 PM

IRIS Code: 68F51

 

To:      BUCHAREST STOCK EXCHANGE

 

             FINANCIAL SUPERVISORY AUTHORITY

 

A.   Quarterly report of the Board of Directors on September 30th, 2017

                       

 Report date: October 23rd, 2016

 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, 2017

 

The information on the economic-financial status of SC MECANICA CEAHLAU SA in the 3rd quarter of 2017 are presented in the individual financial Statements concluded on September 30th, 2017, 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 RON. The individual financial Statements concluded on September 30th, 2017 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 Individual Statement on the Financial Status

 

 

Balance sheet items

September 30th,

2017

September 30th,

 2016

Total non-current assets, of which:

24,699,020

22,042,279

Tangible assets

23,628,229

21,440,413

Intangible assets

536,118

136,235

Real estate investments

534,673

465,631

Total current assets, of which:

40,105,478

38,372,422

inventories, of which:

15,446,094

15,766,915

 - Finished products

9,933,815

9,601,555

 - Commodities (products in distribution)

2,372,122

2,215,408

 

 

 

 

 


 

 

 

Balance sheet items (continued)

 

September 30th,

2017

 

September 30th,

2016

 

 - Raw materials and materials

1,838,047

1,430,771

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

1,381,136

2,656,317

-       Impairment adjustments

-79,026

-137,136

Trade receivables and other receivables

17,183,398

14,590,944

Accrued expenses

140,011

95,196

Financial assets at the fair value (fund units)

3,089,788

3,036,005

Cash and cash equivalents

4,246.187

4,883,362

TOTAL ASSETS

64,804,498

60,414,701

Total equity, of which:

53,129,182

51,884,668

Share capital

23,990,846

23,990,846

Reserves

19,816,025

18,996,588

Result of the year

2,814,871

2,510,806

Result carried forward

9,193,413

9,090,026

Other equity items

-2,685,973

-2,703,598

Total liabilities

11,675,316

8,530,035

Long-term liabilities, of which:

4,225,269

2,878,478

Long-term loans

1,632,604

279,350

Provision for pensions

193,621

166,720

Deferred tax liabilities

2,399,044

2,432,408

Total current liabilities, of which:

7,450,047

5,651,557

Short-term loans

485,658

114,274

Business debts and other debts

6,555,020

5,511,096

Deferred income

569

2,846

Provisions

408.800

23,341

TOTAL EQUITY AND DEBTS

64,804,498

60,414,701

 

The equity increased to the amount of RON 53,129,182, mainly by the registration of the net profit of the period, of RON 2,814,871, and of the reserves created over the previous year.

 

The current assets increased by 4.5% in reference to the 3rd quarter of 2016 and they are made up of:

 

·         The total inventories in net amount of RON 15,446,094, 2% down as compared to the inventories over the period of 2016, made up of:

 

 

September 30th,

2017

September 30th,

2016

%

Raw materials and materials

1,838,047

1,430,771

128

Production in progress

1,317,205

2,592,204

51

Semi-finished products

63,931

64,112

99

Finished products

9,933,815

9,601,555

103

Commodities (products in distribution)

2,372,122

2,215,408

107

Adjustments and price differences

-79,026

-137,136

58

Net value inventories

15,446,094

15,766,915

98

 

 

 

 

 

 

·         The net trade receivables amounting to RON 16,677,492 increased by 17% and are considered fully performing, are due to the increase of the turnover recorded in the 3rd quarter of I 2017, as compared to the same period of the previous year.

On September 30th, 2017, the Company has received from customers, under the form of guarantee, promissory notes and cheques, according to the contractual clauses.

 

·         The provisions amounting to RON 602,421 = increased as compared to September 30th, 2016 and are made up of:

 

-       Provisions for the employees’ benefits upon retirement

RON 193,621

-       Provisions for distributors’ fees related to the 3rd quarter

 

RON 256,831

- Provisions for ASM bonuses related to the 3rd quarter

RON 105,000

- Provision for the marketing campaign

RON 46,681

 

The long-term receivables increased by contracting a long-term investment credit, with the balance of RON 1,842,047, necessary to supplement the own financing sources in order to make investments in new production technologies, amounting to RON 2,463,549.

 

The current liabilities, as compared to September 30th, 2016, increased by 21% and are made up of:

 

 

September 30th,

September 30th,

                2017

                                                 2016

Business debts providers

2,549,917

2,585,133

Business debts - distribution providers

1,566,313

1,300,000

Social security and other taxes and duties

1,256,085

1,313,332

Providerunreceived invoices

107,110

137,526

Performance bonds for works and tenants

11,077

25,328

Payable dividends

87,078

60,628

Other creditors (advance payments collected from customers with unreceived and uninvoiced commodity)

977,439

89,149

 

6,555,019

5,511,096

Total

 

 

·         The current provider business debt decreased since the Company outsources a series of benchmarks and components to providers with tradition in the field, with payment terms of up to 90 days.

 

·         The distribution provider business debt represents the providers of the products that we distribute (Steyr, Projet, Stoll), the balance thereof reaching 120 % as compared to the previous year. The due date thereof is in the 4th quarter.

 

·         Other receivables, including the tax liabilities and social security liabilities of RON 1,256,085 mainly comprise the current liabilities related to the staff, social security budget and State budget.

·         Other creditorsthe balance of RON 977,439 represents advance payments collected from the customer for commodities to be invoiced (order-based distributed commodity)

 

·         On September 30th, 2017, the company has no outstanding debts.

 

1.b Individual Statement on the Aggregate Result

 

SC MECANICA CEAHLAU SA ended the 3rd quarter of 2017 with a turnover of RON 33,438,712, 15% up in reference to the 3rd quarter of 2016.

 

The turnover obtained on September 30th, 2017 was 5% higher than the cumulated 9-month BVC.

 

 

INDICATORS

 

 

September 30th, 2017

 

%

of the turnover

 

 

September 30th, 2016

 

 

%

of the turnover

Continuous activities

 

 

 

 

Revenues from the current activity (Turnover)

 

33,438,712

 

100

 

29,206,428

 

100

Other revenues

105,585

 

144,571

 

Revenues from Inventory variance

217,930

 

137,472

 

Total operating revenues

33,762,227

 

29,488,471

 

Inventory expenses, of which:

15,785,443

47

13,422,339

46

 - production cost

8,501,244

25

7,421,625

25

 - cost of the commodities sold in distribution

7,284,199

22

6,000,714

21

Utility expenses

520,773

2

468,296

2

Expenses on salaries, contributions and other benefits

5,516,068

16

4,888,905

16

Expenses on the amortization and impairment of non-current assets

 

1,390,211

 

4

 

1,184,128

 

4

Current asset value adjustments

610

 

15,752

 

Adjustments on provisions

230,678

1

778,521

3

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

 

6,998,918

 

21

 

6,515,066

 

22

Total operating expenses

29,980,125

 

25,684,461

 

Result of the operating activities

3,782,102

 

3,804,010

 

Financial revenues

128,480

 

126,013

 

Financial expenditure

622,160

 

907,476

 

Net financial result

-       493,680

 

-       781,463

 

Result before taxation

3,288,422

 

3,022,547

 

Current corporate tax expenses

415,051

 

370,951

 

Deferred corporate tax expenses

150,210

 

191,120

 

Deferred corporate tax gains

 

91,710

 

 

50,330

 

Result from continuous activities

(Net profit)

 

2,814,871

 

 

 

2,510,806

 

 

 

 

 

 

 

             

 

The turnover recorded in the 1st - 3rd quarter of 2017 is 15% up, as compared to the same period of the previous year, increase due both to the sale of own manufactured products (13% increase) and to the sales of distributed products( 21% increase).

 

Turnover

September 30th, 2017

September 30th, 2016

%

Sales from sold production

25,098,007

22,260,092

113

Sales from distributed products

7,917,590

6,542,280

121

Service supplies

304,459

282,298

108

Revenues from other sales

118,656

121,758

97

Total revenues

33,438,712

29,206,428

115

 

Operating Expenses

 

The expenses from the current activity, amounting to RON 29,980,125, 17% up in reference to the corresponding period of the previous year, were necessary in order to support the turnover increase and the preparation of the production for the period of the 4th quarter.

 

The structure of the costs for the 3rd quarter of 2017, in reference to the turnover, is much improved, as compared to the structure of the cost for the 3rd quarter of 2016.

The operating expenses include:

 

 

September 30th, 2017

September 30th, 2016

%

Expenses on raw materials and consumables for production

 

8,953,662

7,596,419

118

Cost of the sold distributed commodities

7,294,199

6,000,714

121

Inventory expenses

16,247,861

13,597,133

120

 

  1. The expenses on the distributes commodities recorded an increase in reference to the previous year, in order to support the sales of the distributed commodities, 21% up as compared to the same period of the previous year;
  2. The expenses on salaries and the employees’ contribution record a 13% increase, for:

- motivation of the sales and of the operating results,

- managers’ bonuses from the provision for the year of 2016;

- directors’ bonuses from the provision for the year of 2016;

- salary expenses on the indirect staff, by the reintegration of a former employee;

-salary expenses due to the increase of the national minimum wage, with 12% influence in costs;

  1. Expenses on the external services 7% up, due to the distributors’ fees, directly correlated with the turnover increase;

 

 

September 30th, 2017

September 30th, 2016

%

Expenses on external services

6,674,089

6,213,893

107

Expenses on taxes, duties and assimilated payments

106,906

117,257

91

Other operating expenses

217,923

183,917

118

Total other expenditure

6,998,918

6,515,066

107

 

  1. Logistic expenses, higher than in the 3rd quarter of 2016 (from RON 376,100 to RON 413,838) due to the increase of sales (turnover) by 15%, as compared to the previous year

 

The financial revenues mostly comprise the revenues related to the appraisal of the fund units held by the company, at the fair value, and the revenues from the revaluation of the receivables and liabilities in foreign currency, on September 30th, 2017.

The financial expenses comprise the granted rebates or discounts, the interests and exchange rate differences on September 30th, 2017. In order to stimulate the cash collections from the customers, MECANICA CEAHLAU continued the collaboration with financial institutions and promoted financing offers for the end customers with 0% interest, this one being actually supported / subsidized by MECANICA CEAHLAU. This strategy resulted in the increase of the collection from customers, as compared to the previous year.

 

Net profiton September 30th, 2017, it represents 8.41 % of the turnover and is 1% over the 9-month BVC and 15 % over the profit in the same period of 2016.

 

 

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, 2017

 September 30th,

 2016

 

 

 

1.

Current liquidity indicator

Current assets /current liabilities

 

5.68

 

6.80

 

2.

Indebtedness degree indicator

Borrowed capital /Equity x 100

7.60

 

5.23

 

 

Borrowed capital /Invested capital x 100

6.20

 

4.76

 

3.

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

Average balance of the net trade receivables /Turnover x 270

98

 

112

 

4.

Turnover speed for intangible assets

Turnover /Non-current assets

1.35

 

1.33

 

 

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

 

 

 

CHAIRPERSON OF THE BOARD OF DIRECTORS,

Trifa Aurelian Mircea Radu

 

 

CHIEF EXECUTIVE OFFICER,                           CHIEF FINANCIAL OFFICER,

            Laura Elena Warinschi                                               Gabriela Marian



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