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COMELF S.A. - CMF

2020 Q1 report

Release Date: 5/14/2020 7:31:21 AM

IRIS Code: 32363

 

 

                                                  

Report for the first quarter of 2020

 

Report date: 14/05/2020

Company name:  COMELF SA

Registered Office: no. 4, Industry str., Bistrita

Phone / fax number: 0263/234462; 0263/238092

VAT Code: 568 656

Reference number with the Trade Register: J06 / 02/1991

Subscribed and paid-in share capital: 13,036,325.34 lei

The regulated market on which the issued securities are traded: BSE

 

1. Presentation of the important events that occurred in the relevant period and the impact they have on the financial position of the issuer and its subsidiaries.

u    Starting with 16.03.2020, a state of emergency was established in Romania due to the spread of the SARS-CoV2 coronavirus and the declaration of the “Pandemic” by the WHO. The impact of the imposed measures, in order to limit the spread of the virus at EU level and implicitly of the state of emergency decreed in Romania as well as in other EU member countries, was reflected in the company's financial statements for the first quarter of 2020. by EUR 285 thousand, with the mention that the effects of the situation generated by COVID-19, will be reflected more deeply in the financial statements of the second quarter of 2020. The main effects will be: (i) deliveries restricted to countries in severely affected areas, where governments have resorted to the temporary closure of companies (e.g. Italy); (ii) decrease in future order volumes generated by medical and economic uncertainty, (iii) restriction of activity in certain areas of the company and, implicitly, suspension of employment contracts for a number of approximately 340 employees, for different periods of time; (iv) additional expenses for the provision of protection and hygiene materials for the company's active employees;

u     14.04.2019, the OGMS took place, for the first time through means of remote communication, which approved the distribution, from the net profit for 2019, of the amount of 1,500,000 lei for the payment of dividends to the company's shareholders. The date of the effective payment was set for 14.07.2020.

u    The OGMS approved on 14.04.2019, the BVC for the current year, the investment program for 2020, the company's organizational chart and the maximum credit limit for the current year, noting that a rectification is possible in the middle of this year, given the global economic situation and the effects of the current "Pandemic";

2. The general description of the financial position and of the performances of the issuer and of its subsidiaries related to the relevant period.

The main indicators, thousands of lei

01.01.2020-31.03.2020

01.01.2019-31.03.2019

Δ%

Total operating income, of which:

36.054

40.454

(10.88)

Revenues from construction contracts

35.447

40.004

(11.39)

Profit / (Loss) of the period

547

880

(37.84)

EBITDA

2,921

3,279

(10.93)

Interest-bearing loans

36,011

37,278

(3.40)

Average personal number

754

821

(8.16)

*The financial figures are not audited and present the individual results of Comelf SA, prepared in accordance with the International Financial Reporting Standards (IFRS);

 

 

v    Operating income of the company COMELF SA were 36,054 million LEI on 31.03.2020, decreasing compared to those achieved in the same period of the previous year (40.454 million LEI on 31.03.2019). The decrease in revenues in the first quarter of 2020 compared to the first quarter of 2019 was influenced by: (i) the execution of complex products that required longer execution times, (ii) some  payments being blocked by our customers, for which, temporarily, until their settlement, we decided to stop manufacturing and sale; the supply of materials necessary for the execution of series products, materials that were purchased from China; (iv) postponement of deliveries by customers; (v) variation of the number of staff, especially Production Staff in a context where the newly hired staff does not have the necessary knowledge or experience;

v    Profit of the period decreased in the first 3 months 2020 compared to the one achieved in the similar period of the previous year by 37.84%, the main factors that unfavourably influenced the evolution of the profit being:

u    Additional labor costs in the sense of increasing execution times but also the difficulty of products in the context in which Production Staff is increasingly poorly qualified.

u    The increase of the cost with the utilities by 9% in the conditions in which the production decreased by 11%, because of the increase of the utility prices.

u    The expenses with the company's staff, which although they decreased by 3.4% in the first quarter of 2020 compared to the first quarter of 2019, have a negative impact on the realization of the profit as a result of the non-realization of the revenues from sales and production by 11%;

u    Depreciation expenses that are fixed and that, at a non-realization of the production incomes, have a direct, negative impact on the operating result.

 

The company's patrimony on 31.03.2020 highlights the fact that:

Ø    Fixed assets: decreasing under the influence of monthly depreciation (cumulative effect on 31.03.2020: 1,904 thousand LEI), offset by the commissioning of fixed assets amounting to 410 thousand lei;

Ø    Current assets increased by 7% on 31.03.2020 compared to 31.12.2019, due to:

(i)                 reduction of raw material stocks (11%) based on a prudential policy as a result of the reduction of the price of raw materials on the market which makes us not stock at high prices but also by the economic context generated by the COVID 19 pandemic, which does not provide long-term predictability from customers;

(ii)               The stock of finished products increased by 1,404 thousand lei compared to the level registered in December 2019 because of the postponement of the delivery of some products by customers, these products were delivered in April 2020.

(iii)             The production in progress decreased slightly, in parallel with the increase of commercial receivables, thus a part of the product stocks was finalized and sold being found in receivables. 

(iv)          Other receivables: decreased by 38% compared to December 2019 because of the recovery of medical leave expenses, the decrease of VAT to be recovered, amid domestic VAT invoicing,

Ø    Equity increased compared to 31.12.2019 with the amount related to the net profit realized during 01.01.2020-31.03.2020.

Ø    Interest-bearing loans on 31.03.2020 they decreased compared to 31.12.2018, due to the repayment due to the monthly repayment of a part of the working capital loan; The working capital on 31.03.2020 is of 35,015,325 lei (31.12.2018: 35,546,044 lei).

Ø    Supplier debts increased by 9% compared to December 2019 +1,908 thousand lei, app 0.39 million EUR), an increase that is registered at the same time with the increase of cash availabilities (+4,861 thousand lei), so that part of the suppliers' balance was paid at the beginning of the month April 2020;

 

Report for the first quarter of 2020 can be consulted on the company's website www.comelf.ro/Updated information /, as well as in the link below.

 

 

General Manager,                                                     Economic Director,

eng. Cenusa Gheorghe                                             Ec. Dana Tatar

 

 



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