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