NEWAG Capital Group meets forecast results for 2013

In 2013, NEWAG Capi­tal Group ear­ned a net pro­fit of PLN36.7 mil­lion, thus meeting the ear­nings levels pro­jec­ted in its IPO pro­spec­tus. EBIDTA amo­un­ted to PLN 84.8 mil­lion and exce­eded the fore­cast by 0.9 %. Since Novem­ber 2013, the Company’s order port­fo­lio has incre­ased by nearly PLN 100 million.

Sales reve­nue amo­un­ted to PLN 680.5 mil­lion and was PLN 25.1 mil­lion higher as com­pa­red with 2012.

The key fac­tor con­tri­bu­ting to the 2013 finan­cial results (fore­cast income at the level of PLN 755.6 mil­lion  vs. the actual income at PLN 680.5 mil­lion) was a tem­po­rary halt in the train com­mis­sio­ning by Metro War­saw in Novem­ber 2013. NEWAG plan­ned to sell ele­ven tra­ins whe­reas six were actu­ally sold (-PLN 45 mil­lion). Addi­tio­nally, the sale of two Die­sel Mul­ti­ple Units orde­red by Prze­wozy Regio­nalne (-PLN14.6 mil­lion) and of one moder­ni­sed Elec­tric Mul­ti­ple Unit for Koleje Mazo­wiec­kie  (-PLN 6.5million) was post­po­ned to 2014.

Despite the lower sales reve­nue figure, the Group ear­ned a net pro­fit of only 3.1% lower than the fore­cast. This results from the lower than pro­jec­ted costs of pro­du­cing goods (inc­lu­ding indi­rect costs) and lower costs of mana­ge­ment and administration.

“The War­saw Metro has resu­med its ope­ra­tion of the tra­ins deli­ve­red so far. The rema­ining tra­ins, which have alre­ady been pro­du­ced,  are waiting to be com­mis­sio­ned by the Client, which, taking into con­si­de­ra­tion the fact of meeting the fore­ca­sts for 2013, por­tends very well for the Company’s finan­cial results in 2014,” said  Zbi­gniew Konie­czek, CEO of NEWAG S.A . “ We con­firm our fore­ca­sts for 2014. In keeping with our anno­un­ce­ments, we would like to share a sub­stan­tial  part of the pro­fit with the Sha­re­hol­ders this year and in the coming years. We are going to recom­mend a divi­dend pay­ment of PLN 20 mil­lion for 2013.”

The pre­sent value of the Group’s order port­fo­lio has reached PLN 1.75 bil­lion. The Group acti­vely par­ti­ci­pa­tes in ten­ders. Since Novem­ber 2013, the Group’s order port­fo­lio has incre­ased by nearly PLN 100 million.

In 2013, the  Group suc­cess­fully finan­ced all its stra­te­gic inve­st­ment pro­jects of the value total­ling PLN 62.5 mil­lion. The Group is able to meet its obli­ga­tions. In 2013, no risk of losing its finan­cial liqu­idity was iden­ti­fied. More­over, lia­bi­li­ties were paid in a timely manner.

The Com­pany is well-prepared for explo­iting  dome­stic oppor­tu­ni­ties and  inter­na­tio­nal expan­sion. The expec­ted value of ten­ders for rol­ling stock deli­very and moder­ni­sa­tion is PLN 7.9 bil­lion in the period cove­ring the years 2014–2017.