Newag Group posts very good semi-annual financial results

NEWAG Capi­tal Group posted very good results for the first half of 2014. The net pro­fit incre­ased by 147% and EBITDA by 83% as com­pa­red to the same period of last year. The finan­cial results of the Group and of the domi­nant com­pany are con­si­stent with the Board’s expectations.

In the first 6 mon­ths of 2014, NEWAG Group ear­ned a net pro­fit of PLN 35.8 mil­lion which was PLN 14.5 mil­lion (147%) higher than the pro­fit recor­ded in the first half of last year. Sales figu­res for the first half of this year have incre­ased by nearly PLN 105 mil­lion (37%) as com­pa­red to the same period of 2013 and amo­un­ted to PLN 391.9 mil­lion. EBITDA amo­un­ted to PLN 65.9 mil­lion and was higher by PLN 29.9 mil­lion (+82.7%) as com­pa­red to the first half of last year. The uncon­so­li­da­ted net pro­fit of NEWAG S.A. amo­un­ted to PLN 35 mil­lion with sales reaching PLN 337.7 mil­lion (PLN 264.7 mil­lion in the first half of 2013).

The Group’s finan­cial results reflect the Board’s expec­ta­tions and thus NEWAG Group reite­ra­tes the 2014 finan­cial fore­cast publi­shed in its IPO pro­spec­tus i.e., achie­ving PLN 919 mil­lion in sales reve­nue, a net pro­fit of PLN 79 mil­lion and EBITDA of PLN 36.5 mil­lion,said Bog­dan Borek, Finan­cial Mana­ger of NEWAG S.A. Unu­sual or one-time fac­tors have had no impact on the semi-annual results, he added.

The posi­tive trend in the finan­cial results is accom­pa­nied by a rise of PLN 212.1 mil­lion (26.6%) in the balance sheet total to reach the amo­unt of PLN 1.01 bil­lion, which was cau­sed by an incre­ased short-term debt due to the manu­fac­tu­ring of INSPIRO tra­ins for War­saw Metro, Elec­tric Mul­ti­ple Units for Połu­dniowa Grupa Zaku­powa [the Southern Pro­cu­re­ment Group] and die­sel loco­mo­ti­ves for PKP Inter­city. As com­pa­red with 31.12.2014, the Group’s debt due to bank loans  has been redu­ced in half  by approx. PLN 61 mil­lion.  Accor­ding to the busi­ness plan adop­ted for the cur­rent year, short-term debt, in par­ti­cu­lar, bank loans, sho­uld be redu­ced at the turn of Sep­tem­ber this year.

The order port­fo­lio has been incre­asing ste­adily. Since the begin­ning of this year, the Group has conc­lu­ded con­tracts for rol­ling stock moder­ni­za­tion and repa­irs amo­un­ting to PLN 286.2 mil­lion. The value of the ten­der bids sub­mit­ted which have been selec­ted by con­trac­ting autho­ri­ties as the most favo­ura­ble, has reached  PLN 100.4 mil­lion. The Group expects that the ten­der pro­ce­du­res will have been com­ple­ted by the end of 2014 and the con­tracts will be signed.