News
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.
