×

#Current report 51/2018

Current report 51/2018 (23.04.2018)

Title:

Information on preliminary financial results of URSUS S.A. for the year 2017

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of URSUS S.A., in relation with completion of the aggregation of the financial data for the purpose of the unitary financial statement of the company URSUS S.A. for year 2017. i.e. from 01.01.2017 till 31.12.2017, hereby makes public the preliminary financial results for the above-mentioned period:

- sales revenues: 259 million PLN;

- net profit (loss): -4 million PLN.

The net loss of the company URSUS S.A. in 2017 was 4 million PLN compared to the profit of 5 million PLN in the same period of the previous year, what resulted from the decrease of the domestic and foreign sales within export contracts and from the lower profotability achieved from sales within the foreign contracts due to unfavourable relation of the USD exchange rate (currency of the contracts) to Polish zloty, as well as from adjustment of the value of shares held by the Company in connection with acquisition of the company LZM3 sp. z o.o. in the amount of 3 million PLN.

The sales revenues of the company URSUS S.A. in 2017 decreased by 6%, i.e. by the amount of 15 million PLN in comparison to the corresponding period of the previous year and amounted to 259 million PLN, what resulted mainly from the decrease of the foreign sales within the export contracts with relation to the high base in the corresponding period of 2016. In 2016 the revenues from export sales amounted to 80 million PLN, of which the amount of 59 million PLN (74%) constituted the sales within the export contract with the Ethiopian company ESC (Current reports no. 26/2015, 46/2015, 7/2016, 11/2016, 12/2016, 19/2016, 31/2016 and 36/2016), while the amount of 22 million PLN (26%) constituted the sales to the Tanzanian company NDC (Current reports no. 38/2015, 5/2016, 29/2016, 39/2016 and 47/2016). In 2017, within the export contract with the Tanzanian company NDC, the Issuer executed sales in the total amount of 60 million PLN.

In 2017 the Issuer recorded also lower revenues from domestic sales by 16% year-on-year, which was caused by delays in execution of applications for funding within the EU programme PROW for years 2014-2020, which is the basic financing instrument for Polish agriculture. Drop in revenues from domestic sales results mainly from lack of the EU co-financing which significantly impacts decisions about investments in agriculture and from the worsening econocmic situation on the market of agricultural machinery in Poland. According to the information provided by the Ministry of Agriculture and Rural Development, till the end of 2017 the Agency received applications of the value ca. 75% of the funds allocated to the measure „4.1 Modernisation of farms”, i.e. 10 billion PLN. Till the 31 December 2017 the Agency concluded contracts in the total value of 28% of the funds allocated to the task, while the paid means constituted only 5% of the above-mentioned amount.

The Issuer informs that the audit of the unitary and consolidated financial report has not been yet completed and the final financial results for this period will be disclosed in the anuual reports (accordingly in the unitary and conslidated report) for the year 2017, which will be published on the 30th April 2018.

Legal basis: Art. 17 sec. 1 Market Abuse Regulation