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#Current report 85/2018

Current report 85/2018 (25.09.2018)

Title:

Information on preliminary financial results of URSUS S.A. for the I half of 2018

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 interim condensed financial statement of the company URSUS S.A. for I half of 2018. i.e. from 01.01.2018 till 30.06.2018, hereby makes public the preliminary financial results for the above-mentioned period:

- sales revenues: 62 million PLN;

- net profit (loss): -16 million PLN.

The net loss of the company URSUS S.A. in the I half od 2018 was 16 million PLN compared to the profit of 6 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.

The sales revenues of the company URSUS S.A. in the I half of 2018 decreased by 60%, i.e. by the amount of 93 million PLN in comparison to the corresponding period of the previous year and amounted to 62 million PLN, what resulted from the decrease of the foreign sales by 71% and of the domsetic sales by 48% in relation to the I half of 2017.

The decrease in revenues from the foreign sales was due to decrease of the income from execution of the contract with the Tanzanian company National Development Corporation (NDC) (Current reports no. 38/2015, 5/2016, 29/2016, 39/2016, 47/2016, 1/2018 and 59/2018).

In the I half of 2017 the Company achieved revenues from execution of the above-mentioned contract in the amount of 45 380 thousand PLN, while in the I half of 2018 the contract sales amounted to 3 026 thousand PLN. The reason of delay in execution of this contract were procedural problems related to acceptance of payment.

The revenues from domestic sales were lower by 48% 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 the I half of 2018 the Agency received applications of the value ca. 107% of the funds allocated to the measure „4.1 Modernisation of farms”, i.e. 11,6 billion PLN. Till the 30th June 2018 the Agency concluded contracts in the total value of 26,5% of the funds allocated to the task, while the paid means constituted only 9% of the above-mentioned amount.

The Issuer informs that the presented values are estimates and may change. 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 I half of 2018, which will be published on the 1st October 2018.
 

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