The successful capital increase at Trimo in June, the harmonisation of measures with creditor banks aimed at the financial and operational restructuring and the appointment of a new Management Board of the company all mean that Trimo is already successfully continuing its implementation of measures for continued sustainable operations and growth of the business.
Igor Kržan, President of the Management Board, took this opportunity to say that the Board focuses on five priorities for the comprehensive restructuring of the Trimo Group: the capital increase, boosting liquidity and guarantee potential, agreements with suppliers, agreements with key customers and a comprehensive organisational and operational restructuring of the Trimo Group. “We believe that the measures implemented in recent months and the current measures have built vital pillars for sustainable operations and growth of Trimo that boast innovation potential, advanced products and solutions as well as a strong position on global markets, all of which provide the company with opportunities to successfully continue its story”, added the President of the Board.
Following the capital increase of EUR 13.2 million in June, the company’s share capital currently stands at EUR 18.3 million. Our Management Board is already working actively with a consortium of creditor banks on the implementation of a financial agreement that resulted in a guarantee potential increase from EUR 7 million to EUR 14 million as well as a liquidity facility of EUR 5 million. The facility is intended for the repayment of trade payables and for the coverage of increased working capital requirements.
Agreements with customers and suppliers are aimed at building solid partner cooperation
In addition to the efforts outlined above, we have conducted intensive talks over the recent months with key suppliers that represent 80% of our total purchasing. The agreements thus concluded have allowed us to lower past due trade payables by EUR 5.7 million. Negotiations with vendors are continuing with the aim of us moderately extending our payment deadlines, increasing vendor credit lines and lowering prices.
Agreements with key customers were geared towards increasing the scope of contractual sales in recent months, maintaining strategic partnerships (Ikea, London Airports, Porsche, etc.) and developing new partnerships (e.g. Lego, Amazon, etc.). The measures implemented have allowed Trimo to secure uninterrupted supply of raw materials and in turn regular supplies to our customers without delays.
The objective of the reorganisation is more efficient operations
Long-term stability of our company, which is also in the interest of all Trimo employees, warrants a comprehensive organisational and operational restructuring of the Trimo Group. These efforts entail several measures, one of which will be the reorganisation of the parent company. It involves the change of the organisational structure and around a 10% decrease in the number of employees by the end of the year, which will be coupled with the simultaneous preservation of all sales programmes of the Trimo Group. Measures will be directed at improving the management and supervision of subsidiaries, the winding down of non-profitable companies, bolstering the market network as well as the sales and marketing activities on strategic markets, and finally the optimisation of internal business processes.
8-month operating results have exceeded expectations
The company’s Management Board is excited to report that Trimo has recorded encouraging 8-month operating results, which can be attributed to the measures implemented up to now. Over the first eight months of this year, Trimo has generated net sales revenues of EUR 41.7 million. Our net profit is EUR 415 thousand, which is a marked improvement over the loss of EUR 10 million over the same period last year. The company’s EBIDTA came in at EUR 3.4 million over the eight-month period of this year. In the period from January to August 2014, the Trimo Group generated net sales revenues of EUR 67.1 million. Net profit in that period was EUR 153 thousand, while the Group’s EBITDA was EUR 4.8 million.
Company’s debt reduced to a total of EUR 41.3 million
The positive effects of the financial restructuring measures can also be observed in the level of indebtedness. As at 31 August 2014, the balance of principals of our bank loans was EUR 28.7 million, while it totalled EUR 41.3 million at the level of the Trimo Group. The share of long-term financial liabilities to banks within the total liabilities as at 31 August 2014 was 40% for Trimo and 37% for the Trimo Group. Following the conversion of debt to capital, the company’s indebtedness for 2014 is managed under the Master Restructuring Agreement criteria and the current expectations of buyers and suppliers with regard to the company’s stability.
Encouraging news from sales
Over the 8-month period of this year, Trimo increased its revenues from the sales of its Qbiss One modular façade system by 17% YOY. This year, Trimo installed its first Qbiss Air glass façade system abroad (Delaviuda, chocolate factory in Spain) and secured two new orders in the Czech Republic and Slovakia. Over the last three weeks, we received new orders that will see us cover 173,000 m2 with our key product, the Trimoterm fireproof roofs and façades. Over the last three months, we secured important reference projects, some of which include the Amazon distribution centre in the Czech Republic, a logistics centre for one of the largest global manufacturers of sensor technology in Germany, a sports stadium in Turkey and several buildings for the most important retail chain, Eurotorg, in Belarus.
Bojan Gantar, Management Board member, had the following to say in this regard: “We are happy to find that the stabilisation of the capital basis and corporate governance as well as the financial agreement reached with the banks is already yielding concrete results. These can be seen in the about turn of our operating indicators into positive territory from June until now. The results achieved are the foundation for our optimistic expectations about what the period leading up to the end of the year will bring.”
Optimistic plans by the end of 2014
After implementing the operational and financial restructuring measures at Trimo for two years, we expect to end 2014 with a positive operating result and a more sustainable level of debt. The planned year-end sales revenues of the company are expected to reach EUR 66 million by the end of 2014, while the expected operating profit is EUR 2.6 million. The planned year-end sales revenues of the Group are expected to reach EUR 107 million by the end of 2014, while the planned operating profit is EUR 2.9 million. We plan to strengthen our market network by the end of the year as well as our sales and marketing activities on strategic markets of Slovenia, Great Britain, France, Germany, Russia and Scandinavia. We also expect to launch a new family of roof and façade panels, the Trimoterm.Design, which will contribute greatly to sales results. We will meet our liabilities to banks as set out in the MRA for this year.