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29
March
2023

Concern-Electron sees consolidated loss of UAH 23.5 mln in 2022

KYIV. March 29 (Interfax-Ukraine) – JSC Concern-Electron (Lviv) ended 2022 with a consolidated net loss of UAH 23.5 million, while in 2021 the consolidated net profit was UAH 33.22 million.

According to the company’s announcement of holding the annual meeting of the company’s shareholders scheduled for April 28, retained earnings of the company by the beginning of this year fell to UAH 2.29 million compared to UAH 25.8 million a year earlier.

At the same time, the shareholders plan to send UAH 8 million to pay dividends: UAH 0.50 per share (with a face value of UAH 3.5).

According to the company, in 2022, it managed to reduce current liabilities by 34.7% to UAH 318.41 million, and noncurrent liabilities by 25%, to UAH 20.24 million.

The company’s assets fell by 24% to UAH 643.73 million, including fixed assets by 10% to UAH 189.65 million.

The total accounts receivable of the company rose slightly to UAH 169.54 million, inventories dropped by 4% to UAH 219.65 million, and free cash decreased by 92% to UAH 12 million.

The shareholders at the meeting plan to select eight members of the new Supervisory Board, including its head – Serhiy Medvedev (who owns 5.05% of the shares of the company).

In addition, it is planned, in particular, to consider the issue of buying back shares placed by the company and their further sale.

According to information on the website of the Electron concern, its consolidated financial statements include the parent company (JSC Concern-Electron) and 12 subsidiaries and affiliated companies.

According to a report published on the website for 2022, the group’s consolidated net income amounted to UAH 472.185 million, and it was 13% less than in 2021.

At the same time, in the structure of net income, the largest share fell on the manufacturer of urban transport ELECTRONMASH (UAH 170 million), which, due to a decrease in the production and supply of this equipment, reduced net income by 26.6% and received almost UAH 10 million in losses versus net profit of UAH 20.4 million in 2021.

At the same time, the manufacturer of heaters and heat exchangers for cars, SPHEROS-ELECTRON, in 2022 increased its net income by 16.3% to UAH 108 million and net profit by 9.5 times to UAH 13.7 million.

“Despite power outages, it was possible to secure obligations for the supply of products and create a reserve of products in warehouses,” the company said in the report.

Last year, the manufacturer of household appliances and low-power engines, the ELEKTRONBYTPRYLAD plant, also became profitable. It increased its profit by 2.4 times to UAH 2.6 million, while net income grew by 26% to UAH 28 million.

According to the report, the plant exported 2,265 servo drives for a German company, allowing to receive FX earnings.

At the same time, the reduction in sales revenue by 22.4% (to UAH 62 million) of the POLYMER-ELECTRON plant resulted in a loss of UAH 0.84 million (versus a net profit of UAH 1.9 million).

“The decrease was noted for some types of polystyrene products, parts for Standartpark, winter assortment, stadium seats, equipment,” the company said in the report.

The Electron Trading House, which purchases components and materials for transport manufacturers in the concern, significantly reduced its revenue by 84.1% to UAH 9 million, which led to a loss of UAH 7.6 million versus UAH 0.31 million of net profit in 2021.

Analyzing operation in 2022, the concern said that it operates in a region where no active hostilities are conducted, but many supplying enterprises ended up in areas of active hostilities and were forced to evacuate to safer regions or stop operating.

“This led to some problems with logistics and a lack of raw materials,” the company said.

In addition, power outages, and fuel shortages brought temporary problems. Among the problems, the company also noted the instability of tax legislation, and the restriction of the movement of workers and their mobilization.

At the same time, the concern considers these problems to be tangible, but not crucial for the group’s activities.

According to the National Securities and Stock Market Commission at the beginning of 2023, among the shareholders owning more than 5% of the shares of JSC Concern-Electron are the president of the concern, Yuriy Bubes (5.6%), the deputy head of the supervisory board, Serhiy Medvedev (5.05%), as well as Viktoria Starodub (8.7%).