Management Board of Qumak S.A. (hereinafter referred to as the Company) publishes selected consolidated estimates of financial results for the period 1-9 2017.
According to initial estimates in the presented period the Group Qumak S.A. (hereinafter referred to as the Group) achieved the following financial results (increasingly):
– Income on sales amounting to ca. PLN 209 million;
– Result from operations amounting to ca. PLN -46 million (loss);
– Net result amounting to ca. PLN -54 million (loss).
The above estimate of results of the Group after the 3rd quarter 2017 was impacted by:
- Creating receivables revaluation write-down in the amount of PLN 2,153 thousand (including cash pool balance with a subsidiary in the amount of PLN 1,239 thousand).
- Creating stock revaluation write-down in the amount of PLN 1,397 thousand.
- Omission and including in costs of investments which are not going to be continued in the amount of PLN 855 thousand. These investments regarded implementation of systems within the scope of managing projects, which – as it was assumed – were to standardize and facilitate project management in the Company. Considering e.g. a conducted analysis of an implementation, prolongation and complications in the project as well as growing costs of the implementation, the Management Board decided that further implementation is groundless and costs are too high.
- Omission and including in costs of investments in manufacturing own product within the scope of Energy efficiency in the amount of PLN 235 thousand. The Management Board analysed situation on the market, perspectives of the product commercialisation, and verified planned revenue, and decided that incurring further costs of the product development, which exceed the expected revenue, is groundless from the business perspective.
Results of the Group in the indicated period are a reflection of problems identified and described by the Management Board in the Repair Plan (published in a Current Report no. 73/2017 on 8.11.2017), which include – above all – improper Company management in the previous periods and materializing business risks, improperly controlled increase of current operations costs, mismatched of scale of the Company’s operations to its revenue, failures in performing large and complex projects, transfer of significant managers together with full teas to the competition (e.g. in the area of infrastructure) and related downfall of sales and realization capabilities as well as downturn of sales on the public market.
Presented values and information are of estimations nature and may undergo changes and be different from values which are going to be published in abbreviated consolidated financial statements for the 3rd quarter of 2017.
Publication of the consolidated report for the 3rd quarter of 2017 takes place on 23 November 2017.