Minsk Civil Aviation Plant No. 407
OJSC "Minsk Civil Aviation Plant No. 407"
UNP: 100092616 · 134 Aerovokzalnaya St., 220054 Minsk
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 247 638 | 232 238 |
| Intangible assets | 336 | 245 |
| Investments in long-term assets | 5 267 | 4 347 |
| Long-term financial investments | 4 146 | 4 146 |
| Deferred tax assets | 959 | 959 |
| Total Section I (long-term assets) | 258 346 | 241 935 |
| Inventories | 64 286 | 57 003 |
| — materials | 24 966 | 22 262 |
| — work in progress | 38 933 | 34 315 |
| — finished goods and merchandise | 239 | 359 |
| Deferred expenses | 131 | 119 |
| VAT on acquired goods, works, services | 1 290 | 550 |
| Short-term receivables | 37 684 | 34 397 |
| Short-term financial investments | 179 | 628 |
| Cash and cash equivalents | 63 528 | 76 493 |
| Total Section II (short-term assets) | 167 098 | 169 190 |
| BALANCE (assets) | 425 444 | 411 125 |
| Charter capital | 21 382 | 21 382 |
| Additional capital | 91 649 | 70 015 |
| Retained earnings (uncovered loss) | 87 758 | 80 739 |
| Total Section III (equity) | 200 789 | 172 136 |
| Long-term loans and borrowings | 52 554 | 58 261 |
| Long-term lease liabilities | 3 984 | 932 |
| Deferred income | 47 634 | 46 951 |
| Total Section IV (long-term liabilities) | 104 172 | 106 144 |
| Short-term loans and borrowings | 315 | 333 |
| Short-term payables | 114 300 | 126 998 |
| — to suppliers, contractors, providers | 5 249 | 3 057 |
| — on advances received | 100 391 | 118 365 |
| — on taxes and duties | 1 990 | 1 045 |
| — on social insurance and security | 732 | 635 |
| — on payroll | 2 325 | 1 853 |
| — on lease payments | 3 061 | 1 957 |
| — to other creditors | 552 | 86 |
| Deferred income | 5 868 | 5 514 |
| Total Section V (short-term liabilities) | 120 483 | 132 845 |
| BALANCE (equity and liabilities) | 425 444 | 411 125 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Operating cash flow turned NEGATIVE (-10,049k BYN vs +54,788 prior): -72.8pp swing, driven by cost growth +32.5% against -6.4% revenue growth in cash terms. Critical liquidity-trend signal.
- K1_SOS critically negative -0.344 by formula (formally no own working capital). Offset by long-term debt structure (permanent capital 305m > long-term assets 258m), but a methodology question remains: should a soft override apply?
- Cash position down -17% YoY (76,493 → 63,528k BYN), driven by negative operating CF + dividend payout + capex
- K2_sales margin compression -2.03pp YoY (8.55% → 6.53%): cost growth outpaces revenue growth
- 'Other payments' F4.034 = -105,325k BYN = 91% of revenue — a huge invisible cost category, not verifiable without companion notes
- Advances received F1.632 -15% YoY (118,365 → 100,391k BYN) — declining advance-funding / order book
- Long-term lease obligations ×4.3 YoY (932 → 3,984): rising leasing exposure
- Net-profit quality: +14x growth driven by non-operating items (FX + deposit interest), not organic operational improvement (F2.060 +3.4%)
- Net profit positive and growing strongly: 646 → 9,151k BYN (×14.2), though driven by non-operating items
- Real revenue growth +35.5% (2025 CPI ~7-9% = +25pp real growth) — strong absolute movement
- Long-term loans organic deleveraging -9.77% (58,261 → 52,554) — without refinancing into short-term debt
- Short-term loans negligible (315k BYN): no short-term liquidity stress
- Equity up +16.6% (172,136 → 200,789): healthy capital dynamics
- Audit opinion unqualified both years (2024 + 2025), clean opinion; auditor LLC 'MAiS Konsalt Belstroy'
- Dividends paid ~2,475k BYN (100% to the state shareholder) — operating-health signal: the enterprise can generate a payout
- Cash position strong in absolute terms: 63,528k BYN = 15% of assets; balance scale 425m BYN
- All 6 cross-form sanity checks PASS (6/6); all F2 internal cross-checks PASS (12/12) despite OLE text-cell source
- Strategic-sector positioning: aircraft manufacturing (OKED 30300), 100% state, republican subordination, monopolies typology
Recommendation
Strategic sector — production of aviation equipment, protection of national interests. The enterprise is profitable and growing fast (net profit ×14, revenue +25 pp above inflation, unqualified audit), yet a strategic sector should not pass into private hands in the current geopolitical context — privatization is inappropriate; restructuring is not needed (no debt crisis), liquidation is ruled out (profitable). Recommended path — retention in state ownership with targeted capital investment in modernization.
OJSC "Minsk Civil Aviation Plant No. 407" is a strategic manufacturer of aviation equipment (OKED 30300 — manufacture of aircraft), a 100% state enterprise with a single shareholder, located near the Minsk aerodrome. The 2025 financial picture describes a stable enterprise with emerging operating-cash-flow tension: net profit grew nearly 14× (646 → BYN 9,151k), revenue grew in real terms +25pp above CPI (+35.5% nominal), equity is growing (+16.6%), debt is organically declining (−9.77%), and the audit is unqualified for the second year running. The cash position is strong in absolute terms — BYN 63,528k (15% of assets).
However, operating cash flow turned negative (−BYN 10,049k in 2025 vs +54,788 prior, a swing of −72.8pp) despite positive operating profit. This is driven by working-capital dynamics: "other payments" F4.034 of −BYN 105,325k = 91% of revenue (vs 95% prior), advances received cut by 15% (BYN 118m → 100m), cost growth of +32.5% outrunning revenue growth of +35.5% at the margin level (sales K2 −2pp YoY). The net-profit jump is driven by non-operating events (exchange differences F2.121 +14,798, deposit interest F2.103 +43%) — not organic operational improvement (F2.060 +3.4%, modest).
Proposed decision — state_investment: preservation of state ownership (a strategic sector, protection of national interests, typical for the aviation industry) + targeted capital investment to modernize production and address margin compression. The alternative (privatization) is unsuitable — a strategic sector should not pass into private hands in the current context. Restructuring is not warranted — there is no existential debt burden or broken business model. Liquidation — no (the enterprise is profitable, growing, with a clean audit). Confidence MEDIUM due to: (a) the companion audit-opinion PDF not extracted (the clean opinion is confirmed via the main file, the going-concern emphasis-of-matter paragraph not verified); (b) K1_OWC critically negative by formula but offset by the long-term debt structure — a methodology question remains; (c) the operating-CF turn-negative requires further consultation on the nature of advance-payment dynamics in the aviation industry.