Construction Mechanization Department
OJSC Construction Mechanization Department
UNP: 192643343 · 11a Promyshlennaya St., Minsk, 220075
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 2 551 | 3 537 |
| Intangible assets | 0 | 2 |
| Investments in long-term assets | 0 | 248 |
| Total Section I (long-term assets) | 2 551 | 3 787 |
| Inventories | 2 775 | 2 791 |
| — materials | 912 | 988 |
| — work in progress | 0 | 1 803 |
| — finished goods and merchandise | 1 863 | 0 |
| Deferred expenses | 14 | 7 |
| Short-term receivables | 4 055 | 893 |
| Cash and cash equivalents | 7 665 | 1 859 |
| Other short-term assets | 32 | 28 |
| Total Section II (short-term assets) | 14 541 | 5 578 |
| BALANCE (assets) | 17 092 | 9 365 |
| Charter capital | 767 | 767 |
| Additional capital | 2 354 | 3 059 |
| Retained earnings (uncovered loss) | 1 366 | 419 |
| Total Section III (equity) | 4 487 | 4 245 |
| Long-term loans and borrowings | 343 | 457 |
| Deferred income | 14 | 14 |
| Total Section IV (long-term liabilities) | 357 | 471 |
| Short-term payables | 12 241 | 4 642 |
| — to suppliers, contractors, providers | 4 540 | 3 289 |
| — on advances received | 4 927 | 116 |
| — on taxes and duties | 1 681 | 534 |
| — on social insurance and security | 240 | 159 |
| — on payroll | 607 | 383 |
| — to other creditors | 246 | 161 |
| Deferred income | 7 | 7 |
| Total Section V (short-term liabilities) | 12 248 | 4 649 |
| BALANCE (equity and liabilities) | 17 092 | 9 365 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Very thin margin: net profitability 0.41%, sales profitability 2.16% — profit on sales F2.060 1,057 on revenue F2.010 48,967. Work done in-house F2.011 came to 34,474, the rest is subcontracting — hence large turnover on small profit.F2.060 · F2.010 · F2.011 · F2.210
- Short-term payables F1.630 grew 4,642 → 12,241 (×2.6): advances received F1.632 116 → 4,927, supplier debt F1.631 3,289 → 4,540, taxes F1.633 534 → 1,681.F1.630 · F1.632 · F1.631 · F1.633
- Coverage of short-term liabilities is thin: F1.290 14,541 / F1.690 12,248 = 1.19 against 1.20 a year earlier. Of those liabilities 4,927 are customer advances F1.632, settled by work rather than cash.F1.290 · F1.690 · F1.632
- Own working capital is positive: (F1.490 4,487 − F1.190 2,551) / F1.290 14,541 = +0.13, up from +0.08.F1.490 · F1.190 · F1.290
- Operating cash flow F4.040 swung −855 → +BYN 6,946k (14.2% of revenue); a substantial part of the swing came from customer advances F1.632 116 → 4,927 — cash received before the work is done.F4.040 · F2.010 · F1.632
- Revenue F2.010 33,314 → 48,967 (+47.0%), profit on sales F2.060 471 → 1,057 (×2.2); cost of sales F2.020 32,176 → 47,075 grows slightly slower (+46.3%).F2.010 · F2.060 · F2.020
- Long-term loans F1.510 457 → 343 (−25.0%); cash F1.270 1,859 → 7,665 (×4.1) — an increase of 5,806 alongside a 4,811 rise in customer advances.F1.510 · F1.270 · F1.632
- Real equity F1.410 767 + F1.460 1,366 = BYN 2,133k, up from 1,186; additional capital F1.450 2,354 is 52% of equity F1.490 4,487.F1.410 · F1.460 · F1.450 · F1.490
Recommendation
The Construction Mechanization Department is a construction enterprise specializing in railway and metro infrastructure, in 100% state (republican) ownership.
Recommendation: Privatization. The possible strategic significance of infrastructure construction (metro, railways) requires clarification of status before a final decision — if a critical role is confirmed, the alternative is retention in state ownership.
Why privatization. Its financial profile is stable and improving: revenue grew 47%, operating cash flow swung from negative (−855) to substantially positive (6,946, a 14.2% margin; a substantial part of the swing came from customer advances 116 → 4,927), own-working-capital provision is positive (0.13) and rising, the credit load is falling, and cash reserves grew fourfold. Real equity is positive (F1.410 + F1.460 = BYN 2,133k), but revaluation-based additional capital of 2,354 is 52% of equity. The main weak spot is very thin profitability (net 0.41%), which is characteristic of general-contracting work with a high subcontracting share rather than a sign of dysfunction.
Confidence: HIGH. The source is annual reporting for 2025, a complete F1–F4 set; all 6 cross-form consistency checks pass.