Construction Trust No. 8
OJSC "Construction Trust No. 8"
UNP: 200002603 · 12 Gozdetsky St., Moskovsky District, Brest, Brest Region 224028
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 67 956 | 63 035 |
| Intangible assets | 2 | 2 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 1 024 | 1 213 |
| Long-term financial investments | 1 111 | 1 111 |
| Long-term receivables | 313 | 313 |
| Total Section I (long-term assets) | 70 406 | 65 674 |
| Inventories | 18 198 | 15 544 |
| — materials | 13 630 | 12 987 |
| — work in progress | 3 152 | 1 256 |
| — finished goods and merchandise | 1 416 | 1 104 |
| — goods shipped | — | 197 |
| Deferred expenses | 429 | 220 |
| VAT on acquired goods, works, services | 1 294 | 1 098 |
| Short-term receivables | 23 203 | 15 140 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 7 175 | 6 698 |
| Other short-term assets | 61 | 61 |
| Total Section II (short-term assets) | 50 360 | 38 761 |
| BALANCE (assets) | 120 766 | 104 435 |
| Charter capital | 6 825 | 6 825 |
| Reserve capital | 54 | 54 |
| Additional capital | 73 212 | 70 390 |
| Retained earnings (uncovered loss) | -54 777 | -56 818 |
| Total Section III (equity) | 25 314 | 20 451 |
| Long-term loans and borrowings | 6 609 | 7 673 |
| Long-term lease liabilities | — | — |
| Deferred income | 276 | 65 |
| Total Section IV (long-term liabilities) | 63 977 | 63 200 |
| Short-term loans and borrowings | 350 | 240 |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 29 976 | 20 041 |
| — to suppliers, contractors, providers | 7 108 | 5 774 |
| — on payroll | 2 562 | 2 181 |
| — on lease payments | 1 563 | 64 |
| Total Section V (short-term liabilities) | 31 475 | 20 784 |
| BALANCE (equity and liabilities) | 120 766 | 104 435 |
Computed metrics
Integrity checks
Checks passed: 5 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Real equity DEEPLY negative both years: -47,952 (current) / -49,993 (prior). F1.490 is positive +25,314 ONLY via revaluation F1.450 = 73,212. Revaluation share 289.2% of F1.490 — the most extreme revaluation proportion among the enterprises reviewed (the prior maximum in the sample being around 247%)
- Long-term-asset coverage on real capital 0.228 (2025) / 0.201 (2024) — deeply below the 0.7 threshold, plus negative real equity = an automatic distress flag regardless of magnitude. Coverage on standard capital 1.268 only marginally above 1.0 hides the structure
- OCF sign-flip NEGATIVE: +4,188 → -414 (F4.040). Operating cash generation lost. OCF margin compressed -4.37pp
- K1_SOS deeply negative both years: -0.8954 (current) / -1.1667 (prior). Production-norm violation 6× under the 0.15 norm
- Accumulated loss F1.460 = -54,777 (current) / -56,818 (prior) — long-standing chronic loss carry-forward; partial reduction in 2025 via +2,041 organic (net profit +2,613 minus loss-flow 1,529 minus correction -353 ≈ +731 net retention)
- Other long-term liabilities F1.560 = 56,992 (47% of the total balance 120,766) — an unusual magnitude not typical for the construction sector. Possible interpretations: restructured bank debt, subordinated state loan, misclassified targeted financing, lease obligations excluded from F1.520. Requires reference to the notes/audit report for resolution (remains an open methodological question)
- K2 net compressed -4.16pp (4.95% → 0.79%) — sharp profitability deterioration despite revenue +33.8% nominal growth
- Dividends = 0 in both years (declared and paid). Net profit retention 100% — but at a low net-profit level (1,084 vs balance 120,766 = 0.9% return on assets), the retention is a minimal cushion
- ST payables (F1.630) short-term payables rose 49.6%: 20,041 → 29,976. Of which advances received rose sharply: 8,339 → 14,510 (+74%) — may indicate work with prepayments / asking buyers to pay ahead for cash-flow management
- Lease payments F1.636 rose 24-fold: 64 → 1,563. A similar signal in F4.094 cash flow: 77 → 579 (+652%). The appearance of a substantial leasing arrangement in 2025
- F2.220 revaluation of long-term assets = 4,564 (current) / 4,368 (prior) — annual revaluation continues to anchor F1.490 positivity. If revaluation slows or reverses, F1.490-collapse risk
- Profit from current activity F2.090 = -59 (current) / -1,282 (prior) — both years in the operating-loss zone, despite F2.060 positive. Other expenses F2.080 = 3,969 (current) / 13,400 (prior) — high but sharply declined; the prior peak suggests one-time provisions / write-downs in 2024
- F2.122 other finance-activity income disappeared from the upper bound: 7,140 (prior) → 2 (current). 2024 net profit was artificially supported by this non-recurring financial gain
- Revenue growth +33.8% nominal (real ~+25% with BY inflation 5-7%) — substantial business-volume expansion. Real growth confirms that demand for construction services is strong
- K3 debt dynamics -12.06% (LT debt 7,673 → 6,609, ST credits 240 → 350 — net debt reduction). Financial deleveraging progressing
- Cash position +7.1% (F1.270 6,698 → 7,175). Modest cash accumulation
- K2 sales improved 0.16% → 0.57% (+0.41pp) — gross-to-operating margin expanding slightly, indicates cost discipline on core operations
- Clean unqualified audit opinion (LLC 'Mir audita' Minsk, 23.03.2026): 'no facts of gross violations were established'
- Net profit positive in both years (1,084 / 5,099) — formally avoiding loss territory; even normalizing 2024 for the F2.122 windfall, 2025 1,084 vs ~-2,041 normalized = a sign-flip improvement direction
- Corporate code in force (since 29.03.2024); affiliated-persons accounting policy (26.04.2024); shareholder-register procedure (26.04.2024) — corporate governance structures formalized
Recommendation
The structural picture of the enterprise's balance sheet is deeply negative real equity (−BYN 47,952k) in both periods, masked by a revaluation overlay of F1.450 = 73,212 (revaluation share 289.2% of F1.490 — the most extreme revaluation proportion in pilot 100 to date). Accumulated loss F1.460 = −54,777 (current) is present as a long-standing chronic carry-forward; it declines only slowly (minus 2,041 net in 2025), and this slow reduction depends entirely on continued operational profitability. Net profit 2025 = +1,084 (formally positive), but that is −78.7% off the 2024 level of 5,099 — and on an honest normalized comparison (2024 net profit was supported by an F2.122 financial windfall of +7,140), the normalized 2024 baseline ≈ −2,041 and normalized 2025 +1,084 = a sign-flip recovery direction, but an extremely fragile one.
Restructuring outcome — justified mechanism: the enterprise is structurally insolvent on a real-equity basis but operationally viable (real revenue growth +25%, expanding gross margin, current K1 > threshold, modest cash accumulation). The restructuring path must address: (1) balance-sheet repair — explanation and resolution of Other long-term liabilities F1.560 = 56,992 (47% of the balance sheet, an unusual magnitude; possibly restructured bank debt, a subordinated state loan, or mislabeled targeted financing — needs a Notes/Audit fetch); (2) stop revaluation-as-equity-substitute — F1.450 = 73,212 represents 289% of F1.490, an unsustainable accounting fiction; (3) operating-margin discipline — K2 net compression of −4.16 pp despite revenue growth indicates cost-side pressure (broad 2025 margin compression + likely sector-specific construction-input inflation). Without addressing these, the formal positivity of F1.490 remains a paper construct vulnerable to a change in the revaluation regime.