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 is negative in both years: −47,952 (2025) and −49,993 (2024). Book equity of 25,314 stays positive only because of additional capital of 73,212 — 289% of book equity.F1.490 · F1.450 · F1.440
- Long-term assets of 70,406 are covered by real equity plus long-term liabilities of 63,977 only at 0.23. On book equity the same ratio is 1.27 — the gap shows the coverage rests on revaluation.F1.190 · F1.490 · F1.450 · F1.440 · F1.590
- Operating cash flow changed sign: +4,188 in 2024 against −414 in 2025. Operating cash flow margin on revenue fell from 4.1% to −0.3%.F4.040 · F2.010
- Own working capital provision is negative in both years: −0.90 in 2025 and −1.17 in 2024 — long-term assets exceed equity.F1.490 · F1.190 · F1.290
- Accumulated loss of −54,777 exceeds the charter capital of 6,825 eightfold. Over the year the loss narrowed by 2,041.F1.460 · F1.410
- Long-term liabilities of 63,977 against long-term loans of only 6,609 and deferred income of 276: the remainder is other long-term liabilities, about 47% of the balance sheet total of 120,766. Their composition cannot be determined from the reporting forms.F1.590 · F1.510 · F1.540 · F1.300
- Net profitability fell from 4.95% to 0.79% while revenue grew 33.8%: net profit of 5,099 in 2024 against 1,084 in 2025.F2.210 · F2.010
- Net profit of 1,084 on a balance sheet total of 120,766 gives a 0.9% return on assets. No dividends are recorded in the reporting forms for either year.F2.210 · F1.300
- Short-term payables grew 49.6% (20,041 → 29,976) — faster than revenue, which grew 33.8%.F1.630 · F2.010
- Lease payments within payables grew 24-fold: 64 in 2024 against 1,563 in 2025.F1.636
- Inventories grew 17.1% (15,544 → 18,198), including work in progress by 2.5 times (1,256 → 3,152).F1.210 · F1.213
- Profit from current operations is negative in both years: −59 in 2025 and −1,282 in 2024, despite a positive sales profit of 782.F2.090 · F2.060
- Income from financing activities fell from 7,996 to 1,065. The 2024 net profit of 5,099 rested mainly on this source.F2.120 · F2.210
- Revaluation of long-term assets recurs annually: 4,564 in 2025 and 4,368 in 2024. Book equity of 25,314 is held positive by it.F2.220 · F1.450 · F1.490
- Revenue grew 33.8%: 103,032 in 2024 against 137,873 in 2025.F2.010
- Credit load fell 12.1%: long-term loans 7,673 → 6,609 with short-term at 240 → 350.F1.510 · F1.610
- Cash grew 7.1%: 6,698 → 7,175.F1.270 · F4.130
- Sales profit grew from 160 to 782, sales profitability from 0.16% to 0.57%.F2.060 · F2.010
- Current liquidity is 1.60 — short-term assets of 50,360 against short-term liabilities of 31,475.F1.290 · F1.690
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).
Recommendation: Restructuring — the enterprise is structurally insolvent on a real-equity basis but operationally viable (real revenue growth +25%, expanding gross margin, current ratio > 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 — net-profitability 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.
Why restructuring. 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.
Confidence: MEDIUM. The source is annual reporting for 2025, a complete F1–F4 set; of the 6 cross-form consistency checks 5 pass — the net-profit reconciliation (F2.210 against F3.151) is unresolved. The score is capped: with negative real equity the model assigns no value above 0.85 regardless of other indicators.