Kamenets District Agro-Service

OJSC "Kamenets District Agro-Service"

UNP: 200055974 · 17 8th of March St., Kamenets, Brest Region

District-levelRestructuring

Identification

UNP200055974
OKEDwholesale trade in other chemical products
Legal formOJSC
Governing bodyDistrict level (Kamenets district, Brest region); state share 85.6209%
State share85.6209%
Address17 8th of March St., Kamenets, Brest Region
Websitekamras.epfr.by

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets4 0842 774
Intangible assets3
Income-bearing investments in tangible assets
Investments in long-term assets13
Long-term financial investments11
Long-term receivables
Total Section I (long-term assets)4 0982 778
Inventories4 5813 912
— materials374322
— work in progress
— finished goods and merchandise4 2073 590
— goods shipped
Deferred expenses26446
VAT on acquired goods, works, services999
Short-term receivables2 7912 857
Short-term financial investments
Cash and cash equivalents248511
Other short-term assets
Total Section II (short-term assets)7 9837 335
BALANCE (assets)12 08110 113
Charter capital125125
Reserve capital6150
Additional capital3 3493 184
Retained earnings (uncovered loss)1 034867
Total Section III (equity)4 5694 226
Long-term loans and borrowings4160
Long-term lease liabilities4691
Deferred income
Total Section IV (long-term liabilities)51061
Short-term loans and borrowings403551
Current portion of long-term liabilities2026
Short-term payables6 0655 249
— to suppliers, contractors, providers3 7094 298
— on advances received1 857711
— on taxes and duties4821
— on payroll185136
— on lease payments1111
— to the owner of property (founders, participants)74
Deferred income514
Total Section V (short-term liabilities)7 0025 826
BALANCE (equity and liabilities)12 08110 113

Computed metrics

Current ratio
1.14
Prior: 1.259(-9.4%)
F1.290 / F1.690
Absolute liquidity
0.035
Prior: 0.088
(F1.260 + F1.270) / F1.690
Own working capital ratio
0.059
Prior: 0.197(-70.1%)
(F1.490 - F1.190) / F1.290
Sales profitability
3.76%
Prior: 3.34%(+0.42 pp)
F2.060 / F2.010 × 100%
Net profitability
1.32%
Prior: 1.02%(+0.29 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
14.48%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
-27.33%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.866
Prior: 0.856
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
2.39%
Prior: 1.24%
F4.040 / F2.010 × 100%

Integrity checks

Checks passed: 6 of 6

Balance sheet balances (assets = liabilities)
Cash-flow integrity
Cash-flow residuals
Cash position
Capital transition
Profit consistency

Signals

Red flags
  • Working capital has thinned out: own-working-capital provision fell from 0.197 to 0.059, current liquidity from 1.259 to 1.140, and cash halved (511 → 248k BYN) against revenue of 24,520.F1.490 · F1.190 · F1.290 · F1.690 · F1.270 · F2.010
  • Borrowed sources have displaced own capital: long-term liabilities 510 and short-term 7,002k BYN against charter capital 125 and retained earnings 1,034; the additional capital of 3,349 is the result of revaluation, not earnings. Debt load 0.866 against the upper bound of the norm at 0.85.F1.590 · F1.690 · F1.410 · F1.460 · F1.450
Yellow flags
  • Leasing has replaced bank financing: long-term lease liabilities 1 → 469k BYN, lease payments within short-term payables 1 → 111, and 138 paid on leases over the year. Capital expenditure grew fourfold (277 → 1,124).F1.520 · F1.636 · F4.094 · F4.061
  • Operations are financed by customers and suppliers: advances received grew 2.6-fold (711 → 1,857k BYN) and deferred income appeared at 514 where there was none a year earlier; total short-term payables moved 5,249 → 6,065.F1.632 · F1.650 · F1.630
  • Administrative expenses grew by 35.5% (1,031 → 1,397k BYN) against revenue growth of 14.5%.F2.040 · F2.010
  • Goods inventories grew by 17.2% (3,590 → 4,207k BYN) against revenue growth of 14.5%; long-term assets grew 47.5% (2,778 → 4,098) — asset growth is outpacing capital accumulation.F1.214 · F2.010 · F1.190 · F1.490
Green signals
  • Profit on sales grew by 28.9% (716 → 923k BYN) against revenue growth of 14.5%; sales profitability to revenue moved 3.34% → 3.76% and net profitability 1.02% → 1.32%. Net profit moved 219 → 323.F2.060 · F2.010 · F2.210
  • Operating cash flow doubled: 266 → 585k BYN, with margin to revenue moving 1.24% → 2.39%.F4.040 · F2.010
  • Bank debt fell by 27%: loans and borrowings 611 → 444k BYN (long-term 60 → 41, short-term 551 → 403); interest paid was 36.F1.510 · F1.610 · F4.093
  • Payables to suppliers fell by 14% (4,298 → 3,709k BYN); equity grew 8.1% (4,226 → 4,569), mostly through retained earnings (867 → 1,034). Dividends paid were 100.F1.631 · F1.490 · F1.460 · F4.092

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.96
Confidence level
Medium

OJSC Kamenets Rayagroservis is a small wholesale trading company (revenue BYN 24,520k, balance sheet BYN 12,081k) centered in Kamenets, Brest region. The core activity is wholesale trade in chemical products (likely fertilizers, plant-protection agents, agrochemicals for the district agricultural enterprises). State share 85.6209%, 322 shareholders, district-level subordination to the district executive committee.

Recommendation: Restructuring — because (a) the operating side is profitable and growing — recovery is realistic by the enterprise own means, without state injections; (b) the structure of sources cannot withstand a sale: at 87% borrowed and with own working capital exhausted, a buyer would be acquiring liabilities rather than capital; (c) privatization is not excluded but premature — it becomes justified once the share of own sources is restored; (d) state investment is not required: the sector is market-based, competition from private dealers already exists, and there is no significant capex requirement; (e) liquidation contradicts the logic of a profitable asset with growing revenue. Strategic significance is minimal — special conditions (a golden share) are not required.

Restructuring sequencing: the first priority is to rebuild own working capital out of retained earnings rather than through further growth of obligations to customers and suppliers; to keep the lease burden (liabilities of BYN 469k, payments of 138 over the year) within operating cash flow of 585; and to limit further growth of advances received (1,857) and deferred income (514) — together about 10% of revenue in obligations to customers. Privatization is the horizon of the next cycle, at a share of own sources above the current one and with stable current liquidity; the sale format (open auction, a buyer pool of specialised international agrochemical distributors and private regional operators) remains valid but applies after recovery. A sale to a larger Belarusian player is excluded — it would concentrate the market. Any acquisition that could create a dominant position or raise economic-sovereignty concerns is assessed case-by-case by the National Asset Management Agency. Conditions independent of the outcome: workforce protection (the enterprise is small, an estimated 30-50 people), preservation of the profile for 3-5 years, retention of obligations to current supplier-producers (Belarusian producers of fertilizers and plant-protection agents).

Why restructuring. The operating side is profitable and growing: sales profitability 3.76% against 3.34% a year earlier, net profitability 1.32% against 1.02%, OCF margin 2.39% against 1.24%, revenue +14.5%. The enterprise pays real dividends of BYN 103k (about 32% of net profit). Structure of sources: long-term liabilities of BYN 510k and short-term liabilities of 7,002 against charter capital of 125 and retained earnings of 1,034 — borrowed sources provide about 87% of financing, with a debt load of 0.866 against the upper bound of the norm at 0.85. Equity on the balance sheet is BYN 4,569k, but 3,349 of that is additional capital, the result of revaluation rather than accumulated profit. Own working capital is nearly exhausted: provision 0.059 against 0.197 a year earlier, current liquidity 1.140 against 1.259 with a norm of 1.25.

Confidence: MEDIUM. F1.650 = BYN 514k appeared for the first time — deferred income within short-term liabilities. If this is targeted financing, part of the operating profitability depends on a non-market source; if it is a commercial prepayment, it is a sign of demand. Without the Notes the two cannot be distinguished, and the durability of the operating result depends on that distinction. The source is annual reporting for 2025, a complete F1–F4 set; all 6 cross-form consistency checks pass.

Kamenets District Agro-Service — BELSOE