Kamenets District Agro-Service
OJSC "Kamenets District Agro-Service"
UNP: 200055974 · 17 8th of March St., Kamenets, Brest Region
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 4 084 | 2 774 |
| Intangible assets | — | 3 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 13 | — |
| Long-term financial investments | 1 | 1 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 4 098 | 2 778 |
| Inventories | 4 581 | 3 912 |
| — materials | 374 | 322 |
| — work in progress | — | — |
| — finished goods and merchandise | 4 207 | 3 590 |
| — goods shipped | — | — |
| Deferred expenses | 264 | 46 |
| VAT on acquired goods, works, services | 99 | 9 |
| Short-term receivables | 2 791 | 2 857 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 248 | 511 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 7 983 | 7 335 |
| BALANCE (assets) | 12 081 | 10 113 |
| Charter capital | 125 | 125 |
| Reserve capital | 61 | 50 |
| Additional capital | 3 349 | 3 184 |
| Retained earnings (uncovered loss) | 1 034 | 867 |
| Total Section III (equity) | 4 569 | 4 226 |
| Long-term loans and borrowings | 41 | 60 |
| Long-term lease liabilities | 469 | 1 |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | 510 | 61 |
| Short-term loans and borrowings | 403 | 551 |
| Current portion of long-term liabilities | 20 | 26 |
| Short-term payables | 6 065 | 5 249 |
| — to suppliers, contractors, providers | 3 709 | 4 298 |
| — on advances received | 1 857 | 711 |
| — on taxes and duties | 48 | 21 |
| — on payroll | 185 | 136 |
| — on lease payments | 111 | 1 |
| — to the owner of property (founders, participants) | 7 | 4 |
| Deferred income | 514 | — |
| Total Section V (short-term liabilities) | 7 002 | 5 826 |
| BALANCE (equity and liabilities) | 12 081 | 10 113 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- K1 current ratio 1.140 — down from 1.259, below the 1.25 norm; trend negative -9.4% YoY. Turnover expansion (revenue +14.5%) outpaced working-capital accumulation — short-term liabilities grow faster than current assets.
- K1 SOS provision 0.059 — down from 0.197 (-70%), below the 0.15 norm. Permanent capital (F1.490+F1.590=5,079) barely covers long-term assets (F1.190=4,098) with a coefficient of 1.239 (vs 1.543 prior). Marginal coverage — fixed-asset leasing outpaces equity accumulation.
- Lease obligations explosive growth: F1.520 1 → 469 (+46,800%). A signal of aggressive lease-financing of capex (new fixed assets 1,124k BYN per F4.061). For a small business (revenue 24.5m) lease 469 is 1.9% of revenue and 11.5% of F1.490 — manageable but requires monitoring.
- Cash F1.270 511 → 248 (-51.5%). Against revenue 24.5m, cash 248 = 1.01% — a thin buffer, below the typical 3-5% norm.
- F1.650 'deferred income' appeared for the first time: 0 → 514. This may be targeted state support (recorded in F1.650 until recognition in profit in future periods) or a commercial prepayment under a contract with a large client. The two cannot be distinguished without reviewing the notes to the financial statements.
- Advances received F1.632 711 → 1,857 (+161%). For a trading company this is usually a green sign (customers prepay). But rising advances + the new F1.650 = 514 + chronically thin cash mean working capital is tightening: the enterprise funds operations through customers and through payables, not through cash.
- Dividends are structurally consistent across the statements: BYN 103k declared (F3.166), BYN 100k actually paid (F4.092); the 3k difference reflects rounding and shareholder payables (F1.637 = 7). No discrepancy.
- Operating profitable and improving: K2_sales 3.34% → 3.76% (+0.42pp), K2_net 1.02% → 1.32% (+0.29pp). Profit from sales up 28.9% (716 → 923) on +14.5% revenue growth — positive operating leverage, margins widening. An antipattern to Bogushevichi, where K2_sales is deeply negative.
- K3 revenue +14.48% — substantial growth, above any realistic Belarus CPI (2025 inflation ~7-9%); real growth ~5-7%. Not stagnation.
- OCF positive and improving: F4.040 266 → 585 (+120%), OCF margin 1.24% → 2.39%. Operating cash flow covers growth — not subsidy-required.
- Real dividends: declared 103.26k BYN, paid 99.48 (F4.092 = 100). ~32% of net profit — a sustainable dividend policy. The state (85.62% stake) gets a real return on capital. Proof of operating profitability.
- Bank debt down -27%: F1.510+F1.610 611 → 444. Funding shifts from bank-issued to asset-backed leasing (F1.520 growth). A healthy debt structure for a trading company with working capital.
- Suppliers paid faster: F1.631 4,298 → 3,709 (-14%). A reverse signal to district-level agri-producers where supplier payables grow as stretch-financing. Kamenetsky does not stretch — it pays down obligations.
- Equity growing: 4,226 → 4,569 (+8.1%) on comparatively small revaluation (+222). Main growth is retained earnings (+167 after dividends). Quality build-up through real earnings.
- Positive operating leverage in trade — markup on goods stable (~21%), but admin expenses grow slower (+36%) and selling expenses even fell (-2.2%). A sign of disciplined operating spending.
- Advances received +161% (711 → 1,857) — in a trading business model a signal of customer commitment: customers pay ahead for deliveries. This reduces commercial risk for the enterprise.
Recommendation
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's agricultural enterprises). State share 85.6209%, 322 shareholders, district-level subordination to the district executive committee. Financial condition is operating-profitable: sales K2 3.76% and improving (+0.42pp YoY), net K2 1.32% and improving, OCF margin 2.39% (double the prior 1.24%), K3 revenue +14.5% (real growth above CPI). The enterprise pays real dividends of BYN 103k (~32% of net profit), confirming operating viability.
The privatization outcome was chosen because (a) operating-profitable with positive operating leverage — a private owner can run it without state support; (b) the sector — wholesale chemical trade, market-based, non-strategic, with no significant capex requirement (rules out state_investment); (c) restructuring is not required — the operating side is healthy, prior tier "stable" (rules out restructuring); (d) liquidation contradicts the logic of a profitable asset (rules out liquidation); (e) an 85.62% state share with proven profitability is privatization upside: the state can realize the stake without loss of trading infrastructure. The sector is competitive, competition from private dealers already exists, strategic significance is minimal — privatization without special conditions (no golden share required).
Confidence MEDIUM (not HIGH) on three grounds:
1. Liquidity ratios deteriorate: current K1 fell from 1.259 (above norm) to 1.140 (below norm). K1_OWC fell from 0.197 to 0.059 (a catastrophic −70% drop). This is not distress yet, but the trajectory is unfavourable. If it does not stabilize next period — a steady reform-to-distress trend.
2. F1.650 = 514 appeared for the first time — a D1 candidate. If this is structural state support (targeted financing), then operating profitability partly depends on non-market support → the outcome could shift to restructuring on an honest reading. Without the Notes, this cannot be distinguished.
3. long-term-asset coverage near the lower bound of the norm (coefficient 1.239 vs 1.543 a year earlier) — fixed-asset leasing outran the accumulation of permanent capital. For a trading company this is not distress (a low-capex business), but the trend deterioration warrants watching.
Privatization sequencing: the enterprise is ready for a market sale via an open auction within 6–12 months. The prospective buyer pool is specialised international agrochemical distributors and private regional operators. A sale to a larger Belarusian player is excluded — it would concentrate the market, against the purpose of the reform. 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 at privatization are minimal — 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).