Svetlogorsk RCP&S Plant
Open Joint-Stock Company Svetlogorsk Reinforced Concrete Products and Structures Plant
UNP: 400005115 · 25 Miroshnichenko St., Svetlogorsk, Gomel Oblast 247439
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 17 602 | 15 425 |
| Intangible assets | 17 | 15 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 1 381 | 877 |
| Long-term financial investments | 881 | 881 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 19 881 | 17 198 |
| Inventories | 7 302 | 7 529 |
| — materials | — | — |
| — work in progress | — | — |
| — finished goods and merchandise | — | — |
| — goods shipped | — | — |
| Deferred expenses | 61 | 25 |
| VAT on acquired goods, works, services | 13 | 45 |
| Short-term receivables | 2 830 | 3 055 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 4 234 | 165 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 14 440 | 10 819 |
| BALANCE (assets) | 34 321 | 28 017 |
| Charter capital | 30 | 30 |
| Reserve capital | — | — |
| Additional capital | 16 391 | 15 422 |
| Retained earnings (uncovered loss) | 15 560 | 10 479 |
| Total Section III (equity) | 31 981 | 25 931 |
| Long-term loans and borrowings | 0 | 0 |
| Long-term lease liabilities | — | — |
| Deferred income | 341 | 0 |
| Total Section IV (long-term liabilities) | 341 | 0 |
| Short-term loans and borrowings | 0 | 0 |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 1 988 | 2 071 |
| — to suppliers, contractors, providers | — | — |
| — on payroll | — | — |
| — on lease payments | — | — |
| Total Section V (short-term liabilities) | 1 999 | 2 086 |
| BALANCE (equity and liabilities) | 34 321 | 28 017 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- A dominant position in the market for reinforced-concrete power-line poles limits a simple sale of the state stake: a change of controlling owner of a monopolist without antitrust conditions could entrench market power in private hands.
- Concentration of settlements on a related party: around 51m BYN of turnover (receipts and sales) flows through the enterprise's trading house — the main sales channel is tied to a single affiliated structure.
- Exceptionally high liquidity: current liquidity ratio 7.22 against the norm of 1.25; current liabilities (1,999k BYN) are negligible relative to current assets (14,440k BYN).
- Zero credit load: neither long-term nor short-term loans or borrowings — activity is financed entirely from own funds.
- Sharp result growth: revenue +39.4% (34,109 → 47,547k BYN), net profit up 4.2× (1,349 → 5,703k BYN), sales profitability rose from 4.2% to 15.3%.
- Positive and growing operating cash flow: 7,035k BYN (margin 14.8%), cash grew from 165 to 4,234k BYN.
- Real equity is positive (+15,590k BYN): accumulated profit is real; working-capital ratio 0.84 against the norm of 0.15.
Recommendation
Svetlogorsk Reinforced Concrete Products and Structures Plant is a financially sound, profitable enterprise with an exceptionally strong balance sheet: current liquidity ratio 7.22 (against the norm of 1.25), zero credit load, operating cash flow of 7,035k BYN at a 14.8% margin, and net profit up 4.2× over the year. Real equity is positive and the working-capital ratio is three times the norm. The state owns only a minority stake — 28.49% of the charter fund (833 shareholders), i.e. the enterprise is already predominantly private. The recommendation is therefore not privatization in the sense of an initial transfer of control, but a sale of the residual state stake: for such a healthy asset, retaining a minority state holding is not justified by strategic necessity, and a state exit is economically rational. An important caveat: the enterprise holds a dominant position in the market for reinforced-concrete power-line poles, so disposal of the state stake requires antitrust conditions — the sale must not entrench the monopolist's market power in the hands of a single private beneficiary or create a vertical monopoly in an adjacent sector. With that caveat, the asset is a quality candidate for completing privatization with conditions.