Lidselmash Holding MC

OJSC Management Company of the Lidselmash Holding

UNP: 500021638 · 70 Sovetskaya St., Lida, Grodno Oblast

HoldingsCity-formingRestructuring

Identification

UNP500021638
OKED28300 — manufacture of agricultural machinery and equipment
Legal formOJSC
Governing bodyMinistry of Industry of the Republic of Belarus
Address70 Sovetskaya St., Lida, Grodno Oblast

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets51 03146 605
Intangible assets35
Investments in long-term assets11 10211 288
Long-term financial investments78 13178 131
Deferred tax assets1 2611 261
Total Section I (long-term assets)141 528137 290
Inventories21 29125 442
— materials5 1416 905
— work in progress4 7587 038
— finished goods and merchandise11 39211 499
Deferred expenses109193
VAT on acquired goods, works, services3399
Short-term receivables16 9546 557
Cash and cash equivalents708850
Other short-term assets2 3842 565
Total Section II (short-term assets)41 44936 006
BALANCE (assets)182 977173 296
Charter capital35 30935 309
Reserve capital570570
Additional capital63 62960 704
Retained earnings (uncovered loss)-56 368-56 838
Total Section III (equity)43 14039 745
Long-term loans and borrowings43 98246 931
Deferred income2 848
Other long-term liabilities52 45652 456
Total Section IV (long-term liabilities)99 28699 387
Short-term loans and borrowings14 92411 209
Short-term payables25 62721 086
— to suppliers, contractors, providers14 94916 256
— on advances received9 4132 935
— on taxes and duties263471
— on payroll628627
— to other creditors374600
Deferred income1 869
Total Section V (short-term liabilities)40 55134 164
BALANCE (equity and liabilities)182 977173 296

Computed metrics

Current ratio
1.022
Prior: 1.054(-3%)
F1.290 / F1.690
Absolute liquidity
0.017
Prior: 0.025
(F1.260 + F1.270) / F1.690
Own working capital ratio
-2.374
Prior: -2.709(+12.4%)
(F1.490 - F1.190) / F1.290
Sales profitability
2.32%
Prior: 0.07%(+2.25 pp)
F2.060 / F2.010 × 100%
Net profitability
0.97%
Prior: -6.38%(+7.35 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
-36.6%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
1.32%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
1.88%
Prior: 5.3%
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
  • Revenue F2.010 collapsed 75,210 → BYN 47,684k (−36.6%) — a sharp contraction in the scale of core activity; receipts from customers F4.021 74,348 → 57,465 confirm the contraction in cash terms.F2.010 · F4.021
  • There is no own working capital: (F1.490 43,140 − F1.190 141,528) / F1.290 41,449 = −2.37 against −2.71 a year earlier — turnover is financed by liabilities.F1.490 · F1.190 · F1.290
  • Real equity is negative: F1.410 35,309 + F1.460 −56,368 = −BYN 21,059k. The nominally positive total F1.490 43,140 rests on additional capital F1.450 63,629 formed by revaluation.F1.410 · F1.460 · F1.490 · F1.450
Yellow flags
  • The current ratio is barely above one: F1.290 41,449 / F1.690 40,551 = 1.02 against 1.05 a year earlier — short-term liabilities are covered with no room to spare, and the margin is shrinking. Cash F1.270 is BYN 708k.F1.290 · F1.690 · F1.270
  • Profit is mainly non-core: income from participation in the capital of other organisations F2.102 303 → BYN 3,067k exceeds the enterprise own profit on sales F2.060 1,108. In cash terms F4.053 786 was received under this item.F2.102 · F2.060 · F4.053
  • Short-term receivables F1.250 grew 2.6-fold, 6,557 → BYN 16,954k, while revenue F2.010 fell 36.6%. Advances received F1.632 tripled at the same time, 2,935 → 9,413.F1.250 · F2.010 · F1.632
  • Operating cash flow contracted: F4.040 3,990 → BYN 898k, its ratio to revenue F2.010 5.3% → 1.9%.F4.040 · F2.010
Green signals
  • The net result returned to profit: F2.210 −4,798 → +BYN 461k, pre-tax profit F2.150 −4,798 → +496.F2.210 · F2.150
  • Profit on sales F2.060 grew 50 → BYN 1,108k. The improvement came from cost contraction rather than from growth of the business: cost of sales F2.020 68,737 → 40,185 (−41.5%) while revenue F2.010 fell 36.6%.F2.060 · F2.020 · F2.010
  • Operating cash flow remains positive — F4.040 BYN 898k, though down from 3,990. Total credit debt F1.510+F1.610 is nearly stable: 58,140 → 58,906 (+1.3%); within it the debt shifted to the short end — F1.510 46,931 → 43,982 while F1.610 11,209 → 14,924.F4.040 · F1.510 · F1.610

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.79
Confidence level
High

The enterprise's financial condition is assessed as problematic with signs of a beginning recovery.

Recommendation: Restructuring — with the positive momentum of the financial result preserved, remediation of the accumulated loss and work on the causes of the revenue collapse are needed; outright privatization is premature until the operating base stabilizes, and liquidation is not warranted given profit, positive cash flow and a stable credit load. This is an agricultural-machinery machine-building holding under the Ministry of Industry — significant for the region and the sector, but requiring remediation of its capital structure and restoration of the scale of its own sales.

Why restructuring. Over the reporting year the net result swung from a loss (−4,798) to a profit (+461), profit on sales grew, and bottom-line profitability came out of the negative zone. At the same time the reversal rests on a fragile foundation: a significant part of the positive result was formed by income from participation in subsidiaries (about 3,067), comparable to own profit on sales, while revenue from core activity collapsed 36.6%. Beneath the improved financial result a structural weakness of the balance sheet persists. The accumulated uncovered loss (−56,368) makes real equity negative — the nominally positive capital rests solely on additional paid-in capital from asset revaluation. Current liquidity (1.02) is below the norm and barely exceeds one, and the working-capital ratio is deeply negative.

Confidence: HIGH. All 6 cross-form consistency checks pass.

Lidselmash Holding MC — BELSOE