Soligorsk Motor Depot
OJSC "Soligorsk Motor Depot"
UNP: 600072668 · 1 Sitenetskaya St., Starobin urban settlement, Soligorsk District, Minsk Region 223730
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 5 520 | 5 620 |
| Intangible assets | — | — |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | — | — |
| Long-term financial investments | 5 | 5 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 5 525 | 5 625 |
| Inventories | 225 | 184 |
| — materials | 225 | 184 |
| — work in progress | — | — |
| — finished goods and merchandise | — | — |
| — goods shipped | — | — |
| Deferred expenses | 23 | 24 |
| VAT on acquired goods, works, services | — | — |
| Short-term receivables | 1 783 | 1 905 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 1 | 2 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 2 032 | 2 115 |
| BALANCE (assets) | 7 557 | 7 740 |
| Charter capital | 2 428 | 2 428 |
| Reserve capital | — | — |
| Additional capital | 2 378 | 1 995 |
| Retained earnings (uncovered loss) | 449 | 546 |
| Total Section III (equity) | 5 255 | 4 969 |
| Long-term loans and borrowings | 794 | 1 260 |
| Long-term lease liabilities | — | — |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | 794 | 1 260 |
| Short-term loans and borrowings | 602 | 742 |
| Current portion of long-term liabilities | 393 | 372 |
| Short-term payables | 513 | 397 |
| — to suppliers, contractors, providers | 108 | 70 |
| — on payroll | 122 | 125 |
| — on lease payments | — | — |
| Total Section V (short-term liabilities) | 1 508 | 1 511 |
| BALANCE (equity and liabilities) | 7 557 | 7 740 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Net profit collapse of −92.2% year on year: 359 → 28k BYN; net margin fell from 5.58% to 0.44% — close to zero.F2.210 · F2.010
- No own working capital: provision ratio −0.133 — working capital is partly financed by borrowed funds (improved from −0.31 a year earlier, but still negative).F1.490 · F1.190 · F1.290
- Sales profitability halved: from 14.44% to 7.26% (−7.18 pp).F2.060 · F2.010
- Interest paid +56% (189 → 295k BYN) while total debt declined — servicing the residual debt is getting more expensive.F4.093 · F1.510 · F1.610
- Gross margin collapse of 5.8 pp: from 22.27% to 16.46% — cost of sales +7.5% (4,997 → 5,373k BYN) on stagnant revenue.F2.030 · F2.010 · F2.020
- Permanent capital covers long-term assets with a minimal margin: 6,049k BYN (equity 5,255 + long-term liabilities 794) against long-term assets of 5,525 — a margin of 524k; a year earlier the margin was 604.F1.490 · F1.590 · F1.190
- Current ratio is declining: 1.40 → 1.347 — the buffer above one is shrinking.F1.290 · F1.690
- Inventories (materials) grew 22.3% (184 → 225k BYN).F1.210
- Administrative expenses +18% (503 → 592k BYN) on stagnant revenue.F2.040 · F2.010
- A massive refinancing cycle: loans received of 7,325k BYN, repaid 7,903 (2,081 and 1,031 a year earlier) — the debt was fully rolled over within the year.F4.081 · F4.091
- Cash holdings are nearly absent: 1k BYN (2 a year earlier) — liquidity rests on receivables of 1,783k.F1.270 · F1.250
- Operating cash flow margin is strong and rising: 17.1% versus 10.73% a year earlier; operating flow of 1,100k BYN versus 690 (+59%) — viability confirmed by cash, not just paper profit.F4.040 · F2.010
- Total debt reduced by 30.3%: 2,002 → 1,396k BYN (long-term 1,260 → 794, short-term 742 → 602).F1.510 · F1.610
- Dividends paid: 125k BYN versus 92 a year earlier.F4.092
Recommendation
The enterprise presents a paradoxical profile: operational soundness is confirmed by strong cash flow (OCF margin 17.1%, +6.4 pp YoY, absolute F4.040 +59% over prior), yet accounting profit collapsed −92.2% (net profit 28 vs 359).
Recommendation: Restructuring — followed by privatization. Priority restructuring measures (pre-sale preparation): cost discipline (fuel/payroll/leasing), pricing-strategy review (the current inability to pass through cost inflation = the key operational risk), restoring the own-working-capital ratio (a 0.27pp gap to the norm), a capex plan for fleet renewal (F1.110 = 5,520, fleet age TBD via notes).
Why restructuring. The divergence is explained by a failure of pricing power: with flat revenue (+0.06%), cost of sales rose +7.5%, eroding gross margin from 22.3% to 16.5%; interest payable rose +40% (288 vs 205) on stagnating income. Management is pursuing a deliberate deleveraging — total debt cut −30.3% (from BYN 2,002k to 1,396k), evidence of financial discipline, but the rising cost of the remaining debt is eating into profitability. Rationale: (1) a district-level enterprise in the competitive road-freight sector with no strategic monopoly value — state retention is not justified by sector logic; (2) 100% state share + an established dividend history = a clean divestment candidate; (3) OCF strength gives a buyer working-capital headroom for margin restructuring; (4) the deleveraging trajectory shows competent management — an actively managed asset for sale, not a distress sale.
Confidence: MEDIUM — driven by: trajectory uncertainty in profit recovery, the absence of a visible margin-stabilization signal over 2 cycles, marginal-low long-term-asset coverage (1.095×), and dependence on sector-wide pricing-power restoration (which may come from market consolidation OR may not come).