Molodechno Machine-Tool Plant
OJSC "Molodechno Machine-Tool Plant"
UNP: 600136740 · 19 Zamkovaya St., Molodechno, Minsk Region 222310, Republic of Belarus
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 8 248 | 7 589 |
| Intangible assets | 1 | 1 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 35 | 6 |
| Long-term financial investments | 8 | 8 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 8 292 | 7 604 |
| Inventories | 2 106 | 1 950 |
| — materials | 552 | 384 |
| — work in progress | 1 135 | 1 065 |
| — finished goods and merchandise | 419 | 501 |
| — goods shipped | — | — |
| Deferred expenses | 4 | — |
| VAT on acquired goods, works, services | — | — |
| Short-term receivables | 445 | 177 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 203 | 103 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 2 758 | 2 230 |
| BALANCE (assets) | 11 050 | 9 834 |
| Charter capital | 2 383 | 2 383 |
| Reserve capital | 8 | 8 |
| Additional capital | 6 524 | 5 915 |
| Retained earnings (uncovered loss) | -673 | -734 |
| Total Section III (equity) | 8 242 | 7 572 |
| Long-term loans and borrowings | — | — |
| Long-term lease liabilities | — | — |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | — | — |
| Short-term loans and borrowings | 39 | 39 |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 2 744 | 2 199 |
| — to suppliers, contractors, providers | 2 177 | 1 695 |
| — on advances received | 324 | 329 |
| — on taxes and duties | 96 | 35 |
| — on social insurance and security | 29 | 26 |
| — on payroll | 83 | 69 |
| — on lease payments | — | — |
| — to the owner of property (founders, participants) | — | — |
| — to other creditors | 35 | 45 |
| Deferred income | 25 | 24 |
| Total Section V (short-term liabilities) | 2 808 | 2 262 |
| BALANCE (equity and liabilities) | 11 050 | 9 834 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Permanent capital does not cover long-term assets: equity of 8,242k BYN against long-term assets of 8,292, a 50k deficit — a structural vulnerability to any disruption of operating cash flow.F1.490 · F1.190
- Accumulated loss of −673k BYN (recovering from −734) — a long-term legacy of prior loss-making years, not a one-year event.F1.460
- Current ratio 0.982 — below one: current assets of 2,758k BYN do not cover short-term liabilities of 2,808, a 50k deficit.F1.290 · F1.690
- No own working capital: provision ratio −0.018 — working capital is financed by short-term liabilities, mostly accounts payable to suppliers (2,177k BYN).F1.490 · F1.190 · F1.290 · F1.631
- Recovery within a single year only: sales margin −12.32% → +1.79% — a sign change with no confirming history; sustainability requires a confirming trend in subsequent periods.F2.060 · F2.010
- Inventories grew 8% (1,950 → 2,106k BYN) on revenue of +76.7% — inventories mostly flow into sales; work in progress of 1,135 versus 1,065 (+6.6%).F1.210 · F2.010 · F1.213
- Accounts payable to suppliers +28% (1,695 → 2,177k BYN) — 54% of annual revenue: working capital is substantially financed by trade credit.F1.631 · F2.010
- Advances received of 324k BYN did not grow (329 a year earlier) despite revenue of +76.7% — growth is not backed by customer prepayments.F1.632 · F2.010
- The enterprise is part of a holding: commercial relations may be intragroup, standalone assessment is limited — conclusions are appropriate at group level.
- A turnaround from a loss-making year with three sign changes: sales margin −12.32% → +1.79%, net margin −11.97% → +1.51%, operating cash flow −160 → +100k BYN — a structural change in operating efficiency, not cosmetics.F2.060 · F2.210 · F4.040 · F2.010
- Revenue +76.7% year on year (2,281 → 4,030k BYN); cash receipts from operating activities grew from 5,531 to 19,766k — cash flow confirms the growth.F2.010 · F4.020
- No long-term liabilities: balance sheet 11,050 = equity 8,242 + short-term 2,808; short-term debt of 39k BYN — under 1% of revenue. A financially unencumbered structure.F1.700 · F1.490 · F1.690 · F1.610
- The cash position doubled over the year: 103 → 203k BYN (5% of annual revenue).F1.270 · F2.010
- Equity grows through both components: additional capital +609k BYN (5,915 → 6,524), retained earnings −734 → −673 (+61 — the entire net profit of the year).F1.450 · F1.460 · F2.210
Recommendation
OJSC "Molodechno Machine-Tool Plant" is a small manufacturing enterprise (revenue BYN 4,030k, balance sheet BYN 11,050k) within the "UKH Bobruiskagromash" holding, producing machinery and equipment for agriculture and forestry (OKED 28.30.0 or similar). 1 shareholder — a legal entity (via the holding); the direct state share in charter capital = 0% (per info table), but indirectly, via the state concern/holding, it is a holding subsidiary in the hierarchy of state ownership.
Recommendation: Restructuring — at group level. Therefore NOT liquidation (recovery achieved, operational viability confirmed by 2025, sales profitability FLIP is a real flip not cosmetic; no evidence the enterprise is unsalvageable). NOT privatization (incomplete long-term-asset coverage, accumulated loss, 1-year recovery — the market will not accept it without a 2–3-year confirmed track record + structural deleveraging). NOT state investment (no evidence capex is required — OCF positive, no major capex needs declared, the holding structure does not require standalone investment — capex flow is managed via the holding). Restructuring (group-level) — the most consistent: the enterprise needs structural reform at the holding level (group-level capital injection, equity restructuring to remove the accumulated loss, alignment of intercompany pricing), not a standalone intervention.
Why restructuring. The 2025 financial condition is a turnaround year: sales profitability FLIPPED from −12.32% (2024) to +1.79% (2025); net profitability FLIPPED from −11.97% to +1.51%; OCF FLIPPED from −7.01% to +2.48%; revenue +76.7% (from a very low 2024 base). All three parallel FLIPs are evidence of operational change, not an accounting artifact.
- Permanent capital covers long-term assets at only 0.994 (below 1.0) — a structural concern: permanent capital (F1.490+F1.590 = 8,242) does not cover long-term assets (F1.190 = 8,292). This is a structural marker of an enterprise financing long-term assets through short-term liabilities (in this case — payables to suppliers). This is an inherent vulnerability.
- Accumulated loss of −BYN 673k on the balance sheet. The recovery was from −734, but scar tissue remains — years of losses before 2024 created a financial hole that the 2025 recovery covered only partly.
- Recovery is 1-year-only — the magnitude is large (FLIP magnitude +14pp sales profitability), but without a 2–3-year track record the sustainable status is uncertain. Possible drivers: parent-holding-driven contracts (UKH Bobruiskagromash placed a large internal order), seasonal success, recognition of prior receivables — all these scenarios allow a one-year FLIP but do not imply continued performance.
- Holding subsidiary — standalone analysis is incomplete. All commercial relationships are likely intercompany via UKH Bobruiskagromash; the operating P&L may be managed by the parent via trade pricing, order volumes, settlements. The real picture requires a group-level financial-consolidation analysis.
Confidence: MEDIUM. Despite a FULL+FY-1 source (HIGH baseline per matrix v2.1) — downgraded because of:
- Incomplete long-term-asset coverage (0.994) — requires methodology consultation (is this a distress signal or a structurally permissible artifact in low-capex production?)
- Single-year recovery does not confirm a sustained turnaround
- Holding structure — limited standalone fidelity; outcome assessment without group-level data is contextually weak
Restructuring outcome — best-fit for the current snapshot, but given the subsidiary character and the link to the holding parent (UKH Bobruiskagromash), real action should proceed at the holding level. See Notes for recommendations. The score is capped: with a current ratio below 1 the model assigns no value above 0.85 regardless of other indicators.