Nesvizh PMK-23

OJSC Nesvizh PMK-23

UNP: 691875189 · 6 Snovskaya St., Nesvizh, Minsk Oblast 223600

Oblast-levelRestructuring

Identification

UNP691875189
OKEDconstruction
Legal formOJSC
Governing bodyState — 95.47% of charter fund
State share95.4661%
Address6 Snovskaya St., Nesvizh, Minsk Oblast 223600
Websitepmk-23.epfr.by

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets17 9126 397
Other long-term assets12
Total Section I (long-term assets)17 9126 409
Inventories420573
— materials342352
— work in progress78221
Deferred expenses976
VAT on acquired goods, works, services469386
Short-term receivables292423
Cash and cash equivalents113251
Total Section II (short-term assets)1 3031 709
BALANCE (assets)19 2158 118
Charter capital794794
Additional capital3 0433 047
Retained earnings (uncovered loss)1815
Total Section III (equity)3 8553 856
Long-term loans and borrowings
Long-term lease liabilities431430
Deferred income13 9782 450
Total Section IV (long-term liabilities)14 4092 880
Short-term loans and borrowings
Short-term payables9511 347
— to suppliers, contractors, providers402763
— on payroll129119
— on lease payments268281
Total Section V (short-term liabilities)9511 382
BALANCE (equity and liabilities)19 2158 118

Computed metrics

Current ratio
1.37
F1.290 / F1.690
Absolute liquidity
0.119
Prior: 0.182
(F1.260 + F1.270) / F1.690
Own working capital ratio
-10.788
(F1.490 - F1.190) / F1.290
Sales profitability
6.31%
F2.060 / F2.010 × 100%
Net profitability
0.071%
F2.210 / F2.010 × 100%
Revenue dynamics
32.82%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.95
Prior: 0.84
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
5.69%
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
  • Core (operating) activity is loss-making: profit from current activity F2.090 70 → −13k BYN; net profit F2.210 4k BYN (0.07% of revenue F2.010 5,609) rests on investment income F2.100 165.F2.090 · F2.210 · F2.010 · F2.100
  • Negative own working capital: −10.79 = (F1.490 3,855 − F1.190 17,912) / F1.290 1,303. Long-term assets exceed equity several times over; the gap is closed by deferred income F1.540 13,978 — by the criterion this is the red zone, while the source of coverage is long-term and is not a loan.F1.490 · F1.190 · F1.290 · F1.540
  • The balance sheet rests on funds outside equity: deferred income F1.540 2,450 → 13,978k BYN — 73% of total assets F1.300 19,215; the growth of fixed assets F1.110 6,397 → 17,912 was funded by them, while equity F1.490 was unchanged (3,856 → 3,855).F1.540 · F1.300 · F1.110 · F1.490
Yellow flags
  • Administrative expenses F2.040 1,017k BYN — 18% of revenue F2.010 5,609; they absorb almost all of gross profit F2.030 1,371, leaving F2.060 354 from sales.F2.040 · F2.010 · F2.030 · F2.060
  • Dividends exceed earnings: F4.092 13k BYN paid (7 a year earlier) against net profit F2.210 4k BYN — three times the annual result was distributed.F4.092 · F2.210
Green signals
  • Current liquidity above the norm: F1.290 1,303 / F1.690 951 = 1.37 — current assets cover current liabilities.F1.290 · F1.690
  • Revenue grew: F2.010 4,223 → 5,609k BYN (+33%), gross profit F2.030 1,091 → 1,371.F2.010 · F2.030
  • Operating cash flow is positive: F4.040 444 → 319k BYN; there are no loans or borrowings in either period, the only interest-bearing item is the lease F1.520 431.F4.040 · F1.520

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.91
Confidence level
Medium

Nesvizh PMK-23 is a small construction company (total assets 19.2m BYN) with a 95.47% state share.

Recommendation: Restructuring. The enterprise is operationally viable (revenue up 33%, positive operating cash flow), but its cost structure is unbalanced (administrative expenses at 18% of revenue almost entirely consume gross profit), and its dependence on state support is too great to be sustainable without it. Operational optimization and a reduced reliance on targeted financing are required before the enterprise can be considered a privatization candidate.

Why restructuring. The enterprise is solvent (current liquidity 1.37, no loans or borrowings) and formally profitable, but its financial health rests on two artificial supports. First, the core (current) activity is loss-making: profit from current activity was −13k BYN, and the bottom-line net profit (4k BYN, 0.07% of revenue) is provided by other and investment income, not the core business. Second, the doubling of fixed assets over the year (6,397 → 17,912k BYN) was funded by state targeted financing: deferred income rose from 2,450 to 13,978k BYN and makes up 73% of total assets.

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

Nesvizh PMK-23 — BELSOE