OT Logistics had PLN 104.28 million net loss, PLN 45.45 million EBIT loss in 2019

The operating loss amounted to PLN 45.45 million compared to PLN 58.99 million loss the year before.

Consolidated sales revenue reached PLN 984,97 million in 2019 compared to PLN 982,65 million the year before.

"At this difficult time, the management's priority was to maintain the financial liquidity of the group companies, as well as to stabilise relations with financial creditors and business partners. Therefore, initiatives have been developed and implemented to prepare and carry out restructuring, disinvestment and optimisation of existing resources. The measures initiated resulted in the expected results in, for example, the sale of a key non-operational property or in receiving a non-binding offer to acquire shares in Deutsche Binnenreederei AG based in Berlin," says Konrad Hernik's letter to shareholders.

Despite the continuing high financial burden associated with the need to service debt and the stabilisation of relations with financial creditors in 2019, OT Logistics Group companies carried out normal operations in an unwavering way.

"The total revenue of the group in 2019 reached PLN 985 million as in the previous year. Although we have completed a high level of loss over the past year, in large measure this was due to an accounting adjustment to the carrying amount of assets held. Basic operational activity remains profitable," we read further.

The OT Logistics Group also stated that the key to the company's group had successfully implemented operations, strengthening market position and improving financial performance. The scale of transshipment in ports increased and the scale of forwarding operations grew rapidly. However, the difficult situation on the rail market has affected the rail segment. This has had negative effects on STK S.A. and has led to a deterioration in its financial condition, and consequently the company was forced to initiate a sanction procedure.

"In 2019, the process of healing the company's finances and improving efficiency gave rise to the continuation, by the current board of directors in a revised composition, of restructuring operations in 2020. The measures taken have contributed, inter alia, to improving relations with financial creditors and ultimately led to an arrangement favourable to the company and group of conditions for extending financing until 30 April 2021. In addition, the company also raised a significant amount of loan from the main shareholder to support the liquidity of the group" – Hernik also wrote.

As part of the implementation of the current strategy and the assumptions of the recovery plan, the Management Board formulated priority objectives for the years 2020-2021, including focusing the group's activities on port and forwarding activities, filling the full logistics chain from and to the target customer. The potential sales were also distinguished by assets which are less synergistically linked to the main port activities. Further restructuring and reorganisation measures were also implemented.

"The actions taken in 2020 should have a very clear effect on increasing sales opportunities, reducing operating costs and, as a result, significantly increasing internal operating flows. The planned 2020 debt reduction, a significant reduction in financial costs and a reduction in high advisory and legal services will bring considerable improvements to the group's ability to regulate commitments, to stabilise the financial situation and to achieve significantly more favourable financial results than before" - the President also wrote.

In individual terms, the net loss in 2019 amounted to PLN 47.95 million compared to PLN 107.81 million loss a year earlier.

Source: ISBnews