Global Auto-Trade Group PLC
Global Auto-Trade Group PLC: 2014 Audited Statements
Global Auto-Trade Group PLC / Key word(s): Statement/Final Results Announcement Global Auto-Trade Group Plс 2014 Audited Statements “GATG” or “the Company” May 21, 2015 Global Auto-Trade Group Plc. is pleased to report its final results for the year ended 31st December, 2014. The management published today GATG’s audited financial results for the period ended Dec 31, 2014 in compliance with the Stock Exchange’s rules. The Company recorded Revenue of EUR 2,603,356, an EBITDA of EUR20,287 and Net Assets of EUR1,719,054. The report includes consolidated financial statements of the Company, comprising of Consolidated Statement of Financial Position, Consolidated Statement of Income, Changes in Equity and Cash Flow Statement. Since the previous audit report in 2013, which contained auditors’ qualified Opinion, in 2014 the Management succeeded in fulfilling all auditors’ recommendation regarding valuation of property, plant & equipment, inventory, related party transactions and segmental information, that was positively recorded by Baker Tilly, GATG’s auditors. The 2014 Audit Report does not contain qualified opinion and confirms absence of doubtful operations. Compared to our financial results of 2013, the Company demonstrated a growth of its revenue, improving EBITDA and reducing net losses positions in 2014. It should be noted that the main part of net losses for the period were mostly due to re-evaluation of fixed assets, including swapped debt for equity capital position and insufficient working capital required to satisfy increased client orders. In spite of this, GATG’s weak profitability was compensated by good performance in 2014 allowing for strong business development and growth in 2015. Firstly, we confidently achieved our first milestones towards strengthening of business liquidity through the Stock Exchange, thus: 1. In March 2014 the Company fulfilled strict EU regulation requirements and received admission on GXG Market’s Main Quote trading segment. 2. Market capitalisation of GATG increased to EUR 12.17 million. 3. Being classified as a Designed Global Issuer by new GXG rules, the Company timely fulfilled additional requirements of the stock exchange to the nominal value of equity capital and submission of Due Diligence Report once more confirming business transparency and long-term viability of its business model. 4. The Company was able to convert a substantial debt position to equity, further reducing capital expenses and improving its debt-to-equity ratio. 5. In the second half of 2014 the Company initiated capital raising activity in order to confirm market capitalisation and saw the first positive results from its fund raising efforts by raising initial capital of approximately £169,000 by way of subscription for new ordinary shares, loan notes and private placement. At the start of 2015, GATG has already met first interest payments to investors according to the issued loan notes. 6. So long as the capital raising efforts of the Company are bounded by the GXG Stock Exchange’s trading platform and absence of registered Prospectus the Company initiated the process for upgrading to Official List and is at the final stage of the Prospectus’s approval process with the Danish FSA. The move to Official List, once requirements are met, will allow the company access to a wider investor base, both retail and institutional, and, as a result, are likely to increase Company’s liquidity. In the operational activity of our subsidiaries, during the 2014 our main focus was on satisfying customer demand. Insufficient working capital presented a challenge to extend our product lines’ range to meet growing customer demand and to fully participate in industrial tenders. This is reflected in today’s loss of profit. The Management continues to diversify its retail and wholesale business activities; investment capital will enable the Company to utilise its market and business potential to the full extent and to double its profitability by directing funds into both working capital and tender participation. In 2015 the Company will significantly increase its fund-raising efforts and will further its relationship with investor communities active in European markets in order to attract investment necessary for implementation of its development strategy. Despite economic slowdown, during 2014 GATG’s subsidiaries demonstrated positive trading activity. Thus, through reached agreements and established cooperation with road maintenance and municipal utility organisations, GATG’s nationwide branch network actively participated in supplying road maintenance and municipal utility equipment with a new vehicles across Moldova, including Transnistria, with a significant part of utility vehicles produced at the own assembly line. The Company plans to continue supplying specialised machinery to Moldova’s regions in 2015 and to continue development of its SKD assembly project. Furthermore, due to GATG’s strong market position and internal potential, the Company successfully participated and won over 20 government tenders worth approximately EUR1.5 million, which is two times more than in 2013. GATG has been allowed to participate in the next round of commercial and governmental tenders, which are expected in 2015. In November 2014, for the third time, the Company’s main subsidiary Autoprezent Srl successfully upheld international standards of management quality ISO 9001:2008. This certificate is a strong confirmation of our high quality service and products to our local and international partners. Taking into account market specifics, and with the view to diversify business, GATG and Moldovan Ministry of Ecology currently consider development of the first industrial project, which is aimed at ecological recycling of used tires using our facilities at AutoPrezent, the main subsidiary of GATG. The Management is confident to obtain Government’s support for this project and intends to finalise its plans in 2015 in time for its launch in 2016. Besides economic benefits, this project will also be of a significant environmental value. In 2014 our Company performed strongly in a tough economic and political environment due to the Moldavian parliamentary elections 2014, market alignment with the EU and new format of EU-Moldova-Russia business relationship. Nevertheless, we confidently met and persistently overcame all market challenges 2014, which, once more, demonstrates the strength and stability of our business. Over the past year we carefully reviewed our strategy and business model and have come to the conclusion that, with a few minor adjustments, we have the right strategic foundation. The 2014 results led GATG to the next stage of development. There is much work to be done in order to improve our internal processes, mastering new technologies and strengthening our market positions. GATG will continue to improve operational and financial results, diversify business directions, product range as well as sales tools and distribution channels. We would like to thank each shareholder for their trust in Global Auto-Trade Group PLC. We will continue our day-to-day work in order to strengthen GATG’s leading positions in Moldova’s automotive industry and to increase the long-term value for our shareholders.
Consolidated Income Statement for the year ended Dec 31, 2014
Consolidated Statement of Financial Position as at Dec 31, 2014
Consolidated Statement of Cash Flows for the year ended Dec 31, 2014
The full Annual Report can be requested as a hard copy and is also available for download on the Company’s website www.globalautotg.com. Please click on the following link to view the document directly: http://www.globalautotg.com/en/financial-reports/ The Company has submitted a pdf of its Annual Report to the GXG and it will shortly be available for review at http://www.gxgmarkets.com/company/GATG Enquiries: Global Auto-trade Group PLC The Directors of the Company accept responsibility for this announcement. About Global Auto-Trade Group Plc 2015-05-21 Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | Global Auto-Trade Group PLC | |
12 Mount Havelock | ||
IM1 2QG Douglas | ||
Isle of Man | ||
Phone: | +44 (0)1624 618444 | |
Fax: | +44 (0)1624 618555 | |
E-mail: | ir@globalautotg.com | |
Internet: | www.globalautotg.com | |
ISIN: | IM00B6R6T382 | |
Listed: | Foreign Exchange(s) GXG | |
End of News | EquityStory.RS, LLC News-Service |
360537 2015-05-21 |