The company, which makes cables and wiring for the automotive and construction industries and for communications infrastructure, sells its products via wholesalers or directly to industrial customers such as component plants. Last year’s sales increase was made possible by the signing of multi-annual deals worth EUR135 million with cable wholesalers in Germany and Austria.
After five years during which revenue has grown 17-fold, and debt 34-fold, the company will spend the next two years consolidating its business and balance sheet. Romcab’s debt stood at RON460 million on September 30, 2014, three times the value of its equity capital.
“We have entered a time of consolidation. We need to demonstrate the 17-fold growth in five years is consistent. We will resume growth in 2017,” says Sebastian Vladescu, former finance minister and now chairman of the board of directors of the wiring maker.
Romcab is also looking to diversify its funding sources after having transferred from RASDAQ to the main market of the Bucharest Stock Exchange. Long-term plans include floatation on the London Stock Exchange. (EUR1=RON4.4444)
(English version by Loredana Fratila-Cristescu)