The company’s net profit is projected to climb by 54% in 2014, to RON38.4 million (EUR8.6 million).
The company has in the past two years unfolded an aggressive expansion campaign through investments of several tens of million euros in revamping and boosting production capacities. Investments have been largely funded through banking loans and a large part of them benefited from state guarantees through Exim Bank.
Romcab, controlled by businessman Zoltan Prosszer, in April alone announced it sealed contracts totally worth EUR135 million with two companies of Germany and Austria.
This year’s positive forecasts come as Romcab in 2013 saw its revenue advance by 74% to RON466.5 million (around EUR105 million) and its profit go up three times to RON21.4 million (EUR4.8 million).
Three years ago, the company announced an investment program of almost EUR100 million in several stages. The first stage, worth EUR15 million, was aimed at increasing production capacities on the low-tension cable segment. In the second stage, the company entered new market segments, namely medium and high tension cables destined to energy shipment.
Romcab’s total debts stood at RON360 million (EUR81 million) in December 31, 2013. For this year, the company expects financial expenses to rise to RON20.6 million, while profit from its core activities would go up by 60% to almost RON59 million (EUR13.2 million).
In 2014, the company plans to invest RON45.2 million (EUR10.2 million) and to borrow RON55.6 million (EUR12.5 million) from banks.
Romcab, a marginal player on Romania’s cable market in 2009, is now battling market leaders Prysmian Slatina, the domestic subsidiary of the world’s largest cable maker, and Greece’s ICME Ecab.
Romcab has particularly bet on export demand revival for growth. Now, sales are largely operated abroad.
Romcab shares are listed on RASDAQ market, but the company’s management in 2013 said it planned to promote the company on BVB. Romcab stock is little liquid, but amid investors’ rising interest liquidity has improved considerably in recent months.
The latest transaction with the company’s stock was operated at a price of RON5.45/share, valuing the company at RON51.1 million (EUR11.5 million).
(English version by Catalina Apostoiu)