CORRECTION: JSC "Daugavpils Lokomotīvju Remonta Rūpnīca" audited consolidated annual report for the year 2015.


Daugavpils, 2016-05-03 08:09 CEST (GLOBE NEWSWIRE) -- Basic activity of AS  "Daugavpils Lokomotīvju Remonta Rūpnīca" and its subsidiaries (further - the Group)  is railway rolling stock overhaul repair, maintenance and upgrade, manufacturing and repair of its spare parts. The Group provides repair services of all types of railway rolling stock - diesel and electric locomotives and electric trains.

In 2015 the Group's consolidated net sales amounted to 19.2 million EUR (decrease of 4% in respect of net sales of 2014).

The Group finished the year with losses of 2.7 million EUR. In 2015 the Group exported its products to 8 countries, the total export volume amounted to 12 million EUR (in 2014 - 18 million EUR), while net sales in Latvia amounted to 7.2 million EUR (in 2014 – 2.1 million EUR). The main directions of export in 2015 were EU countries: Lithuania and Estonia, and third countries: Russia, Belarus and Uzbekistan.

During 2015 the Group finalized the acquisition and installation of most of the machinery in the ERDF project. The project was finalized by 02 March 2015. On 30 July 2015 the Group received the EU support financing and partly covered its liabilities towards bank. Significant losses are firstly related to the sales agreements in Russian ruble, as well due to only partial work load during the reporting period. Thus, in order to increases the factories economical efficiency, reorganization and optimization of the manufacturing process was performed and cut of operating expenses.

The Group reorganization included formation of three new subsidiaries: DL Lokomotīve SIA, DL Metaltworking SIA and Loģistika SIA.
DL Lokomotīve - Repair or rolling stock and its components, DL Metaltowrking - Metal foundry, repair and production of spare parts, Loģistika - Logistics services and maintenance of fixture, public facility service rendering to Group companies. The new structure of the Group started operating from 01 April 2015.

During 2015 the Group participated in all related exhibitions, in order to present the Group's new theological possibilities and find new customers, as a result as of today the Group already has completed several new orders from EU clients, but unfortunately it is not sufficient to compensate for the lack of the Russian market possibilities. As a target has been set the increase of metal working and manufacturing jobs on the newly acquired machinery under the ERDF project; increase the Group's efficiency and continue operating expenses optimization.

All of 2015 the Group was involved in the "DR1 diesel-train modernization" project as member of the DMY vilcieni. Due to several factors the project was not finalized by December 2015, DMU vilcieni has reached an agreement with the client AS Pasažieru vilciens that the project deadline is postponed till 31 May 2016.

In 2016 the Group's priority is the finalisation of the DMU project and the growth of the metalwork projects - search for new clients and significant increase in the net sales. The Group is aware that the first half of 2016 it will not have sufficient number of projects, so into eh first quarter the Group performed cost-cutting, decreased the number of employees and cut of unprofitable areas of operation. By marketing estimates, the Group will have sufficient project load taking into effect the cost-cutting procedures.

STATEMENT OF COMPREHENSIVE INCOME

 

                                  Notes 2015   2014
                                            EUR       EUR
                                                     
Revenue                               (1) 19 213 652   20 068 041
                                         
Cost of sales                             (2) (20 049 053)   (18 673 012)
                                         
Gross profit                                (835 401)   1 395 029
                                         
Distribution expenses                         (3) (229 717)   (398 964)
                                         
Administrative expenses                       (4) (1 761 571)   (1 901 530)
                                         
Other income                             (5) 1 167 107   99 430
                                         
Other expenses                           (6) (369 050)   (79 723)
                                         
Finance costs                             (8) (608 392)   (356 510)
                                         
Profit (loss) before tax                         (2 637 024)   (1 242 268)
                                         
Corporate income tax                          (9) (109 131)   (1 057)
                                         
Net profit (loss)                             (2 746 155)   (1 243 325)
                                         
Attributable to:                                  
Equity holders of a parent company                   (2 746 155)   (1 243 325)
                                                     
Earnings per share (in cents)                     (10)      
Basic                                 (33.11)   (14.99)
Diluted                                 (33.11)   (14.99)
                                         
Total comprehensive income (expense)                   (2 746 155)   (1 243 325)
                                         
Attributable to:                                  
Equity holders of a parent company                   (2 746 155)   (1 243 325)
                                                     

 

 

 

Natālija Petrova

Member of the Board

t. 65404420, petrova@dlrz.lv

 Daugavpils, 29.04.2016

File added GP_DLRR_IFRS_2015_ENG (Independent Auditor"s Report)

 


Attachments

DLRR_korp_parv_2015_eng.pdf GP_DLRR_2015_ENG.pdf GP_DLRR_IFRS_2015_ENG.pdf