HMS Bergbau’s growth strategy – adopted after an initial strategy of consolidation to cope with the downturn in the global coal market – has paid dividends, as the company reports increased revenues in H1 2014.
After using 2013 to continue to consolidate its position on the international coal market, the company said it was successfully pursuing its growth strategy in 2014.
In terms of future business development, the takeover of Polish company Slaski Wegiel Zory – Suszec Sp. Z.o.o. in February 2014 was an important milestone. The company has exploration licenses for two regions in Silesia, which have existing coal reserves of well over 1 billion t and offer significant mining potential for long-term metallurgical and thermal coal production.
The key financial figures for the H1 2014 have improved significantly compared to the previous year. Revenues increased 61% by € 26.4 million, from € 42.7 million to € 69.1 million. Net profit for the period also increased, from a loss of € 1.6 million in H1 2013 to a profit of € 0.5 million this year.
With total assets of € 18.7 million, the equity ratio remains almost unchanged at 17.6%. Cash and cash equivalents increased by € 1.9 million to € 5.4 million.
The company was positive about its future outlook. In a statement, HMS Bergbau said: “Given the current market position and the prospects provided by the exploration in Poland, the long-term marketing agreement in Africa, as well as rising Revenues in Southeast Asia, we continue to anticipate growth in revenues in the next two financial years plus a slight improvement in margins thanks to the further vertical integration of trading business.”
For 2014, the company continues to forecast positive EBITDA and a positive result for the year.
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/30092014/hms-bergbau-h1-2014-revenue-1376/