Agroton – 1H13 report leaves no chance for turnaround

Agroton – 1H13 report leaves no chance for turnaround



5 вересня 2013 года
Конкорд Капитал

Агротон (AGT)


Our analysis of Agroton’s 1H13 financial report strengthens our belief that the company’s main shareholder has no commitments to increase the company’s value. Either Agroton is hiding some accumulated past troubles (bad receivables, over-reported profit from past years), or its main shareholder is deliberately stripping the company’s assets. Therefore, we currently see enormous risks related to investing in Agroton shares and bonds and we do not recommend buying them at any price.

Record-low EBITDA on smaller land use
Agroton reported USD 6.7 mln in 1H13 EBITDA. That’s the smallest reported number historically (in the first half of 2009-2012 it was never below USD 20 mln) …

A generous lender that cannot service its own debt?
Agroton failed to pay a USD 3.1 mln coupon on its Eurobond in July 2013. Whatever the excuse for such failure was, at the same time Agtoron was able to lend to third parties USD 5.5 mln in 1H13. Moreover, it lent USD 10 mln to its main shareholder on July 22 (another interpretation of the number provided in the recent financial report might be USD 10 K. So far, the company has not informed us which number is correct), just a week after its default on the coupon …

USD 33 mln prepayment for assets: another charity operation?
Agroton paid USD 33.1 mln in prepayment for two companies in 2012, for which it should have gained ownership in late March and late June 2013. This number is more than twice the current MCap of Agroton. The company stated in its recent report that it still has not obtained the ownership rights …

Источник: Конкорд Капитал

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