8/2020 - Information on the Management Board’s decision to create write-downs
The Management Board of Trakcja PRKiI S.A. (”Company”) hereby informs that as a result of conducting the following tests:
- Impairment of investments in the subsidiary AB Kauno Tiltai;
- Impairment of investments in the subsidiary BTW Sp. z o.o.;
- Impairment of goodwill assigned to the cash generating unit, which comprises two subsidiaries from the AB Kauno Tiltai group;
- Impairment of goodwill assigned to the cash generating unit, which comprises subsidiaries: PEUiM Sp. z o.o., Dalba Sp. z o.o. and PDM S.A.;
it has decided on 18 March 2020 to create a write-down to investments in subsidiaries in the Company’s individual financial statements in the amount of PLN 114,187 thousand (AB Kauno Tiltai: PLN 112,857 thousand, BTW Sp. z o.o.: PLN 1,330 thousand), and a write-down to goodwill in the consolidated balance sheet of the Trakcja Group in the amount of PLN 138,182 thousand (subsidiaries in the AB Kauno Tiltai group: PLN 128,815 thousand, and a write-down to goodwill assigned to: PEUiM Sp. z o.o., Dalba Sp. z o.o. and PDM S.A. in the amount of PLN 9,367 thousand).
The value of investments in subsidiaries, before the write-down, presented in the individual balance sheet of the Company as at 30 September 2019 amounted to PLN 425,495 thousand, whereas the goodwill presented in the consolidated balance sheet of the Trakcja Group as at 30 September 2019 amounted to PLN 311,649 thousand.
The above events, meaning creating write downs:
- to investments: will affect the decrease of the individual financial result for 2019 and the decrease in the value of fixed assets presented in the Company’s individual balance sheet as at 31 December 2019 by the amount of PLN 114,187 thousand;
- to goodwill: will affect the decrease of the consolidated financial result for 2019 and the decrease in the value of fixed assets presented in the consolidated balance sheet of the Trakcja Group as at 31 December 2019 by the amount of PLN 138,182 thousand.
Creating write-downs has non-monetary character and does not affect the Company’s or Trakcja Group’s current liquidity.
The data presented above are estimates and their final value depends on the completion of the annual audit and shall be presented with the financial results of Trakcja PRKiI S.A. and the Group in the 2019 Company’s individual financial statements and the Group’s consolidated financial statements, respectively.
Legal basis for the report:
Article 17 of the Market Abuse Regulation (MAR)
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