Financial results of the C.S.CARGO Group in 2012

Financial results of the C.S.CARGO Group in 2012.

Efforts launched by the new shareholder of the C.S.CARGO Group, Tuffieh Funds SICAV plc, at the beginning of 2012 with the aim of restructuring the Group and reducing its operating costs are starting to produce results.

Prague, 27 June 2013 – The C.S.CARGO Group has completed its financial audit for 2012. According to the review, carried out by the KPMG audit firm in accordance with the International Financial Reporting Standards, last year's turnover amounted to CZK 4.6 billion and the firm posted CZK 242 million in operating profit (EBITDA). Revenues decreased year-over-year by 15%, but the main causes behind the drop were the lingering economic recession and a gradual termination of loss-making projects.

Both last and this year, C.S.CARGO has performed well especially on the Slovak market, where the Group signed new contracts with companies from the food & beverage and automotive industries. At the same time the Group strengthened its position in the forwarding segment considerably. Turnover and earnings before taxes increased year-over-year by 4% and by as much as 35%, respectively.

In the Czech Republic, where the restructuring combined with cuts in operating costs began in the second half of 2012, the positive impact of the process has become clearly visible this year. The results of the last three months provide evidence to this effect.

Aleš Willert, the Managing Director of C.S.CARGO, comments: "Despite the accumulation of several negative factors, such historically high fuel prices, the automotive industry slump, and dwindling consumer demand, all of which are pushing down the firm's gross margin, we have been able to observe an improving trend during the last three months. Compared to the same period last year, earnings before taxes are 25% higher. This fact confirms that we are going in the right direction and that the downward tendency is turning around. That being said, however, we still have a lot of hard work to do."

The restructuring process is taking place at several levels. The company's head office has been transferred from the Netherlands to Jičín, Czech Republic, the organizational structure has been modified, and a new management team has been put together. The firm is also gradually renewing its fleet, acquiring vehicles that feature the latest technologies and meet the strictest requirements for environmental protection and cost efficiency. Further, the increasing emphasis customers place on quality and delivery promptness has persuaded the Group to make investments into expanding and improving IT technologies, particularly the online fleet operation system. The IT system upgrade also included the optimization of such internal and external processes as ordering, billing, and accounting procedures.