Duro Felguera: loses nine million in Q1, prepares sales and looks for investors

The Asturian group has modified the 2019 accounts and will request an emergency line from the ICO.

José María Orihuela, CEO of Duro Felguera.

Duro Felguera has lost nine million euros in the first quarter of the year. A figure that occurs after the group has provisioned 10 million due to the effects of Covid-19.

The group has obtained contracts during this time for 30.5 million euros and the turnover of the group reaches 45.5 million, as explained by its CEO, José María Orihuela.

At the end of March the gross financial debt of the group reaches 95 million euros, cash reaches 91 million and the net cash position stands at -4.7 million euros.

Portfolio evolution

According to Orihuela, the group is in a good situation to get ahead, although he recognizes that the objective now is to recover the levels of contracting that he had raised in his strategic plan.

The group’s data estimates that has an average delay in the recovery of the portfolio of 8 months and that, due to Covid-19, it could reach 24 months.

This situation is going to force the Asturian company to actively manage its cash in order to stay afloat. To do so, prepare to look for between 10 and 15 million euros through the sale of non-strategic assets, for which the company’s abundant real estate assets will be essential.

Also, it will go back to ask the creditor banks for a waiver of non-enforceability of the loan during this period as it is under an assumption of early maturity. The first will arrive on June 30, and the group is confident of being able to obtain it since it was also achieved in the maturities of last year.

ICO Line

Lastly, the need for guarantees or equivalent instruments for projects in the portfolio and new hiring in 40 million euros.

Duro Felguera currently has a line of CESCE, therefore, banking needs reach 16 million euros, as explained by the deputy to the CEO, Javier Garcia Laza.

Duro Felguera is also preparing to request an emergency line of 50 million euros from the ICO, for which it will have to negotiate with some of the creditor banks that are headed by the Santander, Caixabank, BBVA, Bankia Y Sabadell.

all these annotations contained in the audit report regarding the 2019 accounts in which modifications have been expressed. behind them, profit reaches 1.4 million euros (compared to the 19 million announced in February).

This change is due, according to the group’s management, to an accounting adjustment due -in part- to judicial resolutions that have been unfavorable to them but that have not had an impact on cash and that reversed positively in the first quarter of the year.

Jose Maria Orihuela He has taken the opportunity to insist that the group “needs help” and that they are open to any industrial investor becoming a shareholder of the company. Of course, it completely rules out that it is shuffling or the possibility of requesting a creditor contest has been shuffled.