Romcab reports revenues of 173 million Euro, up by 88 percent in 2020

Romcab announces a turnover of 173 million Euro at the end of 2020, an increase of almost 88 percent compared to the previous year. In terms of profitability, 2020 marked a revival, the loss recorded by the company being 50 percent reduced compared to 2019.

“The company’s activity has been marked by losses in the past four years, but Romcab managed to surpass the challenges brought by insolvency, registering a significative, constant revenue growth, from 37 million Euro in 2017 to 173 million Euro in 2020, while the firm’s producing capacity remaining constant. During the global sanitary crisis, Romcab managed to maintain its ongoing activity, 2020 marking a gain in volume compared to the period preceding the insolvency”, states Zoltan Prosszer, Romcab Special Administrator.

Romcab became insolvent following its own request at the beginning of 2017 and returned to trading on Bucharest Stock Exchange on March 4, following the approval of the judicial reorganization plan submitted and assumed by the Special Administrator. Romcab stocks recorded a significant quotation increase, rapidly surpassing double the value before the suspension, in the context of a high trading volume.

According to the preliminary data for T1 2021, the company reported a turnover of 62 million Euro, a 70 percent increase compared to the similar period last year.

“For 2021, the ascending trend is undeniable. Although we are in a judicial reorganization, we managed to maintain the contracts with clients and suppliers, we have the same number of employees as we did before insolvency and we started to attract new financing sources by signing a 23 million Euro loan contract, in March 2021. We can now state we are on the right track to regaining the leader position and we estimate exiting insolvency a lot sooner than we assessed in our judicial reorganization plan. What we accomplished until now is remarkable, in a short period of time, taking into consideration that from our data less than 2 percent of the insolvent companies manage to get legally reorganized, adds Zoltan Prosszer, Romcab Special Administrator.

Romcab contracted a 23 million Euro loan on March 24, 2021, the use of funds being conditioned by three factors: concluding the judicial reorganization plan – procedure on progress at the Appeal Court in Târgu-Mureș, end of April being estimated as the final term; closing the creditors’ negotiations according to the insolvency procedure by end of May – estimated time; bonds establishment.