In the period 1 – 6 2018, Đuro Đaković Group had a total revenue of 282,2 million HRK and total expenditure of 277,2 million HRK. The Group achieved positive operating results by making a profit of 5 million HRK.

It has to be emphasised that the operating result (EBITDA) is positive, in the amount of 20,1 million HRK, which makes the EBITDA margin of 7,3 %. The only company that still has not achieved positive EBITDA is ĐĐ Industrijska rješenja d.d., which is the only company that hasn’t been restructured yet.

As part of the plan for completion of the restructuring plan the Group also had one-off costs of severance payments and notices in the amount of 2,6 million HRK, so that a normalised EBITDA in the amount of 22,7 million HRK (EBITDA of 8,2%) has been achieved. The biggest part of the positive operating result refers to the big projects that Đuro Đaković Group managed to successfully complete and to achieve positive calculations.

Export has become the major source of income for the Group. 159,3 million HRK have been generated from export, which is 42,9 million HRK more (increase by 36,9%), and export makes 57,6% of total revenues generated, by which the objective of sales orientation to the foreign markets has been achieved. Apart from becoming export-oriented, the Group has also undertaken additional restructuring measures that have achieved certain results.

Also, the Group managed to partially restructure its financial liabilities, as well as repay part of the liabilities to the financial institutions, so that on 30.06.2018 the Group has a total of 279,3 million HRK of liabilities, which is 71,2 million HRK less than on 30.06.2017. Đuro Đaković Group net working capital has also been increased by 54,4 million HRK, although it has to be emphasised that it is still negative.

It is expected that the restructuring process will be continued and completed till the end of the year.

The current market situation is very good, and on 30.06.2018 the Group has a high level of works contracted. The current level of works contracted is 623 million HRK and good capacity utilisation is expected in the forthcoming period as well.

The objective set by the restructuring plan that still remains: completion of the restructuring process in the company Đuro Đaković Industrijska rješenja d.d. that started in the last quarter of the year 2017, by finding a strategic partner for part of the manufacturing programme of the company. By completing the planned restructuring, Đuro Đaković Industrijska rješenja d.d. would not generate any more losses and would start achieving positive operating results.

The second objective is to complete the process of improving the funding structure in the liability side of the balance sheet by changing the ratio of short-term and long-term liabilities. Part of the planned changes has already been successfully performed and it is visible in the mid-year financial report, and the final step in the refinancing is expected in the third quarter of the year 2018

After performing the previous two measures ĐĐ Group d.d. will be ready for accessing the capital market and achieving long-term sustainable funding structure. The General Assembly has already reached the decision on nominal capital increase by subscription of new shares and the Management Board should announce public invitation after performing the first two steps of the plan.