Commentary on the results of Stalexport Autostrady Group for 1Q2011

Commentary on the results of Stalexport Autostrady Group for 1Q2011

In 1Q2011 sale revenues amounted to PLN 39,046k and were by more than 11 % higher compared to the corresponding period last year. It results first of all from an increase in Average Daily Traffic (ADT) by 7.7% and also from an increase in rate of vehicles vignette as from 1 July 2010 as well as from higher sales of discount tickets for toll motorway A4 Katowice-Krakow.

Despite good sales growth, in 1Q2011 the Group showed a net loss of PLN 5,220k, while in the same period of the previous year the business brought the shareholders net profit of PLN 2.315k. It resulted from a negative one-off event associated with the trading activity previously carried out by the Group, i.e. the rejection by the Supreme Administrative Court a complaint lodged by the Group against the decision of the Head of Silesian Tax Office in Sosnowiec. As a result the Group wrote down VAT receivables of PLN 6,894k, which diminished the net result shown in 1Q2011.

Trading activity conducted years before had so far mainly a positive effect on the ongoing performance of the Group due to the recovery of the historical claims (previously covered by write-downs). Unfortunately, in the last quarter the fiscal risk relating to that period occurred – says Mieczysław Skołożyński, Vice President and CFO in Stalexport Autostrady.

Analyzing the results of the Group in 1Q2011 it should be stated that the interests are higher by PLN 3,380k compared to the corresponding period last year. It is a consequence of drawing the last credit tranche of PLN 210,000k in 3Q2010 for investments on A4 motorway concession section.

Consolidated report for 1Q 2011