Efacec shows losses of €21.5 million in Q1

  • ECO News
  • 26 May 2022

The company’s results are getting worse and worse. Losses of 21.5 million in the first quarter and revenue well below expectations.

Efacec’s results in 2021: a consolidated loss of €183.9 million, an operating loss of almost €40 million and a net debt of €193 million. But the figures for the first quarter do not anticipate a correction of this trajectory, on the contrary. According to information ECO had access, the company’s losses reached €21.5 million, while the operating result was -€18 million.

The executive management led by Ângelo Ramalho told the board of directors, which includes Jaime Andrez, of Parpública, that revenue in the first quarter stood at €33.4 million, 47% below the target set in the budget, or 29.4 million less. And if compared with the same period of the previous year, the fall is even greater: a 38.3 million reduction (-53%) compared with the first three months of last year.

Operational cash flow, in these first three months, showed a decrease of almost ten million compared to what was predicted, and even closed at negative ten million, supported by a €9.1 million deviation in EBITDA. And net debt exceeded €205 million.

Worse, Efacec’s cash flow situation remains under pressure. According to another analysis by Efacec’s executive management, “to maintain a level of activity in line with the average of recent months (€15 million of monthly turnover), Efacec needs an additional inflow of funds of €50 million” between two operations, one of €30 million and another of €20 million, between March and May. However, these funds have not been received on time. These funds would serve, according to the company, for “payments to suppliers (including Agreements and Litigation situations) allowing to stabilize the activity and generate the necessary receipts to achieve a recurring cash flow close to zero”.