Mecanica Fina S.A., a player in the real estate market, recorded sales revenues last year, up 41% from 2022

·         The company's management is dedicated to managing and optimizing the real estate portfolio in a manner that contributes to increasing profitability, minimizing expenses and maximizing revenues.

·         Mecanica Fina S.A. ended the reporting period with sales revenues of RON 9.03 million, up 41.07% compared to the same period last year.

·         Revenues from the company's main activity, i.e. rental activity, accounted for 71.52% of the amount and increased by 473 thousand lei by the end of 2023.

·         During the reporting period, the company recorded income from the sale of a building and related land in the amount of 1.6 million lei.

·         The evolution of operating expenses is mostly attributed to the increase in expenses on disposed assets (+54%), in line with the real estate portfolio restructuring policy.

·         Intensive efforts to convert and develop the buildings in the portfolio are reflected in the operating result reported as at 31.12.2023. The company recorded an operating profit of 4.55 million lei, down 59.47%.

Real estate portfolio

In 2023, efforts were directed towards building a sustainable real estate portfolio, aligned with current customer requirements and market dynamics. Management's goal is for each element of the portfolio to generate a high return while helping to strengthen the company's financial position and shape a prosperous future.

The total value of real estate investments as at 31.12.2023 is 198,710,782 lei, up by 2,617,693 lei from 2022.

Outlook for 2024

With regard to the business programme and investment plan for 2024, the Company is pursuing the prospect of exploiting development opportunities through acquisitions of companies that can make a significant synergistic contribution to its development potential and capacity. To the extent that, during 2024, the Company's management identifies business opportunities that will enable the development of the material base for the real estate leasing business, it will also act to acquire shares and/or equity in other companies, assets and/or real estate (land, buildings, etc.). From the Company's management analysis of the capital's real estate sector, at least, recent dynamics and market forecasts indicate the right time to launch investments for new development projects.

"For the current year and for the period 2025-2026 we have as a strategic objective the rehabilitation and modernization of the building owned by the Company located in Bucharest, Popa Lazar Street no. 2-25 ("Hala 100"), which covers a usable area of 24,500 sq.m. on 4 levels (ground floor + 3 floors) and can be transformed into a mixed commercial and office complex that we intend to capitalize mainly in the form of rental income. We estimate the total investment required at €10,000,000 and plan to carry it out in stages, with a planned capital requirement of €3,000,000 for each of the years 2024 and 2025 and €4,000,000 for 2026. The development plan foresees gradual commissioning and first revenues as early as 2025. We estimate the revenue generating potential of the investment at 250,000 euro/month." - Sergio Mollo, CEO and Chairman of the Board of Directors Mecanica Fina S.A.

As for financing sources, the Company's management projects a mix of own resources ensured by repeated share capital increase operations with cash contribution on the one hand, and external resources in the form of bank loans on the other. The Company's management will seek to continuously and flexibly optimise the ratio of internal to external financing in line with borrowing costs and the capital market's appetite for investment in new real estate opportunities.

Closer to investors

The company assures shareholders that the issue of investor relations and corporate governance is given due importance among the company's management and administration priorities, especially in this period when transparency and communication are determining factors for the evolution of the share price on the capital market.

The Company's management intends to hold meetings with investors to present the strategic and investment plan in detail and to take concrete steps to increase the liquidity of the Company's shares.

2023 Annual Report Availability

Mecanica Fina S.A. informs shareholders and investors that, starting April 26, 2024, at 18:00, on the company's website (https://mecanicafina.ro/), in the Investor Relations / Investor Reports and Presentations / Periodic Reports section, the 2023 Annual Report will be available: https://mecanicafina.ro/category/rapoarte-si-prezentari-pentru-investitori/rapoarte-anuale/

Also, questions and requests for clarification from shareholders and potential investors in Mecanica Fina S.A. are expected on an ongoing basis at the email address: office@mecanicafina.ro, and management will respond on the Investor Relations section of the website.

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Mecanica Fina S.A., a company with a long history in the Romanian market, is currently active in the real estate sector and carries out rental activities of real estate owned by the company, respectively property management activities.

In 2023, Mecanica Fina S.A. changed its object of activity - the main field of activity being associated with CAEN code 6420 - Activities of holding companies.

Mecanica Fina S.A. has, as of 31.12.2023, direct shareholdings in the share capital of the following companies:

·         99.85% in MOLLO RE SA - real estate and accommodation activities sector;

·         99.997% in ITAGRA SA - agricultural sector;

·         88.73% in Industrial Cefin SA - property management activities

Sergio Mollo

CEO

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