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Bulgarian Trace Group Hold expands against Q1 net loss

SOFIA (Bulgaria), June 3 (SeeNews) – Bulgarian construction company Trace Group Hold [BUL:T57] said its consolidated net loss increased to 1.8 million levs ($989,360/920,325 euros) in the first quarter of 2022, from 559,000 levs a year earlier, as revenue fell 5.9% on the same period.

Trace Group Hold’s total revenue amounted to 20.7 million levs in the first three months of this year, the company said in an interim financial statement earlier this week.

Construction contracts accounted for some 18.1 million levs or 88.51% of total turnover during the reporting period, an increase of 0.37% compared to the comparable period of the year last.

The construction contractor’s operating expenses fell slightly over the year in the first quarter to 22.2 million levs from 22.7 million levs, mainly due to lower expenses for services and staff hired, according to the financial statements. At the same time, spending on materials jumped 43% to 5.3 million levs.

The group said it expects overall revenue from customer contracts to decline 28.58% year on year in the first half of 2022, to 38.9 million leva.

Trace Group Hold offered last month to distribute to its shareholders the net profit of 2.29 million leva reported for 2021.

Trace Group Hold’s activities include the repair, rehabilitation and construction of roads, highways, airports, metro stations and underground railways and stations, railways and surface facilities, urban infrastructure and road markings. The company has branches in Serbia, North Macedonia, Ukraine, Romania and Czechia, as well as ten wholly or majority owned subsidiaries in the country, including one in Serbia.

In the first quarter, the company adopted a plan to buy back up to 500,000 shares, or 2.07% of its capital, by June 26, 2024.

Shares of Trace Group Hold closed at 3.68 levs on Thursday on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)