Published: 2019-04-30 11:45:00 CEST
Magnetic MRO
Interim information

Consolidated non-audited interim report for Q1 2019 and Q1 2018 financial year

GENERAL INFORMATION

Magnetic MRO is a Total Technical Care maintenance and asset management organization with a global presence and more than two decades of worldwide experience. The company has a well-established reputation in innovative aviation solutions and proven track record as a one-stop shop for airlines, asset owners, OEMs and operators. It offers a wide range of services varying from asset management and engineering, to line and base maintenance.

 

Q1 2019 OPERATIONS AND ACTIVITIES

 

  • The MRO Russia & CIS Award ceremony is an event that celebrates the best of the best in the aviation maintenance industry each year. Magnetic MRO wins an Achievement of the Year award for being the best international MRO provider in 2018.
  • Acquisition of line maintenance company, Direct Maintenance, completed on 1st of March. Direct Maintenance officially part of MMRO group: with this milestone total 50 different engine and aircraft type combinations brought to Magnetic MRO group capability, 11 new line maintenance stations, 120 staff members and 6 countries. Integration process ongoing according to plans. NB! As PPA process is not finalized, Consolidated Financial Statements do not include Direct Maintenance results.
  • MAC Sichuan Aviation Technology Limited establishment completed in January 2019, first deal worth of 5MRMB. The company is focusing on aircraft cabin repair, maintenance and production with an aim to be closer to the biggest and fastest growing aerospace market.
  • Sub-brand EngineStands 24 established engine stands rental hub in Dubai. The first orders have been completed and service has received better loading than expected. Work is ongoing with the establishment of engine stands rental hub in China.
  • Training business unit opened its second training location in Malaysia, Kuala Lumpur. Same location will also serve as Magnetic MRO sales office of aircraft spare parts and engines as well as asset trading. This marks as first physical move into the region by MMRO employees.
  • MMRO Signs first sizeable agreement with a Saudi Arabia based aviation maintenance and ground handling support provider called First Premium Support Services (FPSS). The arrangement between two organizations entails MMRO support in setting up a aircraft component maintenance facility (design and tooling sales) and develop jointly line maintenance services.
  • First 12-months maintenance project started with Finnair ATR fleet.
  • Magnetic MRO completes the 100th C-check on A320 type aircraft on March 2019.

   Consolidated Financial Statements, kEUR

The financial statements are for the group: Magnetic MRO AS and its subsidiaries MAC Aero Interiors Ltd, MAC Sichuan and Arrowhead Assistance UAB

   

PROFIT and LOSS STATEMENT CONSOLIDATED
  Q1 2019 Q1 2018
Sales revenue 19,315 36,265
Variable direct costs -15,506 -32,392
Fixed direct costs -175 -127
Other operating income 198 289
Other operating expenses -159 -73
GROSS PROFIT 3,673 3,961
Marketing expenses -95 -97
Administrative costs -1,644 -1,278
Personnel costs -923 -798
EBITDA 1,011 1,788
Financial income and expenses -595 -479
Minority Interest -60  
NET PROFIT 476 1,308

    

  • Sales revenue and Variable Direct Costs in Q1 2018 includes extraordinary sale of aircrafts’ spare parts and engines.
  • Under finance income and expenses are reflected interest income and gain under equity method from JV company Magnetic Parts Trading ltd (49,9%); interest expenses related to loan liabilities and bonds; FX gain and losses on assets and liabilities revaluation as of balance sheet date.

 

  CASHFLOW CONSOLIDATED
OPERATIONAL ACTIVITIES Q1 2019 Q1 2018
Operating profit 1,011 1,788
Adjustments 535 479
Change in receivables and prepayments -2,296 -1,406
Change in inventories 190 -973
Change in liabilities and prepayments 5,710 -56
TOTAL from OPERATIONAL ACTIVITIES 5,149 -169
     
INVESTMENT ACTIVITIES    
Purchase of Fixed Assets 26 -175
Proceeds from sale of Fixed Assets 58 -949
Long-Term Investments -9,869 112
TOTAL from INVESTMENT ACTIVITIES -9,785 -1,012
     
FINANCING ACTIVITIES    
Financing activities 4,647 389
TOTAL from FINANCING ACTIVITIES 4,647 389
     
TOTAL CASHFLOW 11 -791


 

BALANCE SHEET CONSOLIDATED

 

  3.2019 3.2018
Cash and bank 940 319
Receivables 15,788 11,544
Inventory 9,115 8,612
Total current assets 25,842 20,474
Non-current assets    
LT Investments 15,839 4,324
Fixed Assets 6,822 5,710
Goodwill 557 628
Total non-current assets 23,219 10,662
TOTAL ASSETS 49,061 31,136
     
LIABILITIES AND OWNERS EQUITY    
Short term liabilities    
Loans 7,777 8,145
Payables 15,607 10,297
Total Short-term liabilities 23,384 18,441
Long-term liabilities    
Loans Long-Term 8,951 212
Total long-term liabilities 8,951 212
TOTAL LIABILITIES 32,335 18,653
Share capital 1,137 1,090
Share premium 6,619 6,619
Reserves 79 79
Unrealized FX BS 97 61
Minority Interest -60  
Retained earnings 8,377 3,325
Profit for the period 476 1,308
Total Owners' equity 16,726 12,483
TOTAL LIABILITIES AND OWNERS EQUITY 49,061 31,136

 

         Astrit Viisma-Kass


MagneticMRO_Q1_2019_ENG.pdf