"Roman" Braşov to increase its share capital again

"Roman" SA of Braşov intends to increase its share capital by 20.9 million lei, from 302.28 million lei to 323.2 million lei. The share capital increase would be performed by Pro Roman Braşov, the majority shareholder of the bus and truck maker, according to the press release sent to the Bucharest Stock Exchange.

If approved by the shareholders, at the meeting of August 2nd, the operation, which is part of the restructuring program of the company, which it concluded with the Authority for State Assets Recovery, will be performed by issuing 8.39 million new stocks with a face value of 2.5 lei. 744,100 shares will be issued for subscription, to the other shareholders.

Pro Roman has acquired the majority stake in the plant of Braşov in 2004, later increasing its stake to 91.69%. AVAS holds 2.98% of the company.

The Braşov based Roman SA, a maker of buses, trucks and tractors, last year exported 60% of its output. 51.803 million lei of the total turnover 88.849 million lei, came on the back of its exports, mainly to American company Tacom Warren Bldg 321 Michigan, which handles the procurement of American troops stationed in Irak and Afghanistan, as well as Caterpillar Belgium.

Roman SA Braşov has a market share of 2.2% in Romania. Its domestic customers include Aerostar Bacău, UTI System Defence and Engineering, Romard Braşov, Upet Ploieşti and Confind Câmpina.

Last year, Roman SA saw its turnover decrease 27.4% last year, from 122.48 million lei to 88.88 million lei, according to the financial statement sent to the Bucharest Stock Exchange.

The company"s revenues dropped from 125.07 million lei to 90.3 million lei, while its expenses decreased from 124.21 million lei to 90.1 million lei. This caused the company"s profit to drop from 864,797 lei, to 196,000 lei. At the end of last year, the company"s debt stood at 114.43 million lei.