Tehnika in Minus Because of Agrokor, Bankruptcy Threatens

Lauren Simmonds

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As the Agrokor snowball continues to roll, some companies are in dire straits. Due to write-offs, the Tehnika company has reported concerning losses that rose to 141.8 million kuna in 2017.

As Poslovni Dnevnik/VLM writes on the 16th of February, 2018, the recovery of the construction sector is slow and inadequate for large companies within the sector, and when added to the fact that many claims have remained unpaid due to the nature of the massive crisis in Agrokor, it is clear that Tehnika, one of the largest companies in the sector, is having significant issues.

Due to a debt of fifty million kuna, the construction company Zagorje Tehnobeton has filed a request to initiate bankruptcy proceedings over Tehnika at the end of January, as such, Zagorje Tehnobeton has attempted to charge its claims, although it seems that the reaching of an agreement is quite possible.

Out-of-court settlement

Tehnika operates relatively well business wise, although last week saw its account blocked, but this is one of the companies that has new jobs and is struggling to withstand the blows of weak construction activity on the market.

The Zagreb real estate market is recovering, and alongside that, Tehnika plays a very important role, especially in the premium segment of the market where the highest interest of customers lies. Therefore, Zagorje Tehnobeton hopes to settle claims without having to initiate court proceedings, but at the same time, it has to initiate proceedings in the defense of its own interests.

The news about filing bankruptcy proceedings over Tehnika comes at the worst possible moment. Due to write-offs in which it was forced to engage because of the ongoing Agrokor crisis, the otherwise large company reported a huge loss that went up to an eye-watering 141.8 million kuna last year. These unfortunate negative business results were particularly influenced by the write-off of claims from companies under the umbrella of the Agrokor Group’s ailing system.

As noted in the reports published on the Zagreb Stock Exchange, the result was negatively influenced by the changes in the contractual terms of the lease agreement between companies within the Agrokor Group, and Tehnika’s daughter company. The company’s negative business results were particularly influenced by the adjustment or the cancellation of claims from companies within Agrokor’s system, and the interruption in the realisation of certain contracts, the most significant of which was the termination of the sale contract of the daughter company Zagreb trend, according to the company.

Reserves of 105 million kuna

At the beginning of 2017, Tehnika had planned a profit of 19 million kuna, but reduced its net profit expectations during the year, especially throughout the first quarter, then reducing the margin for contracts due to internal problems and weaknesses within the company itself. Thanks to the influence of Lex Agrokor, the company faced a major downturn.

In December last year, Tehnika generated revenues of 610 million kuna, or 81.7 million euro, which is 0.71 percent less than it was back in 2016.

All of Tehnika’s activities last year were carried out with 705 employees, and the average net salary per employee amounted to 5,660 kuna, which is 5.5 percent more than in it was previously. Salary growth is visible in total staff costs, which rose by about six percent to 85 million kuna.

Tehnika, a large company, has a lot of work on its hands, it is generally perceived as a company that builds quality housing and does well, but also a sword above its head. It’s therefore expected that Zagorje Tehnobeton and Tehnika will reach an agreement and thus avoid bankruptcy because the company in question is not insolvent.


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