“The year 2012 - stated Giovanni Battista Pizzimbone, Chairman and Chief Executive Officer of Biancamano Spa - though ended with a negative result for the first time, also an outcome of risk provisions and write downs, is the starting point for the Group on the way to overcoming cash issues created by the repeated non-fulfillment of Public Administration with regards to payment. The accepted awareness of the need of a more drastic and systemic action, in fact, has lead the Group to redefine operational strategies for the future, to involve the reference banking system, whose support is essential to take care of Public Administration's non-fulfillment, and to start an organization adjustment process”.
  
 
 
Consolidated Results as at 31 December 2012
Biancamano closed 2012 with consolidated revenues of 248.1 million euro, down -4.2% on an annual basis (258.4 million euro as at 31 December 2011). The developments in turnover are due to the differential between the expired contracts and the new ones, and reflect the new tender selection strategy that calls for not participating in the re-awarding of contracts that proved to have unsatisfactory collection timetables, regardless of their profitability.

The EBITDA totalled 19.4 million euro, down 12.2 million euro compared to 31 December 2011 (31.6 million euro), with the EBITDA margin dropping from 12.2% in 2011 to 8%. Gross operating profit performance comprises increased incidence of the cost of labour following the renewal of the FISE - Assoambiente contract, increased fuel cost (making a 2.4% impact) and an increase in the other operating and non-operating costs, which also include contractual penalties and trade credit notes that became necessary after contracts closed. Lastly, the incidence of service costs decreased from 22.5% (as at 31 12 2011) to 21.6% after costs associated with the temporary joint ventures (A.T.I.) and the internalization of several services previously assigned to third parties reduced.

EBITcame to - 0.9 million euro, down compared to the 2011 figure of 11.6 million euro. The reduced EBIT reflects the performance of the operating margin and also expiates the effect of the provisions and write-downs recognised to the receivables due from customers and to the goodwill from consolidation for a total of 4.7 million euro.
The Group closed 2012 with Pre-tax Loss of Euro – 9.1 million (Pre-tax profit 2011 Euro 4.9), this figure incorporates the increased incidence of financial charges on the turnover, which rose from 4% in 2011 to 5% in 2012, partially compensated by the higher financial income that most resulted from the arrears interest applied to customers late with payments.
Net Loss as at 31 December 2012 amounts to Euro -10.7 million compared with the Net Profit as at 31 December 2011 Euro 1.5 million.

The investments made as at 31 December 2012 stand at Euro 21.2 million. Investments, as usual, covered mainly operating assets such as vehicles and waste containers for the most part.

The Net Working Capital as at 31 December 2012 amounts to Euro 34.8 million, increasing compared with 31 December 2011 figure (Euro 20.8 million).

TheNet Financial Position as at 31 December 2012 was Euro 155.9 million increasing compared with Euro 129.9 million as of 31 December 2011. Growth in net financial position compared to 31 December 2011 is for the most part due to the increased Net Working Capital associated with the additional extended payment deadlines of public administrations, in addition to the Group's investment activities. The Group indebtedness structure is characterisedby significant use of financial leasing and advance invoicing (issued almost completely to the Public Administration) which, as at 31 December  2012, accounts for a total of 65% of the NFP.

Finally, Shareholders’ Equity as at 31 December 2012 amounted to Euro 30.9 million compared with Euro 41.7 million as at 31 December 2011 (Restated1 Data).

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