Trace Group Hold beats Q1’18 management revenue guidance; NI was negative at BGN 1.4m (NEUTRAL)

Trace Group Hold Q1’18 consolidated revenue increased 48% YoY to BGN 54m, beating the management forecast by 41%. OPEX advanced at a similar pace largely due to a BGN 2.9m provision relating to construction works. EBITDA remained positive, but insignificant. Below the EBITDA line, D&A was changed only slightly YoY, but an FX gain of BGN 0.1m helped lower total financial costs. Trace booked a net loss of BGN 1.4m during the quarter (vs loss of BGN 2m in Q1’17). On the balance sheet cash & equivalents decreased to BGN 22.2m, while non-cash working capital fell to BGN 3.7m from BGN 19m as of end-2017. The management guidance is for H1’18 revenue to increase 23% YoY to BGN 115.7m.