Trace Group Hold Q4’12 consolidated revenues fell by 42.9% YoY to BGN 68.9m, which is lower than the 52.6% YoY decline in the management forecast. Cost of hired services (accounting for 60% of total operating expenses) fell 53.8% YoY and consequently EBITDA registered a 25.3% YoY improvement to BGN 4.8m and margin rose to 7% compared to 3.2% in Q4’11. The 49% decline of net financial expenses also supported the profitability while the loss from associated companies and the lower tax credit had its negative effect on the bottom line. Net profit increased by 9.8% BGN 2.3m. 2012 consolidated results revealed a 19.9% YoY decline of revenues to BGN 302.2m. EBITDA fell by 39.5% to BGN 10.4m on the back of the smaller decline (1.5% YoY) of cost of materials which was due to the significant rise in oil and bitumen prices over the last year. The project for Lot 2 of Trakia highway was concluded in 2012 and the company booked loss on it as the price of the project was fixed more than 2 years ago and the contract did not envisioned adjustment with the growth of oil prices. Trace Group Hold booked 2012 profit of BGN 0.3m, down by 96.2% YoY. On the balance sheet, both inventories and receivables declined while accounts payable increased by 12.6m. Other long-term liabilities (mostly guarantees from subcontractors) fell by 12.1m YoY. 2012 CAPEX amounted to BGN 9.7m while IB debt declined by BGN 12.1m YoY to BGN 15.6m (19.6% IB debt-to-equity). The management forecasts Q1’13 revenues to decline 47.9% YoY to BGN 36.5m.