Lineas, which has suffered losses in recent years, has secured €60 million of fresh capital from its shareholders, including a €30 million investment and the conversion of €30 million of bonds into capital. This financial boost comes at a crucial time as the company looks to recover from a tumultuous period marked by management changes in 2022 and a concerted effort to raise additional funds.
Despite setting a target to raise €100 million last year, Lineas has so far secured only €20 million from its shareholders. The company's CEO, Bernard Gustin, has been vocal about the urgency of finding a Belgian partner willing to invest €50 million to help stabilize the company's finances. Gustin's strategy focuses on demonstrating tangible results to potential investors while addressing the immediate cash flow challenges facing Lineas.
According to Belgian media, the company's financial performance showed signs of improvement last year, with losses narrowing to €39.5 million on sales of €479 million, a significant reduction from the €100 million loss in the previous year. Gustin remains optimistic that Lineas will reach profitability by 2025, citing the company's unique position in the European rail freight market as a major non-state player and its crucial role in supporting the Flemish ports of Antwerp, Ghent, and Zeebrugge.
The latest capital injection from SFPIM and French investment fund Argos Wityu, which continues to hold a 55% majority stake, is part of a wider effort to stabilize and grow the business. Gustin emphasizes that the funding is not just a lifeline, but a vote of confidence from shareholders in Lineas' strategic direction and potential for sustainable profitability.
As Lineas embarks on expansion plans, including potential operations in Germany, the company's management is focused on forging operational alliances and attracting new investment to ensure its long-term success.
