{"id":155769,"date":"2020-02-26T09:59:47","date_gmt":"2020-02-26T09:59:47","guid":{"rendered":"https:\/\/bdm-stg.mda.pl\/informacje-prasowe\/financial-data-of-the-budimex-group-for-4-quarters-of-2019\/"},"modified":"2024-06-07T12:07:09","modified_gmt":"2024-06-07T12:07:09","slug":"financial-data-of-the-budimex-group-for-4-quarters-of-2019","status":"publish","type":"press","link":"https:\/\/bdm-stg.mda.pl\/en\/press\/financial-data-of-the-budimex-group-for-4-quarters-of-2019\/","title":{"rendered":"Financial data of the Budimex Group for 4 quarters of 2019"},"content":{"rendered":"\n
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26.02.2020<\/p>\n

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Financial data of the Budimex Group for 4 quarters of 2019<\/h2>\n

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Share article<\/p>\n

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Market situation:<\/strong><\/p>\n

\u2013 Construction and assembly production increased by\u00a06% in\u00a02019 <\/strong>to\u00a0PLN 108 billion<\/strong><\/p>\n

\u2013 Despite the improvement in\u00a0the average profitability of the industry in\u00a02019, we\u00a0observed <\/span>the maintenance of a\u00a0difficult situation on<\/strong>the construction market <\/strong>in\u00a0the form<\/span> of terminated<\/strong>contracts<\/strong> and <\/span>a\u00a0deterioration in\u00a0the financial situation<\/strong> of some entities<\/strong><\/strong><\/p>\n

\u2013 In\u00a0recent months, we\u00a0have been observing more <\/span>aggressive behavior of the competition <\/strong>\u2013 the cheapest offers often differ from our reliably calculated cost estimates, even by\u00a020-30%<\/span><\/p>\n

Budimex Group results:<\/strong><\/p>\n

\u2013 Sales in\u00a02019 reached PLN 7.57 billion and were slightly higher <\/strong>than in\u00a02018, m.in.\u00a0thanks to\u00a0the consolidation of the results of the FBSerwis Group<\/p>\n

\u2013 The gross profit <\/strong>margin of the Budimex Group amounted to 4.4%. <\/strong>On\u00a0the other hand, in\u00a0the fourth quarter alone , profitability reached the level of 5.4%<\/strong>in. thanks to\u00a0the one-off effect of revaluation to\u00a0fair value of the previously held 49% stake in\u00a0FBSerwis S.A. (+PLN 35 million)<\/p>\n

\u201cStarting from July, we\u00a0started consolidating the results of the FBSerwis Group<\/strong> in\u00a0the services segment. In\u00a02019, the FBSerwis Group achieved sales of PLN 498 million with a\u00a0gross profit margin of 6.4%<\/strong><\/p>\n

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Cash position of the Budimex Group:<\/strong><\/p>\n

\u2013 At\u00a0the end of December, the Budimex Group\u2019s net cash amounted<\/strong> to\u00a0PLN 1,355 million<\/strong><\/p>\n

\u2013 During the year, despite<\/strong> the expenditure on\u00a0the purchase of FBSerwis<\/strong> and the payment<\/strong> of dividends, <\/strong>the net cash balance increased by\u00a0PLN 210 million<\/p>\n

\u2013 The cash position was supported by\u00a0new contractual advances<\/strong>, which result from the high value of contracts acquired in\u00a0the rail and road area<\/p>\n

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Results of the construction segment of the Budimex Group:<\/strong><\/p>\n

\u2013 Sales of the construction segment increased by\u00a01%,<\/strong> achieving a\u00a0slightly lower dynamics than the industry, which is mainly due to\u00a0a\u00a0more selective approach to\u00a0bidding in\u00a0the cubature area<\/strong><\/p>\n

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\u2013 Gross profit margin <\/strong>on\u00a0the construction segment was 2.6%, above the market benchmark<\/strong><\/p>\n

\u2013 Order Portfolio <\/strong>The Budimex Group remained at\u00a0a\u00a0high level of PLN 10.8 billion <\/strong>, and in\u00a0the railway segment it reached a\u00a0record value of PLN 3.6 billion<\/strong><\/p>\n

\u2013 The value of contracts signed in\u00a02020 and offers where the Group companies offered the lowest price is another approx. PLN 3<\/strong> billion<\/strong>. These are m.in.\u00a0expressways S61, S11, S7 and S5, as\u00a0well as\u00a0the order for the \u201cConstruction of the Vistula collector\u201d<\/p>\n

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Results of the development segment of the Budimex Group:<\/strong><\/p>\n

\u2013 In\u00a02019, Budimex Nieruchomo\u015bci\u2019s clients signed 1,534 notarial deeds <\/strong>(a\u00a0decrease of 8% year-on-year)<\/p>\n

\u2013 The expansion <\/strong>of the offer resulted in\u00a0high pre-sales at\u00a0the level of 1,655 apartments<\/strong><\/p>\n

\u2013 Revenues of the real estate development segment increased by\u00a02% and amounted to\u00a0PLN 558 million,<\/strong> and gross profit <\/strong>(including a\u00a0positive result on\u00a0other operating activities at\u00a0approx. PLN 26 million) amounted to PLN 120 million <\/strong>with a\u00a0high profitability of 21.5%<\/strong><\/p>\n

\u2013 The current offer of Budimex Nieruchomo\u015bci is just over 1,500 apartments<\/strong> in\u00a05 locations<\/p>\n

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Results of the services segment of the Budimex Group:<\/strong><\/p>\n

\u2013 Sales of the services segment amounted to\u00a0PLN 278 million, of which PLN 275 million were revenues of the FBSerwis Group<\/strong> , consolidated using the full method since July 2019<\/p>\n

\u2013 Gross profit amounted to\u00a0PLN 52 million<\/strong>, of which PLN 35 million was a\u00a0one-off effect of the revaluation of the 49% stake in\u00a0FBSerwis S.A. to\u00a0fair value<\/p>\n

\u2013 The results of Budimex Parking Wroc\u0142aw<\/strong> are also being consolidated as\u00a0part of the services segment<\/p>\n

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The coming quarters through the eyes of the Budimex Group\u2026<\/strong><\/p>\n

\u00a0\u00a7 A\u00a0high level of<\/strong> the order<\/strong> book allows for fully effective use of resources<\/strong> and secures the work front for the next few quarters. In\u00a0addition, we\u00a0have contracts worth over PLN 3 billion in\u00a0the waiting room<\/strong><\/p>\n

\u00a0\u00a7 Thanks to\u00a0the selective approach to\u00a0bidding <\/strong>in\u00a02019 and the observed stabilization of material prices<\/strong>, we\u00a0can see signs of improvement in\u00a0the average margin of the order book in\u00a0the engineering and buildings area.<\/strong> The profitability of the energy segment is still under pressure from contracts in\u00a0Tur\u00f3w and Vilnius<\/strong><\/p>\n

\u00a0\u00a7 A\u00a0record order book in\u00a0the railway segment<\/strong> prompts us to\u00a0decide to\u00a0increase employment and further capital investments<\/strong> in\u00a0this area<\/p>\n

\u00a0\u00a7 In\u00a0the coming quarters, it is possible that the pace of announcing tenders in\u00a0the road area<\/strong> will slow down, while the order book will be\u00a0supplied with contracts from the waiting room<\/strong><\/p>\n

\u00a0\u00a7 Recently, we\u00a0have been observing more aggressive behavior of the competition <\/strong>\u2013 the cheapest offers often differ from our reliably calculated cost estimates, even by\u00a020-30%. We\u00a0expect that such behavior will have a\u00a0destabilizing<\/strong> effect on\u00a0the entire industry and have a\u00a0negative impact on\u00a0the<\/strong> quality of implemented projects<\/strong><\/p>\n

\u00a0\u00a7 The first symptoms of improvement in\u00a0the labour market are visible, staff shortages in\u00a0the industry are lower<\/strong>. The availability of qualified employees in\u00a0the railway area<\/strong> remains a\u00a0problem<\/p>\n

\u00a0\u00a7 Contract conditions are not improving<\/strong>, which is why we\u00a0consistently appeal for balancing risks between contractors and contracting authorities<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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