Mostostal Warszawa running a solid surplus in the first half of 2016
Commentary of Andrzej Goławski, President of the Management Board of Mostostal Warszawa SA on the financial results from the consolidated financial statement of the Mostostal Warszawa Group for the first half of 2016
The first half of 2016 was a good period for the Mostostal Warszawa Group. The achieved results are better than those for the first half of 2015 (increase in sales by 27% and gross profit on sales by PLN 26 mln). Gross profit amounted to PLN 18 mln and accounted for 2% of Group’s sales.
Cash position of the Group is holding up well. The decrease in cash by PLN 73 mln is associated with paying off Group’s obligations for which were formed provisions in the end of 2015 (for the construction work performed but not invoiced by subcontractors) and using advance payment disbursed upon the contract in Opole.
Financial debt profile of the Group is very favourable. Bank loans and leasing amounts only to PLN 14 mln. The corporate debt towards Acciona Infraestructuras on loans granted at the end of the first half of 2016 was PLN 216 mln. Its level increased compared to 2015 as a result of charging interests and foreign exchange losses. The repayment deadline for three loans granted by Acciona Infraestructuras was extended until the second half of 2017. There is also a possibility for further extension of the repayment deadline.
As at June 30, 2016, net equity of the Mostostal Warszawa Group amounted to PLN 236 mln (in comparison until December 31, 2015, it increased by 5%) while employment has reached the status of 1.506 employees and was higher by 33 people compared to the December 2015.
Mostostal Warszawa Group’s order backlog at the end of 2016 amounted to PLN 1.7 billion and despite a decrease, compared to the end of the last year it ensures functioning of the Group at a similar level over the two next years.
The construction of the biggest project realised by Mostostal Warszawa Group – power units in Opole is 48% advanced and is proceeding as planned.
In the first half of 2016, we have managed to extend cooperation with other financial institutions in the area of issuing guarantees and short-term financing.
In light of the foregoing, we uphold the belief that 2016 will be a good year for Mostostal Warszawa Group.