Comment on the financial results for the first half of 2020
The first half of 2020 brought the Mostostal Warszawa Capital Group revenues from sales in the amount of PLN 672 million and gross profit of PLN 2 million. The Group maintained a satisfactory level of cash position, which, combined with the strong production potential maintained despite the coronavirus pandemic, gives promising prospects for the coming months.
In the period of 6 months of 2020, the companies of the Mostostal Warszawa Group concluded new contracts with a total value of PLN 2,142 million. The value of the Group's portfolio of orders at the end of Q2 2020 amounted to PLN 3,504 million, which ensures that revenues will be generated in the next 3 years at a level similar to 2019.
In the reporting period, the Group's results were significantly influenced by the weakening of the Polish currency against the euro caused by the coronavirus pandemic.
The cash position of the Capital Group at the end of the second quarter of 2020 amounted to PLN 116 million.
Employment reached the level of 1,492 employees, remaining at a similar level compared to the end of 2019.
The challenge for the Mostostal Warszawa Group in the coming quarters of this year will be to limit the impact of the effects of the SARS-CoV-2 pandemic on the results achieved. The Group's companies have introduced constant monitoring of the impact of the coronavirus effects on the current operations and implemented instructions for dealing with the risk of delays or increased costs. So far, despite many difficulties caused by the coronavirus, including the circumstances affecting the supply chains - operating activities are conducted without significant disruptions, and all companies of the Group maintain business continuity. The production support functions are also performed continuously, including aspects of health and safety, human resource management, purchasing and others.
We are observing a temporary slowdown in new private investments, and to a lesser extent also in public investments, which may affect the Group's revenues in the coming years. However, the diversified offer of the Mostostal Warszawa Capital Group allows for flexible adaptation of its strategy to the changing situation on the construction market.
The goal of the Mostostal Warszawa Group for the coming quarters is to maintain the level of contracting adequate to the potential of the companies forming the Group and to maintain financial results, which will also depend on the general economic situation determined by the effects of the pandemic.