Comment on the Mostostal Warszawa Group's financial results for 2020
The year 2020, due to its unpredictability caused by the coronavirus pandemic, posed a challenge for the construction industry. However, Mostostal Warszawa Group successfully overcame the difficulties encountered by making optimal use of its organisational, human resources, technical and financial potential.
In 2020, Mostostal Warszawa Group generated sales revenues of PLN 1,365 million (1,269 million on 2019), Profit on sales amounted PLN 102 million (PLN 52 million on 2019) and earned a gross profit of PLN 12 million (PLN 8 million on 2019). The Group's cash position at the end of 2020 remained at PLN 183 million and Financial Debt continues to drop , which, combined with the strong production potential, gives promising prospects for the coming months. Employment reached 1,484 employees, remaining at a similar level compared to 2019.
The value of the Group's order portfolio at the end of 2020 amounted to PLN 2,976 million, which ensures that revenues in the next 3 years will be at a similar level to 2020.
An active yet prudent bidding policy allowed us to win contracts in 2020, mainly in the area of infrastructure, with a total value of PLN 2,316 million. We signed, among others, together with the parent company Acciona Construccion S.A. (holding 62% of Mostostal Warszawa shares), a contract worth PLN 1.8bn for the construction of a section of the S19 Rzeszów Południe-Babica expressway. The value of the works for Mostostal Warszawa Group is PLN 907 million.
A challenge for the Group for the coming year will be to limit the impact of the SARS-CoV-2 pandemic on its results by constantly monitoring its impact on current operations and taking appropriate action. In order to mitigate this risk, Group companies have implemented instructions for dealing with risks of delays or increased costs.
In our opinion, it is possible that the effects of the pandemic will have a further impact on the number of tenders announced and awarded in 2021, as well as on the results, financial and economic standing of the Group companies. The experience acquired and the Group's adaptability confirmed last year allows us to be optimistic about the resilience of our structures to the unpredictability of the situation.
The objective of Mostostal Warszawa Group for the coming years is to maintain a level of contracting in line with the potential of the companies comprising the Group.