Commentary by the President of the Management Board of Mostostal Warszawa S.A. on the results for 2024
It was on 28 May 1945 when the history of our Company began with the signing of the founding act of Przedsiębiorstwo Budowy Mostów i Konstrukcji Stalowych Mostostal (Mostostal Bridge and Steel Structure Construction Company). Since then, 80 years have passed, during which there have been many changes in ownership and organisation. Over these decades, several generations of employees have left a lasting legacy of impressive achievements. Today, Mostostal Warszawa and its Capital Group draw on this rich heritage and proudly continue the long-standing construction traditions.
In 2024, Mostostal Warszawa Group completed a number of projects in various segments of the construction market. The commitment of our employees and the consistent implementation of our strategy allowed us to mitigate the effects of the challenging macroeconomic environment, as well as to meet the challenges encountered on some ongoing contracts.
External circumstances affecting the Group, associated with a number of risks, include primarily the macroeconomic situation, with persistently high labour costs and positive price dynamics for key construction materials, the direct and indirect effects of the political situation in Poland and the Eastern European region, uncertainty regarding the actual timing of the disbursement of funds from European Union programmes, including funds from the National Reconstruction Plan, and the resulting slowdown in investment plans. Another challenge remains the complexity of some of the Group's ongoing contracts, resulting from the emergence of unpredictable events, the circumstances of which were not known at the date of concluding the contracts and required our response and additional expenditure. All the above had a negative economic impact on the Group's results, mainly because the contracts weren't properly revalued.
In 2024, the Group generated sales revenue of PLN 1.6 billion (which was 6% lower than the revenue generated in 2023) and a gross loss of PLN 30 million. The cash balance at the end of 2024 closed at PLN 164 million. The value of the order book at the end of 2024 reached PLN 3 billion. In 2024, Group companies signed contracts worth PLN 1.3 billion. Employment amounted to 1,499 employees.
Mostostal Warszawa Group's response to current market challenges is operational efficiency, effective contract management, an active yet prudent tendering policy, diversification of operations and mutual support of Group companies. We have demonstrated the effectiveness of our strategy, which is based on providing the highest quality services while maintaining close cooperation with our Clients and Contractors. The structure of our Capital Group, the close cooperation and exchange of knowledge and experience between its companies, is a key asset for the Group's development and ensures the right potential to carry out new projects.
In 2025 we intend to maintain an active but selective and safe approach to tendering, taking into account rising material and labour costs. We will continue the Group's policy of maintaining diversification of contracts won in the areas of infrastructure construction, general construction and industrial and energy construction. We plan to carry out the above activities with respect for sustainable development, while supporting efforts to reduce the negative environmental impact of the construction sector.
Jorge Calabuig Ferre
President of the Management Board
Mostostal Warszawa S.A.