Commentary of the Management Board of Mostostal Warszawa S.A. on the results for the three quarters of 2021
In the three quarters of 2021, the Mostostal Warszawa Capital Group generated sales revenues in the amount of PLN 882 million and generated a gross profit of PLN 26 million.
The financial debt was reduced through the repayment of loans in the amount of PLN 71 million. Thanks to the improved collection of receivables and obtaining advance payments on contracts, the Group had at the end of the third quarter a surplus of cash over liabilities due to loans and borrowings in the amount of PLN 61 million. Positive cash flow from operating activities was generated in the amount of PLN 62 million.
The Group's cash position at the end of Q3 2021 amounted to PLN 205 million, which, combined with a strong production potential, gives promising prospects for the coming months.
In the third quarter, two projects in the "Design and Build" formula (design and construction of the S11 Koszalin-Szczecinek road and design and construction of the S19 expressway on the section from the Rzeszów Południe junction to the Babica junction) have been granted a construction permit and will enter the execution phase, which will allow The group increases production, sales and cash receipts.
Employment reached the level of 1 462 employees, remaining at a similar level compared to the level in 2020.
The value of the Capital Group's portfolio of orders at the end of Q3 2021 amounted to PLN 3,547 million.
In the period of 9 months of 2021, the companies of the Capital Group signed contracts worth PLN 1,373 million.
The Group monitors the impact of the SARS-CoV-2 pandemic on its current operations, financial condition and operating results. Instructions on how to deal with the risks of delays or increased costs have been implemented to mitigate their impact, if they occur.
The goal of the Mostostal Warszawa Capital Group for the coming months is to maintain the contracting level adequate to the potential of the companies making up the Group, maintaining the profitability of implemented projects at the current level, reducing debt and reducing the value of court disputes.