Commentary on Mostostal Warszawa Group's results for 2021
The joint effort and commitment of the employees of the Mostostal Warszawa Group in 2021 contributed to strengthening our position as one of the leaders in the Polish construction industry. Despite the challenges posed by the ongoing SARS-CoV-2 virus pandemic and its economic and social consequences, we have kept our Group in very good shape. This is further proof of our organisational, human, technical and financial potential.
In 2021, Mostostal Warszawa Capital Group generated sales revenue of PLN 1,305 million (PLN 1,365 million in 2020) and generated a sales profit of PLN 118 million (PLN 102 million in 2020). Gross profit amounted to PLN 35 million (PLN 12 million in 2020), the cash position of the Group at the end of 2021 was maintained at PLN 241 million and financial debt is constantly decreasing, which, combined with the strong production potential, gives promising prospects for the coming months. Employment reached 1,464 employees, remaining at a similar level compared to 2020.
The value of the Group's order book at the end of 2021 was PLN 3,401 million, which ensures activities of the companies for the next 3 years if we consider 2021 Production.
An active, yet prudent bidding policy allowed us to win contracts in the area of infrastructure, general and energy construction with a total value of PLN 1,583 million in 2021.
We are moved by Russia's aggression against Ukraine. We support the Ukrainians as friends and business partners. The war in Ukraine is creating new challenges in the Polish construction industry. We are seeing an exodus of Ukrainian workers from our subcontractors who have returned to their homeland to fight for its freedom. We are aware of the challenges of difficult access and rising prices of basic materials used in construction and assembly production, especially steel, oil and petroleum products such as asphalts. In the long term, we cannot predict how the war in Ukraine will affect our business. We are constantly monitoring the situation and finding solutions to these difficult challenges.
In our opinion, it is possible that the effects of the war will have an impact on the number of tenders announced and awarded in 2022, as well as on the results, financial and economic situation of Group companies. The experience acquired and the adaptability of the Capital Group confirmed in the past year allow us to be optimistic about the resilience of our structures to the unpredictability of the situation.
For 2022, we are planning activities that will keep our Group strong. This primarily means providing the highest quality of our services, as well as maintaining proper cooperation with our Customers and Contractors. We plan to maintain active, but at the same time selective and secure bidding, taking into account the increase in prices of materials and labour resources. We want to be an active participant in the transformation of the Polish energy sector. With our own work and experience, and that of our strategic partner Acciona, we want to support the reduction of environmental impact of energy and industry.
After 2021, Mostostal Warszawa Group's situation is stable in financial and organisational terms, and its portfolio of orders allows it to be optimistic about its development in the coming years.
Mostostal Warszawa Capital Group's financial statements for 2021 are available on the website mostostal.waw.pl under Periodic Reports.