Comment on the Mostostal Warszawa Group's financial results for the first quarter of 2021
In the first quarter of 2021, the Mostostal Warszawa Capital Group generated sales revenues in the amount of PLN 210 million and generated a gross profit of PLN 3 million.
The financial debt was significantly reduced as a result of the repayment of the loan in the amount of PLN 71 million. The Group's cash position at the end of the first quarter of 2021 remained at the level of PLN 107 million, which, combined with a strong production potential, gives promising prospects for the coming months. Employment reached the level of 1,452 employees, remaining at a similar level compared to the level in 2020.
The value of the Group's portfolio of orders at the end of Q1 2021 amounted to PLN 2,793 million, which ensures that revenues will be generated in the next 3 years at a level similar to 2020.
In the reporting period, the Group's results and sales value were significantly affected by unfavorable weather conditions, which limited the scope of works performed on infrastructure contracts.
The challenge for the Group for the next year will be to reduce the impact of the SARS-CoV-2 pandemic on the results achieved through constant monitoring of its impact on its current operations and taking adequate measures. In order to reduce this risk, the Group companies have implemented instructions to deal with the risk of delays or increased costs.
In our opinion, it is possible that the effects of the epidemic will have a further impact on the number of announced and resolved tenders, as well as on the results, financial and economic situation of the Group's companies. The experience gained and the Group's adaptive abilities confirmed in the past year allow for optimism about the resistance of our structures to the unpredictability of the situation.
The goal of the Mostostal Warszawa Group for the coming quarters is to maintain the contracting level adequate to the potential of the companies making up the Group.