Mostostal Warszawa Group makes a good start to the year

Commentary of Andrzej Goławski, President of the Management Board of Mostostal Warszawa SA on the financial results from the consolidated financial statement of the Mostostal Warszawa Group for the first quarter of 2016.

The first quarter of 2016 was another good year for the Mostostal Warszawa Group. The achieved results far outweigh those for the first quarter of 2015 (increase in sales by 46% and gross profit by 416%). EBITDA amounted to PLN 36 million and accounted for 10% of Group’s sales.

The cash position of the Group remains stable. The decrease in cash amounting to 39 million zł is associated with the obligations in the first quarter of 2016 for construction work performed and not invoiced by subcontractors. At the end of 2015 were formed provisions for that purpose.

The cooperation with our largest creditor, ie Acciona Infraestructuras SA is going very well and resulted in extending repayment deadlines of three loans for the second half of 2017 and also in declaration that a further extensions of repayment deadlines are possible. The debt under borrowings amounted to 207 million PLN on 03.31.2016 and has changed compared to the end of 2015, mainly because of charged interests.

As at  March 31, 2016 net equity of the Mostostal Warszawa Group amounted to 236 million PLN (compared to December 31, 2015 it increased by 5%), while employment has reached the status of 1,459 employees and was lower by 14 people compared to the situation at 31.12. 2015.

Mostostal Warszawa Group's order backlog amounted to PLN 2.0 billion at the end of March 2016 and despite a decrease compared to the end of the year it provides the functioning of the Group at a similar level in 2 years. Organizational measures consisting in opening the Western Branch in Poznan and strengthening the Offering Department, in our opinion, will contribute to the acquisition of new contracts and increase of the orders portfolio in the near future.

In the first quarter of this year we also managed to expand cooperation with financial institutions in obtaining guarantees and short-term financing.

On April 19, 2016 General Meeting of Shareholders adopted a resolution to allocate the profit achieved in 2015 to cover losses from 2013.

Assessment of the financial statements for the first quarter of 2016 represents a strong basis for assuming that 2016 will be a good year for the Mostostal Warszawa Group.

Go back