Mostostal Warszawa ends the year with a profit

Mostostal Warszawa has published a financial report on the group's operations in 2014. The group is maintaining the result improvement trend initiated in the first half of last year.

Owing to its planned operation strategy for the years 2013-2014, Mostostal Warszawa returned to profitability and ended the year 2014 with EBITDA profit of PLN 74.3 million, PLN 63.3 million before tax, and a net profit of PLN 53.7 million.

The Mostostal Warszawa group generated revenue of PLN 1 509.5 million, EBITDA profit of PLN 129.7, and gross profit of PLN 4.3 million. The negative consolidated net financial result of PLN 8.7 million was mainly due to the correction related to the sale of the Remak, Wrobis and Mostostal Puławy subsidiaries. The group recorded cash inflows from these transactions totaling PLN 68 million.

“The restructuring activities in the form of operating cost reduction and more effective use of the capital group's potential that have taken place in recent years have had positive impact on the financial results. Total employment in the Mostostal Warszawa group as at December 31, 2014 was 1492 employees (3810 in 2013), including 527 at Mostostal Warszawa (757 in 2013).”

“Moreover, the construction of the power units in Opole, the largest industrial investment project in Poland since 1989, has entered the full completion phase. In 2014, Mostostal Warszawa performed work under this contract worth PLN 131 million. The project is being completed according to plan,” said Carlos Resino Ruiz, Member of the Board, Chief Financial Officer at Mostostal Warszawa.

In 2014, the Mostostal Warszawa group generated financial resources for operational activities from the sale of financial and tangible assets causing the group's net financial debt (NFD) to drop from PLN 265.4 million on 31 December 2013 down to PLN 50.1 million on 31 December 2014. The company has a very beneficial financial debt profile as only PLN 24 million of the PLN 248 million is in the form of bank credits and leasing.

During the last days of December 2014, the Polish currency (zloty) experienced a large depreciation against the euro, thus making impact on the appraisal of undue liabilities due to corporate loans. The company estimates that, due to this fact, the net financial debt has increased by PLN 6.1 million and it also influenced the net financial result.

As at December 31, 2014, Mostostal Warszawa Group owned contracts totaling PLN 3.173 billion. These were contracts associated with general construction, environmental protection and industrial and power engineering.

Mostostal Warszawa is looking into the future with optimism, specifically after achieving the goals in the business plan for 2014. The Mostostal Warszawa group will continue to act towards improving its market position, production capacity and better profitability.

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