The primary goal of Mirbud in the coming years will be to maintain the value of the order portfolio above PLN 5 billion while maintaining the current profitability of contracts, said President Jerzy Mirgos. At the end of March this year. the group’s backlog was worth approximately PLN 5,083 million.
“The occurrence of the COVID-19 pandemic and its consequences – socio-economic changes indirectly affected the size and structure of the Mirbud capital group’s order portfolio. In response to the economic crisis, the government allocated additional funds for the implementation of infrastructure contracts under the National Road Construction Program for 2014 -2023 (with a perspective until 2025) and the 100 Ring Road Construction Program for 2020-2030 implemented at that time.Thanks to this and the effective offer by our companies Mirbud SA and Kobylarnia SA, the group’s order portfolio of PLN 3.52 billion at the end of 2019 In addition to the recovery in the infrastructure construction market, as part of government programs, at the beginning of 2021, we observe an increase in expenditure on the implementation of local government investments, as well as a revival in the market of construction of logistics and warehouse facilities. We hope that this fact will also have an impact for the acquisition by Mirbud SA of new contracts in the coming months “- wrote Mirgos in the letter attached to the report for 2020.
The President predicts that the construction market in Poland in 2021 will be affected by the increase in the prices of certain construction materials (including steel and asphalt) and subcontracting services, which occurred in the first quarter of 2021. The risk of a decrease in the profitability of long-term contracts is partially mitigated by contractual provisions on the valorization of the value of contracts, however, changing market conditions may affect the profitability of contracts. He forecasts that in the second half of 2021, the prices of some building materials will stabilize or even fall.
“The year 2020 brought the capital group the expansion of the scale of operations to an unprecedented size in its history. The achieved financial results, an increase in the value of the order portfolio for 2021-2025 and the planned government expenditure under the EU Reconstruction Fund give hope for maintaining such a good market situation until 2030 The investor market also sees this prospect. The valuation of Mirbud SA on the Warsaw Stock Exchange increased by almost 500% year on year and reached historic highs. It is a great success, but we are convinced that the Mirbud SA share price will continue to be in the trend. growth thanks to the financial results achieved in the following quarters, “wrote the president.
“The goals assumed in previous years: improving profitability and maintaining the level of revenues above PLN 1 billion, have been achieved. Our overriding goal in the coming years will be to maintain the value of the order portfolio above PLN 5 billion while maintaining the current profitability of contracts. In the medium and long term, we strive to achieve strengthening the position at the forefront of the largest construction companies in the country, proudly representing companies with Polish capital in this group “- concluded Mirgos.
Mirbud acts primarily as a general contractor or general contractor in all segments of the construction industry. Since 2008, the company has been listed on the Warsaw Stock Exchange. Its consolidated sales revenues reached PLN 1,243 million in 2020.
Source: ISBnews and Mirbud
