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The shareholders as well as the management and the employees rest satisfied because of the economic effects of the Company that were achieved during the first year after it was made public.
The income obtained from the sales of products amounting to more than 93 million PLN was 58% higher than that of 1995. Net profit amounted to 2,193.5 thousand of PLN and increased by over 54% in comparison with 1995. One of the most significant factors that had shaped those figures was rational investment policy of the capital acquired in 1995.
The production assets that had been purchased were fully utilized. Apart from that the order book that had been earlier completed made it possible to effectively plan the fulfillment of the targets and the distribution of income from sales of work. This was reflected in the improvement of current assets management ratio as well as in decreasing company costs.
There was no change in the structure of operating activity. The biggest participation in the Company's profits was that of building and assembly services (74%), transport and equipment services (19%) and production of steel structures (7%).
Return on sales was placed at the average level concerning the companies of the private sector (4% gross, and 2.4% net) but it was at a lower level than the average for the building industry. Operating profit reached was at the average level for the industry, i.e. 6.3%. This means that the relatively low return on sales was caused due to an increase in the financial costs of the Company (mainly the interests on credits).
The current activity was financed by bank credits at a higher level that it had taken place in 1995. The reason for this was that the generated assets were wholly spent on investment purchases.
The investments of 1996 increased the value of the Company's fixed assets by over 2 million PLN and secured the production needs as regards the quality and timely performance of work as well as the provision of services.
Other indicators of activity effectiveness proved positive as well. Return on fixed assets was 11.5% (in 1995 - 8.4%), return on equity was 12.3% (in 1995 - 8.7%).
The Company's total assets increased by 7 million PLN and their profitability was 4.7%, demonstrated an increase of 1.1% in comparison with 1995.
The 1996 income from sales of products and services amounting to 93.4 million PLN covered the main three areas of activity:
- building and assembly (structure and machinery assembly) - 83.2 million PLN, i.e. 89.1%
- industrial (production of steel structures) - 6.3 million PLN, i.e. 6.7%
- services (equipment, transport, workshop, laboratory, designing) -
3.9 million PLN, i.e. 4.2%
81% of sales concerned home market customers.
Exports were at 19%, including production building and assembly (12.3%) and industrial production (6.7%).
Our biggest exports in 1996 were to Denmark and Norway.
Contracts for provision of services and products are individual ones. It is a result of small recurrence of effected tasks.
Those contracts are usually won by tender which is the reason why an offer must meet the criteria dictated by the market. This creates pressure to decrease the prices and increase the standards of quality and meeting deadlines.
The Company's marketing policy is targeted at acquiring the dominating position within the Company's industry in the region of northern Poland.
This task is mainly effected through many years of good connections with our client base whose stem comprises vast economic entities. As the result of this the Company has attained specialization in such segments of industry as oil refining, pulp and paper industry, maritime economy and energy production infrastructure.
In 1996, the participation of those segments of industry in the Company's sales was 94%, including:
- oil refining - 64%,
- maritime economy infrastructure - 19%,
- energy - 7%,
- pulp and paper - 4%
4. Major contracts entered into in 1996
There were many trade contracts that the Company entered into in 1996 and the major ones were:
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|
(in PLN) |
| 1. | PERN "PRZYJAZN "
in Plock |
modernisation of tanks in Handling Base in G rki Zachodnie, in Gdansk | 14,583,926.75 |
| 2. | "Hydrobudowa-6" SA
in Warsaw |
production of two tanks in PERN Handling Base in G rki Zachodnie, in Gdask | 12,000,000.00 |
| 3. | Plock Petrochemical Plant
SA |
Hydrocracking Installation | 20,558,000.00 |
| 4. | Gdansk Refinery SA | mechanical and repair works as part of modernisation
of oil unit in Gdansk Refinery SA
"Spring '97" stand-by repair works |
3,000,000.00
5,000,000.00 |
| 5. | Boiler Production Plant RAFAKO SA in Raciborz | K-3A tank assembly at Gdansk Refinery SA
production of steel structure for boiler-house at Gdansk Refinery SA |
1,537,500.00
2,300,000.00 |
| 6. | Kvaerner Rosenberg (Norway) | production of flat sections of oil rig structure | 2,492,000.00 |
| 7. | Alpex-Karlino SA | production and assembly of steel structure and assembly of "Bison" drying unit | 2 375 700,00 |
| 8. | UNIBAX Ltd in Toru | building and assembly works connected with production shop for SSP-60t/d installation | 1,549,774.00 |
| 9. | Szczecin Shipyard SA | production of roofing and maneuvering site at the Shipyard | 1,420,000.00 |
| 10. | ABB ZAMECH LTD in Elbl g | modernisation of overhead crane base | 579,000.00 |
Apart from the trade contracts presented above the Company acquired perpetual lease right of an area of 2,234 square metres and property right to the multifunction building placed on that area. The acquired area is adjacent to the area the perpetual lease right of which the Company acquired a year before. The total area amounts to 4,367 square metres. The sale contract of the perpetual land lease was entered into on October 2, 1996.
The average employment in 1996 was 1059 employees and increased in comparison with the previous year by 6.2%. as at December 31, 1996 there were 1045 people employed. The development plans will require the tendency of constant growth of employment, particularly as regards production employees. There had been no significant changes in the structure of employment for the previous three years (1993-1996).
73% of all employees were production workers, 75% of them were assemblers, fitters and welders.
62% of all non production employees were engineers and technicians, 27% were economists and accountants and 11% were administration employees.
47% of all non production employees have a degree.
In 1996, six employees took up postgraduate studies and three employees were directed to study towards a degree.
In 1995 1 million of PLN acquired from the issue of shares was invested
in treasury bonds. Redeemed in 1996 they brought capital which was invested,
according to the plan presented in the issue prospectus, in the purchase
of fixed assets, i.e. plasma cutting machine, annealing machine and IVECO
truck-tractor.
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