The Comment of the Managing Board – 2000 year
In the year 2000, as well as in the previous years the Company fulfilled its economical objectives. The development of the Capital group structure (organisation) continued and new areas of the market wewre ventured- like the development market.
The most important restructuring element was the merge of two dependent (affiliated) companies that were located in Białystok, that is MG Stalton SA and MG Stal SA. Another important step in the Capital Group’s development took place when MG ZUB Sp. z o.o. was sold and the shares in Wodny Świat Nemo Sp. z o.o. were purchased.
Because of our investments the structure of fixed assets changed. Financial assets were responsible for 26% at the beginning of the year 2000 and 33% at the end of the year 2000. The balance sheet value of property assets diminished throughout the year by 12%. This was effected by both the buying and and the selling of land while developin the developers market end.
Because we had a deep recession on the construction market that was felt by all of the major companies of this industry, therefore the financial results from the sale of Mostostal’s main services were lower than in the previous year. However the Company made profit on the developers market share and therefore the profit objectives were achieved.
The financial results of the Company for the year 2000 are presented in the financial report, that was prepared in accordance with the Accountancy Act and consists of the balance sheet, the profit and loss account, cash flow and additional information.
The basic financial data compared to the previous year are as following:
Most of the revenue (income and profit) was generated by Mostostal gdańsk SA in the year 2000 from contracts signed with key customers that is PERN “Przyjaźń” SA in Płock, MAN Takraft, Naftobazy, Carrefour and PKN Orlen SA. The biggest orders we received were mainly for the production, assembling and repair ot the tanks in foel stations, making an overhead crane for shipyard and building a shopping center. One of the Company’s biggest customer’s is a Gas Distribution Company “Przyjaźń”. The modernisation of Adamowo fuel station wasdone for this company. In the fourth quarter of the year 2000 the contracts for the building of the Carrefour shopping center in Gdańsk and producting the overhead cranes for Konecranes in Finland were signed.
In mid-year 2000 the Company bought land in Chojnice in order to built commercial objects and land in Gdańsk in order to built a housing estate. These investments are right now under way.
The balance equal to 10 mln PLN was a 100% a result of the Company’s operational activities. Most of the other part of retained earnings (77%) was a result of other operational activities, that was a result of the sale of land in Warsaw. The market research shows that in the year 2000 the market situation of construction Companies got worse. The biggest problem was tha fact that the amounts of money invested in industrial enterprises diminished considerably. After a period of highly dynamic growth in the civil engineering production, building and assembly markets, for the previuos 2 years a decrease can be noted. The demand is lower as most of the investors are waiting for the situation to change.
Despite of the fact that the general economical and market situation isn’t very good Mostostal Gdańsk SA had achieved in the current year, as in the previous years a positive financial result, that exceed the average result achieved by similar companies in the building trade. The Managing Board of the Company estimates that in the year 2001 the production and service sales will increase, and that the economical and financial factors will improve. Right now the signed orders portfolio amounts to over 500 mln PLN, 460 mln PLN to be receiced in the year 2001.