In 2018, sales revenue and profit on sales before tax increased. This year, the Company announces significant changes.
According to the data weighted with Polnord's share in individual Group companies, in 2018 financial result, 1,017 units were recognized, as compared to 1,131 premises in 2017. Sales revenues in 2018 amounted to PLN 307,621 PLN, which in relation to 2017 is an increase of PLN 13,986 thousand (5%), of which revenue from property development activities amounted to PLN 291,414 thousand (growth by PLN 12,554 thousand in relation to the comparative period).
In the reporting period, the Group generated PLN 53.6 million profit on sales before tax. At the end of 2018, however, the Group reported PLN 86.2 million loss. This was the effect of one-off events, which have no major impact on financial flows. The most important of them concerned the write-off of assets due to deferred tax and write-off of receivables in connection with the expropriation decision for the needs of the construction of the S2 express road. The estimated net result, excluding one-off events, is minus PLN 9.8 million.
Positive cash flows from operating activities helped to reduce net financial debt from the level of PLN 299.0 million at the end of 2017 to PLN 257.6 million at the end of the last year - a decrease by 13.8%.
- It was a difficult year for Polnord Group - says the President of the Management Board, Marcin Gomoła, who took over this position in December 2018. - A lot of work and difficult decisions are ahead of us, the effects of which will be observable at the beginning of 2020 at the latest. We started with a reassessment of the existing projects profitability and their preparation for the possibly fastest implementation. In the first quarter of 2019 works were intensified in order to launch the "Haffner" projects in Sopot, "Stogi" at Wydmy 3 and "Żabi Kruk" in Gdańsk and the SMARTY II project in Warsaw's Wilanów. The "Haffner" project has been optimized in relation to the original intentions, which will increase its profitability. - comments the President of the Board.
- Changes which we are introducing in the company, concern mainly the reduction of general administrative expenses, launching new profitable projects mainly on the Warsaw and Tri-City markets, but also changes in the financing structure to the project formula - ultimately, each development project will be implemented by a special purpose vehicle, with its own financing, costs and revenue. By the end of June 2019, we will present a new strategy of Polnord Group, which will include a coherent vision of our development for 2019-2023 - says President Marcin Gomoła.
