Operating segments of PROJPRZEM MAKRUM S.A. in 2018

The Group’s revenues amounted to PLN 262 million and increased by 31.5% year to year. EBITDA amounted to PLN 20 million and was 7.5% higher than in the previous year. The net result stood at PLN 11 million, compared to PLN 10.5 million recorded a year earlier. How did these segments influence the results of the Group and which contributed the most to the company’s last year’s success?

The Capital Group PROJPRZEM MAKRUM S.A. generated revenues in such areas as docking solutions, steel structures (with MODULO parkings included here) and industrial construction. The ‘other’ sector was also distinguished, which includes rental and leasing of real estate. The following assumptions were made in these sectors:

a) Docking solutions – growth through geographic expansion, increase in production efficiency and construction of local assembly and service networks. The Group continues activities in the area of optimization of production processes taking place in the plant in Koronowo, where components of reloading and parking systems are manufactured. In 2019, an investment is planned for the modernization and extension of this production plant, which will allow for shortening production time, increasing production capacity as well as ultimately increasing the competitiveness of manufactured products. Currently, work is in progress to prepare the documentation necessary to obtain a permit for the construction of a production hall and negotiations with suppliers of machinery and equipment are carried out.

b) Automatic parking systems – implementation of new technical solutions resulting from the experience related to the completion of large reference projects. In 2018, a 2.5-fold increase in revenues was achieved, reaching PLN 5.9 million. Current portfolio of orders Modulo Parking Sp. z o. o. exceeds a thousand parking spaces.

c) Machines and steel constructions – focus on own products, limiting service activities on external documentation. Continuing efforts to make the company in this segment a primarily engineering company, the Management Board decided to sell some machines, including large CNC machines. Such a model of the Company’s activity in this segment consists in focusing on elements of the service that give the greatest added value, ie project management and engineering service. At the same time, it enables the reduction of fixed costs related to the maintenance of an extensive production apparatus by transferring, to a greater extent, typical production activities to subcontractors.

d) Industrial construction – concentration on projects worth approx. PLN 30 million, increase based on many years of experience and references of PROJPRZEM S.A. PROJPRZEM Budownictwo Sp. Z o. o. has been separated for the construction business. The company’s branches are located in Poznań, Bydgoszcz and the newly opened in Wrocław. The company’s operations at the moment cover the area of the Wielkopolskie, Kujawsko-Pomorskie and Dolnośląskie voivodships, and the company is also trying to obtain new contracts in the Pomeranian, Lubuskie, Śląskie and Łódzkie Voivodships.

Revenues and net result achieved in individual segments are as follows:

The real and percentage share of segments in the Group’s revenues:

The docking solutions segment contributed nearly half of the Group’s total revenues to the revenues of PROJPRZEM MAKRUM Group, i.e. PLN 125.3 million (+13.5% y/y). Compared to the previous year, the segment’s net result decreased, which is related to investments in international expansion of its products. Thanks to the dynamic worldwide sales of docking solutions, as much as 47% of the Group’s revenue comes from foreign transactions.

The year 2018 brought the Group the largest increase in sales in the industrial construction segment. Its revenues amounted to nearly PLN 100 million, which means a 4-fold increase y/y. The share of this activity in the total revenues of the Group has already increased to 38%