Grupa Przemysłowa PROJPRZEM MAKRUM S.A. published the financial statements for 2019. The company closed last year noting an improvement in consolidated revenues and a particularly good result in the segment of docking solutions.
The Group’s consolidated revenues in 2019 amounted to PLN 271.9 million, which means an increase by PLN 10.1 million compared to 2018, i.e. by 3.9%. The increase in revenues resulted in a slight increase in gross profit on sales by PLN 0.7 million to the level of PLN 54.0 million (19.8% gross sales profitability) compared to PLN 53.2 million (20.3% gross sales profitability).
At the level of profit on sales, a decrease to PLN 8.8 million was recorded compared to PLN 13.6 million in 2018, caused by the development of the organization – including the export department at PROJPRZEM MAKRUM S.A., the increase in the operating costs of Projprzem Budownictwo Sp. z o.o. (a new branch in Wrocław), as well as an increase in the costs of remuneration throughout the Group – and an increase in sales costs related to the increase in the number of deliveries, including export.
“Another year ended with positive results, despite the unfavorable market environment. We are particularly pleased with the docking solutions and automatic parking systems – these are products thanks to which we are intensively developing sales dynamics, especially abroad” – said Piotr Szczeblewski, President of the Management Board of PROJPRZEM MAKRUM S.A.
In 2019, high sales growth in the docking solutions segment continued. In the analyzed period (y / y) its level is by 16.8% higher and reached the level of PLN 146.4 million. Docking solutions also recorded a large increase in foreign sales – exports to the countries of Central and Eastern Europe and Northern Europe account for about 28.5% of the sales volume of this segment and is carried out mainly from the subsidiaries PROMStahl Polska and PROMStahl Germany. In the second half of 2020, it is planned that sales will be additionally carried out through a subsidiary in the United Kingdom.
“The most profitable branch of activity is currently docking solutions. Their growth should remain dynamic, among others in connection with the boom in the logistics market and the development of e-commerce in Poland. We invest in strengthening the PROMStahl brand on the international reloading market, through dynamic acquisitions in new areas of Europe and the world. We are also increasingly recognizable on the Polish market, as evidenced by invitations to participate in tenders announced by the largest operators on the market of warehouse and logistics facilities, ” – comments President Szczeblewski.
In 2019, modernization and expansion of the production plant in Koronowo began, where docking solutions and automatic parking system components are manufactured. After completion of the investment planned for the third quarter of 2020, production capacity will increase, production time will be shortened (efficiency increase, cost reduction), which will have a significant impact on the competitiveness of manufactured products and adaptation to growing demand.
In 2019, the Group generated revenue of PLN 94.4 million on the implementation of projects in industrial construction, commercial and office construction in a separate construction segment. Dedicated for this purpose, Projprzem Budownictwo Sp. z o.o. significantly expanded its structures, especially in the branch located in Wrocław, which was established in the fourth quarter of 2018. The company focuses on improving profitability and increasing the volume of sales, starting in 2020 with a portfolio of orders filling 80% of revenues achieved in 2019.
The third segment – steel constructions – contributed PLN 30.9 million to the Group’s result. This segment includes the sale of crushing and grinding machines and innovative MODULO automatic parking systems. Installation of automatic parking systems is mainly carried out for the benefit of companies from the development industry. Projects for public utilities and individuals are also being implemented. In 2020, taking into account the level of the report concluded as at the date of publication and the negotiated contracts, the Company expects further dynamic growth in this activity.