On March 31, Grupa Przemysłowa PROJPRZEM MAKRUM published the financial statements for 2019. The Group’s consolidated revenues in 2019 amounted to PLN 271.9 million, which means an increase of PLN 10.1 million compared to 2018, i.e. by 3.9 %. We present the company’s Management Board’s letter to the Shareholders, published together with the financial statements.
Dear Sir or Madam,
hereby we would like to present you the Consolidated Financial Statements of the Industrial Group PROJPRZEM MAKRUM S.A. for 2019.
The passing year is the period in which the PROJPRZEM MAKRUM S.A. Group continued its development strategy adopted at the end of 2017 with full determination.
The most important structural task, which was a challenge in 2019 and will continue to affect the Group’s operations in 2020, was the expansion of the production capacity of the production plant in Koronowo.
Developing external potential, the Group intensively carried out tasks of developing its own acquisition networks in the world, as well as conducted analyzes aimed at acquiring external business entities in order to increase its area of operation.
The procedures implemented by the Industrial Group and the favorable market environment allowed to achieve the effects presented in these Financial Statements.
The Management Board of PROJPRZEM MAKRUM S.A. implemented the goals set in 2018. In the area of activities aimed at improving the condition of the Industrial Group in 2019, you can list:
- further dynamic increase in acquisitions in the docking solutions in Europe and the world, which resulted in an increase in the volume of orders,
- an increase in the share of the Group’s products in the automatic parking systems market, constituting the second production area, which translated into the largest percentage increase in the level of production year on year,
- balanced procurement policy for MAKRUM indigenous industrial products – primarily in the area of crushing and grinding equipment. The concentration of acquisitions on projects that allowed for achieving stable profitability translated into a satisfactory level of profitability for the third segment of the Industrial Group products,
- consistent strategy regarding engineering activities aimed at design, production and cost optimization in all product segments offered by the Group,
- adaptation of own production potential to product requirements, by getting rid of production assets, the acquisition of which on the market guarantees more economically effective results – moving Makrum’s production from the old workshop to new facilities leased by the Group,
- the final formation of the structure of Projprzem Budownictwo Sp. z o. o. with an operating range covering 80% of Poland, including branches in Poznań, Bydgoszcz and Wrocław.
In the first quarter of 2020, previous decisions and actions were consistently implemented, which resulted in:
- the order backlog for products in the docking solutions segment as at the issue date of the Report is clearly higher than the backlog from 2019.The foundations for a new distribution channel for docking solutions have been created – sales by a newly created subsidiary directly to the UK market.
- contracts concluded in connection with parking systems up to the date of publication of the Report, largely fulfill the budget plans for 2020 and already partly form the budget of 2021
- finalizing contracts for Makrum products by the Industrial Group with recognized domestic and foreign companies ensures capacity utilization at the level of most of this year. The acquired order portfolio should secure a stable level of the Group’s revenues as well as satisfactory profitability of implemented projects,
- level of contracting for Projprzem Budownictwo Sp. z o. o. as at the date of issue of the Report, which secures the segment’s annual revenue budget,
- the existing field of activity of the Industrial Group was expanded to include the offer of distribution and service of forklifts, platform trucks and warehouse equipment by purchasing 100% shares in the company in DPS Serwis Sp. z o.o.
At this point, we must clearly state that we are writing this letter at the time of the spreading epidemic and the growing number of COVID 19 incidents throughout Europe and the world. This situation directly affects both our clients and suppliers. We are observing the introduction of restrictions on the free movement of goods and people, which determines the, so far insignificant, limitation of the activity of our sales networks spread all over the world.
We hope that the current crisis situation, which obviously has a negative impact on the possibility of conducting and developing the activities of the PROJPRZEM MAKRUM S.A. Group, will not be long-term.
At the same time, we want to emphasize that the Group supports itself on stable operational, production, financial and organizational pillars, which have been consistently built in recent years.
We hope that the current crisis situation and changes taking place in the market environment will not cause significant negative consequences for the Group, which will ensure the best possible financial results of the entire organization.
We are facing the times of adapting our Group to market requirements during the epidemic, as well as, as we all hope, after quickly dealing with the spreading disease.
Our goal is to leave this period unscathed and to maintain the stable position of the PROMStahl, MAKRUM and MODULO brands, while caring for the safety and health of our customers and employees. The Management Board of Grupa Projprzem Makrum S.A. I declare full determination in pursuing this goal and the will to respond adequately to the changing situation.
We believe that proper use of human resources and production potential will allow us to adapt to the new market situation.
At the same time, the growing role of the e-commerce market, related to the expansion of the network of warehouse facilities and logistics centers, allows us to predict that our products will continue to attract the interest of customers.
A diversified and stable order portfolio on the construction market Projprzem Budownictwo Sp. z o. o. should guarantee the achievement of set goals in a dynamically changing situation.
We know that 2020 will be associated with many problems, but we firmly believe that the projects undertaken by Grupa PROJPRZEM MAKRUM S.A. actions will allow us to successfully go through the challenges ahead.
Management Board of the Industrial Group PROJPRZEM MAKRUM S.A.