The docking solutions segment was responsible for more than a half of PROJPRZEM MAKRUM’s revenues in the past half-year, increasing the revenues by over 30%. Piotr Szczeblewski, President of the Management Board of the company, talks about what stimulates the excellent condition of this area.

Industry reports strongly emphasize the rapid development of the warehouse space market in Poland. What is the significance of this to PROJPRZEM MAKRUM?

The warehouse market is a direct customer of the docking solutions sector of our Group. The increase in warehouse space is directly proportional to the demand for docking technology elements. The new meters squared of warehouses mean new docks, gates, ramps, guides and so on.

What exactly do the reports say?

The warehouse market in Poland is breaking new records. In the first half of this year, 2 million m² of space was leased, which is the best result ever.

Piotr Szczeblewski

Favourable business conditions and supply of employees attract new companies to our country or provoke the existing ones to develop – 76% of the leased space was constituted by new agreements and expansions. The three dominant sectors are retail chains, logistics operators and production. The structure of PROMStahl’s order book is similar.

What is the reflection of this situation in the results of the docking segment?

We develop together with the market. In the first half of the year, the segment’s revenues increased by 31% as compared to the corresponding period of the previous year, reaching PLN 63.6 million.

What are the trends for the future?

In response to high demand, developers are constantly increasing their activity. According to the JLL report on the warehouse market in Poland, in the first half of 2018 the amount of existing modern space exceeded another threshold, reaching 14.2 million m².

New supply in the last quarter was 343,000 m² in 15 warehouse parks, which gives over 648,000 m² delivered to the market in the entire half-year. The scale of the space under construction allows us to expect further spectacular records – in June the level of 2.3 million m² was reached. In the long run, supply has been growing almost continuously for 7 years. It is also difficult to stop the e-commerce market. The rapidly growing popularity of Internet commerce determines for us a great potential of sales development in the coming years.

Is the company preparing in any particular way to handle the growing number of orders?

The Group continues to optimise its production processes at the Plant in Koronowo, where components for docking systems are manufactured. This production plant is about to undergo an already planned investment in modernization and expansion of this production plant, allowing for shortening the production time, increasing the production capacity as well as ultimately increasing the competitiveness of the manufactured products.

 

Last year, special efforts were also made in connection with foreign sales.

Thanks to PROMStahl GmbH, which has been present on the German market for a long time, our advanced logistics solutions already had a strong position on the European market. Last year, we also established an internal group dealing with expansion to new countries. Its activities were reflected in a surge in export growth by 30% in 2017. We have reached Clients from over 40 countries on several continents with our offer.

 

Investor’s newsletter – August 2018
Video commentary on the company's results for the first half of 2018