Last Tuesday the president of the board of PROJPRZEM MAKRUM S.A. Piotr Szczeblewski answered questions about company on investor chat. The chat was organized by the Strefa Investorów (the Investors’ Zone). Over 350 investors took part in the meeting, and the president answered almost 40 questions. We present the chat record.
We were able to significantly improve revenues (+42%) and EBITD (+55%) and pay the dividend. We achieved this without increasing the amount of debt. The margin could always be improved and thus the challenges for the upcoming year include modernization of the facility in Kornowo, which will satisfy the increasing sales and improve the margin.
The broadly defined e-commerce segment is developing rapidly. Looking at myself and observing the younger generation makes me think that the development of online sales is safe. Projprzem Makrum shall evolve together with the market.
We respect our competitors but we do the utmost the become the leader. The experience was gained from docking solutions. In terms of production we are well prepared. We offer a wide range of products in order to adjust to the architectural ideas and the needs of our customers.
Our goal is to conduct our activity in a way that satisfies the company’s development needs and at the same time meets the expectations of the shareholders. This year we have achieved the plan in 100%. We record a dynamic growth of revenues and results. A large part of the generated cash was allotted for dividend. We want it to continue in the upcoming years.
The dynamic growth of the industrial construction segment, including the opening of another branch in Wrocław, required strengthening the competences in that sector.
The phase of organizational restructuring is finalizing. The effects are evident in the great results. Now we are mainly focusing on sales development. The process of modernization and development of the facility will end in 2020 and will allow us the further improve the results of the cargo docking solutions.
The two main factors behind the increase of revenues are the reactivation of activity in industrial construction and sales growth in the docking solutions sector. The doubling of profits results from high effectiveness of project management and the development of sales networks. It was also influenced by the sale of the unprofitable facility in Sępólno Krajeńskie.
Loading solutions and MODULO parkings have the greatest growth potential.
We have launched a construction segment and equipped the companies with working capital. Those actions allowed a 42% increase in revenues without adding more debt. We have also paid the dividend.
The change of the mentality of the personnel, in order to implement standards that have been working effectively at the Grupa Kapitałowa IMMOBILE for years now. It was equally important to set a common goal and present the development strategy for the company, which would result in improved performance and increased value of the company.
During the current year industrial construction was characterized by good margin levels and long-term it should be the loading solutions segment.
85% of the production shall be relocated to the two strategic partners. The remaining 15% will be implemented in cooperation.
The main attribute of our products is their quality. We win by offering a good quality/price ratio.
After three quarters the company recorded very good results in the loading solutions segment – the gross sales profit amounted to almost PLN 28 million. With the increase in sales, sales costs rise appropriately, which is only natural. 2018 and 2019 will be devoted to preparation of the sales for production capacities, which will be achieved in 2020. The increase in margin will be the result of the modernization of the facility.
We have recorded very good results for this sector during that period. We want to maintain the margin on a level higher than the market average, which is 3.5%.
The activity of MAKRUM continues and expands. It is showcased by the results of the steel construction segment, where the revenues after three quarters are associated with the activity of MAKRUM, while the decrease in revenues results from the aforementioned sale of the unprofitable facility in Sępólno Krajeńskie.
Yes, each vote is important to us and each vote is discussed during the General Meeting. In this instance, the GMS endorsed the request of one of the individual shareholders present at the meeting.
As already mentioned, the production at the facility in Sępólno, based on manufacturing of low margin steel constructions, generated losses. We have ceased the production, while remaining in the sector in more technically advanced projects and production of our own machinery, The facility in Kornowo on the other hand is developing and adapting to the increased productivity within the scope of loading solutions and parkings.
It means that MAKRUM will focus on sales of our own products and implementation of the submitted industrial projects, where specialized engineer knowledge and project management is required. The projects also require involvement of a bigger number of cooperation/partner entities in relation to our own production base.
Up to this point the projects were conducted at the two branches of the company in Bydgoszcz and Poznań. Due to the dynamic growth and potential exhibited within the territory of the Lower Silesia province, beginning from November this year the company has decided to launch a branch in Wrocław, covering the area of southern Poland.
We think that the market appreciates our high growth potential. We focus on increasing the value of the company, which was clearly reflected in the results after 3Q. The best is still ahead of us:)
We have assets for sale, such as the office building in Bydgoszcz. The obtained funds will be allocated for pro-development activities.
I am happy with the growth of PJP and think that it will be reflected in the price of GKI in the future.
The calendar for next year remains open, it is possible we will be there, but it depends on several factors.
Not counting the systems currently in the production phase, the customers already use over 900 parking spots.
Of course, it is becoming increasingly popular, also in Poland. It is a more economically viable solution for developers. We encourage you to observe our projects all around the country, e.g. in the Korona Pragi investment or Wilanów in Warsaw.
After gaining experience on the Polish market the next step for the company will be to launch sales abroad. We want to utilize sales channels built by the PROMStahl brand.
We are observing this trend and will adjust accordingly in the new calculations.
We were able to unlock the potential of this facility by increasing the volume of production by almost 100%. The investment planned for the years 2018-20 is projected to cause additional increase in capacity and lower unit manufacturing costs.
We conduct sales via three branches (Bydgoszcz, Poznań and Wrocław). We prefer mainly industrial projects (production halls, warehouses etc.) with volume up to PLN 30 million and duration up to 18 months.
We have entered the market without a baggage of old, long and unprofitable contracts, which is reflected in the results. That baggage of bad contracts negatively influences the results of many of our competitors.
The question about the dividend has already been answered, but it is worth to point out our positive attitude regarding this issue:)