TORPOL Group with historically highest profits
According to preliminary financial results, the TORPOL Group, one of the leading entities in the market for the construction and modernisation of railway infrastructure in Poland, achieved record high profits in 2021. Consolidated gross profit on sales amounted to approximately PLN 145.5 million (+46 per cent year-on-year) and net profit to approx. PLN 77.1 million (+59 per cent year-on-year). The Group’s net sales revenue amounted to over PLN 1.12 billion (-19 per cent year-on-year).
The Group’s order backlog at the end of 2021, and including the newly acquired project for the construction of a new railway station in Olsztyn, amounts to almost PLN 1.2 billion excl. VAT. Its average gross profitability on sales for the last 12 months is almost 13 per cent. The Group is in a very good financial and liquidity position, which is reflected in its record cash position – approximately PLN 0.43 billion at the end of last year.
We are very satisfied with the 2021 results, which were achieved in a difficult market environment as a result of the consistent and committed work of all our employees. The record profits were influenced by the execution of projects with average gross profitability on sales above the originally planned budgets, among other things due to the lack of materialisation of significant risks that we assumed in the original valuations and the high professionalism and competence of our staff. Torpol Group was not materially affected by the difficulties associated with the pandemic, which allowed us to maintain operational continuity on all contracts and high quality of construction work on all projects. We also maintained continuity and timeliness of deliveries of most materials and raw materials. What is worth emphasising is that the seamless execution of the contracts, with no significant disruptions or delays, enabled the Group to generate a record level of cash in the amount of PLN 0.43 billion at the end of 2021 – said Grzegorz Grabowski, the President of TORPOL S.A.
The lack of significant new contracts in the Group’s portfolio and the 19% lower y-o-y consolidated sales revenue in 2021, in turn, are mainly due to the lack of projects on the market from the new 2021-2027 perspective, some of which were to be announced in H2 2021.
The Group is still very active in terms of bidding, but currently most of the proceedings do not involve large or even medium-sized infrastructure projects. Therefore, we are very pleased with the recently announced large modernisation projects worth approx. 11 billion. As I stressed many times, today we are very well prepared in terms of personnel, equipment, technical and financial resources to implement these difficult, multi-discipline new projects, which require competent, proven personnel and specialist machines. We are waiting for the announcements of further proceedings, which are necessary not only for Torpol, but also for the whole market of contractors, subcontractors and producers, which comprise a significant part of Polish economy – said President Grabowski.
According to the preliminary financial results, TORPOL S.A. achieved net sales revenues of nearly PLN 1.03 billion (-22% y/y). The generated gross sales profit amounted to PLN 138 million (+48% y/y), and net profit PLN 75.6 million (+61% y/y).
The company plans to publish its annual report on 11 March 2022.