Letter from the Chairman of the Board of Pekabex S.A.:
Ladies and Gentlemen,
On behalf of the entire Management Board of the Pekabex Group, I am pleased to present to you the individual and consolidated financial results of Poznańska Korporacja Budowlana Pekabex S.A. and the Integrated Report – a report on the activities of the Pekabex Group for 2020.
The past year was an exceptional period. The COVID-19 pandemic set new rules for both social and business life. The pandemic also put our company to the test, which, as I am informing you with undisguised pride, we came out unscathed.
We achieved record sales revenues of 952.327 thousand PLN, record net result of 57.900 thousand PLN and a record result at the level of EBITDA in the amount of 89.454 thousand PLN. In 2020, we exceeded the threshold of 200 thousand m3 in production, which is also an unprecedented amount in the history of the Group.
The undoubted success, as evidenced by the presented results, would not be possible without the effective implementation of the Pekabex Group’s strategy. Our ambition is not only to run a profitable business, we want to set trends, look for innovative solutions and offer modern and ecological construction technologies. It is “out of the the box” way of thinking, which has been part of our business DNA for years, which allowed us to push the boundaries in every field of our business in 2020. Achieving the best results in history would not be possible without the work of each member of the Pekabex Group team, their creativity, persistence and responsibility.
2020 confirmed high efficiency and maturity of our organization and its ability to efficiently adapt to changing market conditions. Last year’s results include the effect of the investments that were made. In January 2020, in Gdańsk-Kokoszki, for over 70 million PLN, we launched one of the most modern prefabrication factories in Europe. The solutions used in this facility, where part of the production processes can be performed remotely connecting from anywhere with a robotic production line, proved to be a perfect solution in a pandemic – a period when we had to change the organization of work practically overnight, increasing safety measures, adapting them to restrictions new sanitary regimes. The implementation of the aforementioned investment is an excellent example of the Pekabex Group’s competence – the assembly of the hall construction took 5 weeks, and the entire work inside, which usually takes about 9 months, took our company only 3.5 months.
In 2020, as the first in the country, we introduced a comprehensive System of Housing Construction in the prefabrication technology. The “Pekabex System – Residential Buildings” is the response to the market’s search for an effective and, at the same time, high quality-assured method of building residential facilities. It also means developing our competences and know-how. Let me remind that in 2018, as a developer, we started the construction of a pilot estate “Ja_Sielska” in prefabricated technology in Poznań. The success of this pioneering undertaking was the foundation for the development of prefabrication on the residential market in Poland, and also allowed the Pekabex Group to carry out further development projects, also in the general contracting formula. Implementing these contracts, we use the experience gained on the Scandinavian market, offering modern technological solutions that work perfectly in the context of rising labor costs and short implementation times. The construction of a residential estate at Okólna St. in Toruń, as part of the Mieszkanie Plus (Apartment+) governmental program. 40 working days was a sufficient period for the assembly of four-storey buildings.
The culmination of the record year was the first foreign acquisition of the Pekabex Group. Together with the Polish Development Fund (PFR) for 12.25 million euros, we acquired 100 percent shares in the German prefabrication factory FTO Fertigteilwerk Obermain GmbH. This is our sixth production factory, which purchase is a strategic step for the Pekabex Group, opening up completely new opportunities for expansion on the promising German market. In recent years, we managed to reconcile the intensive development of the organization with the optimization of processes, thanks to which the Pekabex Group was and is ready for further business development and an increase in the scale of operations. Last year did not exhaust our growth potential. 2021 started with a strong and diversified order portfolio of 930.731 thousand PLN. We want to consistently grow in every operational area. We have ambitions to become an international player in the production of prefabricated elements, we also intend to grow in the residential construction segment, and we see a huge potential related to the domestic construction market, where there will be more and more infrastructure, industrial, logistics, residential construction and related investments.
So we have all the arguments to continue building the scale of the business for the benefit of shareholders. I am glad that our actions are recognized by the market, which translates into an increase in the market value of the Pekabex Group. In 2020, the share price achieved rate of return of 72 percent.
On behalf of the entire team of the Pekabex Group and my own, thank you for your trust and your participation in our joint venture, which is the Pekabex Group.