Economic Information
The company’s sales continued to grow in 2009. The total sales according to international accounting standards exceeded CZK 12.6 billion; the total sales according to Czech accounting standards exceeded CZK 15.6 billion. The company has firmly maintained its position, i.e. fifth place, among the biggest companies operating in the construction segment in the Czech market.
The long-term reserve of contract work has increased by CZK 1.6 billion – it grew from the amount of CZK 14.9 billion at the end of 2008 to the amount of CZK 16.5 billion at the end of 2009.
Compared with 2008, the company’s sales increased by CZK 528,464 thousand, which represents growth of 4.4 per cent. The recent years have been characterized by year-on-year increases in sales – in 2006, it was CZK 1,478,591 thousand and in 2007 it was CZK 1,433,135 thousand. The growth in 2008 was the largest ever, achieving the amount of CZK 1,858,051 thousand.
The railway construction sector, where 40.9 per cent of the corporate production is executed, has been the key sector for many years now. The second most significant trade sector is civil-engineering and road and motorway construction, with its share of 36.5 per cent. The third largest sector is surface construction, with a share of 20.6 per cent.
In 2009, the pre-tax profit grew by 5.9 per cent, achieving CZK 287,004 thousand. The profit after tax reached the amount of CZK 225,291 thousand in 2009 (year-on-year growth of 18.6 per cent). The total assets decreased significantly – by CZK 772,704 thousand. This situation resulted from an exceptionally favourable situation as regards debt collection at the end of 2009.
The company managed to solve its long-term difficulties in financing its operations by issuing bonds at the total amount of CZK 600 million in June 2005, out of which CZK 180 million is owned by our company, OHL ŽS, a.s. The fact, which has already become quite a tradition, i.e. the company remaining active over the period out of the main construction season (December to February) without any need to draw credits is proof of the company’s sound financial situation.
The volume of sales of OHL ŽS in the Czech Republic has remained on a stable level. The company’s position is also firm in Slovakia, where year-on-year sales grew by 31.4 per cent, and Hungary, where the sales growth reached 78.4 per cent.
Development expected in 2010
The production volume is estimated to grow again in 2010. If the sales in 2009 exceeded CZK 12.6 billion, then the company is faced with the objective of reaching the amount of CZK 13.9 billion of sales in the following year of 2010.
The Transport Construction Branch is predicted to achieve sales at the amount of CZK 9.4 billion, and the amount estimated for the Surface Construction Branch is CZK 4.5 billion. The reserve of contract work has increased, however the situation in securing the annual plan is a little worse than one year ago, yet, despite this, the plan for sales and profit is both realistic and feasible.
No significant change will be introduced in the regional structure; we may only expect a larger volume of work to be performed in the territory of the Slovak Republic than was the case in 2009. The sectional structure is not expected to be changed; it will copy the situation of 2009 as will the production customer structure.
As regards the balance sheet, the trends set approximately in 2003 will continue. The major emphasis will be placed on securing a sufficient mass of operational capital and a balanced position regarding fixed assets and equity.
The moment when bonds were issued in the middle of 2005 was a turning point in the area of working capital; since then the production has been very well financially secured, despite its stable year-on-year increase.
Selected economic indicators of the company:
| Balance sheet (in thousand CZK) | 31.12.2009 | 31.12.2008 |
|---|---|---|
| Balance sheet total | 927 210 | 7 699 914 |
| Fixed assets | 2 292 928 | 2 165 541 |
| Trade receivables and other assets | 318 336 | 274 228 |
| Short-term assets | 4 634 282 | 5 534 373 |
| Trade and other receivables and other assets | 2 911 571 | 4 032 762 |
| Building contracts | 257 320 | 473 260 |
| Equity | 1 849 642 | 1 692 343 |
| Registered capital | 486 463 | 486 463 |
| Long-term liabilities | 500 045 | 887 374 |
| Bank credits | 0 | 0 |
| Long-term provisions | 95 919 | 65 373 |
| Other long-term liabilities | 293 958 | 305 628 |
| Issued bonds | 0 | 420 000 |
| Short-term liabilities | 4 577 523 | 5 120 197 |
| Trade liabilities | 3 608 415 | 4 630 661 |
| Building contracts | 173 213 | 81 218 |
| Bank credits and overdraft accounts | 0 | 0 |
| Profit and loss statement (in thousand CZK) | 31.12.2009 | 31.12.2008 |
|---|---|---|
| Sales | 12 612 167 | 12 083 703 |
| Operating profit | 337 156 | 287 651 |
| Pre-tax profit | 287 004 | 270 924 |
| Income tax | -61 713 | -81 018 |
| Profit for the current period | 225 291 | 189 906 |