Economic Information
For the company, 2008 was a year of further expansion. In the IFRS international statistical system we crossed the CZK 12 billion turnover threshold, the equivalent of CZK 15 billion in the Czech accounting system, which means, by European standards, the total volume of revenue was higher than EUR 0.5 billion. This fact rightfully ranks us among the five most significant Czech construction companies.
In the course of the year 2008, the long-term work reserve ranged around CZK 15 billion, ending up at this level at the end of the year.
The last few years have been characterized with significant year-on-year increases of revenues – in 2005 it was CZK 1,140,419 thousand, while in 2006 it grew to CZK 1,478,591 thousand, and in 2007 CZK 1,433,135 thousand. The growth in 2008 was the highest ever, amounting to CZK 1,858,051 thousand. In percentage terms (leaving aside the impact of inflation), sales have been growing at the following rate since 2004: 18.5% – 20.2% – 16.3% – 18.2%. The change between 2004 and 2008, expressed in percentage terms, is 95.7 %, or in journalese terms “the company’s production has doubled in four years”.
For many years now, the key area has been the railway segment, where we have been achieving 41.6 % of the company’s production. The second most important segment is the segment of civil engineering and roads with its share amounting to 38.8 %. It showed a large increase of 63.0 % in 2007 and a further 51.6 % in 2008. The third largest segment is surface construction with its share amounting to 18.5 %.
In 2008, an increase was recorded in the profit before tax. The profit after tax for 2008 was CZK 189,906 thousand. The balance sheet total also increased by CZK 890,466 thousand. An important source for increasing the balance sheet total is the growth of turnover, which is reflected not only in the income statement, but also the balance sheet. We have registered the highest increase in the balance sheet for short-term receivables at the amount of CZK 947,463 thousand.
The company managed to solve its long-standing problem with operational financing by issuing bonds at the total amount of CZK 600 million in June 2005, out of which CZK 180 million are owned by OHL ŽS, a.s. The reliability of the funding is proven by the company’s ability to function year after year in the quieter months of the building calendar (December – February) without any need to make use of credits.
In 2008, the sales generation in the Czech Republic grew significantly – an increase of 27.3 % resulting in the increase of the share represented by Czech developments from 74.9 % to 80.7 %.
Development expected in 2009
The production volume is expected to grow further in 2009. As the revenues exceeded CZK 12.0 billion in 2008, the objective set for the company in 2009 is to achieve CZK 12.8 billion. As regards the transport construction segment, the projection is to reach CZK 8.4 billion (in 2008 it was CZK 7.8 billion), the projection for the surface construction segment is CZK 4.4 billion (in 2008 it was CZK 4.2 billion) The chance of achieving these sums is very good as at the beginning of 2009 each of the segments has plans to acquire new development projects at a total volume leaving less than CZK one billion required to achieve the target figure.
No considerable change has come about as regards the territorial structure of work, apart perhaps from the territory of the Slovak Republic, where more projects will be carried out than in 2008. The branch structure of work will be similar to the one existing in 2008. The same situation is expected with respect to the structure of customers of our production.
The same trends as those set around 2003 will continue in the balance sheet. The strongest emphasis will be placed on the securing of a sufficient level of working capital and balanced positions of long-term assets and equity. As regards the working capital, a turning point came about in the middle of 2005 with the issue of bonds, and since then the production has been funded very well despite the steadily high year-on-year increase.
Selected economic indicators of the company:
| Balance sheet (CZK thousand) | 31.12.2008 | 31.12.2007 |
|---|---|---|
| Balance total | 7 699 914 | 6 748 858 |
| Long-term assets | 2 165 541 | 2 209 560 |
| Trade receivables and other assets | 274 228 | 417 434 |
| Short-term assets | 5 534 373 | 4 539 298 |
| Trade and other receivables and other assets | 4 032 762 | 3 097 656 |
| Construction contracts | 473 260 | 341 813 |
| Equity | 1 692 343 | 1 708 976 |
| Registered capital | 486 463 | 486 463 |
| Long-term liabilities | 887 374 | 1 139 907 |
| Bank loans | 0 | 0 |
| Long-term liabilities | 305 628 | 542 825 |
| Issued bonds | 420 000 | 420 000 |
| Short-term liabilities | 5 120 197 | 3 899 975 |
| Trade liabilities | 4 630 661 | 3 536 245 |
| Construction contracts | 81 218 | 34 010 |
| Bank loans and overdraft accounts | 0 | 0 |
| Profit and loss statement (CZK thousand) | 31.12.2008 | 31.12.2007 |
|---|---|---|
| Revenue | 12 083 703 | 10 225 652 |
| Profit on ordinary activities | 287 651 | 295 020 |
| Profit before tax | 270 924 | 262 061 |
| Income tax | -81 018 | -5 189 |
| Profit from current period | 189 906 | 256 872 |