6/2018 - Preliminary financial results for the 1st quarter of 2018

The Management Board of Trakcja PRKiI S.A. (the “Company”) informs that the process of collecting financial data for the purposes of drawing up the Company’s financial statement and Trakcja Capital Group’s consolidated financial statement for the period of 3 months ended on 31 March 2018, was completed on 9 May 2018. Therefore, the Company publishes the preliminary financial results for this period:

 

The preliminary financial results of the Trakcja Capital Group for a period of 3 months ended on 31 March 2018:

 

Sales revenues: PLN 205,096 thousand

Gross profit on sales: PLN -7,993 thousand

Net result: PLN -22,532 thousand

 

The preliminary financial results of Trakcja PRKiI S.A. for a period of 3 months ended on 31 March 2018:

 

Sales revenues: PLN 170,222 thousand

Gross result on sales: PLN -2,761 thousand

Net result: PLN -9,571 thousand

 

The factors that had the most essential impact on the level of sales revenues and the results of the first quarter of 2018 mainly comprised the seasonality of sales characteristic for entities operating in the construction industry, which is characterized by a significantly lower level of revenues in the first quarter of the year and the generation of a high part of sales revenues in the second half of the calendar year. In addition, in the first quarter of 2018, the Company settled contracts acquired in previous years, in a difficult offer period for the industry, and therefore implemented on a low profitability. The initial results of the first quarter of 2018 presented above were also affected by the extraordinary increase in the prices of infrastructure construction materials, subcontracting services and wage costs. In addition, the Company incurs costs related to the diversification of operations on the professional energy market and re-entry into the tram segment (urban market). What is more, the Company continues to prepare operations on foreign markets, where selected investment programs will be completed in 2030.

 

In the first quarter of 2018, the Trakcja Capital Group signed construction contracts of a total value of over PLN 0.4 billion net, which represents an increase of approximately 71% compared to the corresponding period of 2017. The portfolio of construction contracts at the end of March 2018 amounted to approximately PLN 2.0 billion PLN, which constitute an increase by approximately 45% compared to the portfolio of construction contracts as at the end of March 2017. Taking into consideration its own executive potential, the Group conducts a balanced tendering policy, which confirms the size of the order portfolio. The above data are presented with an exclusion of a part of revenues attributable to consortium members and do not cover the most beneficial offers expected to be signed.

 

Due to the preliminary character of the information, final calculations and possible changes in the impact level of the aforementioned factors on the results of the first quarter of current year shall be forwarded by the Company in the consolidated quarterly report for the period of 3 months ended on 31 March 2018, which, according to the adopted calendar of publishing periodic reports, shall be published on 17 May 2018.

 

Legal grounds:

Article 17 of MAR

 

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