Atrem improves profitability, despite a slight decrease in revenues - 1Q2021 results - News - Grupa Kapitałowa Immobile S.A.

Atrem improves profitability, despite a slight decrease in revenues - 1Q2021 results
Data publikacji: 17.05.2021

The company Atrem S.A., operating in the automation and power industry and implementing contracts in the field of renewable energy and gas, published the results for the first quarter of 2021. Despite a slight (2%) drop in revenues, the company managed to reduce costs, improving profitability.

The Company's revenues in the first quarter of 2021 amounted to PLN 16.7 million, which means a decrease by PLN 0.35 million compared to the same period in 2020 (a decrease in revenues by 2%).

The decrease in revenues translated into a decrease in direct costs from PLN 16.0 million in the first quarter of 2021 to PLN 15.3 million in 2021, and the dynamics of the decrease in costs was higher than the dynamics of the decrease in revenues (a decrease in costs by 4%).

“The reason for such a state of affairs was the improvement of profitability on executive contracts. The resultant of these changes was an improvement in gross profitability on sales from 6% in 2020 to 8% in 2021 ”- comments Andrzej Goławski, Atrem's president

The company incurred a gross loss of PLN -1.2 million, compared to a loss of PLN -1.3 million at the end of the first quarter of 2020, and a net loss of PLN 1.6 million, almost the same as at the end of the first quarter of 2020. This result contrasts with the good result in the fourth quarter of 2020.

“Due to the specificity of the industries in which we work, the results of consecutive quarters are not comparable. The order portfolio at the end of Q12021 amounted to PLN 160 million, which means that despite the worse result at the beginning of the year, we are optimistic about the next periods” - explains the president.

The company carries out projects in two segments - automation and power engineering. As part of the power engineering segment, Atrem implemented investments in the field of renewable energy sources. The dynamic development of this industry in the coming periods may affect Atrem's revenues.

“In the reporting period, we implemented a renewable energy project worth PLN 23.3 million. The interest in investing in renewable energy is growing by leaps and bounds. Atrem sees an opportunity in the development of the Polish power system and the resulting necessity to thoroughly modernize the Polish distribution and transmission system” - says Andrzej Goławski.

The pandemic situation also had an impact on the results.

"The Management Board of ATREM S.A. constantly analyzes the situation related to the pandemic in terms of the Company's operations. In both segments, delays in documentation arrangements, full access to the construction site, slowdown in the activities of public administration bodies, in particular in issuing decisions in administrative processes, were noticed in selected contracts, which had a direct impact on the Company's operations" - describes Goławski.

The company intends to make good use of the potential it has after joining the structures of the IMMOBILE Group, optimizing costs and using the available synergies, including through cooperation with Projprzem Budownictwo during the implementation of the Baltic Pipe investment.

“The company's announcements indicate that revenues should increase and show how Atrem is managed differently today. The goal set by the Management Board for all profit centers in the Company is to sustainably improve profitability on contracts and significantly improve the financial position of contracts” - summarizes the president of Atrem.