Diversification as a way to a new economic reality - the IMMOBILE Group publishes annual results - News - Grupa Kapitałowa Immobile S.A.

Diversification as a way to a new economic reality - the IMMOBILE Group publishes annual results
Data publikacji: 04.05.2021

The revenues of the IMMOBILE Group in 2020 amounted to PLN 532.4 million, 27% more than in 2019. The company generated PLN 36.3 million of EBITDA profit (+ 32%) and 15.3 million operating profit (+ 46%). The development and industrial construction segments contributed the most to the improvement of these ratios. Thanks to their good condition, the severe situation of the hotel sector did not determine the Group's results.

The increase in the Group's revenues, amounting to PLN 113.5 million, was mainly due to the increase in sales in the industrial construction and development segment. The automation and power engineering segment also generated an increase in revenues. The hotel sector had a negative impact on the results, which, due to administrative decisions related to the pandemic, definitely stopped the upward trend in which it had remained for several years.

“For the first time in history, we encounter a situation when we no longer have any real influence on our business. The government took over selected sectors of the market, limiting free activity and generating severe losses” - said Rafał Jerzy, President of the Management Board of GK IMMOBILE.

“Historically, the hotel sector generated some cash for further investments of the IMMOBILE Group. We are now convinced that our decisions regarding the reactivation of the industrial construction sector and the acquisition of Atrem are right, and our shareholders see that the diversification of the Group's operations allows us to remain a stable company in this difficult economic reality" - adds the president.

For the first time, the Group presented the full-year results of the automation and power engineering segment, which it enriched in 2019 after the acquisition of Atrem. It generated a 22.5% increase in revenues, to the level of PLN 90.6 million. Despite a small operating loss of 0.2 million, the profitability of this activity was improved.

The largest share in the Group's revenue structure was industrial construction, which generated a record result and contributed to the total value of sales of PLN 184.8 million (increase by 97% y/y).

The hotel segment of the Group cannot boast of growth for the first time in a long time. This activity generated 30.8 million of revenues - more than twice less than last year. This decline was caused by the threat that has been developing since the beginning of March and the introduction of a number of restrictions by the government in the country, in particular, such as: administrative prohibition of movement, decision to cancel mass events, suspension of classes at universities and schools, border closure, and the final closure of hotels .

“Thanks to the illogical policy of restrictions, we closed the year with a loss of 10 million instead of a profit. Despite this, the network does not stop developing. In April, we signed a lease agreement for a hotel in Elbląg, which will open under the Focus brand in May. 2021 will be the year in which we will open the most new facilities. We look forward to releasing the hotel business and rebounding this market” - declares President Jerzy.

A 12.5-fold increase in revenues (to 66.4 million) and a positive result (7.8 million) were recorded in the development sector. This was due to the completion of the 2nd stage of Platanowy Park and the 1st stage of Osiedle Uniwersyteckie.

“The next stages of our development investments are very successful in terms of sales. The impact of the epidemic on the current housing stages is practically imperceptible today. We operate mainly on our own land and we can flexibly react to the changing market environment" - says Rafał Jerzy.

In 2021, the company announced the commencement of the third stage investment - the Rabatki estate in the Okole district of Bydgoszcz. Work on the first buildings is already underway.

The Group's operations in the industrial segment in 2020 generated PLN 157.6 million in revenue - almost PLN 19 million less than in the previous year.

“In this segment, we see a fairly limited negative impact of the coronavirus epidemic. Production, with obvious sanitary and organizational restrictions, is carried out continuously. We have completed the expansion of the production plant, which should increase the competitiveness of our industrial products in the coming periods” - sums up Rafał Jerzy.

The IMMOBILE Group, in a difficult economic situation, actively uses the synergies brought by the structure of the conglomerate. In April, it finalized another takeover - companies associated with the QUIOSQUE clothing brand joined the Group. It reacted quickly to the prolonged closure of hotels and shopping centers, opening QUIOSQUE stores… in Focus hotels.