The Management Board's letter to the Shareholders - News - Grupa Kapitałowa Immobile S.A.

The Management Board's letter to the Shareholders
Data publikacji: 16.04.2019

Grupa Kapitałowa IMMOBILE S.A. summed up the year 2018, which is another year in a row that recorded an increase in consolidated revenues. They reached PLN 347 million, increasing by 33% compared to the previous year. The growth is mainly due to the dynamic growth of revenues in the development and industrial construction segments.

We present the letter of the company's Management Board to the Shareholders, published together with the financial report.

Ladies and Gentlemen, Dear Shareholders,


We would like to present to you the Individual and Consolidated Financial Statements of Grupa Kapitałowa IMMOBILE S.A. for the year 2018.

For the Companies of Grupa Kapitałowa IMMOBILE, the year 2018 has passed as previously expected. As you can see in this report, all the material operating segments are recording increases in both continuing revenue and profit.

The sale of shares in companies constituting Pomerania Shipyards in Szczecin is a noteworthy event with a negative impact on the result. This transaction, although it has a negative impact on the result, allowed us to release cash, reduce debt and streamline the structure of the Group's business.

Despite the difficult market environment, unfavourable changes in the law that usually increase costs and the general increase in labour costs, our Companies managed to achieve satisfactory results. This is to a large extent due to all employees of the Group who scrupulously take care of the operating costs of every aspect of our business. We are looking forward to seeing the results of our investment in the development of docking solutions and automatic parking facilities in the industrial part of our Group this year.

This year will also be an interesting year for hotel companies, whose revenues will increase as a result of opening a new hotel in Poznań in the second half of 2018 and a hotel in Lublin, which will be opened in a few days.

In comparison to 2017, we have managed to double the number of flats offered by the Companies from the real estate segment. At present, we offer over 250 flats under construction. Both sales and production costs, which we incur when creating a new housing substance, do not deviate from those assumed in the budgets, which will bring the assumed benefits this year.

Despite the bad economic situation, the industrial construction segment achieved good results. We hope that this year we will manage to keep the revenues of this segment at a level not lower than in the previous year.

As you know, acquisitions and successful restructurings have been our developmental strength in previous years. At present, Grupa Kapitałowa IMMOBILE S.A. is conducting a call for tender for the sale of 66% of shares of the company ATREM S.A. listed on the Warsaw Stock Exchange. This takeover is perceived by us as a process analogous to the takeover of PROJPRZEM S.A. two years ago. We believe the change in management methods and a number of resulting synergies will strengthen the construction segment. We are convinced that the call will be effective and we will consolidate the results of ATREM S.A. from May this year.

We are convinced that this is not the last takeover this year. A number of acquisition activities conducted by Grupa Kapitałowa IMMOBILE S.A. and other member companies will lead to further profitable acquisitions. We are favoured by a strange and difficult political situation heated by the temperature of the election year. Constantly bad situation on the Polish stock exchange, undervalued companies and lack of trading in shares are for us a chance to consolidate smaller entities. We are going to use this opportunity until the trend reverses.

We are, of course, sorry that the shares of Grupa Kapitałowa IMMOBILE S.A. are not growing at the rate of growth of the Capital Group, but on the other hand we are glad that today’s exchange is an exchange of opportunities, which we will try to demonstrate in the near future. Naturally, at this point we have to mention that the shares of PROJPRZEM MAKRUM S.A. have increased by more than 100 percent since our takeover. Hence, our portfolio as of this day is worth around PLN 75 million.

The companies of our Group, of course in line with the present political and economic backdrop, are undergoing, as well as many other companies, a number of different fiscal, social insurance and other inspections, which end successfully for the companies of the Group. The confidence of banks financing us in our philosophy and our projects is growing at a pace unseen in the previous years. Therefore, we do not have any problems with obtaining financing, whether for development investments or acquisition projects.

You know very well that our most valuable asset is the employees with whom we conduct our - your business. We are enormously pleased to inform you, as every year, that the turnover among the key management staff of the Capital Group would be zero, if not for the sad fact that on 4 April 2019, at the age of 43, Mr. Krzysztof Krajewski, one of the key employees of the financial division of Grupa Kapitałowa IMMOBILE, died. Krzysztof was a great man and will always be a part of our Group.

Dear Shareholders, thank you for persistently accompanying us and helping us to develop Grupa Kapitałowa IMMOBILE S.A. We want to take this early opportunity to invite you to the June General Meeting of Shareholders. Meanwhile, we invite you to follow our website, blog, Facebook and Twitter profiles.

The Management Board of Grupa Kapitałowa IMMOBILE S.A.