Publication of semi-annual financial results of TORPOL S.A. and the Capital Group
Torpol Capital Group revenues in the first half of 2019 amounted to PLN 664.8 million (+ 21.5% y/y), operating profit PLN 15.3 million (+ 101.2% y/y), and EBITDA PLN 25.7 million (+ 62.3% y/y). Net profit from continuing operations was at the level of PLN 10.9 million, which means an improvement by PLN 16.8 million compared to the previous results of the first half of last year. Gross margin on sales fluctuated around 5%.
The results for the last six months are the result of the high pace of works carried out under the order portfolio developed in previous years. Particularly impressive processing was recorded on contracts for LCS Konin and the Jaworzno power plant, which is also important for us in terms of profitability. At the same time, we successfully conduct a restrictive cost policy that ensures that we generate a positive financial result. We expect that this year will be similar to last one in terms of sales, but much better in terms of profitability – says Grzegorz Grabowski, president of the Torpol Capital Group.
According to the Group’s strategy for 2019-2023, consolidated sales over the next 5 years, the Torpol Capital Group aims at generating revenues worth over PLN 8.8 billion in total, with an average gross sales margin of slightly above 5%. Currently, the Torpol CG’s backlog is worth over PLN 4.17 billion excl. VAT, including PLN 47.5 million excl. VAT acquired by Torpol Oil & Gas. Its average gross margin on sales is around 5%, whereas taking into account the last 12 months it was around 5.6%.
Acquiring a record portfolio of orders would not be possible if it were not for the experienced and highly specialized engineering and managerial staff. Those team members constantly analyze the market and fight for further contracts and also monitor the cost side of future and current orders. Adequate liquidity is also important, which is why we secured financing for recently acquired projects from our main shareholders. Contractual advance payments from PKP PLK amounting to 10% of the gross value of orders are also helpful. It is worth remembering that our backlog is not only the railway market, but also the oil & gas market, where our company Torpol Oil & Gas is constantly increasing the scale of operations, becoming independent and starting to generate positive financial results – adds President Grabowski.
By 2023, Torpol Capital Group wants to gradually diversify its sources of revenue through systematic development in the areas of tram infrastructure, building construction and engineering structures. The Torpol Management Board recommended to the General Meeting a dividend payment of PLN 5.742 million, i.e. PLN 0.25 per share. Dividend payment day is 31 October 2019. The above-mentioned amount represents 70% of the profit generated in 2018.
Presentation of the financial results of the TORPOL CG – download files.