Erbud: road projects to be bigger revenue earners

2009-11-16

Erbud expects to double its income from road contracts in 2010. The company's order book for the coming year will be worth approx. PLN 1bn (€243.9m) and its margins will stand at 5%.
According to the company's senior management, profitability in the road engineering sector currently stands at around 2-3%. The share of orders from this segment in Erbud's portfolio is expected to rise to 15-20% over the next two-three years, as compared with roughly 6% at present. The company's senior management is also optimistic that power engineering contracts will also increase in number and generate 10-15% of its sales – at present their share is 2%. Erbud currently has approx. PLN 100m (€24.4m) cash in hand and credit lines totalling PLN 118m (€28.8m). The company intends to spend these funds on takeovers. Erbud's senior management anticipates such acquisitions taking place in the second half of 2010 and it is currently involved in talks with two Polish firms.

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