Mostostal Warszawa: financial results up by 15% in 2009

2010-02-13

Mostostal Warszawa estimates that both its revenues and net profit grew by at least 15% in 2009 compared with the previous year, Parkiet reported.
At the same time, however, the enterprise's senior management admit that achieving the same results this year will be difficult. The company has just lost a PLN 598.1m (€148.8m) contract to build a sports stadium in Wroclaw. Initially the city had demanded that the consortium pay approx. PLN 73m (€18m) in damages. Eventually the two parties to the dispute reached a compromise and now Mostostal will pay the Lower Silesian capital close to PLN 16.4m (€4m) in compensation. However, Mostostal must leave all its construction equipment and supplies at the construction site, including essential technical infrastructure which will be used by the new contractor for the investment.
The group currently boasts orders in hand worth in total roughly PLN 3bn (€747m) and the company's senior management reckons that this is sufficient to maintain its upward sales curve. Contracts already concluded by the company will keep it busy for the next 12-18 months, and during this time it is to win further contracts for the coming years, which will be carried out in different market conditions.

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