Erbud targeting high margins and acquisitions in 2010

2010-03-05

The construction company Erbud estimates that it will achieve a net margin of 4-5% this year. At the same time, its senior management hopes to finalise the acquisition of two businesses active in the power engineering branch, the agency ISB reported.
At the end of last year the company had orders in hand for 2010 worth PLN 850m (€218m) as well as contracts with a combined value of PLN 100m (€26m) pencilled in for 2011. It is currently bidding for contracts worth in total PLN 3.1bn (€794m) and hopes to conclude several contracts from this pool before the end of H1 2010. According to the plans announced by Erbud's board, 20-25% of the company's revenues in 2010 will come from exports and it intends in particular to focus on the power engineering and road-engineering sectors. Power engineering contracts are expected to bring in revenues of PLN 100-150m (€26-38m) in 2010-2011, and engineering-road orders another PLN 100m.
In Q1-Q4 2009 the company achieved a net profit of PLN 44.62m (€11.43m) and revenues of PLN 958.62m (€245.63m).

Find more news and analyses in internet service Construction Poland Online and pdf newsletter Polish Construction Review.