Resbud : Wyniki finansowe Grupy RESBUD za 2023 r.- rekordowy zysk netto przy dynamicznej ekspansji na rynkach Azji Środkowej

10.05.2024 Financial results of the RESBUD Group for 2023 - record net profit with dynamic expansion on the markets of Central Asia

RESBUD SE has published the financial statements of the RESBUD Group and the parent company (RESBUD SE) for 2023. In this reporting period, the RESBUD Group reported consolidated sales revenues of PLN 41.6 million and net profit of PLN 23.1 million. Compared to the previous reporting period, the Group recorded a significant increase in profit and profitability despite a decline in revenues, which was caused primarily by the disposal of the Russian company Energokomplekt OOO, which generated a significant share of the Group's revenues. As payment for the Russian assets, the Group acquired a controlling stake in the Uzbek company Elektrqishloqqurilish JSC, one of the leading contractors of power grid facilities in Central Asia.

• The net profit of the RESBUD Group in 2023 amounted to PLN 23.1 million and is significantly higher than the result of PLN 6.5 million achieved in 2022. Financial revenues in the amount of PLN 29.6 million, related to the reversal of write-offs created in 2022, had a significant impact on the result achieved last year;
• The Group's sales revenues in 2023 amounted to PLN 41.6 million and were lower compared to the previous year. The decline in revenues on an annual basis was mainly due to the sale of the Russian asset - Energokomplekt OOO, which generated most of the Group's revenues. In return, the Group acquired shares in Grid Solutions LLC and United Grid Solutions LLC, which hold a controlling stake in Elektrqishloqqurilish JSC, one of the leading contractors of power grid facilities in Central Asia.
• The record net profit generated by the Group's companies allowed for a significant improvement in most financial indicators, including profitability, liquidity and debt.

- 2023 was a year of restructuring and development of the Group for RESBUD SE. After long talks and negotiations, we completed the sale of Russian assets, which, despite generating high revenues, also posed a high risk to our shareholders. In exchange for shares in the Russian company, we acquired a controlling stake in Elektrqishloqqurilish JSC, one of the key contractors of power grids in Central Asia. We consider it a great success in a situation when most of the companies withdrawing from Russia gave their assets there significantly below their market value, often for a symbolic dollar - says Krzysztof Długosz, President of the Management Board of RESBUD SE.

On September 6, 2023, RESBUD SE and its subsidiary - Conpol sp. z o. o. - concluded an agreement under which they purchased 100% of shares in Grid Solutions LLC and United Grid Solutions LLC, which own a controlling stake in the Uzbek company Elektrqishloqqurilish JSC based in Tashkent , i.e. shares representing 58.41% in the share capital of Elektrqishloqqurilish JSC.

As payment for the purchased shares, RESBUD SE and Conpol sp. z o. o. transferred 100% of the shares in Energokomplekt OOO, a member of the RESBUD Group until September 2023, to the seller.

Then, RESBUD SE purchased directly from Grid Solutions LLC a package of 2,107 shares of Elektrqishloqqurilish JSC, constituting 1.29% of the share capital of the Uzbek company.

Elektrqishloqqurilish JSC is one of the key enterprises in the construction market in the energy sector of Uzbekistan. This sector is developing intensively, obtaining financing, among others, from the World Bank, the European Bank for Development and Development or the Asian Development Bank. In Uzbekistan, the development of both main and distribution electrical networks is planned - a total of over three thousand kilometers of 550 kV lines and four thousand kilometers of 220 kV lines, as well as the construction of 44 new substations, reconstruction and modernization of most of the existing ones, and the construction of new thermal and hydroelectric power plants , wind farms and photovoltaic stations. In total, electricity production is planned to almost double in this country.

- We are currently focusing on the restructuring of Elektrqishloqqurilish JSC to develop and use its potential in the rapidly growing Central Asian market. Since we took over the shares, until the end of 2023, the company concluded contracts worth nearly USD 9 million, and closed the entire year 2023 with a portfolio of contracts worth over USD 21 million. In 2023, Elektrqishloqqurilish JSC incurred capital expenditure for the purchase of machinery and equipment. We are planning further investments this financial year, including the modernization of machinery for the production of steel structures, in order to increase the company's production capacity. Increased production capacity will allow us to increase the order portfolio on Central Asian markets, but also to offer attractive products on the Polish market - emphasized Krzysztof Długosz, President of the Management Board of RESBUD SE.

The activities of another company belonging to the RESBUD SE Group - Conpol Sp. z o. o. - is strictly dependent on the economic situation in the construction industry in Poland. In 2023, the economic climate in the construction industry was unfavorable - according to the Central Statistical Office, in July 2023, the general economic climate index was minus 7.9. Due to market conditions, the company's operations in the reporting period were conducted to a limited extent.

In 2023, there was a significant increase in production in the industry of producing mineral-asphalt mixtures and concrete, which translated into an increase in sales of products of another company from the RESBUD Group - Uniwersim Sp. z o. o

In the reporting period, on October 12, 2023, there was a change in the parent depository for all the Issuer's shares - from NASDAQ CSD branch in Estonia to Krajowy Depozyt Papierów Wartościowych SA with its registered office in Warsaw. All shares of the Company, i.e. both listed shares and shares not traded on the regulated market, are subject to registration with the National Depository for Securities in Warsaw.

In December 2023, the Management Board of the Warsaw Stock Exchange admitted over 78 million RESBUD SE shares from the so-called bonus issue. The shares were automatically allocated to entities that were shareholders of RESBUD SE after the end of the stock exchange session on May 27, 2022.

- We are pleased that we are closing 2023 with an impressive increase in profit and profitability of the entire Group. We have also improved our debt ratios and they are currently at levels that are satisfactory to us and do not pose a threat to the Group's operation. The Group's debt results, among others, from loans taken out and settlement liabilities related to changes in the group's structure. The amount of these liabilities does not pose a threat to our business. Therefore, we have stable financial bases for the further development of our group - says Joanna Dyja, Member of the Management Board of RESBUD SE.