Trakcja Group Strengthens Its Position as Leader in Railway Construction

“2013 was a period of financial, organisational and asset restructuring, the result of which was a significant improvement in financial results – says Roman Przybył, President of the Management Board of Trakcja PRKiI S.A. Compared to the previous year, the group improved its financial result by more than PLN 50 million, achieving almost PLN 37.9 million in net profit, whereas a year earlier it recorded a loss of close to PLN 12.5 million. As a result of the bond conversion, we reduced our debt by PLN 100 million while simultaneously increasing capital. We also received additional loans to finance the record contract portfolio and obtained bank guarantees necessary to participate in further tenders. At the same time, we signed further contracts worth over a billion zloty. Key to the group’s results was the performance of the parent company Trakcja PRKiI S.A., which achieved almost PLN 988 million in revenue and generated PLN 26.2 million in net profit.”

Trakcja PRKiI S.A. Group is among the leading railway construction companies in Poland and Lithuania. The group comprises: Trakcja PRKiI S.A. (the parent company), PRK 7 Nieruchomości sp. z o.o., Torprojekt sp. z o.o., Bahn Technik Wrocław sp. z o.o., and the Lithuanian AB Kauno Tiltai Group. Almost 64% of revenue is generated in Poland, with the remainder in Lithuania.

In Poland, the largest share of revenue is generated by Trakcja PRKiI S.A. – almost PLN 988 million (a 24% increase compared to the previous year), of which 92% comes from track and bridge works, with the remainder from other activities, e.g. the production of electrical switchgear, overhead contact line components, and the construction of transmission and trolleybus networks. The Company carries out modernisation and revitalisation projects on the most important railway lines, including: Kraków – Rzeszów, Wrocław – Poznań, Warszawa – Gdynia, Częstochowa – Opole, at the Łódź – Widzew station, and in several dozen other locations across the country. To this end, it uses its own equipment resources and qualified staff, as well as over 60 years of experience in carrying out this type of work. In 2013, all profitability indicators of Trakcja PRKiI S.A. improved significantly – EBITDA amounted to PLN 38,344 million (- 25 649 in 2012) net profit margin was 2.7% (-7.3% in 2012), while return on equity at 5.5% (-13.2% the year before).

At the end of the year, the merger of Trakcja S.A. with its subsidiary PRKiI Wrocław S.A. was finalised. The decision to merge and reorganise was taken in order to improve the management of entities within the Trakcja Group. This reduced operating costs while increasing efficiency. The merger of the companies also brings financial savings in the administrative and organisational area, thanks to the reduction in the number of management and supervisory bodies.

The changes made were positively received by the capital market. Evidence of this was the more than fourfold increase in the share price of Trakcja S.A. (Trakcja PRKiI S.A. from 19 December 2013) within just 7 months of 2013, as well as the inclusion of the Company in the mWIG40 index on the Warsaw Stock Exchange.

Media Information

Robert Kuczyński
Communications Director
r.kuczynski@grupatrakcja.com