Elektrotim to include dividend policy in new strategy; time of contract accumulation on market

"The new strategy will include a dividend policy. We will announce in the fourth quarter what shape it is going to have, but we cannot imagine that it would not include the transfer of profits to shareholders," CEO Maciej Posadzy told a videoconference.

In May, Elektrotim's general meeting decided to allocate nearly PLN 25 million (EUR 5.9 mln) of its 2024 profit to the payment of dividends, which translates into a dividend of PLN 2.5 (EUR 0.59) per share.

The company said it plans to publish its new strategy for 2026-2030 in the fourth quarter of this year.

"We do not want to build scale in the business at the expense of profitability. We are maintaining profitability at double-digit levels, EBITDA margin also in the positive. This is what we will stick to, and the strategy will also include positive high levels of profitability," the CEO added.

"At the end of April, we have a record order backlog (...). The company's situation, despite the difficult market environment, in terms of construction and assembly production, is very comfortable. The value of revenues for this year is assured and we also have a large portion of contracts for the following year," Posadzy assessed.

"We are working on adapting the company's personnel to the growing scale of operations and development plans that will be included in the strategy," he added.

According to the board, the biggest challenge is the difficulty in recruiting highly qualified employees, as well as the accumulation of contracts in the second half of 2025 and beyond.

"We are learning lessons from previous years. In the case of accumulation, there is a fairly rapid increase in the price of construction materials and subcontracting services, as well as the availability of materials and subcontractors," the CEO said.

"As far as personnel resources are concerned, we want to prepare for the implementation of the strategy of further expansion and increasing the scale of operations, and this cannot be done on frozen personnel," he added.

According to board member Krzysztof Wojcikowski, many tenders do not involve non-EU companies, which was previously a common situation.

"But a lot of new companies from Poland are appearing, so the price pressure is there all the time," he added.

As stated in the presentation, the level of credit and factoring limits at the end of March was PLN 238 million (EUR 56 mln) and the level of guarantee limits was PLN 463 million (EUR 108.9 mln).

"The level of secured sources of financing enables us to carry out contracts worth approximately PLN 1 billion in an efficient manner," the CEO assessed.

"Contracts have different cyclicality, different settlement times, but we are able to realise such a level of contracts with the credit and insurance limits we have," he added.

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