Profil:
Erbud SAErbud builder cautious about contracting; counts on more private investment in market
Listed builder Erbud assesses that the current level of backlog ensures work for the group for the coming year and is approaching contracting cautiously, focusing on margins, company representatives told a video conference. The management board believes that an increase in the number of private investments on the market is possible.
CEO Dariusz Grzeszczak noted that the downturn in the industry continues for the second year already, and not much can be done about it. He assessed that the change in interest rates could reverse the trend next year by bringing new orders, however, it should be noted that a consequence of the downturn is a price war in which the company is not participating.
"Our order book has shrunk slightly year on year, but this is due to the sector downturn and price war. It makes no sense to compete for every order just to increase or maintain our order book – we will not do so unless contract profitability improves," Erbud's CEO stressed.
"We are satisfied with the portfolio we have, which is PLN 2.5 billion. This gives us a sense of securely entering the new year," he added.
At the end of October, the value of Erbud group's external order portfolio exceeded PLN 2.5 billion (EUR 587.3 mln). Together with its RES subsidiary Onde's own projects, the portfolio amounts to over PLN 3.1 billion (EUR 728.2 mln).
The management board announced that it wants to focus on margins - it is participating in many proceedings and is optimistic about the future but is approaching contracting very cautiously.
"These are difficult times, the market is not so good for investors and there are fewer investments in Poland and Europe (...). It is difficult to win contracts, the investment market is difficult, there are many companies participating in tenders and price is the main deciding factor," said the CEO.
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