ZUE builder aims to achieve gross sales margins of 6 percent

Listed construction company ZUE is aiming for a gross sales margin of 6 percent, informed management representatives during a video conference. In their view, there is still a wait in the market for tenders to be launched, but long-term the market situation seems very promising.

"We are still aiming to improve the gross margin. 6 percent is what we always say is the margin we would like from the construction business," said deputy CEO Anna Mroczek.

The group's gross margin on sales in the first half of 2024 rose to 4.5 percent from 3.5 percent a year earlier.

CEO Wieslaw Nowak added that "the market is still waiting for tenders to be launched."

"We are at the stage of waiting for tenders (...). Already a few months ago, the new management of PKP PLK declared the announcement of tenders in the second half of the year, by the end of the year, for a total amount of approximately PLN 17 billion," Nowak said.

The ZUE group's order backlog at the end of the first half of the year was approximately PLN 1.5 billion (EUR 349.9 mln).

"It is not a portfolio that satisfies us, but it is a portfolio that allows us to work calmly," assessed CEO Wieslaw Nowak.

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