Profits and revenues of Polimex-Mostostal increase, costs decrease

EBITDA of the Polimex-Mostostal Group for the first half of this year exceeded 77.5 million PLN and the Polimex-Mostostal Company - 53.7 million PLN.

Operating revenues of the Group increased from 511 million PLN in the first quarter of 2015 to 607.1 million PLN in the second quarter of this year. In contrast, general and administrative expenses decreased from 18.5 million PLN in the first quarter of this year to 16.2 million PLN in the second quarter of this year. At the end of June 2015, the share of general and administrative expenses in sales revenue was 3.1 percent.

- The results for the second quarter primarily result fromthe growth in operating revenues and reduced costs. It is worth noting that the results of the Company and the Group are better than the planned. We intend to maintain the trend of presenting positive results - Joanna Makowiecka-Gaca says, the President of the Management Board of Polimex-Mostostal. - The final results were influenced by a change of classification of the production plant in Siedlce in the Group balance sheet.

According to the annex to the restructuring agreement dated 2014, the production plant in Siedlce was to be sold and the financial statements recognized it as "discontinued operations". With a view to the outlook of the market of the production of steel structures, the potential of the plant in Siedlce and ensuring optimal offer for the potential contractors (design, construction, maintenance), the Management Board of Polimex-Mostostal fought for keeping the Siedlce plant in the Group for several months.

PXM's order backlog at the end of June 2015 amounted to 5.3 billion PLN.

- The process of the consolidation of the company's shares is continued. We are currently awaiting the registration process in the National Court Register. The next step is to suspend trading in the shares of the company. We anticipate that the process will end in September - Krzysztof Cetnar explains, the Financial Vice-President of Polimex-Mostostal.

The consolidation of the shares is done by a proportional reduction in the total number of the shares from 4.330.940.100 (in words: four billion three hundred thirty million nine hundred forty thousand one hundred) to 86.618.802 (in words: eight six million eighteen thousand eight hundred and two) by combining all 50 values of Polimex in the exchange ratio of 50: 1.