GRI:
The cash balance and liquid deposits of the Budimex Group as at 31 December 2020 amounted to PLN 2,384,398 thousand and was PLN 868,421 thousand higher than at 31 December 2019.
The most important factors having a positive impact on the above change in the financial resources of the Budimex Group during 2020 include the following events:
increase in the profitability of
the construction activity of Budimex S.A.
traditional seasonal drop
in financial involvement in the implementation of large infrastructural contracts in the last months of the year
lower amount of dividend
paid by Budimex S.A. than in recent years. (half of the net profit for 2019)
expenditures on the purchase of land in the development segment lower than planned,
with simultaneous one-off proceeds from the sale of two pieces of land and proceeds from final settlements of several development projects
increase in cash balance
in FBSerwis Group companies as a result of increasing the scale of the Group companies’ operations and increasing the profitability of their operations, especially in the waste collection and management segment and infrastructure maintenance and modernisation.
In accordance with the Group’s policy, cash surpluses were placed as bank deposits at banks with a good rating standing. In addition, Budimex S.A. used cash surpluses to finance its suppliers of services and raw materials, which had a positive effect on the financial liquidity of these suppliers, and was significant for them during the COVID-19 pandemic.
At the same time, the Budimex Group companies reported an external debt in respect of bank loans and borrowings and other external sources of finance, including finance lease liabilities, which as at 31 December 2020 amounted to PLN 450,730 thousand, including PLN 196,238 thousand being a value of leasing values recognised in accordance with IFRS 16. Comparable with previous years, the amount of the Group’s external debt due to bank loans, borrowings and leases, understood in accordance with IAS 17, i.e. not containing lease liabilities, disclosed in accordance with IFRS 16, amounted to PLN 254,492 thousand and was thus lower by PLN 20,012 thousand compared to 31 December 2019 and higher by PLN 15,559 thousand compared to 31 December 2018 (table below). The Group's financial debt1 consists of: debt of Budimex S.A., Budimex Kolejnictwo S.A., Mostostal Kraków S.A., Budimex Nieruchomości Sp. z o.o. and companies of the FBSerwis Group under leasing agreements (concluded to finance the acquisition of tangible fixed assets), debts of Budimex Parking Wrocław Sp. z o.o. under a loan to finance a concession project and a subordinated loan granted by a shareholder, debts of FBSerwis Wrocław Sp. z o.o. under an overdraft facility, debts of FBSerwis Kamieńsk Sp. z o.o. and FBSerwis Wrocław Sp. z o.o. under loans granted by NFOŚiGW to finance investments related to waste management. At the end of 2020, the Group did not have any debt due to the bonds issued.
| Liabilities due to bank loans and borrowings and other external sources of finance: | 31/12/2020 | 31/12/2019 | 31/12/2018 |
| – long-term | 184.902 | 209.725 | 184.11 |
| – long-term (liabilities under lease – IFRS 16): | 76.761 | 65.533 | - |
| – short-term | 69.59 | 64.779 | 54.823 |
| – short-term (liabilities under lease – IFRS 16): | 119.477 | 112.329 | - |
| Total | 450.73 | 450.366 | 238.933 |
Strukturę finansowania Grupy Budimex obrazują następujące wskaźniki:
| Ratio | 31.12.2020 | 31.12.2019 | 31.12.2018 |
| equity to assets ratio: (equity attributable to the shareholders of the Parent Company) / (total assets) | 0.15 | 0.12 | 0.14 |
| equity to fixed assets ratio: (equity attributable to the shareholders of the Parent Company) / (fixed assets) | 0.75 | 0.56 | 0.75 |
| Ratio | 31.12.2020 | 31.12.2019 | 31.12.2018 |
| total debt ratio: (total assets - equity attributable to the shareholders of the Parent Company) / (total assets) | 0.85 | 0.88 | 0.86 |
| debt to equity ratio: (total assets - equity attributable to the shareholders of the Parent Company) / (equity attributable to the shareholders of the Parent Company) | 5.49 | 7.26 | 6.34 |
At the end of 2020, the ratios that show the sustainability of the capital structure improved, i.e. the coverage of assets with equity increased and at the same time total debt and equity debt decreased. The increase in equity as a result of the increase in profitability of operations and the lower amount of dividend paid by Budimex S.A. compared to previous years had the biggest impact on the decrease in the value of these ratios. (half of the net profit for 2019).
Liquidity ratios (current and quick) at the end of 2020 were at a higher level compared to previous years. The increase in liquidity ratios was influenced by a significant increase in cash balance with a relatively lower change in the value of short-term liabilities as compared to similar periods in the past.
| Ratio | 31.12.2020 | 31.12.2019 | 31.12.2018 |
| current ratio (current assets) / (short-term liabilities) | 1.15 | 1.09 | 1.14 |
| quick ratio (current assets – inventory) / (short-term liabilities) | 0.76 | 0.67 | 0.73 |
Owing to the current good financial standing of the Budimex Group, the cash resources, access to credit limits in banks and the still insignificant level and the favourable structure of financial debt, there are no threats to the Group’s ability to finance its business activities in 2021.
1 Items that do not include amounts that make up the lease liabilities, accounted for in accordance with IFRS 16.