Scale of operations – Statement on the financial position
On the 31st of December 2021, total assets of the Budimex Group amounted to PLN 6,863,318 thousand compared to PLN 7,462,240 thousand at the end of 2020 (i.e. decreased by 8.0%). The main reason for the decrease was the sale of Budimex Nieruchomości Sp. z o.o.
Non-current assets amounted to PLN 1,672,413 thousand, which accounted for 24.4% of the Group’s total assets. They were by PLN 136,146 thousand (by 8.9%) higher than the previous year. The change of their value was mainly influenced by the following factors:
- Decrease in the value of tangible fixed assets – they amounted to PLN 538,612 thousand, i.e. decreased by PLN 10,200 thousand (by 1.9%) in comparison with the state as at the end of 2020. Their value was negatively affected by depreciation of property, plant and equipment (in the amount of PLN 127,826 thousand) and the sale of Budimex Nieruchomości (PLN 9,427 thousand). At the same time, the Group purchased and leased property, plant and equipment (in the amount of PLN 218,133 thousand) and bought out from lease fixed assets (in the amount of PLN 109,923 thousand).
- An increase in the value of deferred tax assets, which at the end of 2021 amounted to PLN 642,373 thousand (i.e. 9.4% of the Group’s total assets). Their value was by PLN 120,522 thousand (by 23.1%) higher than at the end of 2020, as a result of the increase in the balance of negative temporary differences from items on the side of the liabilities.
- An increase in the balance of deposits under construction contracts. They amounted to PLN 87,264 thousand and increased by PLN 46,421 thousand compared to the balance at the end of the previous year. This was a result of the exclusion of Budimex Nieruchomości Sp. z o.o. from consolidation.
- The sale of Budimex Nieruchomości Sp. z o.o. resulted in the absence of investment properties in the balance sheet, which amounted to PLN 9,876 thousand at the end of 2020.
As of the 31st of December 2021, the Budimex Group’s current assets amounted to PLN 5,190,905 thousand, i.e. decreased by PLN 735,068 thousand (by 12.4%) compared with the balance as at the end of the previous year. This was primarily the result of a decrease in inventories by PLN 1,569,295 thousand (including PLN 1,734,911 thousand due to sale of Budimex Nieruchomości Sp. z o.o.).
Other significant changes in the size of current assets as at 31 December 2021 compared to the previous year-end are:
- Increase in cash and cash equivalents – these reached PLN 2,715,795 thousand, i.e. were PLN 331,397 thousand (13.9%) higher than in the previous year, mainly as a result of proceeds from the sale of Budimex Nieruchomości Sp. z o.o.
- An increase in trade and other receivables, which stood at PLN 1,217,862 thousand. They increased by PLN 299,823 thousand (by 32.7%), mainly as a result of seasonal, greater involvement in contracts with non-standard invoicing patterns.
- Increase in the valuation of construction contracts, which amounted to PLN 729,415 thousand and increased by PLN 135,100 thousand (by 22.7%), which was related to lower invoicing of works performed in the last quarter of 2021.
Structure of the Budimex Group’s assets in PLN thousand
On the 31st of December 2021, shareholders’ equity amounted to PLN 1,361,007 thousand (i.e. 19.8% of total assets). Their value was higher by PLN 173,736 thousand (by 14.6%) than in the previous year. This increase was primarily due to the generation of a net profit of PLN 971,603 thousand in 2021. At the same time, during 2021 dividends and dividend advances were paid in the total amount of PLN 806,750 thousand.
At the end of 2021, the Group’s non-current liabilities amounted to PLN 1,023,841 thousand (or 14.9% of balance sheet total), i.e. they were PLN 115,894 thousand (by 10.2%) lower than a year earlier. The change in their balance was mainly due to a lower level of liabilities on account of credits, loans and other external sources of financing. They amounted to PLN 155,269 thousand, i.e. were by PLN 106,394 thousand (by 40.7%) lower than at the end of the previous year, mainly as a result of purchase of fixed assets under lease by Budimex Kolejnictwo SA.
As at 31 December 2021, the Group’s current liabilities amounted to PLN 4,478,470 thousand (65.3% of balance sheet total), which means that they were PLN 656,764 thousand (by 12.8%) lower than at the end of 2020. Their main part consisted of trade and other payables amounting to PLN 1,396,300 thousand, which were by PLN 24,450 thousand (by 1.8%) higher than in the previous year.
The main changes in short-term liabilities concerned:
- Decrease in deferred income. They amounted to PLN 291,860 thousand and, mainly as a result of the sale of Budimex Nieruchomości Sp. z o.o., were by PLN 1,177,766 thousand (by 80.1%) lower compared to the balance at the end of 2020.
- An increase in the valuation of construction contracts (representing the difference between revenues invoiced to investors and recognised in the income statement) by PLN 286,323 thousand to PLN 1,588,487 thousand at the end of 2021.
- An increase in the provision for losses on construction contracts by PLN 204,346 thousand (by 65.8%) due to the newly identified risk of an increase in the cost of materials (in particular steel) and labour on selected contracts.
- Decrease in liabilities due to loans, borrowings and other external sources of financing, which at the end of 2021 amounted to PLN 83,777 thousand, i.e. were by PLN 105,290 thousand 55.7% lower than the previous year.
At the end of 2021, working capital (current assets – current liabilities amounted to PLN 712 thousands, i.e. increased/decreased by %.
Structure of the Budimex Group’s liabilities in PLN thousand