Even though the publication of a detailed report on the activities of Grupa Kapitałowa IMMOBILE for 2020 is still ahead of us, it’s time to start the first summaries of the past twelve months. This period, both in the economy and in everyday life, was dominated by new phenomena related to the pandemic. How were the Group’s business sectors doing during this time?
In 2020, the IMMOBILE Group was conducting the following own investments: construction of the Platanowy Park estate in Bydgoszcz, construction of Osiedle Uniwersyteckie in the Fordon district of Bydgoszcz, construction of the Rabatki estate at Czarna Droga in Bydgoszcz, reconstruction of an office building located at Bernardyńska 13 in Bydgoszcz for a hotel building and finishing works, the so-called fit-out in the IMMOBILE K3 building at Plac Kościeleckich 3 for the needs of other tenants.
The impact of the epidemic on the current housing stages is quite unnoticeable. However, it is difficult to estimate the long-term impact of the epidemic on the segment. It should be emphasized that the Group operates practically on its own land and can flexibly react to the changing market environment.
Last year, the Group finalized the optimization of production processes taking place in the Koronowo Plant, where components of reloading and parking systems are manufactured. This investment will increase the production capacity, the production time will be shortened (efficiency increase, cost reduction), which will have a significant impact on the competitiveness of manufactured products.
The situation on the construction market supports the idea of designing parking spaces in new investments with the use of the Group’s most innovative product – Modulo car parks. As a result, the demand for vehicle parking devices should grow at a steady pace in the coming years. The increasing experience of the staff, undertaken construction activities (improving device models, introducing new types of platforms) results in the improvement of the competitiveness of the offer, reduction of costs and, at the same time, increase of the margin.
In the industrial segment, we are seeing a fairly limited negative impact of the coronavirus epidemic on its activities. Production, with obvious sanitary and organizational restrictions, is carried out continuously, no major negative symptoms are observed on the demand side and the availability of materials and components. The boom in online trade related to the restrictions allows us to be optimistic about the future and trends in demand for transhipment systems, equipment, as well as the construction and expansion of warehouse spaces.
Last year, industrial construction significantly expanded its structures, especially in the newest branch located in Wrocław. The company focuses on improving profitability and increasing the sales volume.
The company started 2020 with a portfolio of orders filling 80% of the revenues achieved in 2019. The company also signed new contracts and started their implementation, while conducting advanced talks with investors in order to obtain further orders.
AUTOMATION AND ELECTRICITY
This segment is currently being restructured mainly with regard to general and administrative expenses. The Group is also reviewing the contract portfolio.
The Group actively participated in the tendering process for contracts related to the construction of gas infrastructure accompanying the construction of the so-called “Baltic Pipe”, as a participant of a consortium in which ATREM S.A. and PROJPRZEM Budownictwo Sp. z o.o. are involved. The Group’s offer was selected in the contract award procedure for the expansion of the Gas Compressor Station in Odolanów, despite the original procedure was annulled by a judgment of the Arbitration Court at the Polish Chamber of Commerce in Warsaw.
In this segment, we observe a limited negative impact of the coronavirus epidemic on its activities. Apart from an isolated case, all contracts are carried out and sanitary and organizational restrictions are observed. The Group is negotiating and offering new contracts. We estimate the risk of a significant impact of the epidemic on the segment’s annual results as low.
In 2020, external works on the conversion of the former PROJPRZEM office building into another Focus hotel were completed, finishing works are underway. New hotels are also under construction in Warsaw, Szczecin and Stargard.
The epidemic has a significant impact on the segment’s prospects. It can be assumed that the negative consequences on the hotel segment will be felt by the end of 2021. The most negative effects of the epidemic affecting the hotel industry include: a very large decrease in the number of foreign guests in hotels, very strong restrictions on business travel, almost no conferences and other events.
Despite administrative restrictions, the segment’s operations have not been interrupted, a number of measures have been taken to reduce operating costs (effective renegotiation of rents for rented hotels, reduce employee costs, including using some of the available tools and others) and improve financial liquidity (signing annexes deferring loan installments , shifting ZUS contributions and part of public and legal burdens). Appropriate sanitary and organizational rigors have been introduced in advance in the Group’s hotels to maintain the safety of guests and employees. In June 2020, all hotels of the group received the Hygienically Safe Object of the Polish Tourist Organization certificates.
The group closely follows the situation on the hotel market and will actively react to emerging threats and opportunities.
156 trees, 296 shrubs and perennials. With such a result, the IMMO Foundation belonging to the Group ended 2020 – the first full year of operation as a Foundation for planting trees in the city. 7 actions were organized in Bydgoszcz, in which as many as 60 volunteers took part, trees were planted throughout the country for the ‘Tree Day 2020’ competition, together with the City of Bydgoszcz, new plants was also planted in the Old Market Square and a permit was obtained to plant trees in the place of large logging from the railway embankment. We wish to multiply these achievements in the coming years for our common good.