Marvipol increases sales and plans to split

The company’s good results were largely due to its automotive section, which broke its sales records in 2016. The company’s subsidiary British Automotive Polska imported and sold over 1,000 Jaguars and Land Rovers to its own dealers, representing a rise of 50 pct.

The automotive segment was responsible for over 80 pct of the consolidated revenue of the group, with revenues from the sales of cars, spare parts and services exceeding PLN 294 mln for the period, 31 pct higher than for the same period of the previous year, while its operating profit excluding profits from projects came to PLN 24.1 mln, up by 22 pct.

“We have also been working intensely on returning our residential business, which is currently generating decent operational and financial results, back to the kind of rapid growth that matches our ambitions and expectations. It is going to be difficult to make up for the sales losses that resulted from delayed administrative decisions in our two new projects this year, but we’re hoping that the solid improvements over the last half year herald satisfactory annual results,” states Mariusz Książek, the president of the board of Marvipol.

In H1 this year the development section received payment on 291 sales contracts for housing and service units a 13.7 pct increase on the same period of 2015. The total area of apartments sold came to 17,060 sqm.

Profits from Industrial Center 37, a joint venture company of Marvipol and Panattoni Europe responsible for the management of the Panattoni Park Warsaw complex, had a positive impact on the results generated for this period. The complex was completed in Q2 this year and in Q3 a letter of intent was signed with an investor interested in its purchase. “We’ve made a strategic decision for the group’s development segment to rest on two pillars: the residential business and the warehouse and logistics business. While continuing with our fruitful cooperation with Panattoni, we are planning to start further warehouse and logistics projects this year on a site in Grodzisk Mazowiecki,” says Mariusz Książek.

The group has also announced that it is to split the company. Under the plan, the development section and its assets are to be transferred to Marvipol Development, which is to be launched on the stock exchange. Current shareholders of Marvipol are to be assigned one share of Marvipol Development for each share they hold. Marvipol has been valued at nearly PLN 600 mln for the purposes of this transaction with the development section valued at PLN 262.4 mln and the automotive section at PLN 335.1 mln. The management board expect the split of the company with both sections floating separately on the WSE to be completed by Q1 2017 at the latest. The management boards of both companies have already approved the plan to divide the company.

“The purpose of the division is to separate the development operations of the company and consequently gain a credible market valuation for its development operations as well as for the company’s automotive operations and thus enable potential investors to choose their profile in regard to our business operations [...], this will increase the transparency of the Marvipol capital group for both shareholders and potential investors,” reported Marvipol.