First effects of consolidation

The group has signed contracts with Murapol for building work over the 2017-2020 period, which total PLN 1.3 bln, with work worth PLN 252 mln to be completed this year. The company expects to earn a further PLN 400 mln over the next five years from the provision of comprehensive real estate services for projects that are to be developed on land purchased by the Murapol HRE FIZAN fund. “In our assessment. last year was very good for the Abadon RE group. First of all in a relatively short space of time, we set up a real estate company with a scope of operations that has no precedent on the Polish market. The comprehensive consultancy and construction services offered by the group fit perfectly with the growing trend among foreign investors to invest their capital on our real estate market without creating local structures. Having spotted this niche, we have structured our services to reduce an investor’s involvement to the minimum in operations such as the preparation and development work as well as the subsequent management and commercialisation for a real estate project,” says Michał Sapota, the CEO of Abadon RE. The company reports that 78 pct of its previous year’s sales revenue was generated by services including contractor services, architectural and design services, acquisitions and marketing. The remaining 22 pct of the revenue came from the sale of construction materials. Between August and December last year during the company’s consolidation period the wholesale company 60 pct of its revenue from sales to companies outside the Murapol group.

“When looking at last year’s financial results of Abadon RE, it needs to be pointed out that they mainly came from the second half of the year when we successively added companies with various competencies that were responsible for particular segments of Murapol’s operations. Taking this into consideration, it seems that a revenue of over PLN 80 mln and a net profit of nearly PLN 10 mln is a good result for the preliminary phase of our consolidation and a relatively short period of the group operating for itself,” says Michał Sapota. “The order book for the next few years, which is based exclusively on internal orders from Murapol companies coupled with the conviction that outside orders will dominate, allow us to lay ambitious plans for the future,” claims Michał Sapota. With the acquisition of the Awbud construction group, which is currently being finalised, the company will be able to also offer services to both investors developing their projects on the commercial real estate market and to public utilities. Abadon RE has also announced that it has serious plans related to a growing demand for new generation prefabricated buildings.