Erbud News

Concluding a contract by the Branch Office Wrocław for construction of the „Galeria Tęcza” Shopping Centre in Kalisz

Mon, 26 Jul 2010 14:47:21 GMT

On 22 July 2010, Erbud SA signed a contract with EF PROGRESS I Sp. z o.o. (a subsidiary of Rank Progress SA) for works on the „Galeria T�cza” project in Kalisz.
The contract value is PLN 65 million.
The building is planed to be completed by 15 October 2011.

Another contract of Erbud's Branch Wroclaw to build the "Innopolis Wroclaw" Centre

Tue, 20 Jul 2010 07:51:21 GMT

On 21 June 2010, the Branch Office Wroclaw of Erbud SA signed a contract for construction of the “Innopolis Wroclaw” project. Wroc�awski Park Technologiczny SA is the investor. (…)

Erbud will build a complex of office and laboratory structures named “Innopolis Wroclaw”, the Delta and Omega building in General Contracting for the total amount of PLN 37,927,758.20.
The contract is scheduled to be completed within 15 months from the day of its signing, i.e. from 21/06/2010 to 21/09/2011.

A contract for the construction of road border checkpoint in Budomierz has been signed

Tue, 11 May 2010 08:02:36 GMT

Erbud S.A., as the Leader of the Consortium consisting of Erbud S.A. and Wolff & M�ller GmbH & Co. KG. KG, Stuttgart, signed on 05/05/2010 an agreement with Wojewoda Podkarpacki (Governor of Podkarpackie region), located in Rzeszow at St. Grunwaldzka to execute building works under an open public tender procedure on road border crossing in Budomierz. The contract value amounts to PLN 118.55 million. Duration of works is scheduled for 36 months from the date of concluding the contract.

Branch Office Wroclaw will construct another shopping centre - Galeria Twierdza in Zamość. That is the seventh commercial facility build by Erbud over last 2 years

Wed, 28 Apr 2010 12:34:22 GMT

On 26 April 2010, Erbud concluded a contract for constructing the Galeria Twierdza Shopping Malll in Zamo��. The contract, to be performed from May 2010 to March 2011, is worth PLN 47 m. E.F. Progress III Sp. z.o.o. is the investor and customer.

ERBUD will build a residential complex in Bielany for Grupo Lar Real Estate Polonia

Wed, 28 Apr 2010 12:33:09 GMT

On 21 April 2010, Erbud signed a contract to construct a housing and service complex in Bielany, Warsaw. The contract, to be executed from April 2010 to September 2011, is worth PLN19.99 m. Grupo Lar Real Estate Polonia Sp. z o.o. headquartered in Warsaw is the investor and customer.

New contracts of Wroclaw Branch in 2010

Tue, 06 Apr 2010 09:14:22 GMT

On 1 April 2010, the Wroclaw Branch of Erbud S.A. signed a contract for construction works with Zak�ad Remontowy Energetyki (ZRE) – Energy Industry Repair Company – in Katowice.
Erbud will build a production hall for the ZRE as General Contractor. The contract value is PLN 27.23 million. The project will be completed by 14.01.2011.
The Wroc�aw Branch of Erbud S.A. also signed at the end of March 2010 two contracts for the construction of:
- Leroy Merlin Leroy-Merlin DIY supermarket in Legnica, worth PLN 17.85 m., and
- Cinema in Walbrzych, with a value of PLN 10.30 m.

The first contract of ERBUD S.A. in 2010 - signed by the Warsaw Branch

Mon, 25 Jan 2010 11:44:04 GMT

On 21 January 2010, the Warsaw Branch of ERBUD S.A. signed a new contract for performance of the first stage of construction of ADRIA multifamily residential complex, located in Warsaw at Jugos�owia�ska Street.

Dom Development S.A. with headquarters in Warsaw is the investor. (…)

The value of the first phase of works on the multifamily housing with service area, underground garage and the technical infrastructure is PLN 48,265,778.

Total cubic capacity of the building is over 97.566 m3. The project provided by the investor assumes building of 256 apartments, 295 parking places in the basement garage and 10 service premisses.
Duration of the I stage of construction of two multifamily buildings has been agreed for 18 months from the delivery date of the building site; completion is expected in July 2011.

ERBUD S.A. won a court hearing in the second instance on ordering construction works in Budomierz

Wed, 13 Jan 2010 14:42:42 GMT

The Executive Board of ERBUD S.A. announces about winning the trial of second instance on order for construction works in open contract award procedures for the development of Building a road border crossing in Budomierz. The Consortium consisting of ERBUD S.A., the Leader of the consortium, based at Pu�awska 300 A, 02-819 Warszawa, and Wolff & Muller GmbH & Co. KG, based at Schwieberdinger Strasse 107, 70435 Stuttgart in Germany has submitted in this procedure the lowest tender meeting the terms of the Specification of Essential Terms and Conditions of the Contract for evaluating the tenders, where the price was an only bid evaluation criterion. (…)

No. / Specified contract data
1) The date of pronunciation of a sentence by the District Court in Rzesz�w (second resort) on determinating the public biding for raising of a road border crossing in
Budomierz: 18.12.2009;
2) Investor: Wojewoda Podkarpacki, ul. Grunwaldzka 15, 35-959 Rzesz�w;
3) Price quoted by the Issuer: PLN 144,635,383.42 gross (PLN 118,553,592.97 net);
4) Subject of contract: “Building a road border crossing in Budomierz”.
5) Duration of works: Deadline for completion and commissioning the subject of the contract (Road border crossing in Budomierz) – 36 months from the date of signing the deal.

For further information please contact:

Ms. Agnieszka G�owacka
Erbud S.A.
Direct: +4822 548 70 00
Mobile: 0 604 776 410
e-mail: agnieszka.glowacka@erbud.pl

ERBUD Group has acquired new contracts in the German market

Wed, 13 Jan 2010 14:41:23 GMT

On 19 November 2009, the GWI GmbH based in Germany, a subsidiary of the ERBUD Group, signed two contracts for the construction of residential buildings in Germany. The value of the contracts to be implemented by the end of August 2010 is of about € 8 million total. The company Conesta Project Herkenrath GmbH & Co. KG is the investor and ordering customer. (…)

GWI GmbH, which is a subsidiary company of Erbud S.A., has won contracts to raise two residential homes for the elderly in Germany. Conesta Project Herkenrath GmbH & Co. KG is the investor of this project. Completion is scheduled end of August 2010. The net value of the first contract is € 3.45 million and of another – 4.45 million.

During the I-III quarter of this year the Group has signed 11 contracts to be performed abroad for a total value of PLN 56.6 million. At the end of September, the Group’s revenues from sales abroad amounted to PLN 140.2 million, representing 21% of the Group’s consolidated turnover.

Erbud's Group financial results for I-III Q 2009

Mon, 04 Jan 2010 10:15:28 GMT

Stabilization of revenues and growth of net profitability of the Group to 5.3%.
More than PLN 1 billion in the portfolio of orders.

Consolidated financial results of ERBUD Group in accordance with IFRS

PLN million	III Q 2009	III Q 2008	y/y change	I-III Q 2009	I-III Q 2008	y/y change
Sale	279.2	284.2	- 2%	667.6	782.4	-15%
EBIT	14.2	26.2	- 46%	47.8	48.8	-2%
EBIT margin	5.1%	9.2%	-	7.2%	6.2%	-
Net profit	11.9	20.9	- 44%	35.1	36.7	-4.5%
Closing balance of cash	-	-	-	107.4	63.5	+70%

(…)
GROWTH IN CONTRACTS COCLUDED despite the slowdown in the industry

During the I-III Q of 2009, the Group Erbud has signed 116 contracts total amounted to PLN 1037.7 million in relation to 84 contracts for PLN 800.9 million signed in the corresponding period of 2008.

Record level of contracting in the first half of this year resulted in the stabilization of the Group revenue in the third quarter of 2009. In the period of July – September, the income of Erbud Group was nearly the same as in the corresponding period of previous year, i.e. PLN 279.2 million (decrease of 2% yr/yr), while double-digit drops in revenue recorded in the I and II quarter of this year.
Positive impact on the Group’s consolidated income had, next quarter, surge of sales in the segment of road engineering, and sales abroad, while the stability of revenue from real estate operations took place. In the 3 Q 2009 the Group’s revenues from the road engineering segment increased by about 55% year-on-year to a level of PLN 22.8 million, while revenues from construction activities abroad amounted to PLN 29.1 million, what was an increase of 116% year-on-year. During the reported period, the development segment generated revenues on the level of 2008.

Over the I-III Q of 2009, the Group had revenues of PLN 667.6 million i.e. a decrease of 15% y/y, mainly due to stagnation in the investment market in the country in the first months of this year.

IMPROVING profitability

Only in the III quarter of this year the Group recorded a decline in operating profit by 46% y/y to a level of PLN 14.2 million. Group’s net profit fell by 44% y/y to PLN 11.9 million.
During this period, the costs by type declined by 9% in relation to income decrease of 2%.

Fall of Group profits in the third quarter of this year results from the peak high base of profits in the corresponding period of 2008. Several major contracts undertaken by the Group has been completed within the third quarter of 2008 and settled with their actual profit margins. In accordance with the principles of accounting, during the duration of the contract the Group settles margins with a minimum level.

Year to 30.09.2009, the Group achieved an operating profit of PLN 47.8 million, what constituted a decrease of 2% y/y. The Group net income cumulatively at the end of September amounted to PLN 35.1 million, i.e. 4.5% drop y/y.
The Group improved its profitability: year to the end of September EBIT margin reached 7.2% to 6.2% in 2008. The net margin was 5.3% to 4.7% in the corresponding period of 2008

Increase of the profitability of the Erbud Group is a result of consistent implementation of the strategy of focusing on medium sized projects with deadlines of less than 1.5 year. Another factor affecting the high level of profits gained is a sustained decline in prices of materials due to the slowdown in the construction branch.

More than PLN 1 billion in the PORTFOLIO OF CONTRACTS
At the end of October the Group has an orders portfolio with a value of PLN 1,050 million. It is anticipated that approximately 72% of the current portfolio will be executed in the following years, mainly in 2010.

The Group has a diversified portfolio of contracts: 62% of orders as regards the value is carried out for private investors, and 38% of contracts for public ones.

The total value of bids submitted by the Group end of September 2009 amounted to ca. PLN 3.7 billion.

New areas of investment create the prospect of further dynamic development of the company
in the construction business. The Management Board hopes for further development of the Group in the segment of road engineering and energy sector within the next 2-3 years.

The Group intends to increase the order portfolio for road works, so that their share in total structure of revenues will doubled. Currently, the road-engineering segment represents approximately 8.2% of sales in the Group’s structure. In the next 2-3 years the power building sector should be 10-15% of the Group’s turnover. At the end of September, sales from this segment amounted to 4% of the Group’s turnover.

For further information please contact:
Mr W�odzimierz Czystowski
Erbud S.A.
Phone: +4822 548-70-17
e-mail: wlodzimierz.czystowski@erbud.pl

ERBUD S.A. invests in building facilities for power

Mon, 04 Jan 2010 10:06:48 GMT

On 7 October this year ERBUD S.A. acquired 69.7% stake in JF Inwestycje, which specializes in building facilities for power industry. The value of transaction of acquiring shares in the company’s increased share capital amounted to PLN 1.49 million. The deal is a consequence of the adopted strategy of development of the Erbud Group in power construction segment. (…)

Erbud acquires 70% stake in JF Inwestycje
On 7 October this year Erbud S.A., joined the Company JF Inwestycje Sp. z o.o. in Katowice, which specializes in building facilities for power, including 230 new issued shares. As a result Erbud S.A. has become a shareholder having 69.7% of shares JF Inwestycje Sp. z o.o.
The transaction value amounted to PLN 1,490,000.00.

JF Inwestycje is an entity acting in the energy sector in the south part of the country.

Development of segment of power construction
In August this year the Executive Board of ERBUD established a Branch of Power Engineering Construction in Katowice. The new branch will develop the Group’s offer in the area of building for power industry. Also in August this year the Group signed its first contract on power works in the country for execution of buildings’ foundations in Siekierki Power Plant in Warsaw. During last years the Group has gained experience the energy sector in foreign markets, where – inter alia – were constructed power plants in France and Germany, the uranium enrichment plant in France. At present Erbud carries out the project of coal power station in Wilhelmshaven, Germany. In connection with plans of expansion and modernization of the energy industry in the country on basis, inter alia, of EU funds, the company’s Executive Board sees the growth opportunities in this sector in the coming years. The Executive Board does not preclude further acquisitions of entities in this market area.

For further information please contact:

Ms. Agnieszka G�owacka
Erbud S.A.
Direct: +4822 548 70 00
Mobile.: 0 604 776 410
e-mail: agnieszka.glowacka@erbud.pl

Erbud S.A. increased its involvement in real estate company Budlex. Plans cover further country-wide development of Budlex in residential and commercial segment

Mon, 04 Jan 2010 10:05:08 GMT

On 29 September 2009, the company Erbud S.A. signed a preliminary agreement on acquiring 25% stake in Budlex. As a result of the transaction Erbud S.A. will become a sole owner of the developer company. The decision regarding changes in ownership is accompanied by strategic decisions and personnel changes in the management staff. Budlex, the leading housing developer in the region of Kujawsko-Pomorskie, intends to develop its range of services in residential and commercial segment all over the Polish market. In mid-September, the owners have appointed a new management board of the company which will be responsible for implementing the Budlex Group development strategy. The outgoing board will remain in the company providing counselling. (…)

Increasing involvement in the company Budlex
On 29 September 2009, the Erbud S.A. signed with Euroenergia Sp. z o.o. -as the Seller – a preliminary agreement to buy 25% stake in Budlex. On basis of this agreement Erbud S.A. and Euroenergia committed themselves to conclude up to 30 November 201 a sale contract, under which Erbud SA will take over 25% of the share capital of Budlex Sp. z o.o.

After the transaction Erbud S.A. will have a 100% stake in Budlex Sp. z o.o.

The transaction value amounts to PLN 25 million and will be paid in four instalments starting from July 1, 2013. The first instalment of EUR 7.6 million will be paid by April 1, 2010 and the last one of EUR 5.67 million by July 1, 2013.

Development of an offer for the residential and commercial market in the country
In September this year, the owners of Budlex have taken the strategic decision to further develop the company country-wide in the real estate market. The strategy of the Budlex Group primarily forecasts the further dynamic development of housing offer in the country. Budlex is the leader of the local market, housing developer with a recognized brand and solid business basis. By the decision of the owners, the great business potential will be used to build the company’s position in new prospective commercial market segments.

Already for several years Budlex is a leader among developers of Kujawsko-Pomorskie region. Despite the crisis in the industry, the company has a stable financial situation and a satisfactory level of sales. The company also has a portfolio of prospective investments. Budlex is one of the few developers in the country that starts carrying out new housing investments, such as extension of Winnica Residential Quarter and Our Housing Estate in Toru� and development of Green Terraces in Bydgoszcz. The priority of the Board will be further development of the company, either through expansion into new geographic markets i.e. the development of a country-wide real estate market, and entry into new sectors of the building industry, such as commercial construction.

Changes in the management staff
Strategic choices are accompanied by changes in the management of the Group. Entry into new segments of development market and geographic expansion have required supporting the management staff of Budlex with persons having knowledge and international experience in this field. In mid-September this year, the owners of the company designated new board members responsible for implementing the development strategy of the Group. Mr. Igor Paw�owski was appointed President of the Budlex Executive Board and Ms. Beata Kijowska was appointed Vice President. The outgoing board will remain in the company providing counselling.

Igor Pawlowski, President of Budlex – Graduate of Construction and Economics of Enterprises of University of Wurzburg, specializing in business organization. In the 90s he has worked in managerial positions in Heitkamp and Bilfinger Berger, the construction corporations operating in Germany. 1999-2008 he was a member of the Management Board and CFO of Hydrobudowa-6 SA owned by Bilfinger Berger, responsible, inter alia, for restructuring, mergers and development projects. Recently he managed the Remondis Branch in Poland, a leading international water and environmental service company. In addition, he has served as the member of supervisory board of Warszawskie Przedsi�biorstwo Rob�t Drogowych S.A. and P�ockie Przedsi�biorstwo Rob�t Mostowych S.A.

Beata Kijowska, Vice-President of Budlex – for 16 years she has been connected with the commercial real estate market. Ms. Kijowska has graduated from Technical University of Gda�sk, the Faculty of Architecture,and the Gdansk Foundation for Management Training. Titles granted: Licence to Design an MBA. She has participated in various projects in the area of offices, hotels, shopping and infrastructure. She was responsible for acquiring land and development projects, organization of joint ventures as well as preparation and supervision of projects performance. Previously, she has worked, among others, for NDI S.A., a leading property developer in Tri-City (as Design Director, Corporate Governance Director), for Polish-Belgian construction company Cocefi Poland (Board Member) and the investment fund Meinl European Land, where she has served as Director for Acquisition.

For further information please contact:

Mr. Maciej Wyrzykowski
Erbud S.A.
Phone: +4822 548 70 00
e-mail: maciej.wyrzykowski@erbud.pl

Financial results of the ERBUD Group for the I half of 2009 - net profits soar

Tue, 15 Sep 2009 14:13:29 GMT

In the first half of 2009, the ERBUD Group has reached 48.6 percent increase in operating profit y/y to a level of PLN 33.6 million. The Group net profit amounted to PLN 23.3 million, that is an increase of 47.2 percent y/y.
At the end of August, the Group’s portfolio of orders to be executed in 2009-2010 amounted to PLN 1.200 million towards to PLN 795 million in August last year. (…)

The Group has concluded 71 contracts for PLN 776.3 million total as compared with 15 contracts which were signed in the same period of 2008 and amounted to PLN 214 million. The main agreements were: construction of the AGORA Bytom Shopping Centre worth PLN 186.5 million and of the hospital of Invasion Medicine Centre in Gdansk valued PLN 157.4 million.
Currently, contracts from commercial construction segments (including 12 shopping malls), public utilities (6 offices, 3 hospitals and 1 museum), road engineering (52 contracts for redevelopment of local roads and one contract for the rebuilding of national road No. 1) and 3 agreements in the segment of power plants construction.
The Group has closed the period of first six months of this year with a revenue of PLN 388 million PLN. The sales soar in Western Europe has positively impacted on the Group’s income in the 1st half 2009. At the end of June, the revenues from construction activities abroad amounted to PLN 111.1 million, what made an increase of 77.
The Group entered in the second half of 2009 with the portfolio of contracts worth PLN 1,200 million; approximately 45 of the execution of the current portfolio is planned for 2009.
Stable cash inflows, high cash – more than PLN 105 million at the end of June 2009 and access to debt finance ensure the safe conduct of ongoing building contracts, and show executing potential for further quarters of the year.

ERBUD performs the next stage of construction of "Przy Promenadzie" Housing Estate in Warsaw

Tue, 25 Aug 2009 07:45:12 GMT

On 22 June 2009, the Warsaw Branch of ERBUD SA has signed a new contract for the construction of the phase III “Przy Promenadzie” Housing Estate. The company “Warszawa przy Promenadzie Sp. z o.o.” based in Wroc�aw is an investor.
The value of the works on multi-family residential building with underground garage and service amounts to PLN 25.6 million net. (…)

The total cubature of the object is more than 40,000 m3. The design delivered by the investor provides for 85 flats and 186 parking places in underground garage.
The execution time for the phase III of the housing estate located at Streets Mikolajczyka / Rechniewskiego in Warsaw shall fall within a period of 16.5 months from the delivery date of valid building permits and logging permission.

The first road engineering contract signed by the Erbud consortium

Tue, 25 Aug 2009 07:45:24 GMT

On 5 August 2009, a contract for design, development and strengthening of the national road No. 1: Gda�sk – Cieszyn, part Torun – Wloclawek (12 km) was signed by ERBUD SA. The contract will be carried out by a consortium established consisting of ERBUD SA as a leader, PRM Mosty –��d� S.A and PRD SA (a subsidiary of ERBUD SA controlled in 100 percent). (…)

The General Directorate of National Roads and Motorways, Division in Bydgoszcz is an investor of this project.
Gross value of the contract amounts to PLN 58,764,050.99.
The work on the part of Torun – W�oc�awek shall start no later than 30 days from the date of signing the contract and the completion shall be within 12 months from the date of signing the contract (excluding the period between 15 December and 15 March).

ERBUD will reconstruct the Voivodeship Hospital in Rzeszów

Tue, 23 Jun 2009 11:20:02 GMT

On 5 June 2009, Erbud won the trial in which the contract for the development of the building of Regional Rehabilitation and Education Centre for Children and Youth in the Voivodeship Hospital No. 2 in Rzesz�w was decided in the public tender procedure. (…)

The Executive Board assumes that the agreement with an investor will be concluded during the next 2 weeks. The completion will be within 26 months from the date of signing the contract worth PLN 41.9 million net. The value of the works scheduled for this year is about PLN 15 million.

This is the second contract for building hospital facilities in the country gained by Erbud this year. In May, the Management of the Company signed a contract for the construction of the Invasion Medicine Centre of the Medical Academy in Gda�sk with a value of PLN 157.4 million.

Contract signed for the construction of the Invasion Medicine Centre of the Medical Academy in Gdańsk

Tue, 23 Jun 2009 11:19:13 GMT

The Executive Board of Erbud S.A. entered today into an agreement with the Medical Academy in Gda�sk for the construction of the Invasion Medicine Centre (CMI) of the Medical Academy in Gda�sk. (…)

It will be a six-storey building, including one underground level with parking places of an area of 7,072 sq. m.
The total object net area: 54,400 sq. m.

Net contract value: PLN 157,443,900.15.
Gross contract value: PLN 192,081,558.19.

In 2009, building works worth PLN 60 million will be executed.

The commencement will be within 10 days from the date of signing the contract. In accordance with the contract provisions, the completion should take place within 20 months from the date of signing the agreement.

Acceptance by the Supervisory Board of Borhestad Properties AS

Thu, 26 Mar 2009 08:39:33 GMT

On 23 March 2009, the Supervisory Board of Borhestad Properties AS accepted the contract terms for the construction of AGORA BYTOM Shopping and Entertainment Centre.
Braaten Plus Pedersen + Partners Sp. z o.o. is an investor of this project.
The value of the contract that will be carrying out by the ERBUD SA in the years 2009-2010 amounts to PLN 186,518,999. Works of approximately PLN 70 million will be performed this year.

Signing of a contract between ERBUD International and Kraftwerk Wilhelmshaven GmbH &. Co.KG

Wed, 11 Mar 2009 09:52:59 GMT

On 2 March 2009, a subsidiary of ERBUD SA, the company named ERBUD International Sp. z o.o., based in Toru�, signed a contract with the consortium Kraftwerk Wilhelmshaven GmbH & Co.KG for execution of reinforced concrete shall works on the power station. (…)

The contract value amounts to PLN 17,773,710 and the performance is provided for the period of 2009 – 2010 (01.04.2009 – 30.11.2010).
This is another contract executed by ERBUD International in the energy sector in Western Europe.

Letter of Intent signed with the SWISSMED Health Centre S.A. in Gdansk

Wed, 11 Mar 2009 09:57:08 GMT

On 18 February 2009, the Executive Board of ERBUD SA, based in Warsaw, signed a Letter of Intent with the SWISSMED Health Centre, based in Gdansk. The subject of this Letter of Intent is starting cooperation in the field of construction of hospital facilities. (…)
The planned cooperation will cover the acquisition of real estate in order to construct hospitals as well as the organization of a formal structure of projects, including complex preparation of investment, organization of financing, design, construction and delivery of finished hospital facilities to SWISSMED in ready state.
As a part of planned cooperation ERBUD will act as the organizer and performer of investment for SWISSMED, which will be a user and final investor.
SWISSMED is a leading private hospital operator and is recognizable among other players on the medical services market in Poland thanks to a modern hospital located in Gdansk constructed in 2004.