The consolidated turnover of the AVAX Group increased by 28% from continuing operations in 2021 and amounted to € 592.2 million while EBITDA from continuing operations amounted to € 51.0 million from € 62.3 million in the previous year. as announced today by the listed company.
The group notes that 2021 was “a year of restructuring due to the management’s strategic decision to focus on construction and concession / PPP activities.”
As it points out in a relevant announcement, in 2021 the Group produced a high free cash flow which was directed to the repayment of a significant part of the loan obligations. It also achieved a significant increase in the turnover of the construction sector and a large increase in the outstanding balance, laying the foundations for improving financial performance in 2022.
Analytically, according to the financial statements for 2021, o consolidated turnover of AVAX Group from continuing operations increased by 28% to € 592.2 million compared to € 462.7 million in 2020.
On a consolidated basis, taking into account the ongoing activities, the AVAX Group presented net profit after taxes of € 2.0 million in 2021 against a profit of € 10.5 million in 2020. Earnings before taxes, financial expenses and depreciation (EBITDA) of the Group from ongoing activities amounted to € 51.0 million in 2021 compared to € 62.3 million in the previous year.
The reduction of the Group’s profitability is due to the impact on construction costs from the international revaluation of construction materials, electromechanical equipment, fuels and transport costs, from the last months of 2020 until today. Price increases range between 25% and 70%, with no indication that this phenomenon will be reversed in the coming months. The Company ensures that the new contracts for the private sector and abroad include a price increase clause for materials and fuels. For domestic public works, price increases are covered for the most part by relevant legislation.
It is pointed out that the financial results of 2021 have been burdened with Extraordinary and non-organic charges due to write-off of doubtful receivables and other provisions amounting to € 15.7 million while in 2020 the corresponding charge had risen to € 17.1 million.
THE net lending & leasing obligations from ongoing activities of the Group during 2021 decreased to € 381.4 million from € 511.6 million at the end of 2020. There was a corresponding reduction in financial expenses, which amounted to € 22.3 million in 2021 compared to € 24, 3 from 2020.
Under the guidance of a financial advisor, the Company has initiated a process of discussions with interested investors for the 100% subsidiary Volterra SA. At present, there is no final outcome of the discussions or any agreement for the transfer of this subsidiary or part of it. AVAX will take into account the possible cessation of the relevant activity, in accordance with the conditions of IFRS 5, in the financial statements of 2021 which will be published on 27.04.2022.
At the end of 2021, the outstanding balance of the Group amounted to approximately € 1.4 billion, compared to € 1.0 billion at the end of 2020. After 31.12.2021, the group has signed new contracts, while there are several contracts to be signed, with a total value approaching € 0 , 8 billion Taking into account all the above projects, the outstanding balance amounts to approximately € 2.2 billion
Source: Capital
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