ABM Solid's strategy goes global
ABM Solid capital group has finalized a contract worth zł.20.8 million for the construction of a military facility for NATO. Based on the contract, the Tarnów-based firm will increase this year's portfolio of activities to zł.167 million - a 65-percent increase over last year. ABM Solid's military contracts alone are worth zł.30 million. This is the sixth construction contract awarded to the company this year and executives expect to acquire several more by the close of 2007.
"The military contract confirms the integrity of our strategy, which, in large measure is based on the firm's expansion into new areas of construction activity, as well as geographic expansion," says Marek Pawlik, ABM Solid's president. As part of its corporate strategy, the company last year adjusted its management system to meet NATO requirements. It was subsequently awarded the AQAP 2110:2003 quality certificate, which affirmed ABM Solid's position among global construction firms and made it eligible for substantial military contracts with organizations such as NATO.
Based on Q1 revenues of zł.31.7 million this year, ABM Solid's net profits reached zł.2.3 million - a fourfold increase over the same period last year. Annual revenue for 2006 amounted to zł.196.3 million, nearly double that of the previous year. Pawlik attributes the company's consistently improved results to the diversity of the firm's portfolio of activities and expresses confidence that revenues will continue to grow as the firm acquires contracts outside Poland's borders. The capital group, whose subsidiaries include ABM Invest and Bio Solid, specializes in the construction of large-scale sites such as production plants, sports stadiums, office buildings, roads and sewage systems.
Construction projects currently underway include a zł.26.4-million sports and recreation complex in Żyrardów, including a swimming facility and ice-skating rink. The complex will be completed in Q3 2008. ABM Solid is also working on a two-phase development of an academic research center and library in Nowy Targ - an investment worth zł.42 million to be completed in Q3 2010.
The company is planning a debut on the stock exchange by the end of the year and is currently awaiting approval of its issue prospectus by the Polish Financial Supervision Authority (KNF). ABM Solid's Pawlik cites Ukraine as a plausible location for future contracts. He says that the company's primary strategic goal is inclusion in the top 20 largest and most profitable construction firms in Poland.
