Construction firms' revenues increase 2% y/y in H1, their financial situation could worsen - Deloitte

Ten biggest construction companies listed on the Warsaw Stock Exchange have recorded a 2 percent increase year-on-year in revenue in the first six months of 2017, Deloitte stated in a recent report. Budimex, the largest construction firm in Poland, saw revenue increase of 12 percent to a level of PLN 2.7 billion. According to Deloitte’s experts the limited demand for construction services over the past few years has put pressure on offered prices which often fell below the amounts included in investor’s budgets. “This means that the budget margins are under strong pressure. Additional risk arising from the significant cumulation of construction work scheduled for 2018-2020 could lead to higher prices of building materials and increased problems in finding qualified workers, … which could affect companies’ future financial results. In effect, despite the seemingly positive signals, construction firms could see their financial standing and their share prices deteriorate,” the report stated. Last year, the revenues of the top 15 construction companies in Poland fell by 2.7 percent to a total of PLN 28.63 billion.