Company Economical Data
Company Financial Results - Commentary on period 2010 up to 2013 and expected trend of business in 2014
The evaluated period, in general assumed as the period of the economic activity decrease, belonged for ZVU Engineering a.s. to very successful ones, as reflected in the economy results. In 2010, respectively 2011, the company reported profit of EUR 1.570,000, respectively EUR 2.767,000. In 2012, the profit of EUR 236,000 and in 2013 the profit of EUR 1.420,000 was reached. Such results have been achieved at fluently continued investments in the Company´s immovable property and at running development projects. In compliance with the Company´s innovation program, there were initiated other development projects aimed to strengthen competitiveness of ZVU Engineering a.s. products and services. Required investment was made also in the fields of engineering computer technique and software and human resources.
The Company´s capability to achieve those results, even under generally negative tendencies on markets, is obviously brought about by traditional territorial and product diversification of turnover. In the years 2010, 2011, 2012 and 2013, the export percentage of total turnover accounted for 81%, 77%, 3% and 80% respectively. The decrease of turnover and export percentage in 2012 reflected the situation on market where the projects offered for implementation in that period were loaded with strong risks at extremely low profitability. In some cases even the required contractual price would not ensure the project implementation without losses, despite keeping quality standards and delivery terms. Facing that situation, the Company reacted by aiming its capacities more towards delivery of engineering services than EPC contracts.
Owing to its healthy financial position, the Company traditionally settles all coming commitments duly and in time. The Company does not utilize the alternative to finance its operative requirements by the bank credits, but in agreed contractual frame with the banks, uses only the possibility of issuance of the non-payment bank guarantees to cover its business needs, and security against exchange rate risks. Capital means for the given scope of business are on sufficient level and continue increasing. By eventual utilizing somebody else´s sources to implement financially demanding projects, the Mother Company ZVU´s financial background is strengthened.
The Company´s financial plan for 2014, based on contracted revenues and their gross profit margin, gives us confidence to maintain the Company´s profitable economy results.