FINANCIAL
POSITION
OF BUDIMEX
GROUP
Managing of finance at Budimex SA
The cash balance of Budimex SA as at 31 December 2016 amounted to PLN 2 272 110 thousand and was by PLN 288 974 thousand higher than as at 31 December 2015. In 2016, the Company paid out a dividend in the amount of
PLN 207 815 thousand, which was nearly the amount of the Company’s net profit for 2015. Generating cash at the above level was possible owing to: a significant increase in the Company’s profitability in 2016, favourable trends in working capital in the second half of 2016 and a sustained high net balance of contract prepayments from customers.
The Company continued loan agreements in 2016, under which banks provided Budimex, for a period of three years, with committed credit facilities in the total amount of PLN 270 000 thousand, to hedge against unplanned fluctuations in the Company’s financial liquidity in subsequent years. During 2016, the Company did not use these facilities.
The Company’s indebtedness under borrowings, bank loans and the concluded finance lease agreements is presented in the table below. The major part of indebtedness comprises the Company’s liabilities under finance lease agreements in respect of machines and equipment required to carry out road and railway construction projects. The indebtedness as at 31 December 2016 increased significantly as a result of an increase in the level of debt under finance lease agreements.
| Liabilities due to bank loans and borrowings and other external sources of finance: | 31.12.2016 | 31.12.2015 | 31.12.2014 |
|---|---|---|---|
| - non-current | 29 374 | 11 551 | 12 313 |
| - current | 18 463 | 18 382 | 20 401 |
| Total | 47 837 | 29 933 | 32 714 |
The following ratios illustrate the structure of finance at Budimex SA:
| Ratio | 31.12.2016 | 31.12.2015 | 31.12.2014 |
|---|---|---|---|
| Equity to assets ratio: (shareholders' equity) / (total assets) |
0,14 | 0,13 | 0,13 |
| Equity to non-current assets ratio: (shareholders’ equity) / (non-current assets) |
0,48 | 0,38 | 0,37 |
| Debt ratio: (total assets – shareholders’ equity) / (total assets) |
0,86 | 0,87 | 0,87 |
| Assets to equity ratio: (total assets – shareholders’ equity) / (shareholders’ equity) |
5,91 | 6,97 | 6,50 |
As at the end of 2016, all ratios illustrating the Company’s equity structure improved. This was possible owing to a material increase in equity resulting from an increase in the Company’s net profit, despite higher sales and an increase in total assets.
| Ratio | 31.12.2016 | 31.12.2015 | 31.12.2014 |
|---|---|---|---|
| Current ratio current assets) / (current liabilities) |
0,91 | 0,85 | 0,83 |
| Quick ratio (current assets – inventory) / (current liabilities) |
0,87 | 0,83 | 0,81 |
Liquidity ratios improved in relation to those recorded at the end of 2015. The Company’s situation with respect to liquidity and access to external sources of finance is currently very good and there are no risks to the financing of the Company’s activities in 2017.