30 June 2020

AVAX Group Financial Results 2019: International expansion, internal restructuring and emphasis on competitiveness


7.0% increase in Turnover, 17.6% increase in EBITDA, with drop in Net Debt

New projects worth over €900 million in Greece, Cyprus, Iraq, Bulgaria and Croatia added during 2019, raising Work-in-hand to over €1.3 billion

AVAX Group announced its annual financial results for 2019, a year with particular challenges and a broader stagnation in the domestic infrastructure market for the largest part of the year. For AVAX Group, the year 2019 was marked by changes in its shareholding structure, lower debt, internal restructuring and notable successes in the addition of important projects internationally.

According to its financial accounts for 2019, AVAX (the “Company”) announces that consolidated turnover amounted to €575.9 million, registering 7.0% growth relative to €538.4 million in 2018. Turnover refers to continuing operations, following the discontinuation of activities in Qatar, amounting to €57.2 million in 2019. The result of the comparative year has also been restated, with turnover reduced by €44.1 million in 2018.

Taking into account continuing operations only, AVAX Group recorded a €11.2 million pre-tax loss in 2019 versus a €8.3 million loss in 2018. Financial results in 2019 are burdened with extraordinary and non-operating expenses for write-off of doubtful receivables and other provisions amounting to €28.9 million, whereas the equivalent write-offs and provisions in 2018 amounted to €16.9 million.

On a after-tax basis, the group recorded a €17.6 million loss from continuing operations in 2019 versus a €24.5 million loss in the previous year. Taking discontinued operations into account too, consolidated post-tax loss reached €43.1 million in 2019 as opposed to €26.3 million a year earlier.

Group earnings before interest, tax, depreciation and amortization (EBITDA) from continuing operations amounted to €58.1 million in 2019, registering 17.6% growth from €49.4 million a year earlier. Including discontinued activities, Group EBITDA reached €35.0 million in 2019 versus €49.9 million in 2018.

Group operating cash flow in 2019, excluding discontinued operations, recorded considerable increase relative to the previous year.

Discontinuation of operations is related to the business decision to sell the Group’s Qatar-based subsidiary units, due to worsening business conditions in the country and long delays in receipts for works delivered. The Company is at an advanced stage of negotiations with the local partner of those subsidiaries and the relevant contract for their ownership transfer is expected to be signed in the near –term.

As of the end of 2019, the Group’s work-in-hand exceeded €1.3 billion, with projects worth more than €900 million in Greece, Cyprus, Iraq, Bulgaria and Croatia added during 2019, confirming the Company’s objective for enhancing its presence in international markets.

It should be noted that consolidated financial accounts for 31.12.2019 do not reflect fair value totaling €226 million, due to the difference between fair value and equity valuation of the Group’s participations in concessions which are consolidated using the equity method.

Implementation of the Company’s strategic plan continued in 2020, with the completion of a €20 million share capital increase and divestments from non-core operating activities. At the same time, Company operations were promptly adjusted to conditions linked to the covid-19 pandemic, with a view to health and safety, while its footprint is growing with new projects delivered, such as the three new Athens metro stations and sections of the TransAdriatic natural gas Pipeline (TAP). For the near-term, based on the new circumstances which arise, the construction sector is expected to show improvement making use of EU financing opportunities, with infrastructure works performing their proven role in the country’s growth path.

AVAX group, based on its long-term strategy, is focused on the business areas of construction, concessions and energy, while aiming to improve its organic profitability from continuing operations and establish its position among competitors. Driven by quality, dedication, business innovation and know-how, the Group remains committed create long-term value for its shareholders, the economy and the society.

Maroussi, June 30, 2020