AVAX Group Financial Results 2020
Return to profitability and unchanged turnover in a challenging year
Prospects of substantial increase in work-in-hand with the addition of new projects in 2021
The AVAX Group announces its annual financial results for 2020, a year with particular challenges due to the sudden decline in global economic activity caused by the external, non-business factor of the covid-19 pandemic.
More specifically, according to the financial statements for 2020, the consolidated turnover of the AVAX Group despite the crisis reached €576.6 million compared to €575.9 million in 2019.
On a consolidated basis, the AVAX Group turned in a pre tax profit of €3.3 million in 2020 against a loss of €11.2 million in 2019, following a long period of loss-making results.
On a net after tax basis, the Group in 2020 recorded a profit of €6.5 million compared to a loss of €17.6 million in the previous year. The Group’s profit before taxes, financial expenses and depreciation (EBITDA) in 2020 amounted to € 61.0 million, compared to € 58.1 million in the previous year.
The positive performance of the Group, both in terms of revenue and profitability, against an adverse global business backdrop, was based on the profitability of ongoing projects, mainly international EPC energy-related contracts, and the receipt of dividends from concessions. The domestic energy and RES market, accessed through subsidiary Volterra, also contributes significant revenue and positive operating profitability.
It is noted that 2020 financial results of have been burdened with extraordinary and non-operating charges due to write-off of doubtful receivables and other provisions amounting to €17.6 million, while in 2019 the corresponding charge had amounted to €26.2 million.
The year 2020 for the AVAX Group was characterized by the increase of the aggregate control of main shareholders, the capital increase and the organizational transformation at administrative level to face up to the challenges of the new era.
At the end of 2020, the Group’s work-in-hand amounted to approximately €1.0 billion, declining compared to the previous year due to a reduced rate of addition of new contracts in 2020. However, taking into account the new projects already signed in the first months of 2021 and the contracts pending to be signed, the outstanding balance of the Group is approximately €2.0 billion.
Group management looks forward to a significant increase in the volume of construction activity in the long run in our country, thanks to the National Plan for Recovery and Sustainability of the period 2021-2026 for Greece, which includes a number of projects related to the construction sector and is based on a fundamentally different economic model in relation to former financial support packages for Greece.