Vistal Group in H1 2017 recorded 43% lower, sales revenues of PLN 116.1 million. At the level of gross profit on sales, the Group recorded a loss of PLN 99.4 million compared to PLN 36.3 million profit a year earlier, which was mainly due to the updating of long-term contract budgets, which the Group announced at the beginning of September this year. Net loss amounted to PLN 102.8mn vs. PLN 12.5mn profit a year earlier
The deterioration of the Group’s financial position in H1 2017 was significantly affected by unfavourable market conditions, i.e.: the downturn in the Offshore construction market, the difficult situation in the domestic infrastructure construction market, the increase in prices of construction materials and services.
The Management Board of Vistal Gdynia S.A. on 11 September 2017, with the support of experienced advisors, started talks with key financing banks. At the same time, the Company’s Management Board decided on 28 September 2017 to apply to the Court for the opening of remedia proceedings. During the remedial period, the Company plans to implement restructuring measures aimed at improving the Company’s financial situation.
We are struggling to heal the situation in the Company and are in talks on further cooperation with financial institutions. We are aware of the necessary operational and financial reorganisation of the Group. Our strategic goal is to restore balance in the Group and further continuation of business based on carrying out restructuring in the process of remedial – says Ryszard Matyka, the Chairman of the Board of Vistal Gdynia S.A.
The current difficult financial situation of the Group – applications for sanctions and bankruptcy of 6 out of 10 operating subsidiaries have an impact on the execution of contracts and delays in payments to employees. We are trying to secure the payment of salaries, some of them have already been settled – adds Ryszard Matyka, the CEO of Vistal Gdynia S.A.