Company Economical Data
Company Financial Results - Commentary on period 2016 up to 2020 and expected trend of business in 2021
The evaluated period, in general assumed as the period of revival of economic activity, belonged for ZVU Engineering to very successful ones, as reflected in the economy results. In 2016, respectively 2017, the company reported profit of EUR 1.305,000, respectively EUR 124,000. In 2018, the ongoing large-scale projects were not enough to influence the revenues of the given period and therefore the company failed to fulfil the financial plan in terms of revenues and its economic result showed a loss in the amount of EUR 392,000. In the financial year 2019 to 03/2020 the profit of EUR 1.345,000 and in 2020 a profit of EUR 194,000 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’s products and services. Required investment was made also in the fields of engineering computer technique and software and human resources.
The company's ability to achieve these results is apparently due to the traditional territorial and product diversification of sales. In 2016, 2017, 2018, 2019 and 2020, the share of exports in total sales was 43%, 20%, 0%, 96% and 4% respectively.
The year 2020 was marked by the SARS-CoV-2 virus pandemic. This pandemic and related measures have created problems both in managing internal processes and in terms of securing global procurement. Quarantines and illnesses negatively affected the staffing of design teams, disruptions in the supply chain disrupted tendering and the flow of deliveries. However, the company has managed all the problems so far and manages to keep the implementation of crucial projects within the contractual schedules.
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 2021, based on contracted revenues and their gross profit margin, gives us confidence to maintain the Company´s profitable economy results despite the difficult situation due to the SARS-Co-2 pandemic.