PRESS RELEASE
 
Since its start in 2004, Épduferr has grown to become the largest construction company in Dunaújváros and its region. During this time it has always been 100% Hungarian-owned. ÉPDUFERR performs general contracting and general contracting services throughout Hungary. In the last 18 years the Company has been involved in hundreds of successful projects.

Summary of financial results:
 
Summary data in eFt: 2023 I. half year 2022 I. half year
Sales revenue 2 953 626 2 612 535
Cost of materials -2 044 584 -2 085 465
Administrative expenses -146 130 -65 952
Staff costs -407 317 -169 814
Depreciation and amortisation -45 395 -33 504
Other expenses -24 904 39 490
Operating result 285 296 297 290
Financial result -10 458 23 740
Profit before tax 274 838 321 030
EBITDA 330 691 330 794
Equity value 1 852 855 2 099 661
Balance sheet total 4 009 313 3 484 78

Source: unaudited accounts of Épduferr Plc. for the first half of 2022 and 2023 and data from the Company's information system
 

Despite the difficult economic environment, Épduferr was able to increase its order book and sales compared to the previous half-year. The Company's performance in the first half of this year was in line with previous expectations. The Company's business policy has been adapted to the current economic trends and their negative effects have been mitigated.
Épduferr believes in green energy production as a source of energy for our long-term future. It is determined to participate in solving the problems of energy storage. Therefore, the Company has established GeoAkku Ltd. with a 50% stake in order to provide a commercially viable solution and technology for the storage of the generated green energy. GeoAkku Kft. has the rights to exploit this energy, which has also attracted the attention of MVM Zrt., Hungary's largest energy operator.

In the first half of the year, ÉPDUFERR Plc managed to win a sufficient amount of general construction work, which will ensure the stable and predictable operation of the construction business until H2 2024. In the current year and for the first half of next year, the Company's general construction business is operating at 80-90% capacity utilisation.

The newly launched steel structure manufacturing business in the year under review has achieved a turnover in excess of USD 400 million, partly as a direct supplier to construction projects and partly through its own markets, in line with the Company's expectations.

The performance of the Company's steel trading business has been negatively affected by the economic developments of the last period. Nevertheless, even if the steel trading business was not able to match its previous performance in terms of turnover and profitability, it still achieved sales results in terms of volume of goods that were almost comparable. The Steel Trade Business Unit's objective is to match last year's sales volume and to improve its profitability in the coming six months, despite the expected difficulties.

The Company's component manufacturing business, which temporarily slowed down its performance in Q1 of the year, was able to increase its performance again in the second quarter with new orders and partners. As a result, it is now operating at full capacity in one shift. 

Among the business lines, the building materials trade is the most exposed to the economic slowdown. To ensure that the Company can continue to operate and that it does not lose the supplier conditions it has previously enjoyed, it is giving priority to providing the necessary building materials for its own construction projects. The Company's priority is to maintain a steady trade despite the energy crisis and the shortfall in construction materials and demand. The Company's goal for 2023 is to increase its position in the County and maintain its leadership position in insulation sales. The Company remains committed to protecting the environment and aims to introduce more new, more efficient, energy-saving, "Green" products to the Trade's product offering. 

The Company's management remains convinced that an economic recovery could start in the second half of 2024. In the meantime, it will continue to develop its operations and maximise the use of its existing capacity, while increasing its efficiency. A skilled workforce is one of the most important prerequisites for achieving the objectives and results set. For this reason, it is of paramount importance for the Company to support the recruitment, hiring and retention processes developed and supported by HR management. A Family Friendly Workplace certification is currently being developed.

The previously formulated corporate strategy to create a General Contractor-Construction-Commerce and Manufacturing Company from a general contractor, which can diversify and expand its presence in the Hungarian and international markets in the coming years in a diversified but coordinated way, has been fulfilled. The Company expects an intensive growth in its markets, given the significant and exponential increase in the number of customer enquiries, to which its presence on the BSE will contribute. 
The efficient operation of the established business units, which make good use of synergies, will further strengthen its presence in its existing markets and create new opportunities for further development and expansion. The foundations are in place for Épduferr to continue on a dynamic growth path in an expected improving economic environment.

The full first half 2023 report can be downloaded from the ÉPDUFERR Investors page.

For more information:
István Chlebda - Investor Contact
email contact: ir@epduferr.hu