The upward trajectory of AVAX and its leading position in the field of construction is sealed by the announcement of the group’s results for 2023.
• Significant increase in turnover by 12.6%
• net profits of 10 million euros, mainly from the construction activity
• with a parallel impressive reduction in net borrowing by 17.2% from 2022 and 59.8% from 2020
• and a historical record of 3.3 billion euros in the backlog of projects (at 54% Private projects and PPPs)
are the main points that make up the strong image of the AVAX Group in 2023 and are expected to lead to particularly increased financial figures, already in 2024 and in the medium term. Within this context, the management will propose the distribution of a gross dividend of 0.03 euros per share, corresponding to 44% of net earnings from continuing operations for 2023.
Uptrend with strong foundations
In 2023, there is a 12.6% increase in the Turnover, which moved to 453.5 million euros, compared to 402.7 million in 2022. At the same time, the impressive reduction of the company’s Net Debt by 37.9 continued for another year million euros in 2023 (-17.2% from 2022, and -59.8% from 2020), while a historic high is noted in the Backlog of Projects at €3.3 billion. In fact, although AVAX “runs” the largest public project in the country, Line 4 of the Athens metro, the company does not rely on public projects, but on the contrary, in the portfolio of outstanding projects, private projects and PPPs represent 54% of the total .
The geographical distribution of the Group’s backlog is also noteworthy, with foreign projects representing 22% of the total.
Profits after Taxes from continuing operations amounted to €10 million, compared to €12.9 million in 2022, a year in which an extraordinary profit of €9.4 million from the sale of a stake had been included.
New flagship projects in the portfolio
2023 was a particularly successful year in terms of the undertaking of new projects by the Group, given that during it initial and supplementary contracts for public and private projects, subcontracts and services with a total value of 1.44 billion euros were signed, following the signing of contracts totaling amounting to 875 million euros in 2022.
The value of the Group’s portfolio of concessions, PPPs and marinas remains high, offering high projected dividends in the long term, while the Group selectively participates in the bidding processes for new concessions and PPPs in our country.
Consistency in strategic targeting in the field of construction
After the sale of a portfolio of 112MW RES projects and the participation in the concession of the Rio-Antirio Bridge in 2022, the Group continued in 2023 to disinvest from mature non-strategic participations, in order to focus on the field of constructions, concessions and real estate which show positive growth prospects in the coming years.
Construction sector performance improved, with profit margins widening. In particular, the construction EBITDA margin increased to 6.2% in 2023 from 4.7% in 2022, a trend which is expected to continue as the pace of implementation of new projects accelerates.
It is pointed out that the total reduction in net borrowing from the end of 2020 reaches 60%, with the result that despite the rise in borrowing rates, the Group’s financial costs will be kept at €20.8 million in 2023 against €20.7 million in 2022.
The Chairman of AVAX Group, Christos Ioannou, said: “AVAX Group continues to pick up speed and move steadily forward. In 2023, we saw the flagship projects we have already undertaken start to be reflected in our financial performance and our regular profits come from our core construction business. With the backlog at historically high levels, at €3.3 billion, with new projects undertaken in 2024, as well as our Group’s proven expertise in complex construction projects, we are laying the groundwork to accelerate our pace in 2024 and the next years”.
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