February 24, 2014 / 2:51 PM / in 4 years

Poland's Budimex nearly doubles 2013 net profit on Dan-Wood sale

WARSAW, Feb 24 (Reuters) - Poland’s largest builder Budimex - a unit of Spain’s Ferrovial - almost doubled its net profit to 300 million zlotys ($99 million) mainly on the sale of one its subsidiaries, it said on Monday.

Selling timber-framed house-maker Dan-Wood contributed about 200 million zlotys to group profits and, on the downside, the company took a 62-million charge on its landbank.

Core profits, excluding one-offs, were slightly lower year-on-year due to the construction slowdown in Poland, with investors waiting for an expected 76 billion euros ($100 billion) of EU funding, most of which will be spent on road and rail infrastructure.

Revenues fell to 4.8 billion zlotys from 6 billion in 2012 but, analysts said, margins remained robust.

“Revenue decline in 2013 is not a surprise to the market. It has been the year of the expected slowdown in anticipation of the new European Union’s 2014-2020 budget, which was finally approved in November 2013,” it said in a statement.

At the end of the year, Budimex had 1.56 billion zlotys net cash, compared to 1.2 billion a year earlier, and analysts see the company easily affording a record dividend, as signalled recently.

Budimex’s shares rose 4 percent by 1443 GMT. (Reporting by Pawel Bernat; Editing by Louise Ireland)

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