The Management Board of MIRBUD S.A. with its registered office in Skierniewice (hereinafter referred to as the “Issuer”), in connection with the recommendations of the European Securities and Markets Authority (ESMA), hereby publishes information on possible impact of the spread of the SARS-CoV-2 virus and the COVID-19 disease on the operations, financial results and prospects of the Issuer and the capital group of the Issuer (hereinafter referred to as the “Group”).
As at the date of publication of this report, according to the best knowledge of the Management Board of the Issuer, it is not possible to precisely determine the impact of the coronavirus epidemic on the activity of the Issuer and the capital group of the Issuer in the medium- and long-term perspective.
In the short-term perspective, it is possible that the further spread of the coronavirus epidemic will have a negative impact on the financial results of the Issuer and the Group due to the following circumstances:
- In the area of construction and assembly services, there are no delays in the execution of construction contracts due to the state of epidemic threat. However, it is not ruled out that, if this state continues, delays in the execution of contracts may occur due to so-called force majeure events, including delays connected with:
- lack of continuity in the supply chains for construction sites,
- disruptions to the continuity of projects’ financing,
- absence of employees,
- subcontractors’ delays,
- restrictions on the functioning of public authorities,
- decisions of the Contracting Authority or state administration to suspend the works,
- other events which are difficult to predict.
- In the area of development activity, there are neither delays in the execution of contracts nor a significant decrease in the dynamics of sales of premises. However, if the state of epidemic threat continues, there may be negative financial consequences caused by:
- the drop in demand for premises,
- disruptions to projects’ financing,
- general contractors’ and subcontractors’ delays.
- In the area of commercial space lease, there is significant, unfavourable impact of the state of epidemic threat, which affects the financial results of companies: EXPO MAZURY S.A. and MARYWILSKA 44 Sp. z o.o. At the moment of preparing this report, the EXPO MAZURY Exhibition and Conference Centre in Ostróda is closed, whereas within the MARYWILSKA 44 Shopping Centre in Warsaw only a few tenants from the food, pharmaceutical and construction industries are entitled to conduct business activity. The above circumstances result in a radical drop in the revenues of both entities.
The Issuer reports that operations in all segments are, as a rule, conducted under continuous supervision. To the best knowledge of the Management Board of the Issuer, on the basis of the conducted analyses, the financial situation of the Issuer and the Group is stable.
The Management Board of the Issuer monitors the economic situation in Poland and worldwide on an ongoing basis, as well as the risks associated with the activities of the Issuer and individual companies in the Group. The Issuer indicates that, to the extent required by law, it will inform about new conditions having a significant impact on its operations, financial results and prospects of the Issuer and the capital group of the Issuer.
Signatures of representatives:
Jerzy Mirgos – President of the Management Board
Paweł Korzeniowski – Member of the Management Board