Separate financial statements
Mostostal Warszawa S.A.
prepared in accordance with
the International Financial Reporting Standards
as approved by the European Union
for the period from 01.01.2023 until 31.12.2023
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
2
CONTENTS
SEPARATE PROFIT AND LOSS ACCOUNT......................................................................................................... 4
SEPARATE STATEMENT OF COMPREHENSIVE INCOME................................................................................. 4
SEPARATE STATEMENT OF FINANCIAL POSITION .......................................................................................... 5
SEPARATE CASH FLOW STATEMENT ............................................................................................................... 6
SEPARATE STATEMENT OF CHANGES IN EQUITY .......................................................................................... 7
1. General information ................................................................................................................................. 8
2. Composition of the Management Board and the Supervisory Board .................................................. 8
3. Approval of the Financial Statements .................................................................................................... 8
4. The basis for the preparation of the separate financial statements for 2023 and the accounting
principles ............................................................................................................................................................ 8
4.1. The basis for preparation of the financial statement ................................................................................... 8
4.2. Compliance statement ................................................................................................................................ 9
4.3. Estimates and judgements ......................................................................................................................... 9
4.4. Functional currency and reporting currency ............................................................................................. 10
4.5. Shares in subsidiaries, associates and other entities ............................................................................... 10
4.6. Joint arrangements ................................................................................................................................... 10
4.7. Related party transactions ........................................................................................................................ 11
4.8. Contingent assets and Contingent liabilities ............................................................................................. 11
4.9. Conversion of items expressed in foreign currencies ............................................................................... 11
4.10. Property, plant and equipment ................................................................................................................. 11
4.11. Investment property .................................................................................................................................. 12
4.12. Recoverable amount of long-term assets (intangible assets, property, plant and equipment) .................. 12
4.13. Financial instruments ................................................................................................................................ 12
4.14. Inventory ................................................................................................................................................... 14
4.15. Cash and cash equivalents ...................................................................................................................... 14
4.16. Equity ....................................................................................................................................................... 14
4.17. Provisions ................................................................................................................................................. 14
4.18. Retirement severance pay ........................................................................................................................ 15
4.19. Lease ........................................................................................................................................................ 15
4.20. Revenue ................................................................................................................................................... 15
4.21. Income tax ................................................................................................................................................ 18
4.22. Government grants ................................................................................................................................... 18
4.23. Net earnings (loss) per share ................................................................................................................... 18
4.24. Cash Flow ................................................................................................................................................ 19
4.25. Changes in the applied accounting principles .......................................................................................... 19
5. Reporting by market segment ............................................................................................................... 20
6. Revenue and costs ................................................................................................................................. 21
6.1. Long-term construction contracts ............................................................................................................. 21
6.2. Costs by type ............................................................................................................................................ 24
6.3. Other operating revenue ........................................................................................................................... 25
6.4. Other operating expenses ........................................................................................................................ 25
6.5. Financial revenue ..................................................................................................................................... 25
6.6. Financing costs......................................................................................................................................... 26
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
3
7. Income tax ............................................................................................................................................... 26
8. Deferred income tax ............................................................................................................................... 27
8.1. Deferred tax assets .................................................................................................................................. 27
8.2. Deferred tax liability .................................................................................................................................. 27
9. Discontinued operations ....................................................................................................................... 27
10. Earnings (loss) per share ...................................................................................................................... 28
11. Dividends paid and recommended ....................................................................................................... 28
12. Intangible assets .................................................................................................................................... 28
13. Property, plant and equipment .............................................................................................................. 30
14. Use rights ................................................................................................................................................ 32
15. Business combinations ......................................................................................................................... 34
16. Participation in joint arrangements ...................................................................................................... 34
17. Long-term financial assets .................................................................................................................... 34
18. Long-term deferred charges and accruals ........................................................................................... 36
19. Inventory ................................................................................................................................................. 36
20. Trade receivables and other receivables (long-term and short-term) ............................................... 36
21. Cash and cash equivalents ................................................................................................................... 38
22. Short-term financial assets ................................................................................................................... 38
23. Other prepayments and accrued income ............................................................................................. 39
24. Equity ...................................................................................................................................................... 39
24.1. Stated capital ............................................................................................................................................ 39
24.2. Supplementary/reserve capital ................................................................................................................. 39
25. Interest-bearing bank loans and borrowings ....................................................................................... 40
26. Provisions ............................................................................................................................................... 41
26.1. Changes in provisions .............................................................................................................................. 41
27. Liabilities from deliveries and services and other long-term and short-term liabilities ................... 42
28. Liabilities due to leasing agreements ................................................................................................... 42
29. Employee benefit liabilities ................................................................................................................... 42
30. Other accrued liabilities ......................................................................................................................... 43
31. Explanatory notes to the cash flow statement .................................................................................... 43
32. Contingent liabilities .............................................................................................................................. 43
33. Related parties ........................................................................................................................................ 43
33.1. The parent company for Mostostal Warszawa SA .................................................................................... 45
33.2. Terms of transactions with related parties ................................................................................................ 45
33.3. Remuneration of the Company's Senior Management ............................................................................. 45
33.4. Other transactions with management and supervisory personnel ............................................................ 45
34. Agreement with the entity authorized to audit financial statements ................................................. 45
35. Objectives and principles of financial risk management .................................................................... 46
35.1. Interest rate risk ........................................................................................................................................ 46
35.2. Currency risk ............................................................................................................................................ 46
35.3. Commodities price risk ............................................................................................................................. 47
35.4. Credit risk ................................................................................................................................................. 47
35.5. Liquidity risk .............................................................................................................................................. 47
35.6. Equity risk management ........................................................................................................................... 48
36. Financial instruments – other information ........................................................................................... 49
37. Differences between the data from the annual report and the previously prepared and published
financial statements ........................................................................................................................................ 50
38. Employment structure ........................................................................................................................... 50
39. Events occurring after the balance sheet date .................................................................................... 50
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
Notes presented on pages 8 to 50 form an integral part of these Separate Financial Statements.
4
SEPARATE PROFIT AND LOSS ACCOUNT
for the period of 12 months from 01.01.2023 until 31.12.2023
Item
CONTINUING OPERATIONS
Note
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Continuing operations
I
Sales revenue
1,368,949
1,326,619
Revenue from construction contracts
6.1
1,341,600
1,302,191
Revenue from sale of services
24,977
24,397
Revenue from sales of goods and materials
2,372
31
II
Own sales costs
6.2
1,293,596
1,239,001
III
Gross profit (loss) on sales
75,353
87,618
IV
General administrative expenses
52,057
49,673
V
Other operating revenue
6.3
6,975
26,727
VI
Other operating expenses
6.4
5,021
35,458
VII
Profit (loss) from operations
25,250
29,214
VIII
Financial revenue
6.5
20,820
12,618
IX
Financing costs
6.6
15,883
14,440
X
Gross profit (loss)
30,187
27,392
XI
Income tax
7.
7,121
5,439
XII
Net profit (loss) for the financial year
23,066
21,953
Net profit (loss)
23,066
21,953
Weighted average number of ordinary shares
20 000 000
20,000,000
Net profit (loss) per ordinary share (PLN)
10.
1.15
1.10
Net diluted profit (loss) per ordinary share (in PLN)
1.15
1.10
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
for the period of 12 months from 01.01.2023 to 31.12.2023
STATEMENT OF TOTAL REVENUE
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Net profit (loss) for the period
23,066
21,953
Other comprehensive income before tax
0
0
Income tax relating to components of other comprehensive income
0
0
Other total comprehensive income after tax
0
0
Total comprehensive income
23,066
21,953
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
Notes presented on pages 8 to 50 form an integral part of these Separate Financial Statements.
5
SEPARATE STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
Item
ASSETS
Note
31.12.2023
31.12.2022
I
I. Fixed assets (long-term)
261,244
184,364
I.1
Intangible assets
12
144
694
I.2
Use rights
14
131,340
59,321
I.3
Property, plant and equipment
13
59,439
51,899
I.4
Long term trade receivables and other receivables
20
0
1,348
I.5
Long-term financial assets
17
35,964
35,964
I.6
Deferred tax assets
8
27,908
26,674
I.7
Long-term deferred charges and accruals
18
6,449
8,464
II.
Current assets (short-term)
795,640
709,780
II.1
Inventory
19
41,648
28,174
II.2
Receivables from deliveries and services and other receivables
20
287,538
265,154
II.3
Prepayments for works
10,106
13,379
II.4
Short-term financial assets
22
0
961
II.5
Cash and cash equivalents
21
259,110
175,015
II.6
Assets arising from construction contracts
6.1
191,313
221,225
II.7
Other accruals
23
5,925
5,872
TOTAL ASSETS
1,056,884
894,144
Item
EQUITY CAPITAL AND LIABILITIES
Note
31.12.2023
31.12.2022
Restated data*
I
Equity capital
24
72,326
49,260
I.1
Stated capital
44,801
44,801
I.2
Share premium
108,406
108,406
I.3
Reserve capital from reclassification of loans
201,815
201,815
I.4
Retained profit / uncovered loss
-282,696
-305,762
II.
Long-term liabilities
199,619
169,684
II.1
Long term liabilities from leasing agreements
28
55,242
39,182
II.2
Long-term trade liabilities
27
34,836
27,725
II.3
Long-term liabilities from construction contracts
6.1
75,300
91,299
II.4
Long-term reserves
26
34,241
11,478
III.
Short-term liabilities
784,939
675,200
III.1
Current portion of interest-bearing bank credits and loans
25
123,475
135,547
III.2
Short term liabilities from leasing agreements
28
39,379
14,150
III.3
Liabilities from deliveries and services and other liabilities
27
311,739
220,092
III.4
Income tax liability
2,932
3,069
III.5
Short-term provisions
26
15,144
12,103
III.6
Short-term liabilities from construction contracts
6.1
135,009
93,961
III.7
Employee benefit liabilities
30
6,562
5,755
III.8
Other accruals
31
150,699
190,523
IV.
Total liabilities
984,558
844,884
EQUITY CAPITAL AND LIABILITIES (TOTAL)
1,056,884
894,144
* detailed information is presented in note 4.25
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
Notes presented on pages 8 to 50 form an integral part of these Separate Financial Statements.
6
SEPARATE CASH FLOW STATEMENT
for the period of 12 months from 01.01.2023 to 31.12.2023
Item
Item
Note
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
I
Cash flows from operating activities
I.1
Gross profit
30,187
27,392
I.2
Adjustments by items:
145,159
-2,890
I.2.1
Depreciation
41,079
15,672
I.2.2
Exchange gain / loss
-17,085
2,543
I.2.3
Interest and dividends (received and paid)
9,750
2,605
I.2.4
(Profit) / loss on investing activities
2,897
-126
I.2.5
(Increase)/ decrease in receivables
-17,763
-33,622
I.2.6
(Increase)/ decrease in inventory
-13,474
-7,807
I.2.7
Increase/ (decrease) in liabilities, excluding loans and borrowings
105,188
-2,678
I.2.8
Change in assets and liabilities due to the implementation of construction
contracts and accruals
17,906
23,502
I.2.9
Change in provisions
25,804
1,957
I.2.10
Income tax paid
-8,492
-4,030
I.2.11
Other
31
-651
-906
I
Net cash from operating activities
175,346
24,502
II
Cash flows from investing activities
II.1
Sale of tangible fixed assets and intangible assets
340
364
II.2
Acquisition of tangible fixed assets and intangible assets
-72,025
-28,817
II.3
Interest and dividends received
2,392
4,895
II.4
Others
3,402
0
II
Net cash from investing activities
-65,891
-23,558
III
Cash flows from financial activities
III.1
Repayment of lease liabilities
-11,169
-16,774
III.3
Interest paid
-14,191
-4,629
III
Net cash from financing activities
-25,360
-21,403
IV
Net increase / decrease in cash and cash equivalents
84,095
-20,459
Net exchange differences
-2
V
Cash and equivalents at the beginning of the period
175,015
195,474
VI
Cash and equivalents at the end of the period, including:
21
259,110
175,015
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
Notes presented on pages 8 to 50 form an integral part of these Separate Financial Statements.
7
SEPARATE STATEMENT OF CHANGES IN EQUITY
for the period of 12 months from 01.01.2023 to 31.12.2023
Stated capital
Supplementary
capital
Reserve capital
from
reclassification
of loans
Retained profit /
uncovered loss
Equity capital
Total
2023
period from 01.01.2023 to
31.12.2023
As at 1 January 2023
44,801
108,406
201,815
-305,762
49,260
Profit for the period
0
0
0
23,066
23,066
Other comprehensive income
0
0
0
0
Total comprehensive income
0
0
0
23,066
23,066
Distribution of previous years' loss
0
0
0
0
0
Reclassification of loans for the capital
0
0
0
0
0
As at 31 December 2023
44,801
108,406
201,815
-282,696
72,326
2022
period from 01.01.2022 to
31.12.2022
As at 1 January 2022
44,801
108,406
201,815
-327,715
27,307
Profit for the period
0
0
0
21,953
21,953
Other comprehensive income
0
0
0
0
Total comprehensive income
0
0
0
21,953
21,953
Distribution of previous years' loss
0
0
0
0
0
Reclassification of loans for the capital
0
0
0
0
0
As at 31 December 2022
44,801
108,406
201,815
-305,762
49,260
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
8
Additional explanatory information
to the separate financial statements
for the period from 01.01.2023 to 31.12.2023
1. General information
With regard to the profit and loss account, statement of changes in equity and the cash flow statement, the Separate
Financial Statements cover the period of 12 months of 2023 and include the corresponding figures for 12 months
of 2022, and with regard to the statement of financial position as at 31 December 2023, they include corresponding
figures as at 31 December 2022.
Mostostal Warszawa S.A. (hereinafter referred to as the Company or Mostostal Warszawa SA) is a joint stock
company with legal form in accordance with Polish law, registered in the District Court for the Capital City of Warsaw
in Warsaw, 18th Commercial Division of the National Court Register under KRS number: 0000008820. The
registered office of the Company is located in Warsaw, at ul. Konstruktorska 12a. The core business is specialised
construction work covered by the Polish Business Classification (PKD) in section 41.20Z. The Company's shares
are listed on the Warsaw Stock Exchange (Giełda Papierów Wartościowych w Warszawie S.A.); construction sector.
The Company is established for an indefinite time.
The parent company of Mostostal Warszawa S.A. is Acciona Construcción S.A. with its registered office in Madrid
(Spain).
Mostostal Warszawa S.A. acts as a parent company and a major investor and is responsible for drawing up
consolidated financial statements.
2. Composition of the Management Board and the Supervisory Board
As at 31.12.2023, the Management Board of Mostostal Warszawa S.A. was composed of:
Miguel Angel Heras Llorente – President of the Management Board
Jorge Calabuig Ferre – Vice-President of the Management Board
Carlos Enrique Resino Ruiz – Member of the Management Board
Jacek Szymanek – Member of the Management Board
As at 31.12.2023, the Supervisory Board of Mostostal Warszawa S.A. was composed of the following members:
Antonio Muñoz Garrido – Chair of the Supervisory Board
Javier Lapuente Sastre – Vice-Chair of the Supervisory Board
Javier Lapastora Turpín – Member of the Supervisory Board
Neil Roxburgh Balfour – Member of the Supervisory Board
Ernest Podgórski – Member of the Supervisory Board
Javier Serrada Quiza – Member of the Supervisory Board
3. Approval of the Financial Statements
The financial statements for 2023 were approved for publication by the Company's Management Board on 24 April,
2024.
4. The basis for the preparation of the separate financial statements for 2023 and the accounting
principles
4.1. The basis for preparation of the financial statement
The financial statements have been prepared on the assumption that the Company will continue as a going concern
in the foreseeable future, not shorter than 12 months from the balance sheet date.
The financial statements have been prepared in accordance with the historical cost principle.
In 2023, the Company generated sales profit of 75,353 thousands PLN, earned a net profit of 23,066 thousands
PLN, and recorded positive cash flows from operating activities of 175,346 thousands PLN. The Company's equity
as at 31.12.2023 amounted to 72,326 thousands PLN.
Loans granted by a higher level parent entity i.e. Acciona Construccion SA form an essential source for financing
the Company's operations. In 2023, the Company repaid interest on loans in the amount of 7,523 thousands PLN
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
9
(1,683 thousands EUR). In 2024, the Company repaid part of the loans with interest in the total amount of 59,417
thousand PLN, which at the time of repayment was the equivalent of 13,580 thousand EUR.
Based on the analysis of future cash flows, the Company's Management Board estimates that the Company will
have sufficient cash to fund its operations in the period of at least 12 months after the balance sheet date. As at
31.12.2023, the value of Mostostal Warszawa S.A.'s backlog amounted to 3,073,140 thousands PLN. At the same
time, the Company participates in a number of tender procedures, which may translate into winning new orders in
the near future. When assessing the going concern assumption, the Management Board took into account the risks
and uncertainties arising from claims with customers and ongoing court proceedings, as well as the expected dates
of cash flows related to disputed amounts.
Taking into account the above factors the Management Board confirms that as at the date of approval of these
Financial Statements, there are no circumstances that could be regarded as a threat to the Company’s ability to
continue as a going concern.
4.2. Compliance statement
These Financial Statements for the period of 12 months ended on 31 December 2023 have been prepared in
compliance with the International Financial Reporting Standards as adopted by the EU (“EU IFRSs”). As at the date
of approval of these Financial Statements, taking into account the ongoing process of implementing IFRS in the EU
and the activities pursued by the Company as regards the applied accounting policies, we have identified changes
to IFRSs that came into force from 01 January 2023. The changes are described in Note 4.25 herein.
IFRS include standards and interpretations approved by the International Accounting Standards Board (“IASB”) and
by the International Financial Reporting Interpretations Committee (“IFRIC”).
The Company has not decided to apply early any of the standards, interpretations or amendments that have been
published but are not yet effective.
4.3. Estimates and judgements
Preparation of financial statements in accordance with the EU IFRS requires the Management Board to make
judgements, estimates and assumptions that affect the application of the adopted accounting principles and the
presented values of assets, liabilities, income and expenses, whose actual values may differ from the estimates.
Estimates and related assumptions are based on historical experience and other factors that are considered
reasonable in given circumstances, and their results provide the basis for professional judgement. When making
judgements, estimates or assumptions regarding major issues, the Management Board may rely on the opinions of
independent experts.
Estimates and related assumptions are subject to ongoing verification. Changes in accounting estimates are
recognized prospectively starting from the period in which changes to the estimates took place.
4.3.1. Significant Judgments in Applying Accounting Policies
Recognition of revenue from construction contracts
For construction contracts, the Company satisfies the performance obligations over time. Revenue is recognized
on the basis of the expenditure incurred in relation to the total expected expenditure to fulfil the obligation to perform
the service. In the opinion of the Management Board, taking into account the nature of the contracts being
performed, this method allows to reliably determine the status of works performed. Budgets of individual contracts
are subject to a formal update (revision) process with the use of current information, at least once a quarter. In the
event of any occurrences between official budget revisions that significantly affect the outcome of the contract, the
total contract revenue or costs can be updated earlier.
Where it is probable that the total costs associated with the performance of the construction contract exceed the
total revenue, the expected loss (the excess of cost over income) is recognized in operating costs, and on the other
side, a provision is created for onerous contracts (provision for losses on contracts). The amount of the expected
loss is also updated during the budget review and is the best estimate of the costs that the Company has to incur
to complete the contract.
4.3.2. Relevant estimates
The estimates significantly affecting the figures disclosed in the separate financial statements are related in
particular to the expected useful life of property, plant and equipment and intangible assets (depreciation rates),
impairment losses on assets, assumptions adopted to recognize deferred tax assets, provisions (for warranty
repairs, employee benefits, anticipated losses on contracts and litigation), assets and liabilities arising from
construction contracts and assumptions regarding budgets (budgeted costs and revenues) and margins on the
contracts performed.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
10
Useful life of plant, property and equipment and intangible assets
The carrying amount of property, plant and equipment and intangible assets is determined based on the estimated
useful lives of particular groups of property, plant and equipment and intangible assets. The adopted useful lives of
property, plant and equipment and intangible assets are subject to periodic verification on the basis of analyses
carried out by the Company.
Deferred tax assets
The Company recognises financial assets from deferred taxes assuming that a tax profit is to be generated in the
future that shall allow to use it. Deterioration of tax results in the future could cause the whole or a part of the
deferred tax assets not to be realized (Note 8).
Provisions for warranty repairs
In the case of construction services, the Company is obliged to provide warranties for its services. As a rule, a
provision for warranty costs amounting to 0.5% to 1% of the revenue from a specific contract is created. This value
is however subject to individual review and may be increased or decreased in justified cases (Note 26.1). The
Company analyses the reserves established in terms of their possible realisation dates and classifies them either
as short-term or long-term (to be realised over 12 months after the balance sheet date).
Services not invoiced by subcontractors
The Company implements most of construction contracts acting as the general contractor, using a wide range of
subcontractors. Completed construction works are subject to approval by the employer under the works acceptance
procedure, which involves signing a relevant acceptance report and issuing an invoice. At each balance sheet date,
there is a significant part of the completed works that have been neither confirmed nor invoiced by subcontractors,
which the Company recognizes as contract costs on an accrual basis. The costs of subcontractors related to
completed works that have not been invoiced are determined by technical services based on the physical
assessment of completed works and may vary from the value specified under the formal procedure for acceptance
of construction works (Note 32).
Provisions for disputes
The Company acts as a party to judicial proceedings. Company prepares detailed analysis of the potential risks
associated with the pending judicial proceedings and based thereon makes decisions on the need to include the
impact of such proceedings on its books and the value of reserves (Note 26.1). The Management Board also based
its estimate on the opinions of external independent law firms regarding individual disputes and their likely
resolution. The Company analyses the reserves established in terms of their possible realisation dates and
classifies them either as short-term or long-term (to be realised over 12 months after the balance sheet date).
Expected credit loss allowance
For trade receivables and financial assets covered by IFRS 15 (i.e. the measurement of long-term construction
contracts), the Company measures the expected credit loss allowance for the entire expected life of a given financial
asset. The Company uses an individual approach to assessing the amount of expected credit losses.
For other financial assets not covered by IFRS 15 (i.e. investments in equity instruments, deposits under
construction contracts, loans granted and other financial assets not measured at fair value), credit losses are
estimated for the entire expected life of a given financial asset if the credit risk associated with a given asset has
significantly increased since the initial recognition.
If the Company initially creates an impairment loss equal to the expected credit losses throughout the lifetime of the
asset and then determines as of the next reporting date that the credit risk is no longer significantly higher, the
Company measures the allowance at 12-month ECL.
4.4. Functional currency and reporting currency
The Company's functional currency and reporting currency is the Polish zloty.
4.5. Shares in subsidiaries, associates and other entities
Shares in subsidiaries and associates and other companies are valued at cost, taking into account their impairment
write-offs. At each balance sheet date, the Company analyses whether there is objective evidence indicating an
impairment of an asset or a group of financial assets. If such evidence exists, the Company estimates the
recoverable amount of the asset and recognizes an impairment loss equal to the difference between the recoverable
value and the carrying amount. The impairment loss is recognized in the profit and loss account for the current
period.
4.6. Joint arrangements
Investments in joint arrangements are classified either as joint operations or as joint ventures depending on the
contractual rights and obligations of each investor. The Companies of the Group found the nature of their common
joint arrangements and agreed that these are joint operations.
The Company implements certain long-term contracts pursuant to consortium agreements, acting as the consortium
leader. If the contracts meet the criteria set out in IFRS 11, the Company recognizes such transactions as “joint
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
11
operations”. With regard to its interests in jointly controlled activities, the Company recognizes in its financial
statements:
(a) the assets it controls and the liabilities it has incurred and its share in the assets held jointly and the liabilities
jointly incurred;
(b) the costs incurred, including its share in the costs jointly incurred, and its share in the revenue from the sale of
goods or services resulting from joint operations.
4.7. Related party transactions
Transactions with related parties are made on an arm's length basis (Note 33).
4.8. Contingent assets and Contingent liabilities
Contingent liabilities correspond to possible obligations that arise from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company, or present obligations that arise from past events, in the event of where it is not probable
that an outflow of resources embodying economic benefits will be required to settle the obligation or where the
amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized in
the financial statements, but are disclosed in the notes to the financial statements where appropriate.
Contingent assets - a possible asset that arises as a result of past events, but its existence will only be confirmed
in the future, depending on the occurrence or non-occurrence of uncertain future events beyond the entity's control.
Contingent assets usually arise as a result of unplanned or other unexpected events that give rise to the possibility
of inflow to the entity of resources embodying economic benefits.
4.9. Conversion of items expressed in foreign currencies
Transactions denominated in currencies other than Polish zloty are converted to functional currency using the
foreign exchanges rates applicable as at the transaction date.
As at the balance sheet date, monetary assets and liabilities denominated in currencies other than the Polish zloty
are converted into Polish zlotys using the average exchange rate set for a given currency by the National Bank of
Poland, applicable at the end of the reporting period. The resultant currency translation differences are recognised
under the financial revenue (costs), or in situations subject to specific accounting principles, capitalised as part of
the assets.
Non-monetary items measured at historical cost in a foreign currency are recorded at the exchange rate as of the
transaction date.
4.10. Property, plant and equipment
Property, plant and equipment are recognised as their purchase price/cost of manufacture less depreciation write-
offs and any impairment losses. The initial value of fixed assets includes their purchase price increased by any
costs directly associated with the purchase and adaptation of the asset to make it fit for use. The costs incurred
after the fixed assets are commissioned, such as costs of maintenance and repairs, are recognized in the profit and
loss account as incurred.
Depreciation of fixed assets is recognized by the Group according to the following rules:
fixed assets, except for land, are depreciated on a straight-line basis over their estimated useful lives, which
are as follows:
buildings, premises and civil engineering structures 10-40 years
plant and machinery 2.5-20 years
means of transport 2.5-10 years
other fixed assets 4-10 years
If, at the time of the preparation of the financial statements, circumstances were identified which indicate that the
carrying amount of tangible fixed assets might not be recoverable, the assets are reviewed for possible impairment.
If the balance sheet value exceeds the estimated recoverable value , then the value of these assets or cash-
generating units to which these assets belong is reduced to the level of the recoverable value. The recoverable
amount corresponds to the higher of the two amounts: fair value less costs to sell or value in use. When determining
value in use, estimated future cash flows are discounted to the present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks associated with the asset. In the case
of assets which do not generate cash inflow in an independent manner, recoverable amount is determined for the
cash-generating unit to which the given asset belongs. Impairment losses are recognized in the profit and loss
account in other operating expenses.
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A component of property, plant and equipment can be derecognised in the statement of financial position after its
sale or in the event where no economic benefits are expected from the continued use of such a component. Any
gains or losses resulting from the derecognition of a given asset component in the statement of financial position
(calculated as the difference between potential net income from sales and the
carrying amount of the given item) are recognised in the profit and loss account for the period when such
derecognition took place.
Works in progress reflect fixed assets under construction or in the process of assembly and are carried either at the
purchase price or at the cost of manufacture. A fixed asset under construction is not depreciated until construction
is completed and the fixed asset is put into use.
Borrowing costs
Borrowing costs related to the acquisition, construction or production of a qualifying asset are recognized as part of
the purchase price or production cost (IAS 23).
4.11. Investment property
Investment properties are maintained in order to obtain rental income, increase their value or for both reasons.
Investment properties are intended neither for sale in the course of the Company’s normal operations of the, nor
for use in the production process nor for administrative purposes. Investment properties, at the moment of their
initial recognition, are measured at the purchase price, and thereafter their value is decreased by depreciation write-
offs and impairment losses. The investment properties are depreciated using the straight-line method at the rate of
4.5%. The purchase price includes the purchase price of the asset and the costs directly related to the purchase of
the property. If the purpose of the property is changed i.e. if the investment property becomes a property occupied
by the owner and thus is transferred to property, plant and equipment, its amortized cost as of the transfer date is
the cost accepted for future recognition. The value of investment property is reduced by the revaluation write-offs
in the event of circumstances indicating its impairment. Investment property is derecognized in the statement of
financial position when it is sold or when a given investment property is permanently withdrawn from use, when no
future benefits related thereto are expected. Any gains or losses resulting from the derecognition of an investment
property in the statement of financial position are recognized in the profit and loss account in the period of such
derecognition.
4.12. Recoverable amount of long-term assets (intangible assets, property, plant and equipment)
For each balance date the Company performs testing of assets for any circumstances indicating impairment loss.
If such circumstances occur, formal appraisal of recoverable value is performed by the Company. In the event that
the carrying amount of a given asset or a cash generating centre exceeds its recoverable amount, its impairment
is recognized to adjust its value to the recoverable amount. The recoverable amount is the higher of the two values:
the fair value less the cost to sell, or the value in use of an asset or a cash generating unit.
4.13. Financial instruments
Classification and measurement
Financial assets and liabilities are recognized when the Company becomes a party to a binding contract. Initially,
financial assets are measured at fair value (in case of financial assets / liabilities later measured at amortized cost,
transaction costs should be added to or subtracted from the initial value, as appropriate).
At initial recognition, trade receivables that do not have a significant financing component (determined in
accordance with IFRS 15) are measured at their transaction price.
The classification of financial assets is based on the Company's business model for financial asset management
and the characteristics of the cash flows for the assets arising from the contract.
In periods after the initial recognition, financial assets are measured at:
- amortised cost
- fair value through other comprehensive income
- fair value through profit and loss
A financial asset is measured at amortized cost if:
- the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
A financial asset is measured at fair value through other comprehensive income if:
- the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
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On initial recognition, the Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value of an investment in an equity instrument within the scope of this Standard that
is not held for trading or is a contingent consideration recognized by the acquirer in a business combination for
which IFRS 3 applies. If the item is denominated in a foreign currency, foreign exchange differences are also
recognized in other comprehensive income.
In all other cases, a financial asset is measured at fair value through profit or loss.
Assets are derecognized, when the rights to receive cash flows on their account have expired or have been
transferred and substantially all of the risks and rewards arising from their ownership have been transferred.
After the initial recognition, all financial liabilities are classified as measured at amortized cost, except for financial
liabilities measured at fair value through profit or loss (satisfying the definition held for trading) - after initial
recognition, these instruments are measured at fair value.
Impairment of financial assets
The Company recognizes allowances for expected credit losses related to the financial asset. A credit loss is the
difference between the cash flows that are due to an entity in accordance with the contract and the cash flows that
the entity expects to receive, taking into account any expected shortages (i.e. lack of payment). If the allowance is
recognized in respect of long-term financial assets, the loss allowance should be discounted at the original effective
interest rate (i.e. the rate applied on the asset recognition).
Expected credit loss allowance
For trade receivables and financial assets arising from the application of IFRS 15 (i.e. the assets related to long-
term construction contracts), the Company measures the expected credit loss allowance for the entire expected life
of a given financial asset. The Company uses an individual approach to assessing the amount of expected credit
losses.
For other financial assets not covered by IFRS 15 (i.e. investments in equity instruments, deposits under
construction contracts, loans granted and other financial assets not measured at fair value), credit losses are
estimated for the entire expected life of a given financial asset if the credit risk associated with a given asset has
significantly increased since the initial recognition.
If the Company initially creates an impairment loss equal to the expected credit losses throughout the lifetime of the
asset and then determines as of the next reporting date that the credit risk is no longer significantly higher, the
Company measures the allowance at 12-month ECL.
Trade payables
Trade payables are the liabilities due to be paid for the goods and services acquired in the course of ordinary
business operations from suppliers. Trade payables are classified as short term liabilities if payment is due within
one year (or in the normal operating cycle of the business, if longer). Otherwise liabilities are accounted as long-
term.
Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the
effective interest rate method.
Interest-bearing bank loans, borrowings and debentures
On initial recognition all bank loans, borrowings and debentures are formulated according to their fair value reduced
by costs related to acquiring the loan.
After initial recognition debentures, bank loans and borrowings subject to interest are measured at depreciated cost
using the effective interest rate method.
On defining the depreciated cost, the costs related to the acquisition of the loan as well as discounts and premiums
obtained on settlement of the liability are taken into consideration.
Gains and losses are recognized in profit or loss when the liability is derecognised in the statement of financial
position, or when it is accounted for using the effective interest rate method.
Factoring
The company uses reverse factoring, thanks to which it can settle its trade liabilities with the involvement of a
financial institution (factor). Liabilities to the factor are similar in nature to trade liabilities, therefore the Company
presents these liabilities in the item "Liabilities from deliveries and services and other liabilities".
Derivatives
Derivative transactions are concluded by the Company in order to hedge cash flows against exchange rate risk.
Derivative instruments are measured as at the balance sheet date at a reliably determined fair value. The effects
of periodic valuation of derivatives hedging exchange rate fluctuations as well as profits and losses as at the date
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of their settlement are recognized in the profit and loss account in the item “Financial income” or “Financial costs”
as part of financial activity.
Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
in the principal (or most advantageous) market at the measurement date and under current market conditions,
regardless of whether the price is directly observable or estimated using a different valuation technique. In the fair
value measurement of an asset or liability, the Company takes into account the characteristics of a given asset or
liability, if market participants take these characteristics into account when valuing the asset or liability as at the
measurement date. The fair value for the purposes of valuation and/or disclosure in the Company's financial
statements is determined on the above-mentioned basis, with the exception of share-based payment transactions,
which are covered by IFRS 2, lease transactions, which are covered by IFRS 16 , as well as that have some
similarities to fair value but are not fair values, such as net realizable value under IAS 2 or value in use under IAS
36.
The Company classifies its fair value measurement principles using the following hierarchy reflecting the importance
of the source data used in the valuation:
- Level 1: quoted prices (unadjusted) from active markets for identical assets or liabilities that the Company has
access to at the valuation date,
- Level 2: inputs other than quoted prices included in Level 1 that are observable for assets or liabilities either directly
(as prices) or indirectly (price derivatives),
- Level 3: inputs for assets or liabilities that are not based on observable market data (unobservable source data).
4.14. Inventory
Inventories are measured at the lower of the two values: the purchase price or the cost of manufacture and the
realizable net selling price.
Materials are measured at purchase price and their disbursement is determined according to the “first in – first out”
rule.
The net realizable value is the estimated price of sale in the ordinary course of business, less finishing costs and
estimated costs necessary to effect the sale.
4.15. Cash and cash equivalents
Cash and short-term deposits recognized in the statement of financial position include cash at bank and in hand as
well as short-term deposits with an original maturity of up to three months.
The balance of cash and cash equivalents disclosed in the cash flow statement comprises the above cash and cash
equivalents.
4.16. Equity
Ordinary shares are classified as equity.
Marginal costs directly attributable to the issue of new common shares or options are disclosed in equity as a
decrease in the proceeds from issue, net of tax.
If the Company acquires shares included in equity (its treasury shares), than the amount payable comprising any
marginal costs (net of income taxes) associated directly with the acquisition, is deducted from equity attributable to
owners of the Company until the shares are redeemed or reissued. If such ordinary shares are subsequently
reissued, any consideration received (net of any directly related marginal transaction costs and related income tax
effects) is included in the equity attributable to owners of the Company.
Loans whose repayment deadlines have been extended for an indefinite period and whose repayment deadlines
depend solely on the decision of the Company are presented in equity.
4.17. Provisions
Provisions are created when the Company has a present obligation (legal or constructive) as a result of a past
event, and it is probable that fulfilment of this obligation will cause an outflow of economic benefits within 12 months
from the balance sheet date for short-term provisions and over 12 months from the balance sheet date for long-
term provisions, and a reliable estimate of the amount of such an obligation can be made. If the Company expects
that costs covered by the reserve will be recovered, for instance pursuant to insurance policy, then such recoverable
value is recognised as a separate asset component, but only when it is absolutely certain that the value will be
indeed recovered. Costs associated with a specific provision are recognised in the profit and loss account after
deduction of any refunds. Where the effect of the time value of money is material, the balance of the provision is
determined by discounting projected future cash flows to their present value using the gross discount rate, which
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reflects current market assessment of the time value of money and of the probable risk related to the liability. If a
discounting method had been used, the increase of the reserve resulting from the passing of time is presented as
a financial costs.
4.18. Retirement severance pay
Under the Company's remuneration schemes, the Company's employees are entitled to retirement severance pay.
Retirement severance pay is paid on one-off basis at the time of retirement. The amount of severance pay depends
on the period of employment and the employee's average salary. The Company creates provisions for future
severance pay in order to allocate the costs to relevant periods. Pursuant to International Accounting Standard 19,
retirement payments are specific benefits payable after termination of employment. The current value of these
liabilities is calculated by an independent Actuary.
4.19. Lease
At the beginning of the contract, the company assesses whether the contract is a lease or whether it includes a
lease. The company recognizes:
(a) assets and liabilities for all leases entered into for a period of over 12 months, except when the asset is of low
value; and
(b) depreciation of leased assets separately from the interest on the lease liability in the profit and loss account.
On the commencement date, the company as a lessee recognizes the right-of-use asset and the lease liability. The
right to use is recognized at the commencement date of the lease at the cost, which includes:
• the amount of the initial measurement of the lease liability,
• any lease payments paid on or before the commencement date, less any lease incentives received.
At the commencement date, liabilities are measured as the present value of the lease payments outstanding,
discounted at the marginal interest rate for lease agreements.
The identified right-of-use assets were assessed for impairment as at the date of the first application and no need
to recognize impairment was found.
The weighted average incremental borrowing rate of the lessee applied by the Company to the lease liabilities
recognized in the statement of financial position ranges from 5.79 to 7.79%.
Presentation in the Company's financial statements
he Company presents the right-of-use assets under a separate reporting item.
The Company presents its lease liabilities in the following items of the separate financial statements:
- Long-term lease liabilities
- Short-term lease liabilities
4.20. Revenue
4.20.1. Revenue from contracts with customers
The Company accounts for a contract with a customer only when all of the following criteria are met:
- the parties to the contract have approved the contract (in writing, orally or in accordance with other customary
business practices) and are committed to perform their respective obligations;
- the Company can identify each party's rights regarding the goods or services to be transferred;
- the Company can identify the payment terms for the goods or services to be transferred;
- the contract has commercial substance (i.e. the risk, timing or amount of the Contact's future cash flows is
expected to change as a result of the contract); and
- it is likely that the Company will receive remuneration to which it is entitled in exchange for goods or services to
be provided to the client.
The Company combines two or more contracts entered into at or near the same time with the same customer (or
related parties of the customer) and account for the contracts as a single contract if one or more of the following
criteria are met:
- the contracts are negotiated as a package with a single commercial objective;
- the amount of consideration to be paid in one contract depends on the price or performance of the other contract;
or
- the goods or services promised in the contracts (or some goods or services promised in each of the contracts)
are a single performance obligation.
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At contract inception, the Company assesses the goods or services promised in a contract with a customer and
identifies as a performance obligation each promise to transfer to the customer either:
- a good or service (or a bundle of goods or services) that is distinct; or
- a series of distinct goods or services that are substantially the same and that have the same pattern of transfer
to the customer.
A good or service that is promised to a customer is distinct if both of the following criteria are met:
- the customer can benefit from the good or service either on its own or together with other resources that are
readily available to the customer (i.e. the good or service is capable of being distinct); and
- the Company's promise to transfer the good or service to the customer is separately identifiable from other
promises in the contract (i.e. the good or service is distinct within the context of the contract).
The Company recognises revenue when (or as) the entity satisfies a performance obligation by transferring a
promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains
control of that asset.
For each performance obligation identified, the Company determines at contract inception whether it satisfies the
performance obligation over time or satisfies the performance obligation at a point in time. If the Company fails to
meet a performance obligation over time, the performance obligation is satisfied at that point in time.
For construction contracts, the Company meets its performance obligation over time, because as a result of the
services rendered by the Company:
a) An asset with an alternative use for the Company is not created, and the Company has an enforceable
right to payment for the service provided so far; or
b) creates or enhances an asset that the customer controls as the asset is created or enhanced.
Revenue is recognized on the basis of the expenses incurred over time and that method is applied consistently to
similar performance obligations and in similar circumstances. At the end of each reporting period, the Company
remeasures its progress towards complete satisfaction of a performance obligation satisfied over time.
To measure progress, the Company uses the input methods. Input methods recognise revenue on the basis of the
entity's efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the
satisfaction of that performance obligation.
When (or as) a performance obligation is satisfied, the Company recognises as revenue the amount of the
transaction price (which excludes estimates of variable consideration that are constrained) that is allocated to that
performance obligation.
Revenues from construction contracts take into account the initial amount of revenue determined in the contract
and changes (modifications) made during the performance of the contract (transaction price of the contract).
A variation is an instruction by the customer for a change in the scope of the work to be performed under the
contract. A variation may lead to an increase or a decrease in contract revenue. Examples of variations are changes
in the specifications or design of the asset and changes in the duration of the contract.
A contract modification exists when the parties to a contract approve a modification that either creates new or
changes existing enforceable rights and obligations of the parties to the contract.
A contract modification may exist even though the parties to the contract have a dispute about the scope or price
(or both) of the modification or the parties have approved a change in the scope of the contract but have not yet
determined the corresponding change in price. In determining whether the rights and obligations that are created
or changed by a modification are enforceable, the Company considers all relevant facts and circumstances,
including the terms of the contract and other information.
If the parties to the contract have approved the change in the contract but have not yet agreed on the appropriate
price change, the Company estimates the change in the transaction price resulting from the contract modification
using the most probable value method - the single most probable amount in the range of possible remuneration
amounts (i.e. the single most likely outcome of the contract).
The Company estimates the amount of variable remuneration for each contract individually, using one of the
following methods, whichever will allow the entity to more accurately predict the amount of remuneration to which
it is entitled:
(a) Expected value - expected value is the sum of the products of the possible remuneration amounts and the
corresponding probabilities of occurrence.
(b) Most likely value - the most likely value is the single most likely amount within the range of possible remuneration
amounts (i.e. the single most likely outcome of the contract). The most likely value may be an appropriate estimate
of the amount of variable remuneration if the contract has only two possible outcomes.
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The Company consistently applies throughout the life of the contract a single method to estimate the impact of
uncertainty on the amount of variable remuneration to which it is entitled. In addition, the Company takes into
account all information (historical, current and forecasts) that is reasonably available to the Company and identifies
an appropriate number of possible remuneration amounts. The information that the Company uses to estimate the
amount of variable remuneration is typically similar to the information that the Company's management uses during
the bidding process and to set prices for promised goods or services.
The Company includes in the transaction price some or all of an amount of variable consideration estimated in
accordance with the foregoing paragraph only to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved.
In assessing whether it is highly probable that a significant reversal in the amount of cumulative revenue recognised
will not occur once the uncertainty related to the variable consideration is subsequently resolved, the Company
considers both the likelihood and the magnitude of the revenue reversal.
When making a judgement and estimation of the amount of remuneration for changing the contract, the
Management Board bases its decisions on the opinions of external independent law firms and experts.
The Company accounts for a contract modification as a separate contract if both of the following conditions are
present: the scope of the contract increases because of the addition of promised goods or services that are distinct,
and the price of the contract increases by an amount of consideration that reflects the Company's stand-alone
selling prices of the additional promised goods or services and any appropriate adjustments to that price to reflect
the circumstances of the particular contract.
The Company accounts for the contract modification as if it were a part of the existing contract if the remaining
goods or services are not distinct and, therefore, form part of a single performance obligation that is partially satisfied
at the date of the contract modification. The effect that the contract modification has on the transaction price, and
on the Company's measure of progress towards complete satisfaction of the performance obligation, is recognised
as an adjustment to revenue (either as an increase in or a reduction of revenue) at the date of the contract
modification (i.e. the adjustment to revenue is made on a cumulative catch-up basis).
At the end of each reporting period, the Company updates the estimated transaction price (including updating its
assessment of whether an estimate of variable consideration is constrained) to represent faithfully the
circumstances present at the end of the reporting period and the changes in circumstances during the reporting
period. The Company accounts for changes in the transaction price in accordance with the two foregoing
paragraphs.
In the event of a change in the transaction price as a result of a contract amendment:
a) The Company allocates the change in the transaction price to the performance obligations identified in the
contract before the modification if, and to the extent that, the change in the transaction price is attributable
to an amount of variable consideration promised before the modification and the modification is accounted
for as if it the existing contract was terminated and a new contract was created;
b) In all other cases in which the modification was not accounted for as a separate contract, the Company
allocates the change in the transaction price to the performance obligations in the modified contract (i.e.
the performance obligations that were unsatisfied or partially unsatisfied immediately after the
modification).
After meeting (or during the performance) of the obligation, the Company recognizes the contract in the separate
statement of financial position as an asset or a liability under the contract - depending on the relationship between
the fulfilment of the obligation by the Company and the payment made by the customer. The Company presents
any unconditional rights to consideration separately as a receivable.
The Company identifies Assets arising from construction contracts as contract assets:
The Company identifies Liabilities arising from construction contracts as contract liabilities:
When another party is involved in providing goods or services to a customer, the Company determines whether the
nature of its promise is a performance obligation to provide the specified goods or services itself (i.e. the Company
is a principal) or to arrange for the other party to provide those goods or services (i.e. the Company is an agent).
The Company is a principal if it controls a promised good or service before the entity transfers the good or service
to a customer. However, the Company is not necessarily acting as a principal if it obtains legal title of a product only
momentarily before legal title is transferred to a customer. The Company is a principal in a contract may satisfy a
performance obligation by itself or it may engage another party (for example, a subcontractor) to satisfy some or all
of a performance obligation on its behalf. When the Company that is a principal meets a performance obligation, it
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recognises revenue in the gross amount of remuneration to which it expects to be entitled in exchange for those
goods or services transferred.
The Company is an agent if its performance obligation is to arrange for the provision of goods or services by another
party. When the Company that is an agent meets a performance obligation, it recognises revenue in the amount of
any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide its
goods or services. The Company ‘s fee or commission might be the net amount of remuneration that the Company
retains after paying the other party the remuneration received in exchange for the goods or services to be provided
by that party.
4.20.2. Interest
Interest income is recognized as the interest accrues (using the effective interest rate), unless receipt thereof is
doubtful. In the separate statement of financial position, interest on receivables accrued and unpaid as at the
balance sheet date is presented in the item Receivables from deliveries and services and other receivables.
4.20.3. Dividends
Dividends are recognized upon determination of the Company's right as a shareholder or equity holder to receive
them.
4.21. Income tax
Current corporate income tax liabilities are calculated in accordance with Polish tax regulations.
For financial reporting purposes, deferred tax is recognized using the balance sheet liability method in respect of
all temporary differences as at the balance sheet date between the tax bases of assets and liabilities and their
carrying amounts disclosed in the financial statements.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date and reduced to the extent that
it is no longer probable that taxable income sufficient for a partial or full realization of the deferred income tax asset
will be achieved.
Deferred tax assets and deferred tax liabilities are measured using the tax rates that are expected to apply in the
period when the asset is to be realized or the liability is to be settled, based on tax rates (and tax regulations) in
force as at the balance sheet date or those whose future application is certain as at the balance sheet date.
Deferred tax assets are offset against the provisions for deferred tax liabilities if, and only if, the business unit has
a legally enforceable right to offset such liabilities and they are levied by the same taxation authority.
The income tax on items recognised outside profit and loss is recorded outside profit and loss: in other total income
for items included in other total income or directly in the equity for items included directly in the equity.
Legal provisions on value added tax, corporate income tax, personal income tax, or social security are subject to
frequent changes, and thus there is often no reference to the established regulations or legal precedents. The
provisions in force also contain uncertainties, resulting in differences in opinions as to the legal interpretation of tax
regulations both between government bodies and between business entities and government bodies. Tax
settlements and other settlements (e.g. customs or foreign exchange) may be inspected by the authorities, which
are entitled to impose severe fines, and the additional liabilities determined as a result of inspections must be paid
together with high interest. These circumstances cause that tax risk in Poland is higher than in countries with more
developed tax systems. Tax settlements may be subject to inspection for a period of five years. As a result, the
amounts disclosed in the financial statements may change at a later date after the final decision of the tax
authorities.
4.22. Government grants
The Company takes advantage of funding under the projects co-financed by European Union. The subsidies are
presented in deferred revenue until the corresponding costs are incurred, which these subsidies are intended to
compensate. A government grant that becomes receivable as compensation for costs already incurred or loss or is
awarded to a business entity with the aim of providing immediate financial support, with no future related costs, is
recognized as a reduction of costs in the period in which it becomes payable.
4.23. Net earnings (loss) per share
Net earnings (loss) per share for each period are calculated by dividing the net earnings (loss) for this period by the
weighted average number of shares in the reporting period.
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Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
19
4.24. Cash Flow
The Company prepares the cash flow statement using the indirect method.
4.25. Changes in the applied accounting principles
The accounting principles (policies) applied in the preparation of the financial statements are consistent with those
applied in preparation of the financial statements of the Company for the year ended 31 December 2022.
Amendments to the standards applied for the first time in 2023
The company applied the following changes to the standards for the first time:
- Amendments to IAS 1 Presentation of Financial Statements and Practice Statement 2: Disclosure of accounting
principles,
- Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Correcting Errors:
- Amendments to IAS 12 "Income Tax": Deferred Tax on Assets and Liabilities arising from a Single Transaction,
- IFRS 17 "Insurance Contracts" and amendments to IFRS 17,
- Amendments to IFRS 17 “Insurance Contracts”: First application of IFRS 17 and IFRS 9 – Comparative information
The above amendments to the standards did not have a material impact on the Company's existing accounting
policies apart from the amendment to IAS 12, which is included in note 8, recognition of deferred tax assets and
liabilities for right-of-use assets and lease liabilities.
Standards and amendments to standards endorsed by the EU
- Amendments to IAS 1 "Presentation of Financial Statements". - Classification of Liabilities as Short- or Long-Term,
Classification of Liabilities as Short- or Long-Term - deferral of effective date and Long-Term Liabilities for Contracts
Containing Covenants (effective for annual periods beginning on or after 1 January 2024),
- Amendments to IFRS 16 'Leases' - Lease commitment under sale and leaseback (effective for annual periods
beginning on or after 1 January 2024).
The aforementioned standards and amendments to standards would not have had a material impact on the financial
statements if they had been applied by the Company at the balance sheet date.
Standards and amendments to standards adopted by the IASB but not yet endorsed by the EU
At present, IFRS as approved by the EU do not differ significantly from the regulations adopted by the International
Accounting Standards Board (IASB), except for the following standards and amendments to standards which, as at
the date of these financial statement, have not yet been adopted for application:
- Amendments to IFRS 10 “Consolidated Financial Statements" and IAS 28 “Investments in Associates and Joint
Ventures” – Sales or transfers of assets between the investor and the associate or joint venture – the work leading
to the approval of these amendments has been postponed indefinitely by the EU – the date of entry into force has
been postponed by the IASB for an indefinite period;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: -Financing
arrangements for liabilities to suppliers (Effective for annual periods beginning on or after 1 January 2024,
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Non-convertibility (effective for annual
periods beginning on or after 1 January 2025, early application permitted).
The above-mentioned standards and amendments to the standards would not have a significant impact on the
financial statements, if they had been applied by the Company as at the balance sheet date.
Change in the presentation of other liabilities
In these separate financial statements, the Company continues the presentation changes introduced in the
statement of financial position consisting in combining the lines "Liabilities from deliveries and services." and "Other
liabilities", which resulted in the creation of a new aggregated item "Liabilities from deliveries and services and other
liabilities”.
The above change in accounting policy was caused by adapting the presentation to prevailing market practice,
which, in the management's opinion, will make the information presented in the financial statements more useful to
users.
The changes introduced would not, in the opinion of the management, have a significant impact on the statement
of financial position at the beginning of the previous period, therefore the statement of financial position at the
beginning of the previous period was not presented.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
20
In order to maintain consistency and comparability, the changes were included in the statement of financial position
at the end of the previous period.
A comparison of changes compared to the approved financial statements for the year ended 31 December 2022 is
presented below.
Item
EQUITY CAPITAL AND LIABILITIES
as at
31.12.2022
amended
as at
31.12.2022
according to
the approved
financial
statements
change
III.3
Liabilities from deliveries and services and other
liabilities
220,092
174,528
+45,564
III.5
Other liabilities
0
45,564
-45,564
The above-mentioned changes did not affect the value of equity, long-term liabilities and short-term liabilities.
5. Reporting by market segment
The Company is organised and managed by segment, as appropriate for the types of product offered.
The following tables presented the data from the profit and loss account for each of the Company's reportable
segments for the periods of 12 months ended 31 December 2023 and 31 December 2022.
The following segments exist within continuing business:
1. The industrial and power engineering segment, which includes activities relating to construction of industrial and
power engineering facilities.
2. The infrastructural segment, which includes activities relating to construction of roads and bridges.
3. General construction segment, which includes activities related to construction of residential buildings and public
utilities.
Unallocated revenue and costs relate to other manufacturing and service activities and administrative costs.
Profit and loss account for individual reporting segments:
Period ended 31 December 2023
Industry and
power
engineering
Infrastructure
General
construction
Unallocated
revenue, costs
Total
Sales revenue
Sales to external customers
187,752
788,518
389,232
3,447
1,368,949
Inter-segment sales
0
0
0
0
0
Total revenue of the segment
187,752
788,518
389,232
3,447
1,368,949
Profit (loss) of segment (taking into account operating
costs and revenue)
-14,943
99,588
4,651
-11,989
77,307
Unallocated costs (administrative costs and sales
costs)
-
-
-
52,057
52,057
Profit (loss) on continued activities
-14,943
99,588
4,651
-64,046
25,250
Financial revenue
1,244
4,439
3,419
11,718
20,820
Financing costs
670
4,156
2,669
8,388
15,883
Gross profit (loss)
-14,369
99,871
5,401
-60,716
30,187
Income tax
7,121
7,121
Net profit (loss) from continuing operations
-14,369
99,871
5,401
-67,837
23,066
Discontinued operations
0
0
0
0
0
Net profit (loss)
-14,369
99,871
5,401
-67,837
23,066
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
21
Period ended 31 December 2022
Industry and
power
engineering
Infrastructure
General
construction
Unallocated
revenue, costs
Total
Sales revenue
Sales to external customers
233,207
607,141
482,108
4,163
1,326,619
Inter-segment sales
0
0
0
0
0
Total revenue of the segment
233,207
607,141
482,108
4,163
1,326,619
Profit (loss) of segment (taking into account operating
costs and revenue)
27,306
43,148
20,234
-11,801
78,887
Unallocated costs (administrative costs and sales
costs)
-
-
-
49,673
49,673
Profit (loss) on continued activities
27,306
43,148
20,234
-61,474
29,214
Financial revenue
24
1,418
1,682
9,494
12,618
Financing costs
1,461
2,535
1,657
8,787
14,440
Gross profit (loss)
25,869
42,031
20,259
-60,767
27,392
Income tax
5,439.00
5,439
Net profit (loss) from continuing operations
25,869
42,031
20,259
-66,206
21,953
Discontinued operations
0
0
0
0
0
Net profit (loss)
25,869
42,031
20,259
-66,206
21,953
The main body of the Company (the Management Board) responsible for operational decisions does not
analyse assets and liabilities in segments, due to transfers of assets between segments. Revenues and costs are
allocated to the individual segments in accordance with the implemented projects. Assets are analysed on the level
of the entire Company. Gross profit (loss) from sales adjusted for other operating revenue and costs constitutes a
key indicator of segment result.
Both, in 2023 and in 2022, the Company conducted all of its operations on the domestic market.
In the reporting period, the largest recipients of the Company's services were: The General Directorate for National
Roads and Motorways with a 56% share in sales. The remaining customers do not exceed the threshold of a ten
percent share in the sales of Mostostal Warszawa S.A.
6. Revenue and costs
6.1. Long-term construction contracts
Revenue from construction contracts is adjusted for the damages and penalties paid, while the costs of
constructions works are reduced by the damages and penalties received.
The revenue arising from construction contracts in 2023 amounted to 1,341,600 thousand PLN (including 975,237
thousand PLN from contracts with public investors). The figures were 1,302,191 thousands PLN (913,057
thousands PLN) respectively in the corresponding period.
The costs of construction works include the costs of provisions created for the losses on contracts disclosed in Note
26.1.
Seasonal or cyclical nature of the Company's operations
The Company's activity depends on the weather conditions and in winter it may be less active than in other seasons
of the year. In 2023, weather conditions did not affect the Company's operations.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
22
Revenue accrued on the construction contracts in progress as at the balance sheet date:
Item
31.12.2023
31.12.2022
Estimated incremental revenue from construction contracts in progress
2,555,359
1,986,464
Incrementally invoiced sales of uncompleted construction contracts
2,475,104
1,897,985
Assets and accrued liabilities arising from construction contracts in progress (on
balance)
80,255
88,479
Advances received on uncompleted construction contracts
176,477
132,025
Assets and short-term and long-term liabilities arising from construction
contracts in progress (on balance)
-96,222
-43,546
Reconciliation with the items from the separate statement of financial position:
Assets and accruals arising from construction contracts in progress (on balance)
80,255
88,479
Assets arising from construction contracts for completed contracts
77,226
79,511
Advances received on uncompleted construction contracts
176,477
132,025
Assets and short-term and long-term liabilities arising from construction
contracts (on balance)
-18,996
35,965
including:
,
Assets arising from construction contracts
191,313
221,225
Long-term liabilities from construction contracts
75,300
91,299
Short-term liabilities from construction contracts
135,009
93,961
Unforeseen circumstances may arise in the course of performance of the contracts, resulting in loss or decrease of
margins, damage, increased unexpected expenses, etc.
These circumstances included in particular the following:
broadened scope of works in relation to the design (tender) conditions communicated to the Company by the
Ordering Parties,
unexpected and extraordinary increase in the prices of construction materials (including crude oil derivatives
and other materials), transport, equipment rental and construction services,
the need for longer performance of contracts, and accordingly, to incur higher costs inter alia as a result of
Company's lack of access to the site due to adverse weather conditions, defects in the design documentation
supplied by the customer.
In the Company's opinion, these circumstances have resulted in changes to contracts with employers (customers)
in accordance with contractual provisions and general legal grounds, and the rights to which the Company is entitled
as a result of the changes to those contracts exist and are enforceable (claims submitted to customers).
The claims are initially negotiated with the employers. If the parties fail reach agreement in the course of the
negotiations, the claims are brought to court. Claims submitted against customers represent additional
remuneration that may be received in the event of outcome of the court proceedings in favour of the Company.
Customers may also file claims against the Company, most often in the event of delays in contract performance
and in the event of identified faults and defects. Claims against the Company represent a potential reduction in
remuneration to be returned to the customers in the event of an unfavourable outcome of the court proceedings.
Due to the high complexity of construction contracts and the fact that court proceedings can be conducted at various
levels, it may take many years before the final judgement in a given case is announced.
In the statement of financial position, the Company presents significant balances of assets arising from construction
contracts that are subject to court proceedings.
The amounts recognized as assets/liabilities arising from construction contracts reflect the estimated value of the
variable consideration:
a) the change in the transaction price resulting from the contract variation is estimated taking into account all the
information (historical, current, forecasts, legal opinions and expert reports) that is reasonably available at the
time of preparation of the financial statements;
b) the transaction price includes part of the variable consideration resulting from the contract variation to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will
not occur when the uncertainty associated with the variable consideration is subsequently resolved.
The table below shows the total value of litigation with investors, with a breakdown of the nominal value of the
variable remuneration to which the Company will be entitled in the event of a favourable outcome of the litigation,
including the value of construction contract assets related to claims recognised in the statement of financial position,
and the nominal value of contract liabilities to be reimbursed to the ordering parties in the event of an unfavourable
outcome of the litigation pending against the Company. Claims have been grouped according to the following
categories:
Claims subject to court proceedings:
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
23
- Resulting from closed contracts, which include claims for payment of the remuneration due offset against
the penalties charged by the customers and claims for an increase in remuneration due to unforeseeable
circumstances,
- Related to contracts that have not been completed - disputes regarding the determination of the amount
of remuneration due to the Company for the works performed until the date of withdrawal from the contract,
31 December 2023
Assets arising from
performance of
construction
contracts disclosed
in the statement of
financial position*
Nominal value of
variable
consideration due
to the Company**
Nominal value of
consideration to be
returned to the
customers
Claims subject to court proceedings:
246,553
752,296
526,395
Contracts completed and accepted by the customers
Assets arising from construction contracts
124,169
571,182
263,878
Contracts terminated prior to completion of works
Assets arising from construction contracts
122,384
181,114
262,517
*The assets presented and recognised in the statement of financial position, relate to the performance of construction contracts and are classified
as current (short-term) as the Company expects to realise these assets during the normal operating cycle. As at the balance sheet date, the Company
expects assets of approximately PLN 234 million to be settled more than 12 months after the balance sheet date;
**includes amounts shown in the column ‘Assets recognised in the statement of financial position that relate to the performance of construction
contracts’.
31 December 2022
Assets arising from
performance of
construction
contracts disclosed
in the statement of
financial position*
Nominal value of
variable
consideration due
to the Company**
Nominal value of
consideration to be
returned to the
customers
Claims subject to court proceedings:
235,802
806,221
499,353
Contracts completed and accepted by the customers
Assets arising from construction contracts
113,418
638,590
256,845
Contracts terminated prior to completion of works
Assets arising from construction contracts
122,384
167,631
242,508
*The assets presented and recognised in the statement of financial position, relate to the performance of construction contracts and are classified
as current (short-term) as the Company expects to realise these assets during the normal operating cycle. As at the balance sheet date, the Company
expects assets of approximately PLN 234 million to be settled more than 12 months after the balance sheet date;
**includes amounts shown in the column ‘Assets recognised in the statement of financial position that relate to the performance of construction
contracts’.
The description of the court cases resulting in the above amounts is described in the Report on the activities of
Mostostal Warszawa S.A. in point IV.
Contract assets relate to the Company's rights to remuneration for work performed but not invoiced at the reporting
date in relation to construction contracts. Contract assets are subject to impairment analysis. As at the balance
sheet date, they were not found to be impaired and were not written down for this reason. Contract assets are
transferred to receivables when the rights become unconditional. This usually occurs when the Company issues an
invoice to the customer.
Liabilities arising from construction contracts comprise mainly accrued liabilities i.e. where the invoiced cumulative
value of sales and advances received for performance of the contract is higher than the sales, taking into account
the extent of the contract performance.
As at 31.12.2023, assets arising from construction contracts amounted to 191,313 thousand PLN and decreased
by 29,912 thousand PLN, compared to the figure as at the previous year’s balance sheet date. Accrued liabilities
arising from construction contracts (total long-term and short-term) amounted to 210,309 thousands PLN and
increased by 25,049 thousands PLN, compared to the figure as at the end of 2022.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
24
Remaining obligations to provide services
Total amount of the transaction price allocated to performance obligations that are
not met (or partially met) at the end of the reporting period to be completed:
31.12.2023
31.12.2022
- up to year
1,226,408
1,355,798
- more than a year
1,846,732
2,538,414
Total
3,073,140
3,894,212
The value of other outstanding performance commitments, as compared to the previous year, decreased by
821,072 thousand PLN.
Time limits for meeting performance obligations and the applicable payment terms
Long-term construction contracts are settled with investors in the following way:
- in the course of the works – partly in accordance with the progress of works, usually on a monthly basis, based
on settlement documents confirming the performance of specific works and other contractual obligations
(transitional payment certificates, partial acceptance reports, partial invoices),
- after completion of the works – based on final documents (final acceptance reports, final invoices) confirming
completion of works and fulfilment of contractual obligations required for the final settlement.
Payment terms for construction services performed by the Company are usually 30 days, with the proviso that on
some contracts the Company obtains financing before the commencement of works in the form of advance
payments, which are settled on an ongoing basis with partial invoices and a final invoice.
6.2. Costs by type
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
a) depreciation and amortisation
41,079
15,672
(b) use of materials and energy
313,100
301,562
c) third party services
789,816
823,230
d) taxes and fees
3,885
2,478
e) salaries
121,790
111,560
f) social security and other employee benefits
31,365
27,200
g) other costs by type
10,983
8,259
Costs by type, total
1,312,018
1,289,961
Changes in inventory, products, prepayments and accruals
31,062
-1,318
General administrative expenses (negative value)
-52,057
-49,673
Value of goods and materials sold
2,573
31
Own sales costs
1,293,596
1,239,001
The third-party services include primarily the costs of subcontracted services under the contracts.
The amount of social security in 2023 amounted to 19,449 thousands PLN (cf. 15,326 thousands PLN in 2022).
Depreciation
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Items included in the cost of sale:
36,988
11,511
Depreciation of fixed assets
36,703
11,284
Amortisation of intangible assets
285
227
Items included in the general administrative expenses:
4,091
4,161
Depreciation of fixed assets
3,896
3,975
Amortisation of intangible assets
195
186
Depreciation, total
41,079
15,672
Salaries
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Salaries included in the cost of sale
94,348
84,254
Items included in general and administrative expenses
27,442
27,306
Total salaries
121,790
111,560
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
25
Social security and other employee benefits
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Social security and other employee benefits included in the cost of sale
24,368
21,122
Social security and other employee benefits included in the general administrative
expenses
6,997
6,078
Total social security and other employee benefits
31,365
27,200
6.3. Other operating revenue
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
a) dissolved reserves (due to)
854
20,002
- receivables (excess of the provision resolved over the provision created)
604
*19,255
- other
250
747
(b) profit from sale of non-financial fixed assets
340
133
(c) other, including:
5,781
6,592
- resolution of court cases
0
6,326
- damages and penalties
518
198
- write-offs of liabilities
5,113
45
- other
150
23
Other operating revenue, total
6,975
26,727
* including the reversed provision for receivables as a result of a positive court judgment of 19,948 thousand PLN.
6.4. Other operating expenses
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
(a) provisions / write-downs (due to)
3,158
2,247
- litigation
3,158
2,247
(b) other, including:
1,863
33,211
- written claims
0
29,736
- write-offs of receivables
54
1,252
- costs of recovering liabilities
288
308
- costs of recovering receivables
37
89
- liquidation of fixed assets
617
0
- other
867
1,826
Other operating cost, total
5,021
35,458
6.5. Financial revenue
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
a) interest
2,611
3,295
- on cash and deposits
2,342
2,811
- on late payment interest
153
484
- interest on loans
116
0
b) dividend and profit sharing
2,279
4,895
(c) gain on sale of investments
0
0
(d) revaluation of investments
0
0
e) other
15,930
4,428
- valuation of financial instruments
0
1,222
- discount
0
2,711
- revenues from financial instruments
3,402
452
- surplus of positive exchange differences over negative exchange differences
12,528
0
- other
0
43
Total financial revenue
20,820
12,618
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
26
6.6. Financing costs
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
a) interest
14,449
11,331
- on loans
5,084
5,501
- on bank loans
83
21
- for late payment of trade and tax liabilities
2,422
3,255
- on lease agreements
2,680
1,977
- from factoring
4,180
577
b) loss on disposal of investment
0
7
c) other
1,434
3,102
- currency translation losses
0
2,602
- loss on financial instruments
0
500
- discount
473
0
- valuation of financial instruments
961
0
Total financial costs
15,883
14,440
7. Income tax
The main components of the tax burden
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Profit and loss account
Current income tax
8,355
7,892
Current debit due to deferred income tax
8,355
7,892
Deferred income tax
-1,234
-2,453
Associated with the occurrence and the reversal of transient differences
-1,234
-2,453
Taxes recognised in the profit and loss account
7,121
5,439
Reconciliation of income tax on gross financial result before tax at the statutory tax rate with income tax calculated
according to the effective tax rate for the period of 12 months ended on 31 December 2023.
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Gross profit / (loss) before tax
30,187
27,392
Tax at the statutory tax rate in force in Poland, amounting to 19%
5,736
5,204
Tax adjustment for costs not constituting tax deductible costs
1,690
1,442
Tax adjustment for non- taxable income
-305
-1,207
Tax adjustment for items for which an asset has not been created/asset written off
0
0
Tax shown in the profit and loss account
7,121
5,439
Including:
Deferred income tax
-1,234
-2,453
Current income tax
8,355
7,892
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
27
8. Deferred income tax
8.1. Deferred tax assets
Item
Balance sheet
Profit and loss account for the
period
31.12.2023
31.12.2022
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Deferred tax assets
exchange differences
209
2,847
2,638
-500
revaluation of receivables
6,414
6,382
-32
3,456
amortisation & depreciation
5,102
2,312
-2,790
465
leasing liabilities*
24,955
11,271
-13,684
-6,187
accrued costs and provision for repairs under warranty
36,604
39,239
2,635
647
provisions for expected losses
1,825
448
-1,377
98
valuation of long-term contracts
12,007
10,383
-1,624
-4,790
unpaid remuneration
2
49
47
-24
unpaid costs
0
0
0
344
provisions for employee benefits
1,682
1,430
-252
-397
Interest accrued on loans
82
546
464
-546
on tax loss
0
0
0
-115
on security deposit discount
0
0
0
0
Assets before offset
85,399
74,907
-10,492
-7,549
Offset against the deferred tax liability
-57,491
-48,233
9,258
5,096
Deferred tax assets
27,908
26,674
-1,234
-2,453
*the item results from the amendment to IAS 12, which is described in note 4.25
The deferred tax assets increased by 1,234 thousands PLN compared to the end of 2022.
8.2. Deferred tax liability
Item
Balance sheet
Profit and loss account for the
period
31.12.2023
31.12.2022
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Deferred tax liability
foreign exchange gains – balance sheet valuation
-69
159
-69
36
interest
4,314
1,837
4,314
0
valuation of long-term contracts
26,626
33,038
26,626
-1,815
leasing assets
24,955
11,271
13,684
6,187
other
3,483
173
3,483
173
discount
1,665
1,755
1,665
515
Liability before offset
57,491
48,233
9,258
5,096
Offset against the deferred tax asset
-57,491
-48,233
-9,258
-5,096
Deferred tax liability
0
0
0
0
Deferred income tax expense
-
-
-1,234
-2,453
Deferred tax assets
27,908
26,674
-
-
Net reserves from deferred taxes
0
-
-
*the item results from the amendment to IAS 12, which is described in note 4.25
9. Discontinued operations
In the reporting period from 01.01.2023 to 31.12.2023, no discontinued operations have been reported.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
28
10. Earnings (loss) per share
Basic earnings per share are calculated by dividing the net profit or loss attributable to ordinary equity holders of
the Company by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share are calculated by dividing the net profit (loss) for the period attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding during the financial year (adjusted
for the effect of dilutive options and redeemable preference shares convertible into ordinary shares).
Profit and the number of shares used to calculate basic and diluted profit per share:
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Net profit on continued activities
23,066
21,953
Net profit
23,066
21,953
Net profit used in the calculation of the diluted profit per share
23,066
21,953
Item
01.01.2023 -
31.12.2023
01.01.2022 -
31.12.2022
Weighted average number of ordinary shares outstanding used to calculate earnings per
share
20,000,000
20,000,000
Adjusted weighted average number of ordinary shares used to calculate diluted
earnings per share
20,000,000
20,000,000
11. Dividends paid and recommended
Given the losses incurred in the previous years, Mostostal Warszawa S.A. Paid no dividends in 2023 and 2022.
The Management Board of Mostostal Warszawa S.A. proposes that the profit of 23,066 thousands PLN
for the year 2023 should be allocated to cover the losses from previous years.
12. Intangible assets
31 December 2023
Acquired
concessions,
patents,
licenses and
similar assets
Intangible
assets in
progress
Total
Net amount as at 1 January 2023
407
287
694
Increase (acquisition)
217
306
523
Decrease (sale)
0
-593
-593
Impairment loss
0
0
0
Depreciation charge for the financial year (sale, liquidation)
0
0
0
Current depreciation
-480
0
-480
As at 31 December 2023
144
0
144
As at 1 January 2023
Gross amount
10,976
287
11,263
Accumulated depreciation and impairment loss
-10,569
-10,569
Net amount
407
287
694
As at 31 December 2023
Gross amount
11,193
0
11,193
Accumulated depreciation and impairment loss
-11,049
-11,049
Net amount
144
0
144
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
29
31 December 2022
Acquired
concessions,
patents,
licenses and
similar assets
Intangible
assets in
progress
Total
Net amount as at 1 January 2022
524
21
545
Increase (acquisition)
296
266
562
Decrease (sale)
0
0
0
Impairment loss
0
0
0
Depreciation charge for the financial year (sale, liquidation)
0
0
0
Current depreciation
-413
0
-413
As at 31 December 2022
407
287
694
As at 1 January 2022
Gross amount
10,680
21
10,701
Accumulated depreciation and impairment loss
-10,156
0
-10,156
Net amount
524
21
545
As at 31 December 2022
Gross amount
10,976
287
11,263
Accumulated depreciation and impairment loss
-10,569
-10,569
Net amount
407
287
694
Mostostal Warszawa S.A. has no liens on intangible assets to secure liabilities.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
30
13. Property, plant and equipment
31 December 2023
Land
Buildings and
structures
Machinery and
equipment
Means of
transport
Other fixed
assets
Fixed assets
under
construction
Total
Net value on 1 January 2023
5,021
10,832
4,655
241
4,690
26,461
51,899
Increase (acquisition, transfer)
0
17,546
25,054
2,688
1,860
946
48,094
Decrease (sale, liquidation, transfer)
0
0
-621
-1,199
-174
-26,461
-28,455
Depreciation write-off (sale, liquidation)
0
0
404
980
96
0
1,480
Current depreciation
0
-7,892
-3,424
-128
-2,135
0
-13,579
Net value as of 31 December 2023
5,021
20,486
26,068
2,582
4,337
946
59,439
As at 1 January 2023
Gross amount
5,021
12,680
20,775
1,183
11,834
26,461
77,954
Accumulated depreciation and impairment loss
0
-1,848
-16,121
-942
-7,145
0
-26,055
Net amount
5,021
10,832
4,655
241
4,690
26,461
51,899
As at 31 December 2023
Gross amount
5,021
30,226
45,208
2,672
13,520
946
97,593
Accumulated depreciation and impairment loss
0
-9,740
-19,141
-90
-9,184
0
-38,154
Net amount
5,021
20,486
26,068
2,582
4,337
946
59,439
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
31
31 December 2022
Land
Buildings and
structures
Machinery and
equipment
Means of
transport
Other fixed
assets
Fixed assets
under
construction
Total
Net value on 1 January 2022
5,021
220
1,979
158
3,555
3,388
14,321
Increase (acquisition)
0
7,831
4,620
155
2,148
26,460
41,214
Increases (transfer from investments in progress)
0
3,344
43
0
0
0
3,387
Decrease (sale, liquidation, transfer)
0
0
-835
-64
-374
-3,387
-4,660
Depreciation write-off (sale, liquidation)
0
0
749
64
374
0
1,187
Current depreciation
0
-563
-1,902
-72
-1,013
0
-3,550
Net value as of 31 December 2022
5,021
10,832
4,655
241
4,690
26,461
51,899
As at 1 January 2022
Gross amount
5,021
1,505
16,947
1,092
10,060
3,388
38,013
Accumulated depreciation and impairment loss
0
-1,285
-14,968
-934
-6,505
0
-23,692
Net amount
5,021
220
1,979
158
3,555
3,388
14,321
As at 31 December 2022
Gross amount
5,021
12,680
20,775
1,183
11,834
26,461
77,951
Accumulated depreciation and impairment loss
0
-1,848
-16,121
-942
-7,144
0
-26,055
Net amount
5,021
10,832
4,655
241
4,690
26,461
51,899
Mostostal Warszawa S.A. has no liens on the property, plant and equipment to secure liabilities.
Purchases of fixed assets are financed with own funds.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
32
14. Use rights
In the balance sheet item of the right to use, the Company presents fixed assets used on the basis of lease and lease contracts.
31 December 2023
Buildings and
structures
Machines and
equipment
Means of
transport
Other
Total
Net value on 1 January 2023
16,734
23,292
19,295
0
59,321
Increase
670
95 857
6 853
262
103 380
Decrease, liquidation
-2 473
0
-3 857
0
-6 330
Depreciation write-off (buyout)
0
0
0
0
0
Depreciation (liquidation)
0
0
1,727
0
1,727
Current depreciation
-3,061
-18,064
-5,842
-53
-27,020
Net value as of 31 December 2023
11,870
101,085
18,176
209
131,340
As at 1 January 2023
Gross amount
27,102
32,327
28,422
0
87,851
Accumulated depreciation and impairment loss
-10,368
-9,035
-9,127
0
-28,530
Net amount
16,734
23,292
19,295
0
59,321
As at 31 December 2023
Gross amount
25,299
128,184
31,418
262
185,163
Accumulated depreciation and impairment loss
-13,429
-27,099
-13,242
-53
-53,823
Net amount
11,870
101,085
18,176
209
131,340
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
33
31 December 2022
Buildings and
structures
Machines and
equipment
Means of
transport
Total
Net value on 1 January 2022
4,103
14,983
7,670
26,756
Increase
19,617
12,577
16,658
48,852
Reduction, purchase from leasing
0
0
-719
-719
Reduction, liquidation
0
0
-2,921
-2,921
Discount
-4,299
0
0
-4,299
Depreciation write-off (buyout)
0
0
617
617
Depreciation (liquidation)
0
0
2,792
2,792
Current depreciation
-2,687
-4,268
-4,802
-11,757
Net value as of 31 December 2022
16,734
23,292
19,295
59,321
As at 1 January 2022
Gross amount
11,784
19,750
15,404
46,938
Accumulated depreciation and impairment loss
-7,681
-4,767
-7,734
-20,182
Net amount
4,103
14,983
7,670
26,756
As at 31 December 2022
Gross amount
27,102
32,327
28,422
87,851
Accumulated depreciation and impairment loss
-10,368
-9,035
-9,127
-28,530
Net amount
16,734
23,292
19,295
59,321
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
34
15. Business combinations
In the reporting period, there was no merger with another entity.
16. Participation in joint arrangements
As at 31.12.2023 and 31.12.2022, the financial data of Mostostal Warszawa S.A. include values attributable to the
Company on account of its 50% share in Mostostal Acciona S19 Tunel Spółka Cywilna, which was established on
2 July 2020 to perform the contract "Design and construction of the S19 expressway on the section from Rzeszów
Południe junction (without junction) to Babica junction (with junction) of approximately 10.3 km".
Due to the establishment of a separate entity under the joint contractual arrangements, the joint contractual action
should be treated as a joint venture. Mostostal Acciona S19 Tunel s.c. was established in the form of a civil
partnership, which has no legal personality, hence the legal form guarantees the parties' rights to the assets and
obligations under the liabilities, the share of which is indicated in the contract between the parties. In addition,
Mostostal Acciona S19 Tunel s.c. is an entity under common control (unanimity of all shareholders is required on
matters relating to the business), which is treated as a joint operation under IFRS 11.
There are no future investment obligations relating to the performance of the contract "Design and construction of
the S19 expressway on the section from Rzeszów Południe junction (without junction) to Babica junction (with
junction) of approx. 10.3 km".
17. Long-term financial assets
Item
31.12.2023
31.12.2022
Shares and interests
35,964
35,964
The value of shares as at 31 December, 2023 did not change compared to the end of the comparable period.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
35
Interests and shares in subsidiaries
Ite
m
a
b
c
d
e
f
g
h
i
j
k
name and legal form of the
company
Registered
office
Core business activity
type of affiliation
(subsidiary, joint
subsidiary,
affiliated
company,
indication of
direct and indirect
affiliation)
consolidation
method
date of
gaining
control / joint
control /
considerable
influence
value of
shares at
the
purchase
price
Value
adjustments
(total)
Carrying
amount of
shares
Percent of
owned share
capital
share of total
voting rights
in General
Shareholders'
Meeting
1.
Mostostal Kielce S.A.
Kielce
Construction
Subsidiary
Full
07.04.1994
8,498
0
8,498
100.00%
100.00%
2.
AMK Kraków S.A.
Kraków
Construction
Subsidiary
Full
10.07.1998
8,914
0
8,914
100.00%
100.00%
3.
Mostostal Płock S.A.
Płock
Construction
Subsidiary
Full
14.12.1999
18,547
0
18,547
48.69%
53.10%
4.
Mostostal Power Development
Sp. z o.o.
Warsaw
Construction
Subsidiary
Full
23.10.2013
5
0
5
100.00%
100.00%
5.
Mostostal Warszawa Ukraina
Sp. z o.o.
Kiev
Construction
Subsidiary
excluded from
consolidation
05.2008
25
-25
0
100.00%
100.00%
Total
35,989
-25
35,964
Shares in other companies
Item
a
b
c
d
e
f
g
h
i
name of subsidiary with indication of legal
form
Registered
office
core business
activity
share
carrying
value
Equity capital of an
entity, including:
Percentage
of the share
capital held
share of total
voting rights in
General
Shareholders'
Meeting
value of shares /
stocks unpaid by
the Company
Dividends
received or due
for the last
financial year
- share
capital
1.
Pronit Pionki S.A.
Pionki
Production of plastics
0
0
0
0.27%
0.27%
0
-
Value of shares at purchase price:
- Pronit Pionki S.A. – 36 thousands PLN.
Impairment losses on shares:
- Pronit Pionki S.A. – 36 thousands PLN.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
36
18. Long-term deferred charges and accruals
Item
31.12.2023
31.12.2022
a) accrued expenses, including:
6,449
8,464
insurance
6,441
8,450
other
8
14
Long-term deferred charges and accruals
6,449
8,464
19. Inventory
Item
31.12.2023
31.12.2022
Materials
41,642
28,169
Goods
6
5
Total inventory at the lower of the two values: purchase price (at cost) or net
realizable value
41,648
28,174
Impairment loss of inventory
0
0
Total inventory at cost
41,648
28,174
None of the inventory categories provided collateral for loans or borrowings in 2023 and 2022. As at 31 December 2023
and 31 December 2022, there were no inventories valued at the net sales price.
Changes in the impairment loss of inventory
As at 31.12.2023 and as at 31.12.2022, the Company did not revaluate its inventories.
20. Trade receivables and other receivables (long-term and short-term)
Item
31.12.2023
31.12.2022
Long-term trade receivables
0
3
Trade receivables from related parties (Note 34)
0
0
Trade receivables from other entities
0
3
Other long-term receivables
0
1,345
Other long-term receivables from third parties
0
1,345
Total net long-term trade and other receivables
0
1,348
Short-term trade receivables
285,480
260,523
Trade receivables from related parties (Note 33)
1,415
2,966
Trade receivables from other entities
284,065
257,557
Other short-term receivables
2,058
4,631
Regulatory charges - VAT
0
3,734
Other receivables from third parties
2,058
897
Total net trade receivables and other receivables
287,538
266,502
Impairment of receivables
17,285
18,166
Gross trade receivables and other receivables
304,823
284,668
Gross trade receivables maturing after the balance sheet date
31.12.2023
31.12.2022
- up to 30 days
101,267
73,314
- 31 to 90 days
13,881
14,173
- 91 to 180 days
9,162
200
- 181 to 365 days
0
5
- more than 365 days
0
138
- overdue receivables
178,455
190,862
Total gross trade receivables
302,765
278,692
- allowance for uncollectible accounts from deliveries and services
17,285
18,166
Total net trade receivables
285,480
260,526
In the Company's practice, the predominant time frame for realisation of receivables is the period of up to 1 month.
However, there are instances where contracts provide for longer time limits for payments, which means that all of the
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
37
specified time intervals may be associated with the normal course of sales. A special case are the security deposits
maturing up to 10 years.
Item
31.12.2023
31.12.2022
- Short-term receivables from security deposits
387
1,051
- Long-term receivables from security deposits
0
3
Total receivables from security deposits
387
1,054
The value of discount of long-term receivables due to security deposits as of 31.12.2023 (cf. as at 31.12.2022 – 0 PLN).
Overdue trade receivables – gross overdue receivables broken down by
receivables overdue
31.12.2023
31.12.2022
- up to 30 days
1,077
9,227
- 31 to 90 days
1,887
1,655
- 91 to 180 days
450
1,148
- 181 to 365 days
792
6,900
- more than 365 days
174,249
171,932
Total gross overdue trade receivables
178,455
190,862
- allowance for uncollectible accounts from deliveries and services, overdue
17,150
18,031
Total net overdue trade receivables
161,305
172,831
The Company runs a policy to sell only to verified customers.
Changes in the impairment of receivables
Item
31.12.2023
31.12.2022
Opening balance as at 1 January
18,166
38,783
Increases (including restated figures)
232
1,969
Decreases
-1,113
-22,586
Closing balance as at 31 December
17,285
18,166
Allowances for trade receivables are measured at expected credit losses for the entire expected life of the financial asset.
Methodology for calculating allowances for expected credit losses for receivables
Mostostal Warszawa S.A. analyses the credit risk of trade receivables by the following groups of counterparties:
(a) State-owned companies,
(b) Companies in which local authorities are shareholders,
(c) Public companies other than those in (a) and (b) or their subsidiaries,
(d) Other entities.
For the above groups of receivables, a portfolio analysis was carried out and a simplified allowance matrix was applied to
the various age ranges of receivables based on expected credit losses over the life of the receivables based on the ratios
of created allowances in these ranges, determined on the basis of historical data.
As at the balance sheet date, trade receivables from entities in groups a), b) and c) accounted for 87% of total receivables.
Given that the Company assumes no significant change in the sales structure realised and the risk of insolvency of entities
in groups a), b) and c) is assessed as negligible.
Trade receivables from other entities included in group d) are subject to the highest degree of credit risk. However, the
Company's preventive credit risk control policy minimises the level of non-performing receivables also in this part of the
portfolio. The average share of these receivables over the last five years was 4 % and the average credit loss ratio was 3
%.
The Company considers receivables past due for more than 180 days or receivables from counterparties at risk of
bankruptcy to be non-performing receivables, i.e. receivables whose credit risk has increased significantly.
The Company recognises these receivables with 100% allowances based on a quarterly analysis of overdue receivables
from individual counterparties.
Costs for impairment losses on receivables are analysed for the entire life of these assets, taking into account that the
revaluation does not imply a decision to stop collecting the receivables, but only indicates a prudent approach to the
valuation of financial assets.
The total allowance for expected credit losses for receivables at 31 December 2023 amounted to PLN 17,285 thousand
(at 31 December 2022: PLN 18,166 thousand).
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
38
The Company's credit risk exposure related to trade receivables:
Short-term trade and other receivables as at 31.12.2023
current
1 - 30
days
31 - 90
days
91 - 180
days
181 - 365
days
above 365
Total
The risk of a default occurring*
0.11%
0.00%
0.00%
0.00%
0.25%
9.84%
Gross amount of receivables exposed
to risk
124,310
1,077
1,887
450
792
174,249
302,765
Allowance for expected credit losses
135
0
0
0
2
17,150
17,287
Short-term trade and other receivables as at 31.12.2022
current
1 - 30
days
31 - 90
days
91 - 180
days
181 - 365
days
above 365
Total
The risk of a default occurring*
0.15%
0.00%
0.00%
46.61%
1.12%
10.13%
Gross amount of receivables exposed
to risk
87,830
9,227
1,655
1,148
6,900
171,932
278,692
Allowance for expected credit losses
135
0
0
535
77
17,419
18,166
*includes standard risks determined on the basis of historical data and additional allowances created for selected counterparties
Overdue receivables in the amount of 161,306 thousands PLN, for which no impairment loss has been recognized, are not
exposed to a high credit risk according to the Management Board. About 2% of these are receivables with payment terms
exceeded by no more than 6 months. In other cases, the Company undertakes all necessary legal actions to recover these
receivables and is sure of their recovery.
21. Cash and cash equivalents
Cash at bank and in hand bears interest at the variable interest rates. Short-term deposits are created for a period from
one day up to one month depending on the Company's current needs with regard to money, and interest on them is
calculated according to the percentage rates set for them.
As at 31 December 2023, the Company had at its disposal the unused loans in the amount of 10,000 thousands PLN (cf.
as at 31.12.2022: 10,000 thousands PLN).
Bank
Type of loan
Amount of the
loan in
thousand PLN
Amount used
as at
31.12.2023
Maturity
Interest rate
Societe Generale S.A.
Branch in Poland
Current account
overdraft
10,000
0
31.07.2024
WIBOR 1M +
Bank's margin
The balance of cash and cash equivalents disclosed in the cash flow statement comprised the following items:
Item
31.12.2023
31.12.2022
Cash at bank and in hand
83,432
40,266
Short-term deposits
175,678
134,749
Total
259,110
175,015
22. Short-term financial assets
Item
31.12.2023
31.12.2022
Other short-term financial assets in other entities
0
961
- valuation of financial instruments
0
961
Total
0
961
As at 31.12.2023, the Company did not have any financial instruments in the form of forward contracts. Short-term financial
assets as at 31 December , 2022 was a forward balance sheet valuation.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
39
23. Other prepayments and accrued income
Item
31.12.2023
31.12.2022
a) accrued expenses, including:
4,819
4,820
insurance
4,819
4,820
(b) other accruals, including:
1,106
1,052
other
1,106
1,052
Accruals and deferred income
5,925
5,872
24. Equity
24.1. Stated capital
Number of shares
20,000,000
Stated capital
PLN
44,801,224
Including PLN 24,801,224 as the
hyperinflation adjustment
Par value per share
PLN 1
Issues
Number of shares
Value of series/issue by its
nominal value (thousands
PLN)
Registration
date
Right to dividend
attached to shares
Series I – ordinary shares
3,500,000 shares
3,500
31.01.1991
01.01.1991
Series II – ordinary shares
1,000,000 shares
1,000
15.09.1994
01.01.1994
Series III – ordinary shares
1,500,000 shares
1,500
14.10.1996
01.01.1996
Series IV – ordinary shares
4,000,000 shares
4,000
09.06.1998
01.01.1998
Series V – ordinary shares
10,000,000 shares
10,000
19.04.2006
01.01.2006
Total number of shares
20,000,000 shares
The number of shares in 2023 and 2022 did not change. The issued share capital is approved and paid up.
According to IAS 29 “Financial reporting in hyperinflationary economies”, components of the Company's equity (except for
retained earnings) were restated using an appropriate price index, starting from the date on which the components were
contributed or otherwise arose for the period, in which the Polish economy was a hyperinflationary economy (i.e. for the
period until the end of 1996). Hyperinflation adjustment was calculated using the monthly price index, taking into account
the month during the period of hyperinflation, in which the capital contribution was made. Compliance with the requirements
of IAS 29 resulted in the increase of the share capital by the amount of 24,801 thousands PLN and at the same time
charging the retained earnings from previous years with the corresponding tax expense. This revaluation does not affect
the value of the Company’s equity as at 31.12.2023 and as at 31.12.2022.
Revaluation effect
Item
31.12.2023
31.12.2022
Authorised capital
20,000
20,000
Restatement of equity in connection with hyperinflation
24,801
24,801
Value disclosed in the financial statements
44,801
44,801
The Parent holds no treasury shares. No shares have been reserved for the purpose of issues related to the exercise of
options, or sale contracts.
List of Major Shareholders
Item
31.12.2023
Acciona Construcción S.A.
share in the capital
62.13%
share of voting rights
62.13%
OFE PZU "Złota Jesień"
share in the capital
19.14%
share of voting rights
19.14%
24.2. Supplementary/reserve capital
On 5 June 2023, the Annual General Meeting of Mostostal Warszawa S.A. resolved to allocate the net profit for 2022 in
the amount of 21,953 thousands PLN to absorb previous years’ losses.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
40
On 23.12.2013, Mostostal Warszawa S.A. and Acciona Construcción S.A. concluded annexes to three loan agreements
for the total amount of 48,409 thousands EUR (equivalent in Polish PLNotys: 201,815 thousands), under which the terms
and conditions for the repayment of the loans were set out in such a manner that the period for repayment of the loans
was extended for an indefinite period and Mostostal Warszawa S.A. will decide about the repayment date thereof. In
accordance with IAS 32, Mostostal Warszawa S.A. has presented these loans in equity. Loans are presented as of the
balance sheet date at the historical rate and do not accrue interest. Interest will accrue from the date of approval of the
dividend for payment by the General Meeting and will be calculated at the WIBOR rate plus a margin.
25. Interest-bearing bank loans and borrowings
List of loans received as at 31.12.2023:
Entity
Date of Agreement
Amount of the Loan
Currency
Repayment
date
Acciona Construcción S.A.
05.12.2012
64,594
PLN
**15.07.2024
Acciona Construcción S.A.
27.05.2013
58,881
PLN
*31.01.2024
Total
123,475
PLN
*the principal amount of the loan was repaid on 25 January, 2024, the interest on this loan was repaid on 2 February, 2024
** by an annex of 11 April 2024, the loan repayment deadline was extended to 15 July 2025
List of loans received as at 31.12.2022:
Entity
Date of Agreement
Amount of the Loan
Currency
Repayment
date
Acciona Construcción S.A.
05.12.2012
71,481
PLN
15.07.2024
Acciona Construcción S.A.
27.05.2013
64,066
PLN
31.01.2024
Total
135,547
PLN
The borrowings received from Acciona Construcción S.A. are not secured.
In 2023, the Company repaid interest on loans in the total amount of 7,553 thousands PLN (1,683 thousands EUR).
Change in received loans
Item
31.12.2023
31.12.2022
Opening balance as at 1 January
135,547
130,133
Increases / decreases due to exchange differences
-9,621
2,543
Increases / decreases due to accrued interest
5,102
5,501
Reductions due to interest paid
-7,553
-2,630
Reductions due to capital repayment
0
0
Closing balance as at 31 December
123,475
135,547
The list of loans received and transferred to the reserve capital in 2013:
Entity
Date of Agreement
Amount of the Loan
Currency
Acciona Construcción S.A.
30.03.2012
109,380
PLN
Acciona Construcción S.A.
18.07.2012
66,428
PLN
Acciona Construcción S.A.
11.07.2013
26,007
PLN
Total
201,815
PLN
The carrying amount of the aforementioned loans and borrowings is close to their fair value.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
41
26. Provisions
26.1. Changes in provisions
31 December 2023
Reserve for
anniversary
awards and
retirement
bonuses
Provisions for
expected
losses on
contracts
Reserve for
warranty
repairs
Provision for
litigation
Total
As at 1 January 2023
1,789
2,393
13,915
5,484
23,581
Created during the financial year
795
16,197
7,807
11,938
36,737
Used
-260
-83
-7,124
-540
-8,007
Dissolved
0
0
-2,676
-250
-2,926
As at 31 December 2023
2,324
18,507
11,922
16,632
49,385
Long-term as at 31.12.2023
1,970
12,387
7,882
12,002
34,241
Short-term as at 31.12.2023
354
6,120
4,040
4,630
15,144
31 December 2022
Reserve for
anniversary
awards and
retirement
bonuses
Provisions for
expected
losses on
contracts
Reserve for
warranty
repairs
Provision for
litigation
Total
As at 1 January 2022
2,001
3,198
13,419
3,006
21,624
Created during the financial year
0
83
9,079
3,125
12,287
Used
-206
-888
-4,167
-517
-5,778
Dissolved
-6
0
-4,416
-130
-4,552
As at 31 December 2022
1,789
2,393
13,915
5,484
23,581
Long-term as at 31.12.2022
1,286
2,310
7,882
0
11,478
Short-term as at 31.12.2022
503
83
6,033
5,484
12,103
The Company expects that the short-term provisions will be used within 12 months from the balance sheet date, while
long-term provisions will be used after 12 months following the balance sheet date.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
42
27. Liabilities from deliveries and services and other long-term and short-term liabilities
Item
31.12.2023
31.12.2022
Long-term liabilities from deliveries and services:
34,836
27,725
to related parties (Note 33)
0
2
including liabilities due to security deposits
0
2
To other entities
34,836
27,723
including liabilities due to security deposits
34,836
27,723
Short-term liabilities from deliveries and services:
180,138
165,642
to related parties (Note 33)
19,744
20,729
including liabilities due to security deposits
2
0
To other entities
160,394
153,799
including liabilities due to security deposits
46,128
46,035
Other short-term liabilities
131,601
54,450
Factoring liabilities
77,396
8,886
Other short-term liability
54,205
45,564
(a) Liabilities arising from taxes, duties, social security and other
54,161
36,699
Factoring liabilities
77,396
8,886
Value Added Tax
49,170
32,223
Social insurance
3,240
2,981
Personal income tax
1,750
1,495
Other
1
0
(b) Other liabilities
44
-21
Other liabilities
44
-21
Total liabilities from deliveries and services and other short-term liabilities
346,575
247,817
As at the balance sheet date, the Company was a party to two reverse factoring agreements, which extended the
repayment period for liabilities to 90 days.
Repayments of deposit liabilities are reported in operating activities in the cash flow statement.
28. Liabilities due to leasing agreements
The company uses buildings, construction machinery and equipment under lease agreements and lease agreements with
a purchase option.
Item
31.12.2023
31.12.2022
Opening balance as of January 1
53,332
21,253
Increase
57,467
48,853
Decrease
0
0
Change in exchange rate differences
-5,009
0
Repayment
-11,169
-16,774
Closing balance as of December 31
94,621
53,332
The Company concludes lease agreements mainly for machinery, equipment and vehicles. The term of the lease is usually
5 years. Office space lease agreements are concluded for a period of up to 7 years. The lease instalments are paid on a
monthly basis.
29. Employee benefit liabilities
Item
31.12.2023
31.12.2022
Provision for unused holidays
6,529
5,737
Special funds (Company Social Provision Fund)
33
18
Total
6,562
5,755
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
43
30. Other accrued liabilities
Item
31.12.2023
31.12.2022
a) accruals and deferred cost, including:
150,530
189,566
- short-term (by title)
150,530
189,566
works completed and not invoiced
148,034
189,092
other
2,496
474
b) accruals and deferred income
169
957
- short-term (by title)
169
957
other
169
957
Other deferred charges and accruals, total
150,699
190,523
31. Explanatory notes to the cash flow statement
As at 31 December 2023, the item "I.2.11 other" amounted to 1,464 thousand PLN and consisted of the reversal of the
valuation of financial instruments and other adjustments (as at 31 December 2022, the item amounted to -906 thousand
PLN and consisted mainly of the valuation of financial instruments).
32. Contingent liabilities
Item
31.12.2023
31.12.2022
1.
Biomatec Sp. z o.o.– claim for remuneration
22,876
22,876
2.
Cestar A.Cebula J.Starski s.j. – claim for remuneration
12,689
12,689
3.
Partner Bud S.A.
5,255
7,030
4.
CTU Clean Technology Universe AG
5,101
5,101
5.
Other
10,152
13,685
Total
56,073
61,381
The nominal value (corresponding to the value of the subject of litigation in court proceedings) of the contingent liabilities
resulting from court cases brought against the Company as at 31.12.2023 amounted to 56,073 thousands PLN and
compared to the end of the previous year decreased by the amount of 5,308 thousands PLN.
The contingent liabilities presented in the table above result from ongoing litigation with parties other than investors, where
the risk of an unfavourable outcome for the Company has been determined to be negligible.
33. Related parties
Transactions concluded in 2023 with related entities were typical and routine transactions.
Receivables from deliveries and services and other receivables from related parties amounted to (thousand PLN):
Company name
31.12.2023
31.12.2022
Acciona Construcción S.A.
223
0
Mostostal Kielce S.A.
2
144
Mostostal Płock S.A.
58
59
Acciona Facility Services Poland Sp. z o.o.
3
69
Acciona Nieruchomości Wilanów Sp. z o.o.
22
22
AMK Kraków S.A.
161
7
Acciona Concesiones S.L.
0
7
Acciona Construcción S.A. Branch in Poland
*1,109
*2 658
Total
1,577
2 966
* including receivables in the amount of 1,042 thousand PLN (as at 31 December 2022, it amounted to 2,600 thousand PLN) included in the balance sheet of Acciona
Construcción S.A. Oddział w Polsce, which result directly from settlements with Mostostal Acciona S19 Tunel s.c.
Advances for construction works transferred to related entities:
Company name
31.12.2023
31.12.2022
Mostostal Płock S.A.
0
0
AMK Kraków S.A.
33
132
Total
33
132
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
44
Liabilities from deliveries and services and other liabilities to related entities (thousand PLN):
Company name
31.12.2023
31.12.2022
Mostostal Power Development Sp. z o.o.
1,745
4,047
Acciona Construcción S.A.
12,487
12,119
Acciona Construcción S.A. Branch in Poland
5,450
0
AMK Kraków S.A.
0
0
Mostostal Kielce S.A.
61
937
Mostostal Płock S.A.
2
1,558
Total
19,744
18,661
Sales of products, materials and goods under intercompany transactions amounted to (thousand PLN):
Company name
12-month
period ended
31.12.2023
12-month
period ended
31.12.2022
Mostostal Power Development Sp. z o.o.
17
27
Acciona Facility Services Poland Sp. z o.o.
116
168
Mostostal Płock S.A.
325
742
Acciona Construcción S.A.
220
0
Acciona Construcción S.A. Branch in Poland
*18,819
*14 066
AMK Kraków S.A.
44
18
Mostostal Kielce S.A.
227
156
Acciona Nieruchomości Sp. z o.o.
0
118
Total
19,767
15,295
* including sales in the amount of 18,194 thousand PLN (in 2022, it amounted to 13,765 thousand PLN) included in the balance sheet of Acciona Construcción S.A.
Oddział w Polsce, which resulted directly from sales to Mostostal Acciona S19 Tunel s.c.
Purchases of products, goods and materials under intercompany transactions amounted to (in thousand PLN):
Company name
12-month
period ended
31.12.2023
12-month
period ended
31.12.2022
Mostostal Power Development Sp. z o.o.
606
228
Acciona Construcción S.A. Branch in Poland
20,382
99
Acciona Construccion S.A.
8,247
5,779
Mostostal Kielce S.A.
10,542
13,934
Mostostal Płock S.A.
7,620
9,664
Acciona Nieruchomości Wilanów Sp. z o.o.
0
32
AMK Kraków S.A.
3,270
8,409
Total
50,667
38,145
Interest on the loans received
Company name
12-month
period ended
31.12.2023
12-month
period ended
31.12.2022
Acciona Construcción S.A.
5,084
5,502
Dividends
Company name
12-month
period ended
31.12.2023
12-month
period ended
31.12.2022
Mostostal Kielce S.A.
1 500
1 000
Mostostal Płock S.A.
779
3 895
Total
2 279
4 895
Transactions with related entities mainly concern the performance of long-term contracts.
As at 31.12.2023 the Company recognised rights of use of PLN 51,474 thousand and liabilities (long and short term) for
the lease of a tunnelling machine of PLN 48,063 thousand from Acciona Construcción S.A.
As at 31.12.2023, the Company received bank or insurance guarantees under the guarantee limits of Acciona Construcción
S.A. in the total amount of 640.660 thousands PLN (cf. 709,039 thousands PLN as at 31.12.2022).
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
45
As at 31.12. 2023 The Company received promissory notes from subsidiaries with a total value of 21,109 thousands PLN
(19,788 thousands PLN as at 31.12.2022).
As at 31.12.2023, the Company recognized liabilities arising from the loans from Acciona Construcción S.A. with its
registered office in Madrid in the amount of 123,475 thousands PLN (as at 31.12.2022, the value of loans was 135,547
thousands PLN).
On 23.12.2013, Mostostal Warszawa S.A. and Acciona Construcción S.A. concluded annexes to three loan agreements
for the total amount of 48,409 thousands EUR (equivalent in Polish PLNotys: 201,815 thousands PLN), under which the
terms and conditions for the repayment of the loans were set out in such a manner that the period for repayment of the
loans was extended for an indefinite period and Mostostal Warszawa S.A. will decide about the repayment date thereof.
In accordance with IAS 32, Mostostal Warszawa has presented these loans in equity.
Information on the loans received from related parties is presented in Note 25.
No collateral was established for obligations with related parties.
33.1. The parent company for Mostostal Warszawa SA
As of 31.12.2023, Acciona Construcción S.A. with its registered office in Madrid is the holder of 12,426,388 common bearer
shares of Mostostal Warszawa S.A., ensuring 62.13% in the share capital 62.13% of the total voting rights of Mostostal
Warszawa S.A. Acciona S.A. prepares the consolidated financial statements and is the ultimate controlling party.
In accordance with Article 4 of the Act of 29 July 2005 on Public Offering, Conditions Governing the Introduction of Financial
Instruments to Organized Trading System and Public Companies, Acciona Construcción S.A., which has four out of six
votes in the Supervisory Board of Mostostal Warszawa S.A., thus being authorised to appoint and dismiss members of the
governing bodies, and also taking into consideration the practical effect on the company's operating and financing activities
of the company, is the dominant entity of Mostostal Warszawa S.A., while Mostostal Warszawa S.A., – as company of
Acciona Construcción S.A. Group – is its subsidiary.
33.2. Terms of transactions with related parties
The company prepares a comparative analysis of transactions with related entities.
33.3. Remuneration of the Company's Senior Management
In the event of termination of their employment contracts, members of the Management Board are entitled to severance
pay of not more than their 6 month’s salary.
Members of the Management Board and the Supervisory Board of the Company, both as at 31 December 2023 and 31
December 2022, had no outstanding loans, credits or guarantees granted by Mostostal Warszawa S.A. as well as were
not parties to other agreements obliging them to provide services to Mostostal Warszawa S.A.
As of 31 December 2023, there were no contracts obliging members of the Supervisory Board to provide services to
Mostostal Warszawa S.A.
The total remuneration of the members of the Management Board in 2023 amounted to 3,482 thousands PLN (cf. in 2022:
3,272 thousands PLN). Remuneration of the Supervisory Board in 2023 amounted to 442 thousands PLN (cf. 390
thousands PLN in 2022).
33.4. Other transactions with management and supervisory personnel
Members of the Management Board, members of the Supervisory Board of the Company and their spouses, relatives and
relations by affinity up to the second degree, adoptees or adopters and other persons with whom they are personally
related as at 31 December 2023 and 31 December 2022 had no outstanding loans, credits or guarantees granted by
Mostostal Warszawa S.A. and its subsidiaries.
In 2023, the managing persons and their relatives were parties to agreements for the purchase of passenger cars from
Mostostal Warszawa S.A. These transactions were concluded on an arm's length basis and the total value of these
transactions amounted to PLN 497 thousand gross. As at the balance sheet date, the managing persons and their relatives
have no liabilities towards Mostostal Warszawa S.A. on this account.
34. Agreement with the entity authorized to audit financial statements
On 30 June 2023, The Company and KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. entered into the
agreement for the review of interim financial statements and the audit of financial statements and group reports as well as
the implementation of the procedures agreed with respect to group reports.
The net remuneration for the work relating to 2023 is PLN 732 thousand.
The net remuneration for the work relating to 2022 is PLN 583 thousand.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
46
In addition, the Company is obliged to cover the expenses related to the above-mentioned activities up to the amount of
10% of contract value.
On 30 June 2023, Mostostal Acciona S19 Tunel s.c. and KPMG Audyt Spółka z ograniczoną odpowiedzialnością
sp.k. entered into the agreement for the audit of financial statements.
The net remuneration for the work relating to 2023 is PLN 60 thousand.
The net remuneration for the work relating to 2022 is PLN 80 thousand.
On 07.03.2024, the Company entered into an agreement with KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.
k. for the provision of an attestation service concerning the 2023 Management Board and Supervisory Board remuneration
report.
The net remuneration for the work relating to 2023 is PLN 29 thousand.
The net remuneration for the work relating to 2022 is PLN 27 thousand
35. Objectives and principles of financial risk management
The main financial instruments used by the Company include interest-bearing bank loans, finance lease, factoring, cash
and short-term investments. The main purpose of these financial instruments is to raise funds for the activities of the
Company. The Company uses various other financial instruments such as receivables and liabilities from deliveries and
services that arise directly from its operations.
The main risks arising from financial instruments of the Company include interest rate risk, liquidity risk, currency risk and
credit risk. The Management Board reviews and sets the policies for managing each of these risks. The relevant principles
are briefly discussed below. The Company also monitors the market price risk arising from all its financial instruments held.
35.1. Interest rate risk
The Company's exposure to the risk of interest rate fluctuations is associated primarily with the bank loans received,
borrowings, finance lease obligations and cash.
The risk associated with the existing debt is deemed irrelevant for the Company's results, which is why, at present, the
management of interest rate risk is limited to monitoring the current market situation. In case of increase of the Company's
debt under bank loans and borrowings, measures will be taken to provide adequate protection against interest rate
fluctuations.
35.2. Currency risk
The Company is exposed to a foreign exchange risk related to contracts for construction works. Such risk arises as a result
of the operating unit’s sale or purchase transactions in currencies other than Polish Złoty. The derivatives used by the
Company in 2023 to hedge against the risk of exchange rate fluctuations (fair value hedges) are forward currency contracts.
As at 31.12.2023, the Company had no derivatives.
Sensitivity to exchange rate fluctuations is now largely limited to the loans received from a related party.
The Company conducted the analysis of sensitivity of the balance sheet items denominated in foreign currencies to the
exchange rate fluctuations of -10 % and + 10% compared to the NBP’s average exchange rate as of 29.12.2023 (in 2022,
of -10 % and + 10 % compared to the NBP’s average exchange rate as of 30.12.2022). The values of exchange rate
fluctuations result from the high vulnerability of the Polish currency to the exchange rate fluctuations in relation to the EUR
in 2023. The sensitivity of the financial performance and the revaluation reserve is presented below.
Sensitivity analysis for the current year
Classes of financial instruments
31.12.2023
Analysis of sensitivity to currency risk as at
31.12.2023.
EUR / PLN
Carrying
amount
Currency
value at risk
EUR/PLN rate +10%
EUR/PLN rate -10%
thousand
PLN
thousand
PLN
Profit
and loss
account*
Equity**
P&L
Equity**
Long-term and short-term trade receivables
and other receivables
287,538
13,865
1,387
0
-1,387
0
Cash
259,110
40,142
4,014
0
-4,014
0
Interest-bearing bank loans and borrowings
-123,475
-123,475
-12,309
0
12,309
0
Long-term and short-term trade liabilities and
other liabilities***
-292,414
-18,159
-1,816
0
1,816
0
Total
130,759
-87,627
-8,724
0
8,724
0
*P&L means profit and loss account
** without taking into account the amounts affecting P&L
*** the disclosed value of trade and other payables excludes non-financial liabilities, i.e. tax, customs, social security liabilities detailed in note 27
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
47
Sensitivity analysis for the previous year
Classes of financial instruments
31.12.2022
Analysis of sensitivity to currency risk as at
31.12.2022.
EUR / PLN
Carrying
amount
Currency
value at risk
EUR/PLN rate +10%
EUR/PLN rate -10%
thousand
PLN
thousand
PLN
Profit
and loss
account*
Equity**
P&L
Equity**
Long-term and short-term trade receivables
and other receivables
266,502
19,261
1,926
0
-1,926
0
Cash
175,015
13,091
1,309
0
-1,309
0
Interest-bearing bank loans and borrowings
-135,547
-135,547
-13,516
0
13,516
0
Long-term and short-term trade liabilities and
other liabilities***
-211,118
-20,092
-2,009
0
2,009
0
Total
94,852
-123,287
-12,290
0
12,290
0
*P&L means profit and loss account
** without taking into account the amounts affecting P&L
*** the disclosed value of trade and other payables excludes non-financial liabilities, i.e. tax, customs, social security liabilities detailed in note 27
35.3. Commodities price risk
The Company is exposed to the price risk associated with an increase in prices of frequently purchased construction
materials such as steel and concrete as well as petroleum materials such as gasoline, diesel, asphalt and fuel oil. In
addition, as a result of an increase in the prices of materials – the prices of services provided to the Company by the
subcontractors may increase. Prices in the agreements concluded with the investors are fixed throughout the duration of
the contract – usually from 6 to 36 months, while contracts with subcontractors are concluded at a later date, along the
progress of individual works.
In order to mitigate the price risk, the Company continuously monitors the prices of frequently purchased construction
materials, while the concluded contracts are appropriately matched in terms of duration of the contract and the contract
value in relation to the market conditions.
35.4. Credit risk
The Company enters into transactions with companies having good credit standing. Prior to entering into a contract, each
contractor is evaluated for the ability to meet its financial obligations. In the case of the negative assessment of the
contractor’s credit standing, entering into the contract is conditional on providing adequate financial or property security. In
addition, contracts with investors include clauses providing for the right to suspend the works, if there is a delay in the
transfer of payments for the services completed. If possible, the Company introduces contractual provisions conditioning
the payments to subcontractors on the receipt of funds from the investor.
The Management Board believes that thanks to the ongoing monitoring of receivables, the risk of bad debts is properly
managed. In cases where contractors are insolvent, the Company is forced to create provisions that are charged to the
result for the reporting period.
With regard to other financial assets of the Company, such as cash and other financial assets held for sale, the Company's
credit risk is related to non-payment by the other party to the contract, and the maximum exposure to this risk is equal to
the carrying amount of these instruments.
As at 31.12.2023, the maximum credit risk of the Company amounts to 737,961 thousands PLN (cf. 662,355 thousands
PLN as at 31.12.2022) and is associated with the following items: short-term trade receivables, other receivables, short-
term financial assets, assets arising from long-term contracts and cash. In addition, the Company is exposed to the credit
risk related to the guarantees granted. In the case of the aforementioned assets, no impairment loss or decrease in credit
quality was reported as at the balance sheet date.
The Company assumes that the significant concentration of credit risk exists when the receivables exceed 10% of the
maximum credit risk. As at the balance sheet date, there was a significant concentration in the following items: receivables
from Zakład Unieszkodliwiania Odpadów Sp. z o. o . in the amount of 92,222 thousands PLN and cash deposited on bank
accounts at Credit Bank Agricole in the amount of 125,580 thousands PLN.
35.5. Liquidity risk
The Company's objective is to maintain the balance between continuity and flexibility of funding through use of various
sources of financing, such as bank borrowings, overdrafts, bank loans and financial leases and factoring.
As at 31.12.2023, the Company’s trade and other liabilities amounted to 346,575 thousands PLN. The time structure of
trade liabilities and other liabilities as at the balance sheet date was as follows: liabilities with a maturity period up to 12
months from the balance sheet date: 311,739 thousands PLN (including overdue liabilities of 6,073 thousands PLN), over
12 months 34,836 thousands PLN.
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
48
As at 31.12.2023 the Company's maximum liquidity risk is 932,241 thousands PLN (818,234 thousands PLN on
31.12.2022) and is related to the following items: interest-bearing bank loans and borrowings, trade liabilities and other
liabilities lease liabilities and liabilities arising from long-term contracts, employee benefit liabilities and other accruals.
The Company assumes that the significant concentration of liquidity risk exists when the liabilities exceed 10% of the
maximum credit risk. As at the balance sheet date, no significant concentration of trade liabilities occurred. Significant
concentration of liquidity risk occurs in the case of loans from Acciona Construcción S.A. based in Madrid and amounts to
13.2 % of the maximum liquidity risk.
The Management Board monitors the liquidity of the Company on the on-going basis, based on the expected cash flows.
Given the involvement of a related entity that grants the loans and the portfolio of orders held so far, in the opinion of the
Management Board, there is no significant risk to the liquidity of Mostostal Warszawa S.A. On 23 December 2013, the
Company and Acciona Construcción S.A. concluded annexes to three loan agreements with a total value of 201,815
thousands PLN, under which the terms and conditions for the repayment of the loans were set out in such a manner that
the repayment period of the loans was extended for an indefinite period and the borrower i.e. Mostostal Warszawa will
decide about the repayment date thereof.
The table below presents the analysis of the Company's financial liabilities according to their maturity dates, corresponding
to the remaining period as at the balance sheet date until the contractual maturity date. The amounts disclosed in the table
comprise contractual non-discounted cash flows.
Up to 1 year
From 1 to 7 years
As at 31 December 2023
- Interest-bearing bank credits and loans
123,475
0
- Short-term liabilities from deliveries and services and other liabilities
311,739
- Long-term liabilities from deliveries and services and other liabilities
34,836
- Short-term and long-term liabilities from leasing agreements
39,379
55,242
- Liabilities arising from construction contracts and other accruals
285,708
75,300
Total
760,301
165,378
As at 31 December 2022
- Interest-bearing bank credits and loans
135,547
0
- Short-term liabilities from deliveries and services and other liabilities
220,092
- Long-term liabilities from deliveries and services and other liabilities
27,725
- Short-term and long-term liabilities from leasing agreements
14,150
39,182
- Liabilities arising from construction contracts and other accruals
284,484
91,299
Total
654,273
158,206
35.6. Equity risk management
In terms of equity risk management, the aim of the Company is to secure the Company’s ability to continue its operations,
so as to generate return for shareholders and benefits for other stakeholders as well as maintain an optimal equity structure
to reduce its cost.
In order to maintain or adjust the equity structure, the Company may adjust the amount of declared dividends to be paid to
shareholders, return equity to shareholders, issue new shares or sell assets to reduce debt.
The company monitors capital using the leverage ratio. The leverage ratio is calculated as the ratio of net debt to total
equity plus net debt. Net debt includes interest-bearing loans and borrowings, trade and lease liabilities, as well as other
liabilities (excluding accruals and provisions), less cash and cash equivalents. The Management Board plans to improve
the leverage ratio by generating positive financial results.
The leverage ratio as at 31 December 2023 and 31 December 2022 was as follows:
31.12.2023
31.12.2022
Interest-bearing bank loans and borrowings (Note 25)
123,475
135,547
Liabilities excluding credits, loans, provisions and accruals
450,690
309,973
Less cash and cash equivalents (Note 21)
-259,110
-175,015
Net debt
315,055
270,505
Equity capital
72,326
49,260
Equity and net debt
387,381
319,765
Leverage ratio
0.81
0.85
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
49
36. Financial instruments – other information
Specification
31.12.2023
31.12.2022
FINANCIAL ASSETS
Financial assets measured at amortised cost
Trade and other receivables (non-current and current)
287,538
266,502
Cash and cash equivalents
259,110
175,015
Financial assets at fair value through profit or loss
Short-term financial assets - level 2 of the fair value measurement hierarchy under IFRS 13
0
961
Balance at end of period
546,648
441,517
FINANCIAL LIABILITIES
Financial liabilities measured at amortised cost
Trade and other payables (non-current and current)*
292,414
211,118
Current portion of interest-bearing bank loans and borrowings
123,475
135,547
Balance at end of period
415,889
346,665
* The disclosed value of trade and other payables excludes non-financial liabilities, i.e. tax, customs, social security liabilities detailed in note 27.
The fair value of financial assets and liabilities measured at amortised cost does not differ significantly from their book
value.
During the 12-month periods ended 31 December 2023 and 31 December 2022, there were no transfers between Level 1
and Level 2 of the fair value measurement hierarchy and no transfers from/to Level 3.
Items of income, expenses, gains and losses recognised in the income statement by category of financial
instruments
Period from 1 January 2023 to 31 December 2023:
Financial assets
measured at fair
value through
profit or loss from
initial recognition
Financial assets
measured at
amortised cost
Financial
liabilities
measured at
amortised cost
Total
Interest income/(expense)
0
2,342
-9,231
-6,889
Foreign exchange gains /(losses) on valuation (not
realised)
0
-882
10,810
9,928
Release / (creation) of impairment losses
0
604
0
604
Write-off of time-barred liabilities
0
0
5,113
5,113
Valuation gains/(losses)
0
0
-473
-473
Gains/(losses) on currency derivative financial
instruments
2,441
0
0
2,441
Total
2,441
2,064
6,219
10,724
Period from 1 January 2022 to 31 December 2022:
Financial assets
measured at fair
value through
profit or loss from
initial recognition
Financial assets
measured at
amortised cost
Financial
liabilities
measured at
amortised cost
Total
Interest income/(expense)
0
2,811
-5,522
-2,711
Foreign exchange gains /(losses) on valuation (not
realised)
0
241
-2,547
-2,306
Release / (creation) of impairment losses
0
0
0
0
Write-off of time-barred liabilities
0
0
45
45
Valuation gains/(losses)
0
0
2,711
2,711
Gains/(losses) on currency derivative financial
instruments
1,174
0
0
1,174
Total
1,174
3,052
-5,313
-1,087
Mostostal Warszawa S.A.
Separate financial statements for the period from 01.01.2023 until 31.12.2023
(thousands PLN)
50
37. Differences between the data from the annual report and the previously prepared and published financial
statements
Until the date of these financial statements, the Company neither prepared nor published other reports for the period ended
on 31.12.2023.
On 17 April 2024, the estimated results for 2023 were provided, which did not differ from the data presented in the financial
statements for 2023.
38. Employment structure
The average employment at Mostostal Warszawa S.A. in 2023 amounted to 825 FTE, including 138 blue-collar workers
(labourers) i.e. 17 % and 687 white-collar workers i.e. 83 %.
The average employment at Mostostal Warszawa S.A. in 2022 amounted to 804 FTE, including 125 blue-collar workers
(labourers) i.e. 16 % and 679 white-collar workers i.e. 84 %.
39. Events occurring after the balance sheet date
On 15 January 2024, the Company learned that the Court of Appeal in Gdańsk had issued a judgment dismissing the
appeal filed by Energa Kogeneracja Sp. z o.o. ("Defendant") regarding the judgment of the District Court in Gdańsk, 9th
Commercial Division, of 9 May, 2022, awarding the amount of 26,274 thousand PLN from the Defendant to the Company
for payment for construction works together with statutory interest from the date of filing the lawsuit to the date of payment,
which as of 15 January 2024 amounts to 12,758 thousand PLN and court proceedings costs, for the implementation of the
contract entitled: "Construction of a biomass-fired power unit with a capacity of 20 MWe at ENERGA Kogeneracja Sp. z
o.o.". Due to the dismissal of the appeal, Energa Kogeneracja Sp. z o.o. implemented the judgment and transferred the
awarded amounts to Mostostal Warszawa S.A.
On 25 January 2024, the Company repaid a loan in the amount of 13.49 million EUR granted by Acciona Construcción
S.A. on 27 May 2013.
On 27 March 2024, the Company entered into an Agreement with Vastint Poland Sp. z o.o, with its registered office in
Warsaw, for the execution of the contract entitled Construction of Portowo Poznań residential buildings. The value of the
Agreement: EUR 48.85 million net. Completion date: until 30.09.2026.
On 12 April 2024 the Company received a set of relevant documents related to the Loan Agreement with Acciona
Construcción S.A. Pursuant to the Annex, Acciona extends to the Company the repayment date of the loan in the amount
of EUR 14.71 million (equivalent to PLN 62.74 million) plus interest until 15 July 2025. The loan may also be repaid over a
shorter period.
Warsaw, 24 April 2024
Full name
Title
Miguel Angel Heras Llorente
President of the Management Board
Jorge Calabuig Ferre
Vice-President of the Management
Board
Carlos Enrique Resino Ruiz
Member of the Management Board
Jacek Szymanek
Member of the Management Board
Jarosław Reszka
Chief Accounting Officer
