Less bankruptcies Polish companies – Republic

Source: Bloomberg

February of this year was a bit kinder to companies – 60 companies declared bankruptcy – in February last year there were 72 – The analysis of Euler Hermes, on the basis of official data from the Court and Economic Monitor.

The accumulated turnover of companies with reported that bankruptcy official sources, was slightly more than 700 million, and employs approx. 1,200 people.

The most common bankruptcy issued numerous smaller companies, on the regional or local scale of operations. In comparison there were only two major players – a savings and fuel wholesaler with a total turnover of over 540 million.

From the statement of Euler Hermes that is less bankrupt construction companies, but according to the report, it does not mean Spring rebound effect in the industry, but rather the end of the correction due to a decrease in the value of work in the second half of last year.

– Is the building is better than last year? Certainly the market has already cleared the companies that were financially weak enough that it failed to deal with a slowdown on construction in the third and fourth quarter of last year. Year – says Tomasz Starus, member of the board of Euler Hermes.

– Currently, the spring rebound phenomenon is very limited, and the manufacturers and distributors of building materials must be prepared for a more stable, flat cycle of demand for their products (and therefore such funding – without spikes). We expect that for the rest of the construction industry will be confronted with similar challenges and achieve similar results as last year – adds Starus.

The report also pointed out the lack of improvement (or even worsening) in terms of the number of bankruptcy in all other sectors: wholesale stagnation among manufacturing companies, the deterioration in the service sector. At the same time wondering if the problems of mining machinery suppliers strike for the industry.

The relatively small number of bankruptcies was in the food sector, but problems have transportation company or service.

– It is surprising what companies do not have, or appear in the statistics bankruptcy in February and occasionally the past few months – it is about the company in the food industry, especially meat and dairy (processors and distributors) – notes Michael Modrzejewski, director of the Research Branch at Euler Hermes.

– Undoubtedly the profitability of agricultural production is put to the test (especially the fruit sector, dairy or meat), but … processors of these products are doing well now, as evidenced by both a record of their exports and the lack of even announced in the industry meat wave of bankruptcy – Modrzejewski added.

In analyzing bankruptcy due to the regions, the report shows that the largest increase in bankruptcies recorded in Silesia. There has been growing south-eastern provinces and the region of Lower Silesia. In contrast, no change – still higher than last year is the number of bankruptcies in the Pomorskie and Kujawsko-Pomorskie.