Investor relations

Subject: Result of asset impairment tests.

Legal basis: Article 17 section 1 of MAR – confidential information

Content of the report:

The Management Board of J.W. Construction Holding S.A. with its registered office in Ząbki ("Company") informs that on 9 March 2020, the analyses carried out under the procedure of impairment testing of the assets of J.W. Construction Holding S.A. Capital Groups as at 31 December 2019 were completed.

Therefore, the Company informs as follows:

- as a result of the analysis of impairment tests of the shares held and the value of loans granted to the following subsidiaries: YAKOR HOUSE with its registered office in Sochi (Russian Federation), Bliska Wola 4 Sp. z o.o. 1 L.P. with the registered office in Ząbki and Bliska Wola 4 Sp. z o.o. 2 L.P. with the registered office in Ząbki shows that the assets related to these subsidiaries were impaired;

- as a result of the analysis of impairment tests for the right of perpetual usufruct of an undeveloped plot of land located in Warsaw at 181 Górczewska Street (land designated for NS Route), this asset was impaired. 

Consequently, on the same day, the Company's Management Board decided to make revaluation write-offs on these assets. The impact of the above-mentioned write-downs on the unconsolidated net result will amount to approximately minus PLN 22.2 million and to approximately minus PLN 5.1 million. on the consolidated net result.

The above events are of an accounting nature only and do not affect the liquidity situation of the Company and its Capital Group.

Furthermore, the Company informs that work on preparation of the annual nonconsolidated and annual consolidated financial statements for the financial year ended 31 December 2019 is ongoing and subject to verification by a certified auditor.

Additionally, the Company's Management Board decided to publish information on selected preliminary financial results for 2019.

Unconsolidated sales revenue - PLN 576.3 million

Unconsolidated net profit - PLN 51.3 million

Consolidated sales revenue of the Group - PLN 605.3 million

Consolidated net profit - PLN 63.4 million

At the same time, the net debt to equity ratio remains relatively low and amounts to 0.37 on a consolidated basis (0.25 on a unconsolidated basis)

Detailed and final data will be presented in annual reports to be published.