The Regional Court in Czestochowa issued an order for payment in the writ of payment proceedings to Awbud as a result of a lawsuit against Medico-Investment. The amount payable is PLN 15.45m.
Construction of Wroclaw Rehabilitation and Sports Medicine Centre
Awbud completed the investment in the form of a general contractor – the building of the Wroclaw Rehabilitation and Sports Medicine Centre – Vratislavia Medica. The value of the contract concluded in 2015 was over PLN 58m.
The facility was commissioned in August 2017 and since November 2017 it has been providing services to patients. However, Awbud did not receive the entire remuneration from Medico-Investment for performing the investment task specified in the agreement. For two years, the investor has refused to accept the agreement and has charged Awbud with half of the operating costs of the facility.
Over PLN 15m for Awbud
In May this year, Awbud withdrew from the agreement due to the investor’s fault because Medico-Investment did not establish a valid and legally effective payment guarantee. The investor was charged with a contractual penalty in the amount of 10% of the lump sum remuneration under the agreement, i.e. over PLN 5.8m. The Investor also owes Awbud over PLN 9.6m for the final remuneration for construction works. The total amount in the court order for payment is over PLN 15.45m.
Loss in Q1 2019
From January to March 2019, Awbud recorded a net loss of PLN 5.3m, compared to a profit of PLN 0.3m in the corresponding period of last year. Sales revenues in Q1 2019 amounted to PLN 50.5m, compared to PLN 45.3m a year earlier. This means an increase in revenue by 11.4% y-o-y.