The three pillars of AVAX Group's strategy are construction, participation, and new investments, according to Christos Ioannou, the company's chairman, who spoke at the company's annual general meeting yesterday.
As Mr. Ioannou pointed out, construction, as the group's core business, will continue to generate more and more cash flow in the coming period. PPP and concession participations are generating mature returns and positive cash flow, enabling the collection of significant dividends on an annual basis, while new investments will be fuelled by the profitable activity in the construction and participations sectors.
In the construction pillar, AVAX currently has a backlog of €3.4 billion, including projects to be signed, has achieved a significant improvement in EBITDA margin, reaching €26.7 million in 2023 from €17.6 million, and expects a further increase in turnover and improvement in profitability from 2024 onwards.
In terms of participation, management referred to AVAX's successful investments in concessions and PPPs, even participating in the first generation of self-financed projects in Greece, Attiki Odos and the Rio-Antirrio Bridge. In addition, he spoke of significant annual cash flows that the group has secured from other lucrative participations in concessions and PPPs, with an average annual amount for the 5-year period 2024–2028 of €43 million, including the remaining inflows from Attiki Odos.
AVAX Group Chairman Christos Ioannou emphasized that "new roads are opening up for AVAX, which with vision and a clear strategy will continue to create added value for shareholders and society."
Regarding new investments, in the area of PPPs and concessions, the AVAX Group has been shortlisted in 25 tenders with a budget of more than €3.5 billion, from which it expects to win a significant share.
The management stressed that the group is looking for new growth opportunities in sectors such as energy and real estate. Among others, it mentioned IXION as ABAX's energy vehicle for renewable energy, energy storage, and electrification applications, as well as residential developments on islands as the company's priority in the real estate sector.
In 2023, an increase of 12.6% in turnover resulted, which moved to €453.5 million compared to €402.7 million in 2022. At the same time, the impressive reduction in the company's net debt by €37.9 million in 2023 (-17.2% from 2022 and -59.8% from 2020) continued for another year, while a historic high was recorded in the backlog of projects, with a benchmark of €3.4 billion at the end of 2023, including projects to be signed, with the majority of this coming from private projects and PPPs.
Reflecting confidence in the company's growth prospects, management also announced initiatives to reward shareholders. In particular, it was decided to activate the Treasury Share Purchase Plan based on the resolution of the 2023 Annual General Meeting, which provides for the purchase of up to 10 million shares in the next 12 months. The group also committed to the consistent payment of dividends to shareholders.
AVAX Group CEO Konstantinos Mitzalis said: "With strong operating profitability, a record backlog, and our unrivalled manufacturing capability, we have put ABAX on a clear growth trajectory. We are confident in our capabilities and the company's ability to meet all challenges. He added, "We have already achieved something that many people told us was impossible: to reduce the company's net debt by 60%."
