MERCOR AFTER FY 2024/2025

CHALLENGING PERIOD AND AGREEMENT SIGNED WITH KINGSPAN GROUP

The MERCOR Group, a leader in the European fire protection market, reported a net profit of PLN 16.6 million for FY 2024/2025 (1 April 2024 to 31 March 2025), with revenue amounting to PLN 507.5 million. EBIT for the period was PLN 20.5 million and EBITDA reached PLN 39.1 million.

A key development in the 2024/2025 financial year was the execution by the Mercor Group, in the third quarter, of a preliminary agreement to sell its natural smoke exhaust and fire ventilation business to Kingspan Group. The total transaction value may reach PLN 420 million, with up to PLN 60 million of that amount deferred and contingent upon the EBITDA performance of the spun off business in the following period. 

“The 2024/2025 financial year was a period of key strategic decisions and intensive development activities for the Mercor Group. From a business perspective, however, it was a challenging time due to more difficult market conditions, particularly a slowdown in investment in the construction sector. When assessing our net profit performance for the period, it is important to note that its year-on-year change was to some extent influenced by a one-off tax refund, including interest, of approximately PLN 10.5 million received in the second quarter of the 2023/2024 financial year. Additionally, in the third quarter of the 2024/2025 financial year, we incurred transaction-related costs of around PLN 7 million associated with the agreement signed with Kingspan Group,” said Krzysztof Krempeć, President of the Management Board of MERCOR S.A.

“The most significant event of the past financial year was the signing of a preliminary agreement to sell the Company’s natural smoke exhaust and fire ventilation business to Kingspan Group. We intend to recommend allocating a significant portion of the proceeds from the transaction toward dividend distribution. This reflects our ongoing commitment to our dividend policy – we have distributed a total of PLN 235 million in dividends since 2010. The transaction also opens up opportunities for further development of the Company in other areas of activity and for investment in modern safety technologies, such as water mist fire suppression and Industry 4.0 solutions. We are now moving toward finalising the transaction,” emphasised Krzysztof Krempeć, President of MERCOR S.A.’s Management Board.

In FY 2024/2025, the Group’s domestic market revenue accounted for 54.5% of total revenue, reaching PLN 276.4 million. Sales in foreign markets amounted to PLN 231 million, representing 45.5% of total revenue. It should also be noted that in December 2024 Management Board of MERCOR S.A. revised its previous approach to consolidating OOO Mercor Proof and resolved to transition from full consolidation to using the equity method for the subsidiary. The first periodic report reflecting this change was the report for the first half of FY 2024/2025, covering the period from 1 April to 30 September 2024, with the historical data restated accordingly. Further details on this change in the consolidation approach were disclosed in Current Report No. 66/2024, dated 30 December 2024.

MERCOR GROUP’S RESULTS FOR FY 2024/2025

* Net profit for the period included the effect of a tax refund with interest of approximately PLN 10.5 million, received in the second quarter of FY 2023/2024.

** Net profit for the period was affected by transaction-related costs of approximately PLN 7.0 million incurred in the third and fourth quarter of FY 2024/2025 in connection with the agreement with Kingspan Group.

Orders and a strong start to the new financial year

In the 2024/2025 financial year, the Mercor Group secured orders with a total value of nearly PLN 575 million, representing a year-on-year increase of 2.3%.

“In the period from April to June 2025, which marks the first quarter of our financial year, we secured contracts worth a total of PLN 185.5 million – an increase of 25% compared to the same period the previous year. We are glad to see this promising beginning of the financial year,” says Krzysztof Krempeć, President of MERCOR S.A.’s Management Board.

Fulfilment of the terms of the Kingspan transaction

On 9 June 2025, the President of the Office of Competition and Consumer Protection (UOKiK) issued an unconditional clearance for the concentration consisting of Kingspan Group’s acquisition of control over Mercor Group companies operating in Poland, the Czech Republic, Slovakia, Romania, the United Kingdom, Ukraine, Spain, and Hungary.

This means that the transaction is progressing according to plan.