PBG embarks on group restructuring
PBG embarks on group restructuring
The PBG Group has taken steps designed to restructure the key areas of its operations. The new solutions will allow the organization to effectively implement its growth strategy, with a primary objective to focus on high-margin segments of construction services for the power sector and the oil, gas and fuels sector. Another objective of the restructuring is to improve the Group’s economic efficiency, to be achieved through such measures as cost savings, and to adjust the Group’s corporate structure to the current scale of its operations and the strategic plans.
„This opens a new chapter in over 20 years of the history of PBG’s operations. The market is undergoing significant changes, and our plan is to adjust to these changes by taking the most of the opportunities offered. This is why we have embarked on the internal restructuring of the Group, as we believe this will help us achieve the objectives and make us more efficient in the key business areas,” says Jerzy Wiśniewski, PBG’s CEO. “I’m confident that the changes we are working on, and which have already been implemented to a significant extent, will bring benefits not only to the company itself, but also to all its shareholders and employees.
The key areas or restructuring at the PBG Group:
Strategy and process management
- A strategic advisory firm will be mandated to review and assess PBG’s corporate structure and management model, and to propose changes.
Human resources
- The composition of the Group companies’ management and supervisory boards is being reviewed with a view to implementing unified standards customary for public/listed companies.
- An HR consulting firm has been retained to review the key management personnel and payroll systems. PBG intends to outsource executive recruitment for selected managerial positions at the Group level.
- An analysis of a possible implementation of incentive schemes for Group’s key managers has been initiated.
Cost savings
- Individual companies of the PBG Group have drawn up cost savings programmes which assume reduction of operating costs by ca. 10% versus the original budgets. The programmes will cover such areas as car fleets, plant and equipment, use of office space, and possible outsourcing of non-core functions. The cost-saving measures will be implemented as of April this year. A leading tax advisory firm has been retained to propose tax optimisation schemes and solutions, particularly with respect to asset disposals and purchases.
Property portfolio
- A review has been carried out of the portfolio of properties for disposal which could also serve as security for debt financing. The work on disposal of particular properties has advanced to varying degrees, depending on the property.
Equity holdings in affiliates and subsidiaries
- Steps are being taken to find a strategic investor for PBG, as well as investors for particular Group companies.