After a record year, VUZ wants to further expand abroad.
This year the Czech Railways can count on a higher dividend from its most profitable subsidiary. The Railway Research Institute (VUZ), known mainly as the owner and operator of the railway test track in Cerhenice, had the highest profit in its history last year.
This follows from the company’s annual report published today. Revenues rose by 23% year-on-year to CZK 692.3 million, while pre-tax profit rose from CZK 258.8 million to CZK 346 million. “The absolute level of revenue and consequently profit was favorably impacted by an increased demand for all our products due to project delays caused by the pandemic,” the company said in a press release on the results. The company continues to operate debt-free.
VUZ has changed its business policy in 2019, focusing more on high value-added products. Last year the company expanded to Slovakia. “Our vision is to be an international company with the ambition to establish itself not only in the Central European region and not only on the railway. We are entering 2022 with a new vision to become a European center of excellence in the field of testing and certification of railway vehicles,” said Mr. Belcik, chairman of the board of directors.
The company’s profit is not only the highest in its 50-year history, but also significantly higher than the set plan. Roughly two-thirds of sales are from foreign customers. Most of the revenue (CZK 625 million) comes from the testing business.
VUZ sent Czech Railways a dividend of CZK 205 million from its 2020 profits. This year, it has an even higher profit available for the dividend.
Edited and translated by Lucie Trávníčková.