The industrial holding Czechoslovak Group (CSG), wholly owned by entrepreneur Michal Strnad, announced its consolidated financial results for 2018. Revenues reached CZK 11.5 billion, increased by 48 percent year-on-year. EBITDA amounted to CZK 1.9 billion, up by 43 % year on year.
The key drivers of growth were the following: the services in the area of aviation and aviation training, production of special ground equipment, the radar production and rolling stock brake systems production.
DAKO-CZ, the manufacturer of rolling stock brakes in Třemošnice, can be called the “high achiever of the year” within the CSG group. It increased revenues from CZK 738 to CZK 927 million and EBITDA from CZK 91 to CZK 150 million. An excellent result was achieved also by the radar manufacturer ELDIS, located in Pardubice city, which generated EBITDA of CZK 134 million with revenues of CZK 351 million.
Michal Strnad, the owner of the group, regarding the results said: “In 2018, we did not make any significant acquisitions; we focused on proper functioning of the already existing companies within the group, and our key investments last year were made in these producers and their products. In the future, we do not exclude acquisitions of small and medium-sized companies that fit into our portfolio.”
From an external perspective, the most important 2018 event for CSG was the transfer of ownership of the holding from one generation to another within the Strnad family. The founder of the group Jaroslav Strnad transferred his 100% share of the holding company to his son Michal Strnad. In terms of CSG's internal operations, however, this was not a big change, as Michal Strnad had been with the Group as the CEO for several years.
Jaroslav Strnad remains a member of the Supervisory Board of CSG, but his own business activities are the priority. He is building a new holding, legally, organizationally and financially completely separate from the previous one. The new holding will focus on mechanical engineering, and will consist mainly of companies based in Vítkovice, the most important of which is the Vítkovice Heavy Machinery.
Given the growth of the holding, it has become necessary to develop its structure and divide it into divisions in which companies group together according to their specialization to increase management efficiency. In autumn 2018, the CSG Aerospace Division was established, bringing together CS SOFT (development of air traffic control systems) and ELDIS Pardubice (radar manufacturer). CSG Aerospace will be followed, and in 2019 the CSG Land Systems Division will be established grouping together the special ground equipment manufacturers.