What the report on the financial statements of TMEDE for 2023 shows

The Committee of the Public Works Contractors’ Engineering Fund (TMEDE), has released the 7th Annual Report on the Financial Statements of TMEDE, which covers the period of operation of the Fund from 01.01.2023 to 31.12.2023. The disclosure was made following the completion of the audit by Independent Certified Public Accountants and the issuance of the corresponding audit report, without qualification.

Adhering to the statutory provisions and applying International Financial Reporting Standards, the seventh financial year of operation of TMEDE (in the photo the President of TMEDE Konstantinos Makedos) , illustrates the steady upward trend of the Fund, amidst repeated crises and multiple business and economic challenges. The significant increase in profitability, the increase in turnover, but also the further strengthening of EBITDA, confirm for another year the strong dynamics of TMEDE and its emergence as an important pillar and supporter of the sustainable development of the technical world of the country.

The main strategic objective of TMEDE is the further strengthening of its lending role, the support of small and medium-sized enterprises in the design and construction sector, as well as the facilitation of the integration and incorporation of young scientists and start-up companies in the new productive model of the country.
Moreover, through the implementation of its mission, which is the support of technical enterprises, TMEDE aims to contribute substantially to the leading role that the technical world is called upon to play in the national effort for the dual transition of the Greek economy to a “green” and “digital” future. With a shared vision to make our economy internationally competitive and resilient, as well as to adapt to the demands generated by the urgent need to address the climate crisis, the contribution of the technical world in the coming years will be crucial. In this context, through its role, TMEDE is the most reliable ally of companies in the sector. The significant increase of 14.9% in revenues from letters of guarantee demonstrates both the effectiveness of the strategic planning and the trust of its members in the TMEDE.

It is also noteworthy that in the issuance of new performance guarantees, about the level of funds, there is an increase of 15.84% (€166.8 million in 2023, compared to €144 million in 2022), as well as the simultaneous increase in the number of guarantees by 5%, without, in fact, an increase in operating costs. This is a significant development, which is expected to have a strong positive impact on the financial results of the coming financial years as well.
The steady positive trend and strong growth of the TMEDE are reflected in the financial figures for the fiscal year 2023.

Specifically, the Fund:

Noted a significant increase in revenue, from letter of credit commissions, of 14.91% over FY 2022.
Continued to record a high increase, in terms of the amount of funds, of new performance bonds, by 15.84% (€166.8 million in 2023 versus €144 million in 2022).
Boosted EBItDA to €5.6 million versus €4.4 million in 2022, an increase of 29.70%, compared to 2022.
Recorded a significant increase in profit before tax of €14.18 million, compared to €1.9 million in 2022.
Dynamic strengthening of the Fund’s credit role. Utilizing the modern financial tools, which it has incorporated into its operational function, TMEDE accelerates the implementation of its business plan and strengthens its development path, as an active and pioneering member of the European Guarantee Agency (AECM) and in creative cooperation with both the supervising Ministry of Labour and Social Security, the Ministries of Infrastructure & Transport and Development, as well as the Hellenic Development Bank (Hellenic Development Bank).

In cooperation with the Hellenic Development Bank, it proceeded to extend and upgrade for one more year, i.e. until the end of 2024, the loan program through the “EAT-TMEDE Guarantee Fund”. Now each beneficiary can receive more working capital through bank lending, as the amount is increased to €400,000 from €200,000, which was originally €200,000. The Fund provides a guarantee to banks for 80% of the financing. The special terms of this loan product make it unique in its category, as the loans provided have a term of 1 to 5 years, including any grace period of up to 1 year, and the borrower can repay part or all of the loan before its maturity date without any penalty or other charge. The program enjoys the acceptance of its members and it is typical that, as of 31.08.2024, approximately €45 million has been granted to more than 350 small and medium technical companies.

TMEDE Microfinance Solutions, the 1st institutional microfinance company licensed by the Bank of Greece in the country, through its innovative digital platform, provides integrated services, granting microloans for working capital and investment purposes, up to €25,000, with zero file fees, offering a modern experience for young scientists, startups, small design and construction companies in the technical world. It is worth noting that by 30.06.2024, more than €6.5 million has been disbursed to 310 professionals in the technical world.

TMEDE, enhances the liquidity of its members, through the financial tool of discounting approved accounts of public interest projects, with amounts exceeding €5.0 million to date.It supports from the very first moment of the creation of the 5th banking pole, which will be able to meet the challenges of the future and serve the needs of the market and small and medium-sized enterprises of the technical world. Since the beginning of its operation, TMEDE has achieved significant progress in the integration of essential ESG data and principles of biotechnology. Since the beginning of its operation, TMEDE has achieved significant progress in the integration of essential ESG data and principles of biotechnology. Since the beginning of its operation, TMEDE has achieved significant progress in the integration of essential ESG data and principles of biotechnology. The systematic application of ESG criteria, with the implementation of best practices in the “Environment – Society – Governance” pillars, is a priority for the organization and enhances its sustainable development.

The results of these actions will be reflected in the 2025 financial statements, enhancing the transparency and accountability of the organization. Compliance with the ESG principles promotes the credibility of TMEDE towards its partner institutions, members, employees and partners, achieving strong financial results and leaving a positive footprint on society. In this context, and taking an active role in promoting sustainability and viability policies, it organized in June 2024, the 1st International Conference of TMEDE on “Redefining the Future Horizons: designing tomorrow’s sustainable strategies”, to adopt sustainable practices to address the climate crisis, creating a sustainable investment environment and strengthening infrastructure.
The conference was held under the auspices of the Bank of Greece and the Technical Chamber of Greece with the participation of distinguished speakers from Greece and abroad, launching an open and creative forum for dialogue and proposals from the technical, academic, business, and political world to overcome the multiple effects of the climate crisis. Finally, TMEDE is committed to continuing the dialogue that has been opened on climate risk and critical sustainability issues.

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