Expo in Budapest, National Theatre at Erzsébet Square, government district – although KÉSZ Group has practically won these government tenders, it could not realise the projects.
In spite of the more than 100 million HUF investment in the government quarter, the leaders of the 25-year-old company did not become embittered. “Although the emblematic huge investments were not successful, we managed to complete many of the governmental tenders we won” – says Zoltán Jutasi, who is the new CEO of KÉSZ Holding Ltd. since December 2007.
The enthusiasm is understandable, because Zoltán Jutasi and Gyula Gansperger deputy CEO have arrived to the group, known mostly for its construction work, not only as new managers, but as new owners as well. Together with a third private person they acquired 40% ownership in the group. Former owners of KÉSZ wanted to increase the company value by reorganising all the business processes into a transparent structure, creating a so-called holding structure. Jutasi and Gansperger, who have operated a holding company at Wallis already (Gansperger was the CEO of Wallis, Jutasi was the manager of Wallis Infocom Ltd.), both thought that becoming an owner would mean taking a step forward in their career. Other strategic positions will be filled with new members as well. Gergő Szabó, former economic leader of the Ministry of Environment will be the deputy CFO, Gábor Breitner, the CEO of Guards Ltd. will be the wealth management leader, and Sándor Hegedűs, former deputy CEO of Antenna Hungária Ltd. will take a strategic and business development position. The businessmen liked the company based on personal conversations, their own screenings and audits and those prepared by professionals. Gyula Gansperger said that the Hungarian company, which employs nearly 1500 people, completely convinced him. The new owners would like to move forward not only by creating a transparent structure for the company, but also by introducing a more developed controlling system, and above all they would like to improve the company’s profitability.
KÉSZ, which has centre in Kecskemét and Szeged besides of Budapest, has started several different activities in the last few years. Now they are organising these activities into four clusters. Altogether the Group has sales revenue of 70 billion, but the main source of revenue is still construction work. The vertically integrated KÉSZ empire, which mainly deals with surface construction, possesses its own steel factory in Kecskemét. Competitors are on the opinion that the biggest strength is the almost confection-like, easy-to-build steel hall system. Tamás Radnai, CEO of KÉSZ Közép-európai Építő és Szerelő Ltd., the biggest subsidiary in the construction industry, said that the factory has already sold its production capacity of 17,000 tons per year until 2012. As a general contractor, KÉSZ does practically everything on its own; they are especially strong in building warehouses and sports halls. People could meet the company for example when the company managed to finish building the swimming pool for the European Championships, even though only a few months before that a flood almost destroyed the whole project.
Strategic Investment Directions
- Construction work
- KÉSZ Közép-európai Építő és Szerelő Ltd.
- After the stagnating revenue of 32-26 billion HUF in the last half decade, last year the company had a turnover of 54 billion. The most well-known projects in the construction sector are Excelsior Budapest Spa luxury real estate, the PPP-project of the prison in Tiszalök, the StopShop shopping centre and office building in Kaposvár.
- The Group has its own steel factory in Kecskemét
- Subsidiaries in the construction sector: KÉSZ UA Ltd. and 3P Beton Ltd. in Ukraine, KÉSZ Romania Ltd. in Romania
- Property Management and Real Estate Development
- Kész Ingatlan Zrt.
- Its task is to manage the Group’s properties which worth 30-50 billion HUF. The portfolio is very wide: industrial facilities, office buildings, real estates. Depending on the opportunities, these are either operated by the company, rented out or are currently for sale.
- Five PPP undertakings and project companies belong to this sector.
- Öko-line Ltd.
- The company has the potential to process 50 thousand tons of grain/cereals and to earn revenue of 14 billion HUF yearly.
- Fleet Management
- KÉSZ & Go Ltd.
- The fleet management company, which operates 300 passenger cars, works partly for the KÉSZ Group and partly for external clients.
GépBér Ltd. should also be mentioned, this company leases construction machines.