The latest edition of the “Debts of Stock Exchange Companies” study conducted by Reliable Company, under the patronage of the National Debt Register, shows that the indebtedness of domestic companies listed on the Warsaw Stock Exchange has almost halved. Currently, debtors owe payment on 290 obligations worth PLN 8.55 million. This is small change for them, but significant for their counterparties.
Out of 370 domestic companies listed on the Warsaw Stock Exchange in mid-September, 47 (which account for 13%) were also listed in the National Debt Register, albeit for their debts. There were 290 overdue obligations totaling PLN 8.55 million expected to be paid by 95 creditors. The highest debt – over a million zlotys – was held by companies whose market value was valued at PLN 470 million, PLN 1 billion, and well over PLN 10 billion. Hence, the reason for non-payment is not a lack of funds. Twenty creditors were waiting for a return of PLN 1.5 million from the record holder out of this trio.
The total value of indebted stock exchange companies exceeded PLN 68 billion, so the amount of arrears was imperceptible in the budgets of debtors. The company with the highest capitalization (PLN 30.7 billion) owed just under PLN 14,000.
“This is the most glaring example. But also in the case of those debtors who have arrears of over a million zlotys, it bears no relation to their market value. These are sporadic cases when the level of indebtedness is very high in relation to the debtor’s capitalization. For example, we have a company in the register whose value was estimated at PLN 780,000, but it owes 7 counterparties PLN 193,000. One could suspect that this is the result of some financial troubles. In most cases, I suspect that it’s a deliberate decision not to pay” says Adam Łącki, President of the Management Board of the National Debt Register Office of Economic Information SA.
In construction, the situation is the worst. Compared to last year’s edition of the study, many industrial and commercial companies, which dominated a year ago, have disappeared from the list of debtors. However, the situation of construction companies has not improved. There are a total of 8 (one more) with a debt of PLN 5.84 million (PLN 1.5 million less). 21 creditors are waiting for their money.
“In this comparison, what is important is not how the amount of arrears relates to the value or turnover of debtors, but creditors. These are often small companies, subcontractors of exchange giants, who hoped for the development of their companies when signing a contract with them. Instead, there is stress and trouble in meeting their own obligations, because the client who was supposed to be the impulse for growth did not pay. Unfortunately, being on the stock exchange does not mean payment reliability. It should, because if a company reaches the business elite, it should also ensure its reputation is above suspicion. It should be an example for the rest of the market to follow. It’s pleasing, though, that the indebtedness of stock companies has dropped significantly over the past year while it is growing in the entire economy. This could be a sign that some boards have taken these recommendations to heart” says Katarzyna Starostka, an expert from Reliable Company.
The “Debts of Stock Exchange Companies” study was conducted on 370 domestic companies that were listed on the Warsaw Stock Exchange on September 13th, 2023. This is its 11th edition. The current list was prepared in collaboration with experts from the Reliable Company programme under the patronage of the National Debt Register.
