TOP of construction companies in Saint Petersburg

Information agency Credinform represents a review of activity trends among construction companies in Saint Petersburg.

The largest companies with the highest annual revenue (TOP 1000) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2016 – 2020). The selection and analysis of companies were based on the data of the Information and Analytical system Globas.

Net assets are total assets less total liabilities. This indicator reflects the real value of the property of an enterprise. When the company’s debt exceeds the value of its property, the indicator is considered negative (insufficiency of property).

The largest company in term of net assets is JSC ETALON LENSPETSSMU, INN 7802084569, construction of residential and non-residential buildings. In 2020, net assets value of the company exceeded 39 billion RUB.

The lowest net assets value among TOP 1000 was recorder for LLC STROIGAZKONSALTING, INN 7703266053, construction of residential and non-residential buildings. In 2020, insufficiency of property of the enterprise was indicated in negative value of -28 billion RUB.

Covering the five-year period, the average net assets values of TOP 100 have a trend to decrease with the increasing growth rate (Picture 1).

Picture 1. Change in industry average net assets value in 2016 – 2020

Over the past five years, the share of companies with insufficient property had a positive trend to decrease (Picture 2).

Picture 2. Shares of TOP 1000 companies with negative net assets value in 2016-2020

Sales revenue
In 2020, the revenue volume of ten largest companies was near 34% of total TOP 1000 revenue (Picture 3). This is indicative of a relatively high level of competition among construction companies in Saint Petersburg.

Picture 3. The share of TOP 10 companies in total 2020 revenue of TOP 1000

In general, there is a trend to decrease in revenue and growth rate (Picture 4).

Picture 4. Change in industry average net profit in 2016 – 2020

Profit and loss
In 2020, the largest organization in term of net profit is ООО GAZPROM INVESTGAZIFIKATSIYA, INN 7810170130, construction of engineering communications for water supply and sewerage, gas supply. The company’s profit almost exceeded 16 billion RUB.

Covering the five-year period, there is a trend to increase in average net profit and growth rate (Picture 5).

Picture 5. Change in average profit (loss) values in 2016 – 2020

For the five-year period, the average net profit values of TOP 1000 have the increasing trend with the decreasing net loss (Picture 6).

Picture 6. Change in average net profit and net loss of ТОP 1000 in 2016 - 2020

Key financial ratios
Covering the five-year period, the average values of the current liquidity ratio were close the recommended one - from 1,0 to 2,0 with a trend to decrease (Picture 7).

Current liquidity ratio (current assets to short-term liabilities) shows the sufficiency of company’s assets to repay on short-term liabilities.

Picture 7. Change in industry average values of current liquidity ratio in 2016 – 2020

Covering the five-year period, the average values of ROI ratio had a trend to increase (Picture 8).

ROI ratio is calculated as net profit to sum of shareholders equity and long-term liabilities, and shows the return of equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in industry average values of ROI ratio in 2016 - 2020

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

Covering the five-year period, business activity ratio demonstrated the decreasing trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio in 2016 – 2020

Small business
87% of companies of TOP 1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. In 2020, their share in total revenue of TOP 1000 is 31%, more than the average country values in 2018-2019 (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in TOP 1000

Financial position score
Assessment of the financial position of TOP 1000 companies shows that the majority of them have average financial position (Picture 11).

Picture 11. Distribution of TOP 1000 companies by financial position score

Solvency index Globas
Most of TOP 1000 companies got Superior / High and Strong / Medium indexes Globas. This fact shows their limited ability to meet their obligations fully (Picture 12).

Picture 12. Distribution of TOP 1000 companies by solvency index Globas

Conclusion
Complex assessment of activity of construction companies of Saint Petersburg, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends in 2016 - 2020 (Table 1).

Table 1. Positive and negative trends, evaluation factors

Trends and evaluation factors	Relative share of factors, %
Dynamics of the average net assets value	-10
Rate of growth (decrease) in the average size of net assets	10
Increase (decrease) in the share of enterprises with negative values of net assets	10
Level of concentration of capital (monopolization)	10
Dynamics of the average revenue	-10
Rate of growth (decrease) in the average size of revenue	-10
Dynamics of the average profit (loss)	5
Rate of growth (decrease) of the average profit	10
Rate of growth (decrease) of the average loss	10
Increase / decrease in average values of total liquidity ratio	-5
Increase / decrease in average values of return on investment ratio	10
Increase / decrease in average values of asset turnover ratio, times	-10
Share of small and medium-sized businesses in terms of revenue being more than 20%	10
Financial position (the largest share)	5
Solvency index Globas (the largest share)	10
Average value of relative share of factors	3,0

positive trend (factor), negative trend (factor)