Bodea, Adrem: from Smart Home to energy efficiency, towards a 40 per cent growth

While Corneliu Bodea comes back as CEO of Adrem, the group launches new services and companies ranging from Smart Home to energy efficiency. The 34 million Euro worth turnover of Adrem brought back an EBITDA (earnings before interest, taxation, depreciation and amortisation) of 11 per cent, as margins become slimmer and competition toughens, says Bodea. By Bogdan Tudorache

2016-06-08 16:16:32

And as the revenue is planned to grow 40 per cent by year-end.

"We are set to stay a top entrepreneurial Romanian-capital company," says Bodea, while explaining the expansion plans. Adrem is an energy trust part of the ABBC group, that also includes metallurgy firms. The overall group finished 2015 with a revenue of 53 million euro and estimates am 10 per cent growth for this year.

Adrem Link, a new company is focusing on energy efficiency and maintenance side, will launch also into residential side, while keeping corporate side open. It will see innovative solutions such as Smart Home sold in the market, and Adrem is in talks with several telecom operators such as Telekom to expand this business, Bodea says.

"We are set to grow as the investments into energy will have to reach the specified amount, as we are closing the regulatory period set by the authorities. So we'll see investments booming into the second half of 2016 and during 2017, as they stand at just 30-40 per cent of the specified amount," says Bodea.

The lack of orders in the Romanian market saw a plethora of companies re-shifting towards exports, but Adrem energy arm stayed mostly within the Romanian border. Except for a Serbian consortium for micro-hydro plants, Adrem was not bidding for other works, yet, outside Romania. And as profit margins get slimmer, competition gets fiercer, deadlines shorten and the pressure in the market for investments keeps on increasing.

"It is not rocket science to say that investments will grow. We are closing the end of the regulatory period in 2018 and the regulatory body will penalize those companies that will not meet their investment quota," also says Bodea.

But going into new niches, such as IoT Home solutions, is the way to differentiate. And companies offering reasonable cost solutions will prevail.

"Romania must go on the innovation and creativity path… I chose to come back into Adrem management because we live a challenging moment, but also full of opportunities," Bodea concludes.