Fran González takes stock of his management at the head of the Consortium one year after his arrival and presents a healthier economic situation after the reduction of debt and more resources with 52 new lease contracts
The Viability Plan for the period 2020-2025 launched is bearing fruit and allows us to draw a new scenario with a positive working capital for the first time in 15 years
The report also highlights a reduction in late payment and litigation
The turn of the Free Zone towards a new, more responsible industry model is another of the key points of management
The Cádiz Free Trade Zone has implemented a series of management measures since the current delegate took office that are already producing results. This was stated by the person in charge of the Cádiz Free Trade Zone, Fran González, who held a press conference today, one year after taking office, coinciding with the presentation of the management report for this past year to the Plenary Session of the Consortium.
The balance of the management of the last twelve months included in the report confirms the effort and the important work to modernize the Institution and strengthen its structures that is being carried out by the current management team of the Free Trade Zone of Cádiz and that has made it possible to clean up the accounts and achieve for the first time in 15 years a positive working capital, recovering solvency.
Fran González explained that "from the document it is clear that the results are already being collected both from the economic and financial point of view as well as from the commercial point of view and the recovery of productive spaces, even above the forecasts established in the 2020-2025 Viability Plan", with a continuation of this positive evolution expected for the coming years thanks to the application of the measures contemplated in the aforementioned Plan implemented this year.
According to the Free Zone delegate, "in all areas of the Free Zone, work has been done to optimize existing resources and a strong push has been given to marketing actions both from the administrative point of view, with the streamlining of Public Offers by the General Secretariat of the Consortium, and from the Business Promotion Area."
All of this has allowed 22 purchase and sale operations to be carried out for a value of 8.8 million euros, which, added to the recent income of 2.5 million by the Los Barrios City Council for the settlement of an old agreement, represents a total income of more than 11 million euros for the Consortium's coffers. With this, not only is what is self-imposed in the Viability Plan for fiscal year 2021 fulfilled, but also 50% of 2022 is fulfilled.
This powerful economic injection is added to the new lease contracts that have been made this year, a total of 52 new contracts, which represents an annual income of 834,492 euros; to which should be added another eight contracts in process for 113,136 euros per year in income. This represents an increase in rental income of 51,000 euros/month.
During the presentation of the balance sheet, the strong commercial drive of the Consortium was highlighted, with a restructuring of the Area and the appointment last September of a Director of Business Promotion and Foreign Trade, which has allowed us to obtain results with the recovery of productive spaces, new lease contracts and the sale of different equipment.
Fran González gave as examples of this the recovery of an important space in the tax area of Cádiz such as warehouse 24, a plant that belonged to Procosur, which has been leased to the company Mare Productos del Mar, the expansion of the López Cano Clinic in the Carranza stadium or the very recent installation of a polyclinic for medical specialties that will occupy the entire Caballerizas de Jerez building.
In terms of property sales, of particular relevance is the sale of the Janer Tiro Industrial Estate in San Fernando for an amount of 7.5 million euros and other minor operations such as plots or warehouses for a total value of 557,000 euros.
The report reflects healthier accounts, to which is added the restructuring of the Reindus debt and the financial debt, which has allowed the Consortium's total debt to be reduced by 11%. Specifically, in April the Consortium achieved the restructuring of all its debt for projects financed by Reindus, reducing it by almost 12 million euros in a second phase of the restructuring plan. The refinancing of this part of the debt resolved the treasury deficit expected for the month of December 2021. The Free Trade Zone had already achieved significant savings of 1.4 million euros in February after achieving the restructuring of a first phase of the Reindus debt, which resolved the treasury deficit expected for this month of June. Another important step has been the reduction of bank debt, which in this first half of the year has been reduced by 10%.
"The strategy of cleaning up the accounts undertaken with a view to guaranteeing the viability of the entity has allowed the aforementioned working capital to be available for the first time in 15 years last year, but, above all, it has begun to be seen that the Consortium is efficient and generates positive results. In fact, if it were not for the burden of inherited debts, we would have a profit of 1.9 million euros," explained the head of the Free Trade Zone.
In parallel to this commercial activity and the economic and financial improvement, the report includes the two major milestones that the Cádiz Free Zone is developing in the capital and in the Bay of Algeciras: the technological expansion center with the Zona Base blue economy incubator, the outdoor industrial estate of the Cádiz Free Zone, and the change to a sustainable industrial model, more responsible and committed to the environment; and the Bahía de Algeciras Tax Precinct, in the municipality of Los Barrios. These two actions, whose commissioning works are about to begin, will involve the implementation of two centers of economic activity of great importance, which will have an impact on the two Bays (that of Cádiz and that of Algeciras) and throughout their area of influence and will allow the Free Trade Zone of Cádiz to obtain new resources.
Fran González assured that "the Free Trade Zone of Cádiz is working intensely to create the ideal conditions for the installation of companies, within a new, more sustainable, committed and responsible industrial model, while actions have been strengthened to facilitate the arrival of companies, consolidate those that are already installed and promote internationalization."
The management balance reflects that the strategy and the Viability Plan implemented by the current management team of the Consortium are valuable tools to improve and balance the financial situation and the general activity of the Cádiz Free Zone and have been applied with agility so that the results begin to be noticed and can be reflected not only in the accounts for 2021 but also in the economic activity of the entire area of influence of the Consortium, the province of Cádiz, with the consequent contribution to a necessary recovery and job creation.
The report also emphasizes the importance of institutional collaboration and work hand in hand with other administrations, identifying common strategies, shared lines of work, areas of complementarity, which allow dynamizing, streamlining procedures and identifying new fields of development, within the understanding with all institutions.
The Free Zone delegate concluded by saying that "based on all these milestones and all the management lines initiated, the Free Zone faces the coming months and the year 2022 with the challenge of consolidating and promoting the institution as an economic engine of the province, projecting its logistical potential at a regional level and attracting investments that strengthen its productive fabric."
"In this context, the constant support of the Government of Spain and its firm commitment to the improvement and economic growth of the province is essential and the new Next Generation community financing instruments and community funds for the period 2021-2027 will be key, which can provide the definitive boost to the modernization and ecological transition of the Institution."