GIP Pionir: One of the strongest construction companies in Croatia is unusually shy

Of the top ten construction companies in Croatia (according to Lider’s publication '1000 largest'), GIP Pionir stands out for two characteristics: the number of employees is only a tenth of those in other largest construction companies, and the silence of the two owners of the company Ranko Predović and Daniel Hrnjak on every attempt we made to contact them crosses the boundaries of even those who are generally media-shy.

In addition to being owners, Predović is also the director, and Hrnjak is the procurator of the company, which, as noted by one expert in the construction sector, was initially known only for residential construction, and only in the last ten years has it begun to participate more intensively in public tenders, especially those organized by the City of Zagreb during the tenure of former mayor Milan Bandić.

It could be read in the media that GIP Pionir then had a privileged position in Zagreb. After all, this company is perhaps best known for winning the public tender for the construction of the Zagreb cable car, for which it submitted a bid of 299 million kuna.

However, one entrepreneur who also participated in the tender says that there is nothing to criticize GIP Pionir for, as it truly had the best offer for the construction of the cable car. The other matter is that subsequent annexes to the contract made that investment cost 537 million kuna, which can be debated, but our interlocutor says he cannot claim that everything about it was suspicious given the subsequent unexpected jobs in such terrain, as well as the rise in construction material prices.

Shy Owners

Interestingly, many entrepreneurs we spoke with cannot say much about Pionir or its owners. It seemed to us that they genuinely believe this, and it is interesting that Predović and Hrnjak do not 'socialize' much with colleagues from the competition.

For example, Pionir is among the strongest construction companies in Croatia, ranking sixth in total revenue (according to Lider’s publication '1000 largest' for 2021), or, if we do not count Dalekovod and the short-term 'stay' of China Road and Bridge Corporation that built the Pelješac Bridge, it is fourth right behind Kamgrad, Strabag, and GP Krk. Yet its owners did not participate in the meeting held by the strongest domestic builders a few months ago to convince public investors to share the rising construction costs with contractors, which the government of Prime Minister Andrej Plenković also appealed for last September.

However, Pionir, which achieved 637.9 million kuna in revenue last year, did not have its representative at that meeting. One would expect it to be present since it participated in many public investments, especially in Zagreb, but also in other areas. These include healthcare institutions, playgrounds, schools, and the Church has entrusted it with some construction and reconstruction projects of its institutions.

Perhaps all of this is part of the style of the leading duo of the company who rarely appear in public. In fact, as colleague Saša Paparella writes in his article 'Face on the Cover: Ranko Predović – Guardian of Bandić’s Treasure?', at the signing of the contract for the construction of the cable car, Bandić barely pulled Predović in front of the journalists, but he only posed for a photo without uttering a single word. He dresses averagely, thus not drawing attention to himself while walking around the city, and although Pionir is a strong company, its premises are not particularly representative.

Exceptionally Liquid Company

Despite this image, if we take a look at the finances, Pionir stands quite well. Nikola Nikšić, the owner of the business consulting company Konter, analyzed Pionir’s operations from 2017 to the end of last year. He says the company 'exclusively plays on home turf'. Judging by the value of working capital, which amounted to 431.7 million kuna last year, and the accelerated liquidity indicator (cash plus receivables, i.e., short-term obligations) throughout the observation period, it is highly liquid.

For example, last year the accelerated liquidity ratio was 2.7, far above the good 1.0. The ratio of financing from internal and external sources of 45 to 55 indicates, according to Nikšić, low indebtedness, and in the last three years, there have been no recorded credit obligations, neither long-term nor short-term.

Read more about this exceptionally liquid but shy company in the new issue of the printed and digital Lider.