Financial indicators for 2007 and 2008 make IMPACT shares interesting for the emerging real estate markets

During a press conference on Wednesday, the 7th of May, the company presented its consolidated financial results for 2007. The financial indicators for 2007 show the growth potential of IMPACT's activity and the healthy mechanism of the company's activity, indicators that show an increase of the contracts signed in 2007, three times higher than in 2006, an increase of 64% in the value of the constructions completed, from RON 37.4 million in 2006 to RON 31.6 million in 2007, while the gross profit increased with 171%, from EUR 38.726 thousands in 2006 to EUR 104.872 thousands in 2007.

All these financial results are according to IFRS, as, in Romania, the companies have to present their results according to OMPF 1752/2005, as well as according to IFRS, which may create confusion among the international investors. The differences betweeen OMPF 1752 and IFRS, for the activity of the real estate development companies, are: the moment of income recognition, the evaluation of the real estate investments and the deferred income tax.

Thus, at the price of RON 0.219 per share, P/NAV (company prices for the net assets value in 2008e), which is the main performance indicator for a listed real estate company, reached the treshold of 0.47, representing the company's most attractive level on the Stock Exchange in the last 3 years. This quotation facvors the Stock Exchange investments in shares. Compared to the Central and East European average of the P/NAV indicator, estimated at 1.65 for 2008, IMP holds the best place. The same situation is also found for the P/E (company price per gross profit), the indicator's average for the Central and East European real estate companies being estimated at 8.5 for 2008, while the P/E (2008e) indicator for IMP is at 2.5, a lot more attractive.

The higher demand compared to the real offer on the real estate market, as well as the fact that the real estate credit market is in a phase of strong development fuels the sustained demand for residential units, and all these factors triggered Impact's decision to create a diversified portofolio of complex projects in Bucharest, Cluj-Napoca, Constanţa, Oradea and Ploieşti, which should meet the demand for the next 4-5 years.

One of the objectives announced by the company is to become an important player on the international real estate market as well, through partnerships / transactions with international investors interested in the opportunities of an emerging market, such as the Romanian one. In this repsect, Impact will attend specialized real estate events, among the most popular in this field, such as those in Vienna, Munchen, Barcelona, Madrid.