70 Dwellings Turned to Profit at the Half of the Year 2010, compared to 94 One Year Ago

The short-term debts of Impact SA decreased by 4.4%, from 91 million lei on the 1st of January 2010, to 87 million lei on the 30th of June. During the same period, the lomg-term debts decreased by 7%, from 74.6 million lei, to 69.5 million lei, firstly because of credit reimbursements.

This fact may be considered as positive taking into consideration the current economic context: the Romanian economy is in crisis, the activity of trade companies being affected by the financial block, crediting is difficult, the leu has devaluated, in the budget system - and not only there, salaries were reduced and massive discharges are made, the taxation and due system changes and becomes more and more superincumbent.

The main financial indicators of Impact Developer & Contractor SA, according to the unaudited and unconsolidated financial statements, in comparison to the budgeted figures are:

Thus, the hostile economic context, the measures taken by the Government corroborated with the leu devaluation in comparison to the Euro, made that, on the first semester of the year 2010 Impact SA would record, according to the unaudited and unconsolidated financial statements, a gross loss of 7.4 million lei coming from: 2.1 million lei - loss from exploitation, and 5.2 million lei - financial losses.

"There must be underlined the fact that the main loss is not generated by the activity, but it comes to a great extent from the currency exchange differences. Thus, compared to the exchange rate of 4.23 RON/EUR that was forecasted and budgeted by Impact SA, the exchange rate as at the 30th of June 2010 was of 4.3688 RON/EUR, thus resulting a net unbudgeted currency exchange difference with a value of about 4 million RON. The loss from the current activity was of 2.1 million lei, one of the factors that generated it being the unfulfillment of the sales plan, especially during the second semester, following the general economic situation and the government measures whose introduction could not be forecasted", declared Carmen Sandulescu, Chief Executive Officer of Impact SA.

The unsafety status generated amongst the population by the unfavourable economic context, but also the hope of some being in search of a dwelling that prices will decrease more, led to the increase of the time to make a purchase decision and even to its postponing for an undetermined period. This thing determined the decrease/ slowing of the dwelling sale rhythm, that also made the turnover of Impact SA to record a descending course. Thus, compared to the preceding period, when there were sold and rented 94 dwelling units, in the first half of the year 2010 there were sold and rented only 70 dwellings.

"We intend to make a rebudgeting during the next period, its details following to be communicated after their approval in the Board of Directors of the company", stated Carmen Sandulescu.

Aids for Distressed Persons
Despite the unfavourable economic context, generally, and the hard contraction suffered by the real estate market, especially, Impact SA not only has respected all the commitments undertaken in its relationships with its clients, banks, employees and shareholders, but was also actively involved in social causes. Thus, Impact SA, with the help of the transportation company Schenker Romtrans, sent in the villages of Moldavia, severely affected by the floods of this summer, construction materials with a value of about 75,370 lei excluding VAT. "The tragedy supported by the thousands of families remained homeless overnight impressed us very deeply. And as we build houses, we considered as being our duty to be solidar with these people and to help them rebuild their dwellings that were swept away by floods", declared Carmen Sandulescu.