IMPACT Developer & Contractor SA – the results of the first quarter of 2009 exceed the estimated budget from the beginning of the year
In the first quarter of 2009, IMPACT Developer & Contractor SA (IMPACT), realized a gross profit of 2.89 mil lei, with 62% more than the gross profit which was estimated for this period.The result is mainly due to dwellings sales of 20.15 mil lei.
In the first quarter of 2009 IMPACT Developer & Contractor has signed 46 contracts with a value of 20.15 mil lei, of which:
- 59% in call-buy system (renting with the possibility of buying)
- 24% with full payment
- 17% with payment in installments
"The sales volume recorded during the first three months has exceeded our initial estimations, thus declaining the pessimism from the beginning of the year that started from the sales figures realized in the last quarter of 2008. The results confirm an existing demand of completed dwellings, but also the success of the various housing living solutions, that we have launched lately. More than 75% of the signed contracts have on their basis the dwelling solutions launched by IMPACT, starting with the last year's autumn", said the CFO of IMPACT Developer & Contractor, Ms. Carmen Sandulescu.
In the first quarter of the year, IMPACT registered:
- A turnover of 16,346,454 lei, decreasing with 8% compared with the same period of the last year
- A gross profit of 2,885,254 lei and compare with the forecasted amount from the budget, of 1,784,106 lei
- A net profit of 1,289,398 lei
- A total gearing rate of the company decreasing with 20%, mainly determined by the payment of some bonds with a value of 8.6 mil Eur, which were paid in February
Compared with the first quarter of 2008, the incomes and expenses indicators registered decreases due to the deceleration of the work rhythm on the projects in progress.
Statement by the main financial indicators (compared with the same period of the last year)
| Financial Indicators | 1st Quarter 2008 | 1st Quarter 2009 | % |
|---|---|---|---|
| Turnover | 17,732,215 | 16,346,454 | -8% |
| Operating incomes | 47,075,589 | 29,054,855 | -38% |
| Operating expenses | 41,098,368 | 25,153,538 | -39% |
| Operating Profit | 5,977,221 | 3,901,317 | -35% |
| Total income | 50,442,978 | 32,796,854 | -35% |
| Total expense | 44,216,321 | 29,911,600 | -32% |
| Gross profit | 6,226,657 | 2,885,254 | -54% |
| Net profit | 5,133,787 | 1,289,398 | -75% |
The income decrease also due to the contract cancellations for a value of 12.6 mil lei, contracts that were signed by foreign investors that decided not to finish the aquisition of the dwelling.
The gross profit decrease compared with the same period of the year 2008 due to the fact that the company registred provisions for the exchange rate variation in amount of 5.5 mil lei.
For 2009 IMPACT intends to complete the on-going projects, to divide the future projects in sub-phases, but also to consolidate the IMPACT's position by adopting various living solutions for the residential products.
Also, the company in taking into account the opportunity to develop hotels and office buildings for small and family business. For the residential part, the company is focusing on mixed housing developments.
The objectives for 2009 are to increase the market share up to 11% at Bucharest level and to increase the clients satisfaction and to optimize the company's activities.
ABOUT GREENFIELD:
Located in the northern area of Bucharest, bordered on two sides by Baneasa and Tunari Forests, the Greenfield I Projects was started in September 2006 and comprises 676 residential units. 500 units from the Greenfield I have already been sold. They are divided in 5 compounds (Rubin, Topaz, Onix, Blue, Quartz) it is developed on 10 ha. Greenfield I represents the first stage of an project that will be developed on 60 ha. The delivery of the units has begun in the spring of 2008 with Rubin and Topaz Compounds. In December 2008 there have started to be delivered the apartments in Onix compound, and since February 2009 have started the delivery in Blue compound. The apartments in Quartz compound will be delivered starting with June 2009.
ABOUT IMPACT DEVELOPER & CONTRACTOR SA:
IMPACT Developer & Contractor SA is the most innovative Romanian real estate company. IMPACT provides housing living solutions which involve different residential products, with individualized financial solutions, with multiple ways of contracting and managing complex services. Founded in 1991, IMPACT is listed on the Bucharest Stock Exchange and is one of the best known companies in Romania in the real estate sector and capital market. Since 1996, when IMPACT introduced the concept of "residential compound" to the Romanian market, IMPACT developed 16 compounds in 5 cities, with more than 2,000 houses and apartments and 25,000 sqm of offices and commercial spaces.
