Press release – Preliminary Financial Results for 2010
15th of February 2011, Bucharest
In 2010, on a real estate market that has not recovered yet, Impact Developer & Contractor SA (IMPACT) has reduced the decrease of the turnover, preserving the company's patrimony and the liquidity
The decrease in prices and the decrease of the real estate purchased volumes, determined that the turnover of IMPACT in 2010 to be 34 million lei, 38% lower than the level recorded in 2009 (after 64% decline in 2009 compared to 2008).
Even if the company's average monthly sales were above the market average, the revenue from sales did not cover the operating costs, resulting in an operating loss of about 9 million lei.
The financial activity generated revenues of 13 million lei (30% higher than in 2009), but due to financial expenses (interest rate and expenses generated by the exchange rate differences) of 18 million lei, even lower than in 2009, the financial result recorded a loss of over 5 million lei.
The main financial indicators of Impact at December 31st, 2010, according to the estimated financial results, unaudited and unconsolidated, are:
| Indicators (RON) |
December 31st, 2010 |
| Turnover |
34,337,468 |
| Operating income | 26,610,934 |
| Operating expenses | 35,601,894 |
| Operating result | -8,990,960 |
| Financial income | 13,052,884 |
| Financial expenses | 18,744,310 |
| Financial income | -5,691,426 |
| Total income | 39,663,818 |
| Total expenses | 54,346,204 |
| Gross profit | -14,682,386 |
Starting with the second semester Impact diversified its business by selling land plots to small businesses and by renting houses and apartments.
Total liabilities decreased by 26 million lei in 2010, due to the fact that there were repaid loans of 21 million lei. At the same time the company cash and cash equivalents remained almost constant.
Even with cash and cash equivalents of the company of more than 13 million on July 8th, 2010, the Bucharest Court upheld the opening of insolvency procedure at the request of a company from Ploiesti, for an alleged debt of 1.3 million lei. On 11 of August the Bucharest Court of Appeal temporarily suspended the procedure through irrevocable procedure. The final resolution of this case will be determined once with the appeal requested by Impact.
In 2010 the main source of income (7.5 million Euros) was provided by the sale of the residential units. Revenues have been supplemented by another half a million Euros realized from the rental of the apartments and houses and from the sale of the land plots.
For 2011, IMPACT wants to preserve the value of the assets held and to increase the sales volume of the residential units along with a greater increase in revenues from other activities (rental and sales of the land plots).
ABOUT IMPACT DEVELOPER & CONTRACTOR SA
Impact Developer & Contractor SA, founded in 1991 by public subscription, is listed on the Bucharest Stock Exchange. The company, which introduced the concept of "residential compound" in Romania, developed 16 residential projects so far in five cities to more than 2,100 families that live in houses and apartments. The portfolio is completed with 25,000 sqm of offices and retail spaces, as well as comprehensive management services.
IMPACT Developer & Contractor SA
Executive Director,
Carmen Sandulescu
