Impact Bucharest construction company, one of the most dynamic firms listed on the Stock Exchange posted a sharp net profit decline at the end of the first quarter. Impact's profit in Q1 amounted to a mere 6.3bn ROL, 13 times lower than the results at the end of the first quarter last year, 85bn ROL. Its shares lost 5.5% on the Stock Exchange yesterday, but brokers say it is hard to calculate how much of the decline is due to the release of the financial results and how much is due to the expiry of the reference date for a capital increase.
The management says it was the long winter that made the profit shrink, as it impacted on the delivery of homes.
"The more relevant thing is the number of contracts concluded and how much they're worth. These indices went up approximately 25% from the same time last year," Impact chairman Ioan Popp stated.
On the other hand, the accounting profit in the first quarter last year went up because of a Finance Ministry norm, which stipulates the revenues derived from sales of homes in instalments shall be registered upon actual delivery and not upon payment of instalments. Impact's turnover went down 40% in nominal terms in Q1, 2003 compared with the corresponding period of last year, reaching 70bn ROL. The company is planning to post 185bn ROL in net profit this year, the same as in 2002, while turnover should be worth 760bn ROL, up 35%.
Some of the Stock Exchange analysts have lately voiced concern about Impact's fast growth pace and bold projects it sets out to turn into effect every year. This year alone, Impact will see at least three share capital increases, two of which conducted by subscription and one conducted by issuing bonus shares, has issued a $1.5 million bond release, contracted several million dollars' worth in banking loans and will buy approximately $6.5 million's worth in land in Bucharest.
Impact's quote on the Stock Exchange has been positively influenced by the announcement and actual running of capital increases since early this year, while brokers say the stock price would have probably been lower, were it not for those operations. The next reference date for a capital increase is the end of July, when the shareholders get bonus shares from Impact's last year profit. If calculated at the closing price yesterday, 4,250 ROL/share, Impact's market capitalisation amounts to $20 million. vlad.nicolaescu@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
