Villa constructor Impact Bucharest has ended the first quarter with net profits of 22.5 billion ROL (0.6 million euros), down 11% in ROL on the corresponding period of last year. Calculated in euros, however, net profits remain similar to last year.
The company''s first-quarter turnover nonetheless shot up to 315.8 billion ROL (8.5 million euros), almost triple the amount seen in the first three months of 2004 of 127.1 billion ROL (3 million euros).
"The surge in turnover was due to the increase in the number of contracts we signed late last year. We started construction works for these contracts in the first quarter of 2005," said Carmen Sandulescu, the company''s financial manager. According to Sandulescu, Impact includes villas in its turnover as construction works are progressing, not when the buildings are delivered to the buyers.
Company officials blame the decreasing profits on the higher costs associated with villa construction.
"Profits dropped because our expenses went up. At any rate, the results are still better than what we expected in the spending and revenue budget, where we forecast losses for the first quarter," she said. She added that the second half of the year was the most important for Impact''s operations, and not the first quarter.
Monday also saw Impact disclose plans for two capital increases over the next two months. The company plans to grant one bonus share for every four shares owned by shareholders registered by May 30.
vlad.nicolaescu@zf.ro
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