Press Information Ząbki, 12 May 2010
JWCH – more than PLN17,000,000 net profit in the first quarter
J.W Construction Holding S.A finished its first quarterConstruction Holding S.A. good financial results. The Company made a net profit of over PLN 17,000,000 on revenues of PLN 118,200,000during the first quarter of 2010. As a result of the first quarter, the Company handed over 295 flats in order to adapt them. At the same time, the Company signed sales agreements for 286 units.
In the analyzed period, the gross margin increased significantly. After the first quarter the gross margin was at the level of 29,28% - higher by 3.3 percentage points y/y. The sales revenues after the first quarter of 2010 amounted toPLN 118,200,000 on net profit of PLN 17,600,000. The profit from operating activities amounted to PLN 28,800,000 to PLN 50,400,000 y/y.
I think thatbetter than expected results prove the effectiveness of our agreed business policy. Thanks to appropriate sales activities and the right cost structure we could show a margin increase to nearly 30%.This is our success. Taking into consideration the number of over 3,700 flats that in the coming months will be handed over to the purchasers we hope to gain better results in the next quarters. – expalinsMałgorzataSzwarc-Sroka, the Director of the Economic Division of J.W.Construction Holding S.A.
Grossresult for sales after the first quarter amounted to PLN 34,600,000. This result was mainly based on the following investments: OsiedleGórczewska (38%), OsiedleLazurowa(23%), OsadaWiślana (17%), OsiedleLeśne (11%), RezydencjaQuatro (5%), Osiedle Centrum in Łódź (3%) AlejaLudwinowska (2%) and others.The result for the first quarter was calculated on295 flats handed over in order to adapt them.
The Company carries out the adopted business strategy that consists in diversifying the sources of revenue. Apart from building the first office building Jerozolimskie Point that is in progress, there are prepared other commercial projects in Warsaw, Szczecin and Wrocław to be implementedin 2010/2011. To maintain market leadership in the market of popular housing is the Company's goal for the next quarter. The Company is preparing another 9 investments to launch with over 2,700 units and the project of 72 single houses in Ożarów Mazowiecki. Till the end of 2010, the Company plans to launch two commercial investments and at least five investments with a total number of 1,166 units. These will be investments in Warsaw -ZielonaDolina and Światowida,andŁódź II at Tymienieckiego Street, Katowice II atBałtycka Street and the project in Poznań including about 150 units.
The Company will be gradually entering the market of office, commecial and hotel spaces.