Investor relations

The Company met the forecasts, achieving very good results for 2007. Net profit totalled PLN 148.4 million, that is over 12% more than in 2006 and 1.9 million more than predicted. Annual revenues exceeded PLN 782.7 million, nearly by 8% as compared to 2006. In the record-breaking 4th quarter of 2007, J.W. Construction Holding made net profit of PLN 105.1 million, 75% more YoY.
Gross sales margin, one of the most important measures of developers activity, increased in the year ended to 46.7% as compared to 45.2% in 2006. This means an improvement in profitability by 1.5 percentage point a year despite stabilization of the housing market in Poland. Profit from operations in 2007 went up by nearly 12%.
JWCH’s revenues from sales in the 4th quarter reached PLN 425.2 million, up by 84% YoY. Profit from operations exceeded PLN 134 million, an increase of over 66% YoY. “Considering the fact that the results of the 4th quarter are compared to the results of a record-breaking year for the whole development industry, our achievements in the last quarter, and in the whole past year, should be considered excellent. We sustained high growth dynamics, and at the same time we have undertaken some actions to guarantee equally good results in the coming years.” - explains Jerzy Zdrzałka, president of the management board of J.W. Construction Holding S.A.
In the 4th quarter of 2007, further organisational changes were introduced in the holding. Work is underway to move the architectural activity into a separate company, and to separate the construction activity from the holding structure. In the future, it will facilitate the evaluation of activity efficiency and provide opportunities to obtain additional orders outside the holding.
The Company continued its expansion abroad. A subsidiary was established in Bulgaria. It will carry out development activity on the Bulgarian market. A Russian Company “Ogoniok Leisure Centre”, owning land in Sochi, was purchased. A housing complex with sport and shopping facilities will be built there.
JWCH expanded also the Polish land bank by purchasing additional plots in Warsaw and Szczecin, where attractive land was obtained through acquisition of the Porta Transport company.
“The recent months have been a period of intensive growth for us. We have introduced changes to the holding structure, we are still looking for markets where we can implement profitable projects. At the same time, we intend to keep our leader’s position in the popular apartment sector in Poland. Our excellent financial results prove our effectiveness.” - adds Jerzy Zdrzałka.
The next year should be even better for the Company. According to the forecasts published in January, JWCH expects revenues from sales of PLN 1.085 billion and net profit of PLN 219.7 million. Optimistic forecasts are quite justified. In 2008, the company will recognise in its results, apart from apartments under construction, also the estates whose construction starts in the upcoming months and in which the majority of apartments have already been sold.

***