investor relations
Sales revenue recorded by J.W. Construction Holding S.A. after nine months of 2008 amounted to PLN 545.5m and was 52.6% higher than after 9 months of 2007. The gross sales profit rose over the period from PLN 101.7m to PLN 135.4m (by 33%). After the nine months, after-tax profit reached PLN 63.9m and was 47.9% superior to the 2007 figure.
In Q3 2008 alone, JWCH generated almost PLN 160m in sales revenue, a 22.5% increase over the corresponding period of the previous year. The Company posted a profit at the end of the third quarter. The gross sales profit amounted to PLN 33.9m, with after-tax profit exceeding PLN 13m.
Given the current market environment, the Company has rated its performance after Q3 as good, citing specific method of allocation of investment to the profit as the reason for the decline in sales margins. According to IAS 11, the Company allocates all the construction projects completed in 40% and sold in 50% to the result. The 40% completion threshold has not yet been reached under some projects commenced this year. Consequently, the Company has recognised revenues as equal to costs and zero margins for such projects in the third quarter. The margins generated on those investment ventures will be recognised in the following quarters.
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J.W. Construction Holding S.A. is the largest Polish housing developer operating mainly in Warsaw but also in Lodz and Gdynia as well as abroad. The Company is the leading developer of the Warsaw housing market, its presence dating back to 1994. In addition to pursuing development projects, the Company is also engaged in construction acting as the general contractor for most of its ventures. J.W. Construction is the owner and operator of Hotel 500 chain made up of 5 facilities in Zegrze, Strykow, Tarnowo Podgórne, Cieszyn and Św. Lipka. On June 4, 2007, the Company made its debut on the Warsaw Stock Exchange. In 2007, J.W. Construction posted after-tax profit of PLN 148.1m with revenues of PLN 781.1m.