Romanian real estate developer records a 75% loss in income

Romanian real estate developer Impact announced on Friday a 75% profit loss for the first 2009 trimester, in contrast with the same period of 2008. The net profit for the first term of the current year is 1.28 million lei.

The fist 2009 term saw Impact signing 46 contracts worth of 20.1 million lei, out of which 59% were call-buy contracts (renting but with the option of buying), 24% were paid in full and 17% are to be paid in instalments. „The sales volume exceeded our initial expectations, contradicting the pessimism brought at the start of the year by the sales figures recorded during the last 2008 trimester”, Impact’s Developer & Contractor financial chief Carmen Sandulescu declared.

But the rest of the company’s financial indicators are decreasing. The turnover shows an 8% drop in value according to the figures recorded in the first 2008 term. The gross profit was 54% lower (2.88 million lei) and the net profit was 75% short of the value recorded in the similar 2008 period. The debt level is 20% lower, as the company managed pay 8.6 million euros worth of duties in February. The drop in revenues is not only the result of the expenditures – income difference. „Foreign investors cancelled contracts worth of 12.6 million lei in total”, shows Impact’s report.

Impact aims to finalize the projects in progress by the end of 2009. It will also come up with various housing schemes for residential buildings.