"Broker" Cluj intends to cut salary costs by 42%, this year

• Company laid off 25% of its staff these past few months

Izabela Sîrbu

Brokerage firm "Broker" Cluj (stock symbol:BRK) last year logged financial expenses worth 71,6 million lei, caused by the depreciation of its stock holdings, according to reports published on the company"s website.

However, the brokerage firm estimates its earnings this year will reach 852.000 lei, based on total revenues of 8.53 million lei, 50% lower than last year"s, and on expenses of 7.67 million lei.

The company expects to receive 3.8 million lei in dividends from companies that is has stakes in, 12% higher than last year.

"Broker" Cluj estimates its trading fee revenues will only amount to 1.68 million lei this year, 3.65 times lower than those of 2008, due to low trading volumes on the Bucharest Stock Exchange.

The company is also looking to cut salary expenses to 2 million lei, or 42% less compared to last year"s numbers.

Claudia Chira, financial officer of "Broker" Cluj, said that the company laid off 25% of its staff, to only 150 employees. He also mentioned that starting this year compensation will depend on employees" individual performance, and did not rule out further staff cuts.

Shares of "Broker" Cluj-Napoca are being traded on the first tier of the Bucharest Stock Exchange, starting February 5th, 2005.

The brokerage firm currently has a share capital of 144.73 million lei, split into shares with a face value of 0.5 lei. According to the latest report, the main shareholders of the company were Ioan Cârti , with an 8.22% stake, "Intervalco" with 6.18%, with the rest of the shares being free float.