IN SPITE OF A DROP IN TURNOVER "Moldoconstruct" sees a 21% profit increase

Moldoconstruct SA Iaşi (symbol: MOLE, on the Rasdaq tier of the Bucharest Stock Exchange) reported a turnover for 2009 of 11,325,735 lei, down 41.23% YOY, from 19,270,192 lei. In spite of this situation, the company"s gross profit increased 21.45%, from 442,086 lei in 2008, to 536,922 lei at the end of 2009. The company had an operating profit of 611,836 lei, as a result of the difference between the operating revenues of 11,350,181 lei and 10,738,345 lei in operating expenses. The financial operations caused a loss of 74,914 lei, resulting in a gross profit of 536,922 lei (445,600 lei net profit). Moldoconstruct SA will not distribute dividends this year. Out of last year"s profit, 26,846 lei will be incorporated into legal reserves, while the remaining 418,754 lei was not allocated.

Even though 2009 was a difficult year for Moldoconstruct SA Iaşi, just like it was for most of the companies in the sector, at the end of the 2009 fiscal year, the Iaşi based company saw its liabilities decrease 20.4%, down to 2,739,382 lei. The company"s receivables also dropped slightly, to 3.405.297 lei (0.8%).

"Compared to 2008, we estimate that our operations and earnings for 2009 are good, especially as our company"s operations were affected by the economic crisis, (the lack of funds allocated for investments in the Moldova region), as well as by the competition in the sector, which led to a drop in contractor rates", the report of the Board of Directors of Moldoconstruct SA Iaşi states.

The document also mentions that the company expects to make close to 12 million lei in revenues, and an estimated profit of 400,000 lei.

"Moldoconstruct" SA Iaşi was incorporated in 1991, with the company"s main line of business being the construction of residential and non-residential buildings and installations.

At the end of last year, the company"s largest shareholder was Gabriel Nechifor, with a market share of 32.97%. Other shareholders include Eugen Nechita (11.24%), Constantinela and Vasile Lupaşcu (16.80%), Florin Iftimescu (17.77%), as well as other individual shareholders (21.2%).