“The client default risk has risen significantly, amid tighter lending conditions for our clients, and in extreme cases this could result in insolvency,” Chairman of Elgeka-Ferfelis Romania, Iannis Ferfelis, told Business Standard.
Considering the current economic crisis, the company is monitoring the client insolvency risk more carefully, and the approach is more cautious in case of deliveries to high-risk clients.
The distributor is also facing problems related to the euro-leu exchange rate. “The exchange rate is impacting on us in two ways: as importer, the effect of this evolution is directly reflected in the [financial] result, and is indirectly negatively impacting the purchasing power of the final buyer,” said Ferfelis.
Elgeka-Ferfelis registered €70.5 million in net sales last year. For 2009, the company forecasts a turnover worth €85 mln. This year’s investments will target programs such as the enterprise resource planning (ERP) and the warehouse management system (WMS).
