Romanian real estate company Impact builds in 14% higher net last year y/y on land reassessment

Impact saw net profit reach 77.7 million euros last year, after the company reassessed land owned in Bucharest, western city Oradea and Black Sea cities Constanta and Neptun.

Despite growth in profit, the company reported losses of 15.8 million lei, generated by the fluctuating exchange rate and the national currency’s appreciation last year which affected credits in euros.

Revenues last year stood at 493.44 million lei, a 3.6 percent increase versus the year before when revenues accounted for 137.08 million lei. Spending was of 172.25 million lei, 52.65 percent higher than the year before.

Impact, one of the key players on the real estate market in Romania, is sharply contested by some of the people that purchased houses constructed by the company. Hundreds of people who paid for residences in northern Bucharest set up an association to fight in court against Impact, accusing the company of using other materials than those promised and of leaving many apartments unfinished, despite contract.

Impact has a share capital of 200 million lei divided into two billion shares with a face value of 0.10 lei and a market value of 652 million lei. Listed as IMP on the Bucharest Stock Exchange, it was last traded at the value of 0.326 lei.

Source: NewsIn