Dom Development’s sales up, profit down

Warsaw-listed residential developer Dom development posted its 2010 results today. The company saw its net profit decrease by 49.5 percent to PLN 40.5m (€10.15m), a result of the long crisis, particularly in 2009 and 2010, when the company barely built a thing and the number of flats it delivered to clients was minimal.

Dom Development’s turnover in 2010 was PLN 513.7 (€128.69m), a decrease of 27.1 percent against 2009. Last year, however, shows the company’s revenue will be increasing in the following quarters and years. Dom Development sold 1386 flats last year, an increase of 75 percent over 2009. The company refrained from providing sales and revenue forecast for 2011.

According to CEO Jarosław Szanajca, the company’s financial condition is very good, owing to cost management program that Dom Development executed in the slowdown years.

The company has a cash position of PLN 434.7m (€108.94m) while its total debt that’s due by end of 2015 is PLN 470m (€117.74m). At the moment, company has no loans maturing at the end of 2013 and 2014. Dom Development earmarked up to PLN 200m (€50.12) for and purchases in Warsaw in 2011.

Dom Development will recommend an increase in dividend for shareholders by 12 percent, to PLN 0.9 (€0.23) per share.

The company also said it started the construction of its first non-Warsaw project, Oaza (Oasis) in Wrocław. “It will be a test of how well we can fare outside our home market,” Szanajca says. “If it does well, I’m sure we will become a major player on the Wrocław market,” he adds.

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