Press Information                                                                                     Ząbki, 12 May 2010

JWCH – more than PLN  17,000,000 net profit in the first quarter

J.W Construction Holding S.A finished its first quarter  Construction Holding S.A. good financial results. The Company made a net profit of over PLN 17,000,000 on revenues of PLN 118,200,000  during the first quarter of 2010. As a result of the first quarter, the Company handed over 295 flats in order to adapt them. At the same time, the Company signed sales agreements for 286 units.

In the analyzed period, the gross margin increased significantly. After the first quarter the gross margin was at the level of 29,28% - higher by 3.3 percentage points y/y. The sales revenues after the first quarter of 2010 amounted to  PLN 118,200,000 on net profit of PLN 17,600,000. The profit from operating activities amounted to PLN 28,800,000 to PLN 50,400,000 y/y.

I think that  better than expected results prove the effectiveness of our agreed business policy. Thanks to appropriate sales activities and the right cost structure we could show a margin increase to nearly 30%.  This is our success. Taking into consideration the number of over 3,700 flats that in the coming months will be handed over to the purchasers we hope to gain better results in the next quarters. – expalinsMałgorzataSzwarc-Sroka, the Director of the Economic Division of J.W.  Construction Holding S.A.

Gross  result for sales after the first quarter amounted to PLN 34,600,000. This result was mainly based on the following investments: OsiedleGórczewska (38%), OsiedleLazurowa  (23%), OsadaWiślana (17%), OsiedleLeśne (11%), RezydencjaQuatro (5%), Osiedle Centrum in Łódź (3%) AlejaLudwinowska (2%) and others.The result for the first quarter was calculated on  295 flats handed over in order to adapt them.

The Company carries out the adopted business strategy that consists in diversifying the sources of revenue. Apart from building the first office building Jerozolimskie Point that is in progress, there are prepared other commercial projects in Warsaw, Szczecin and Wrocław to be implemented  in 2010/2011. To maintain market leadership in the market of popular housing is the Company's goal for the next quarter. The Company is preparing another 9 investments to launch with over 2,700 units and the project of 72 single houses in Ożarów Mazowiecki. Till the end of 2010, the Company plans to launch two commercial investments and at least five investments with a total number of 1,166 units. These will be investments in Warsaw -  ZielonaDolina and Światowida,andŁódź II at Tymienieckiego Street, Katowice II at  Bałtycka Street and the project in Poznań including about 150 units. 

The Company will be gradually entering the market of office, commecial and hotel spaces.
In preperation we have an investment that will be our new flagship. We also strengthen our position in the housing market. Till April we have bought four attractive plots: in Katowice, Poznań and Gdynia with an estimated usable area of 49,200 square meters.  In these locations, we plan to implement, among others,not only prestigious projects of a higher standard but also some suites. In this way, we want to make our portfolio more attractive- adds MałgorzataSzwarc - Sroka, the Director of the Economic Division of   Construction Holding S.A.

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J.W.  Construction Holding S.A. is the largest Polish housing developer present mainly in Warsaw, but also in Łódź, Gdynia and abroad.  The Company is the leader in the Warsaw housing market, where the Company has run a business since 1994. The Company, apart from implementing development projects, also run a building activity as a general contractor for most of investments.  J.W. Construction jest właścicielem i operatorem sieci Hoteli 500, na którą składa się 4 hoteli: w Zegrzu, Strykowie, Tarnowie Podgórnym oraz w Cieszynie. On  4 June 2007 the Company made its debut on the Warsaw Stock Exchange.