After two quarters, sales revenues of Poland’s largest property developer amounted to PLN 386.1 m. This result is by almost 70% higher than in the first half of 2007. When compared with the first half of last year, operating profit increased by 77% to the amount of PLN 71.9 m. After the first six months of this year, the net result reached the level of PLN 50.9 m. This corresponds to an increase of 98.8 % quarter to quarter.

In the second quarter, revenues amounted to PLN 266.5 m, which is 120% more than in the same period last year. A quarterly operating profit amounted to PLN 44.3 m, which is almost double the amount reported last year. Net profit in the second quarter increased to PLN 31.8 m compared with PLN 14.4 m in the second quarter of 2007.

“The quarterly results are in line with our expectations. We predicted substantial increases in comparison with last year due to a considerable progress in construction works on our main investment projects. Similarly to the previous quarter, the result is mostly made up by investments sold in previous months, which could be included in the result after exceeding the threshold of 40% in terms of work progress,” explains Jerzy Zdrzałka, President of the Management Board at J.W. Construction Holding S.A.
The result of the second quarter is, first of all, made up by the largest investments in Warsaw- Górczewska Park, Osiedle Lazurowa, Osada Wiślana and Rezydencja Quatro.

However, due to a considerable stagnation on the market of property development projects, which results in weaker sales, and due to lack of building permits for several housing estates, the Management has reported the need to lower the forecasted financial result for the whole year 2008. Under the previous forecast the Company was to generate sales revenues of PLN 1.09 bn and a net profit of 219.7 m. The Management decreased the forecasted revenues to PLN 819.9 m, and the forecasted net profit to PLN 150.6 m.

“The need to lower the forecast follows from the fact that this year we are not going to obtain valid building permits for three big investments – Zielona Dolina, the housing estate at ul. Światowida in the Tarchomin district of Warsaw, and the housing estate Osiedle Centrum II in Łódź. Delays in starting works as part of these investments will prevent us from completing construction works in 40% by the end of this year. A decrease in demand for flats will also make it impossible for us to make up for the delays with sales,” added Mr. Jerzy Zdrzałka.

The Company should obtain building permits for the construction of the three above mentioned housing estates next year at the latest, which means they will be included into the result of 2009. While preparing a new forecast, the Management of J.W. Construction adopted a conservative assumption under which by the end of the year there will be no revival on the market of property development projects, and an increase in demand may be expected in the following year.

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J.W. Construction Holding S.A. is Poland’s largest property developer on the housing market, operating mainly in Warsaw, and also in Łódź, Gdynia and abroad. The Company is a leader on the housing market in Warsaw, where it has been carrying out its property development projects since 1994. In addition to property development projects, the company is also active in the construction business, acting as a general contractor of most investments. J.W. Construction is an owner and operator of the Hotel 500 hotel chain, which comprises 5 hotels in: Zegrze, Stryków, Tarnowo Pogórne, Cieszyn and Św. Lipka. On 4 June 2007 the company had its debut on the Warsaw Stock Exchange. In 2007 J.W. Construction earned a net amount of PLN 148.1 m, with PLN 781.1 m of revenue.