JWCH achieved good results after four quarters of 2008. The Company generated sales revenues of PLN 741 million, operating profit of PLN 137.7 million and net profit of PLN 100.3 million.
In the fourth quarter of 2008 Holding’s sales amounted to PLN 195.5 million, its operating profit was PLN 46.1 million and its net profit was PLN 36.3 million. In the fourth quarter of 2008, the gross margin on sales, one of the key indicators of business activity for developers, increased from PLN 34.7 million in 4Q 2007 to PLN 40 million in 4Q 2008 (an increase by over 15%).
Gross sales amounted to PLN 213.7 million after four quarters of 2008. The following investment projects contributed to this result: Górczewska Park, Lewandów Park II, Osiedle Lazurowa, Osada Wiślana, Rezydencja Quatro, Aleja Wiślana and Osiedle Leśne in Gdynia.
“2008 was a challenging year for the whole industry. Having foreseen the changes in the market, we began to dynamically expand the scope of our core business to include new activities. Holding’s subsidiaries operate independently in the field of construction, architecture and production of prefabricated units. So far they have been working mainly on our own investment projects but in the near future they intend to seek external orders,” explains Małgorzata Szwarc-Sroka, Financial Division Director at J.W. Construction Holding S.A.

JW. Projekt Sp. z o.o., an architectural design company, has been invited to take part in a tender for drawing up a building plan for a luxury hotel near the Okęcie airport.

“Diversification of our strategy consists also in entering the segment of offices and commercial buildings. Currently we plan to construct a five-storey office building with the surface of more than 4000 sq m located at ul. Badylarska in Warsaw,” says Małgorzata Szwarc-Sroka.

In spite of the slowdown in the construction industry the Company has not suspended any of the projects commenced. According to J.W. Construction representatives, the works are carried out as scheduled and financing of all investment projects is secured. At the moment there are 6000 apartments in the course of construction and sale, 75% of which have already been sold. The Company estimates that the commenced investment projects will generate gross margin of more than PLN 1 billion in the forthcoming years. Preparatory works for the commencement of new projects are being carried out.

“We are at the stage of drawing up design documentation, we are waiting for the building permit for one investment project in Białołęka. Our extensive offer includes both apartments at lower prices but with a longer completion time and apartments that can be moved into right away,” explains Financial Division Director at JWCH.

JWCH offers approx. 100 “turnkey” apartments. Residential units available are located in Łódź, Katowice, Gdynia and Kontancin-Jeziorna near Warsaw.

The Company’s sales policy for 2009 assumes, in particular, including in the offer new programs for financing purchases of apartments, offering special terms and conditions of purchasing apartments for employees of institutions cooperating with J.W. Construction as well as offering new interior design programs. The Company plans to implement new alternative sales channels, continue intense marketing activities and focus on flexible approach to Clients, including the possibility of negotiating prices depending on the amount and schedule of payments.
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J.W. Construction Holding S.A. is the largest Polish residential developer operating mainly in Warsaw, but also in Łódź, Gdynia and abroad. The Company is the leader of the Warsaw housing market where it has been operating as a developer since 1994. Except for development projects, the Company also deals in construction business, being the general contractor of the majority of its investment projects. J.W. Construction owns and operates the Hotel 500 chain including 5 hotels in Zegrze, Stryków, Tarnowo Podgórne, Cieszyn and Św. Lipka. On 4 June 2007 the Company made its IPO on the Warsaw Stock Exchange. In 2007 J.W. Construction net earnings amounted to PLN 148.1 million on PLN 781.1 million in revenues.