J.W. Construction Holding S.A. saw solid results of operations in the six months ended 30 June 2009. Despite a slight fall in revenues, the Company reported a 41 per cent rise in its net profit and a nearly 38 per cent rise in its operating profit compared with the six months ended 30 June 2008.

The Company’s net profit for the six months ended 30 June 2009 amounted to PLN 49.4m, compared with PLN 35m in the corresponding prior year period – up 41 per cent. The Company’s operating profit was equally satisfactory and amounted to PLN 69.1m, compared with PLN 50.1m in the six months ended 30 June 2008. The Company’s gross margin also went up and reached 26.95 per cent in the six months ended 30 June 2009 – up 3.2 percentage points compared with the corresponding prior year period. The increases were reported despite a fall in revenues by 1.6 per cent, to PLN 331.2m in the six months ended 30 June 2009. We are satisfied with our results for the first half of 2009. They reflect our sales generated from several existing investment projects. “Those results and the fact that sales are rising even though access to mortgage finance is still restricted are a clear indication of market upturn,” comments Małgorzata Szwarc–Sroka, Head of the Economic Division. The Company’s gross profit amounted to PLN 89.23m in the first quarter of the year, which was attributable to the value of apartments sold, in the first instance as part of the following investment projects: Osiedle Lazurowa, Rezydencja na Skarpie, Osiedle Leśne, Osiedle Górczewska, Willa Konstancin, Osada Wiślana and Osiedle Centrum in Łódź. “The crisis has influenced customer preferences. At present, they prefer turnkey apartments and J.W. Construction is already offering them. At the same time, the Company still has apartments available under advanced-stage investment projects and they also sell well,” comments Małgorzata Szwarc-Sroka, Head of the Economic Division of J.W. Construction Holding S.A. The Company is gradually repaying its loans. Since the beginning of the year, it has fully repaid loans of more than PLN 116m in total.

The J.W. Construction Holding Group is diversifying its operations. The Company has extended its product range beyond the popular apartment sector and intends to launch non-residential office space projects. The attractiveness of the contemplated projects is demonstrated by the fact that investors are taking great interest in them. Despite the economic slowdown, the Company carried out a very wide range of projects in the six months ended 30 June 2009. A few of them have already been completed and intensive construction work is under way in respect of several others. More than three thousand apartments will be completed in the coming quarters as a result.
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J.W. Construction Holding S.A. is the largest Polish residential developer with a presence mainly in Warsaw but also in Łódź, Gdynia and internationally. The Company is the leader in the Warsaw residential market where it has been in development business since 1994. In addition to development projects, the Company also provides construction services, being the chief contractor for the majority of its projects. J.W. Construction owns and operates the HOTEL 500 chain of four hotels: in Zegrze, Stryków, Tarnowo Podgórne, and Cieszyn. On 4 June 2007, the Company debuted on the Warsaw Stock Exchange.