The largest Polish developer forecasts a net profit of PLN 219.7 million and sales of PLN 1.085 billion for the current year. The management has good reasons to present this optimistic forecast. The Company’s results of operations for the year ending 31 December 2008 will include residential projects where the majority of dwellings have already been sold and where the construction process is to be launched in the next couple of months.

“We are probably in a much better position than our major competitors. Our results of operations for the year ending 31 December 2008 will be fuelled by last year’s sales. We sold more than 360 dwellings in December 2007 alone. This year we need to start carrying out these residential projects to be able to recognize the pre-sold dwellings in our income statement,” explains Jerzy Zdrzałka, President of the Management Board of J.W. Construction Holding S.A.
In accordance with IAS 11 adopted by the Company, a project in progress may be recognized in the income statement if the following two conditions are satisfied: the revenue to date is 50 per cent of the total revenue and the costs to date are 40 per cent of the total costs.
“We will be carrying out mainly large Warsaw projects in the year ending 31 December 2008. Related dwelling sales are at a very advanced stage. The projects include Górczewska Park, Lewandów II, Osada Wiślana, Zielona Dolina (Zdziarska I), Osiedle Lazurowa. The first stage of the project in Ożarów Mazowiecki, where dwelling sale has not started yet, will also be recognized in the income statement for the year ending 31 December 2008,” adds Jerzy Zdrzałka.
Certain non-Warsaw projects, in Łódź and Kolomna in the Moscow area, will also be recognized in the income statement. Whereas, certain other large projects will not be recognized in the income statement, namely Zdziarska II, Lewandów I, the project carried out in Łódź at Pogonowskiego Street, and the second stage of the project in Ożarów Mazowiecki. These projects will fuel the results of operations for the year ending 31 December 2009.
“Our sizeable land bank for future projects and well-advanced sales of many residential projects allow us to look forward with confidence at our results in the two coming years. Even if there is a market slowdown, our company will easily achieve satisfactory results,” says the President of the Management Board of J.W. Construction.
The actual 4Q07 results will be announced in mid February. The Management Board says that there is no reason to believe that the forecast for 2007 may not be achieved. J.W. Construction Holding SA forecasted a net profit of PLN 146.6 million and sales of PLN 813.1 million for 2007.

***
J.W. Construction is the largest Polish residential developer with a presence mainly in Warsaw but also in Łódź, Gdynia and abroad. 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 five hotels: in Zegrze, Stryków, Tarnowo Podgórne, Cieszyn and Św. Lipka. On 4 June 2007, the Company was listed on the Warsaw Stock Exchange.