Furthermore, the consolidated operating profit totalled PLN 5.6 million, and the rate of subsidies contribution to revenue reached the lowest level in the history of the Impel Group, i.e. 4.9%. In Q3 preparations were made to concentrate Impel’s property development projects in one entity.
The third quarter was another period of systematic growth of the Impel Group’s sales revenue and further strengthening of its market position. Relative to the previous quarter, sales increased by 4.4%, and compared to the corresponding period in 2006 this increase reached almost 20%.
“The results of Q3 are the consequence of acquiring subsequent outstanding orders from prestigious Clients. In particular, in the last quarter our security companies signed agreements with KGHM Polska Miedź, for an indefinite period of time, having the annual value of PLN 4.3 million. Another Group’s company – Impel Cleaning – won a contract with TP SA, for the total amount of PLN 4.4 million per year. We have also been carrying out a consistent policy of renegotiating our contracts” – says Wojciech Rembikowski, Vice President of Impel SA.
The analysis of financial results in the breakdown into Business Units (BU) shows that in terms of revenue, profit, and margin generated in Q3 2007, Facility Management (cleaning and facility management services) is the leading BU together with Security. The former earned sales revenue in the amount of PLN 90.8 million, with the operating margin at the level of 7.9%, whereas the latter achieved revenue of PLN 82.2 million, and the operating margin of 7.6%.
In Q3 the Management Board of Impel SA continued the preparations to concentrate property development projects in a single entity. One of the initial phases of this process was signing of the agreement with Asset Invest in Poland – a company owned by the main shareholders of Impel SA – on managing Impel’s construction projects by this entity. The largest and most prestigious among these projects is the construction of a housing estate for 3 thousand flats, to be carried out by both companies – under one common Master Plan – in ul. Rychtalska in Wrocław. Buildings will be erected close to the Old Town, within the plot of 15 ha, respective parts of which belong to the Impel Group and Asset Invest in Poland. Concurrently, as part of the preparations to the already announced concentration of property development projects in one company, the assumptions for this process were prepared. In Q4 the Group intends to sign an investment agreement. Pursuant to this agreement the Group will acquire the shares of Asset Invest in Poland in exchange for the contribution of real estate assets. The parity of such exchange will be determined on the basis of land valuation according to the market prices, and such revaluation is in progress now.
“The strategy of divesting of the Impel Group’s real estate assets to a separate company predominantly aims at ensuring the possibly highest business and organisational efficiency of property development projects. Asset Company is the owner of land neighbouring on Impel’s real estate, and the development of a consistent architectural concept on the joint property increases also the market attractiveness of such investment. On the other hand, separating the property development business from the basic services provided by Impel will ensure a better transparency of results and valuations of both areas” – explains Wojciech Rembikowski.