Prima Moda has problems with acquisitions

11-06-2008, 09:58

Warsaw (Puls Biznesu) – The beginning of  the year was poor but the management of the shoes company from Wroclaw promises better results. It should get out of the red in the second quarter.

Prima Moda had PLN 973,000 (EUR 288,000) of net loss and PLN 6m of sales in the first quarter. Despite this, the CEO believes that this year’s forecast of PLN 36.4m of sales and PLN 4.14m of operating income will be realized.

“In May, our sales rose 20 percent. We will have a net income in the second quarter”, Dariusz Plesiak, Prima Moda CEO said.

Out of PLN 14m raised on the WSE late last year, the company has spent over PLN 0.5m for an advertising campaign. Nearly PLN 2m was spent to modernize five outlets. An IT system worth PLN 1m was implemented and new shops where launched which cost several millions zloty.

“We still have PLN 6.5m raised in the issue”, Dariusz Plesiak added.

These funds will be mainly spent to develop the network. Prima Moda wants also to buy rival companies (it would finance the transactions from credits or another issue). The management is also negotiating to acquire a clothes company in order to build a group. Before, acquisitions were promised in May.

“Due to weak market, not-listed companies are also badly evaluated. Their owners, mainly family companies, do not accept these new prices”, Dariusz Plesiak explained.

(PLN 1 = EUR 0.296)

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