In four quarters of 2007, TIM had PLN 474m (EUR 131.3m) of sales against PLN 392m a year earlier. Operating income grew from PLN 35m to PLN 41.5m. Net income rose from PLN 26.8m to PLN 33.7m. The company did not meet its forecasts which had been revised down. They provided for PLN 41m of operating income and PLN 485m of sales.
“The differences are not substantial. The management explains that growth rate on the construction market slowed down and TIM is strongly dependent on the market. In 2007, the construction production dynamics grew 15.7 percent. TIM managed to increase sales by 20 percent which is not bad but we hoped that it would be 10 points better than the market. Investors may feel disappointed”, Michal Sztabler, DM PKO BP analyst said.
Krzysztof Folta, TIM CEO and biggest shareholder, is happy with the results.
“We managed to reduce sales costs in the fourth quarter”, Krzysztof Folta stressed.
He added that the results were adversely affected by unexpected costs in the fourth quarter. They amounted to PLN 1.3m and were caused by strong zloty.
This year, TIM plans to have PLN 45-50m of net income and PLN 55-60m of operating income while sales should amount to PLN 600-650m. The company is negotiating its first acquisition – in Romania.
“We have conducted the first stage of due diligence. We will start financial audit in March. We estimate that the company’s sales will grow 20 percent this year, up from PLN 50m last year”, Krzysztof Folta added.
(PLN 1 = EUR 0.277)