Impact Developer & Contractor Offers Products Adapted to the Current Purchasing Power

Impact Developer & Contractor SA (Impact SA) focuses to diversify its activity getting closer to the small investors and addressing to the basis level of the incomes pyramid.

The company that introduced the "residential compound" concept in Romania and initiated, from year to year, new living solutions which answer to a wide range of clients needs, is offering now products tailored to the small investors needs - companies and individuals.

The possibility to invest in small land plots

Starting with May 2010, Impact divided some of the land plots from its portfolio in smaller land plots, suitable for the construction of the houses and the development of small businesses (restaurants, schools, kindergarten, grocery stores, and gas stations). As a matter of fact, in the first nine months of the year there were signed presales contracts in amount of 850.000 lei.

Office spaces for family businesses

Impact SA is involved in an innovative and entrepreneurial project addressed to the small entrepreneurs - a Business Support Center to be developed in Bucharest. This Business Center represents a new concept on the Romanian market, the tenants (small entrepreneurs and business families) having access not only to the office spaces, but also to a service support package which aims to facilitate their business development: the access to the meeting rooms, to the conference room, to the reception desk area and to the collection and distribution mailing center, broadband network, or to the self-banking services. The project will be developed with the European support, throughout the accession of the EU funds.

Smaller dwellings

Impact SA redesigned the apartments from its portfolio. If in 2009 the average area of the apartments sold in Bucharest was of 85 sqm, this year Impact was aware of the decrease of the consumers incomes and of the clients demand for apartments with areas of 34 - 56 - 67 - 78 mp, after the West-European concept, and reduced the average area of the sold apartments to 80 sqm, and of the apartments from the portfolio to 75 sqm.

In addition to this, in order to answer to the market needs, Impact prepares and offers to various partners the possibility to make attractive and diversified investments. In this period, the company's specialists develop a sustained activity of offerings, on the domestic market and on the foreign market as well.

The monthly sales three times higher than the market's average
Impact SA is over the market average with respect to the monthly dwellings sold, even if the company's sales decreased in the first nine months of 2010 compared with the same period of last year, mainly due to the financial crisis. So, if in the "Mid Year Report" of the Colliers International indicates a monthly average sale of 2.16 residential units per residential development (37 residential developments from Bucharest were analyzed for the report), Impact signed a monthly average of 7 contracts/month in the first nine months of the year.

We have to underline the fact that in the first nine months of 2010 Impact reduced by 52.91% the operational expenses compared with the same period of last year, due to the company's activity reorganization in order to increase the company's efficiency. For the 3Q 2010 Impact also doubled the liquidity ratio, mainly due to the 12.8 mil eur loan that was rescheduled, and due to the fact that Impact owes an assets portfolio liquid enough in order to assure the payment of the current liabilities.
In the same time, the company made payments in amount of 3.86 million eur in the first nine months of 2010. More over, the net cash from the operational activity is of 2 million lei, according to the cash-flow from the end of September 2010.

The resume of trading of Impact shares

Starting with 23rd of November will resume trading of the Impact's shares (IMP). Impact's shares were suspended in July, as a result of the Bucharest Court decision admitted the opening of the insolvency procedure demanded by a company from Ploiesti. In 11 of August, the Bucharest Court of Appeal temporary suspended the decision, through the irrevocably decision, the final decision to be taken in the same time with the appeal. Even if the company's shares were suspended from trading, the company continued its activity in normal basis, the nine months financial result being a proof in regards to this. Impact SA profit for the third quarter was above 700.000 lei.

ABOUT IMPACT DEVELOPER & CONTRACTOR SA
Impact Developer & Contractor SA, founded in 1991 through public subscription, is traded at Bucharest Stock Exchange. The company introduced the concept of the "residential compound" in Romania, developed in 5 locations, 16 residential projects for more then 2,100 families that are living in apartments and houses. The portfolio is completed with 25,000 sqm of offices and commercial spaces, and the services for the compound administration.