financial results
The first three months of financial year 2007/2008 brought an increase of net profit for the ACTION Group to PLN 5,001 M, which is by almost 56% compared to the respective period of the previous financial year. Such an achievement was possible thanks to an increased range of operations and an improved profit margin.
The revenue of the Company for Q1 of 2007/2008 increased by almost 23 per cent up to over PLN 505 MM. Simultaneously, an 1.8 pp improvement of the gross sales margin was recorded, which is one of the most important efficiency indices for distribution companies. The figure rose to 7.2%. ACTION attained an operating profit of PLN 10.8 MM, which translates into a 162% increase over the last year.
- We are glad about the results we achieved, but what makes us even happier is that our shareholders have also noticed them. Compared to the whole market, and particularly compared to the segment of medium companies where we belong, our share value looks really great. We recorded another all-times high a few days ago - Mr Jacek Krawiec, President ACTION S.A., does not try to hide his enthusiasm.
For the Warsaw-based distributor of electronics, the first quarter of the financial year is indeed not only a period of excellent financial results but of significant business achievements as well. As a member of the WASKO Consortium, ACTION won a tender for delivery, deployment and launch of the Europe's largest computer cluster, i.e. an integrated group of computers. The project was ordered by the Gdansk University of Technology and has a value of PLN 7.2 million. A distribution contract has been signed with AMD, one of the global microprocessor industry leaders. ACTION also started co-operation with LeftHand, the largest vendor of accounting software for the Linux platform.
Orange introduced its mobile telephony offer into the Sferis chain. The latest developments are two megastores of the Shock chain in Kharkov and in Rovno. A new warehouse was completed and commissioned in Zamienie providing additional 4,500 sqm of storage space.
- We are not stopping at the achievements we've had so far. Our obligations towards our investors require that we do not cease implementing new solutions and ideas. They will definitely include the development of the two retail chains: Sferis, where we sell computer hardware, and the points of sale of Orange mobile services - explains Mr Jacek Krawiec.
At present, Sferis (PTR) is a subsidiary of ACTION and runs 53 of its own shops. The target size of the chain is 250 shops, a hundred of which is to offer mobile products and services, as planned until 2012. Construction of a franchise chain is to begin early next calendar year. The future plans for Sferis include its introduction to the stock exchange.
However, the fast pace at which ACTION grows requires a further expansion of warehouse facilities. A new storage level is to be added to the original warehouse, increasing the existing space by another 6,500 sqm and doubling its efficiency. The dispatch part of the warehouse is going to be upgraded soon as well, contributing another 2,500 sqm of new area.
Its operations and choices are aimed to ensure that the targets published are met. Over the entire financial year 2007/2008, the Company is to generate nearly 2.3 billion zloty revenue and plans to attain a net profit of 30.5 million zloty. That will allow improving the profit margin from 1.23% in 2006/2007 to 1.35% and shall mean an annual increase of the sales revenue by over one fourth as well as an almost 40 per cent net profit improvement.
