International Property News

Analysts: ECM raised profit by 28% in 2007

21st March 2008

ECM developer last year netted up to Kc631m, net asset value rose by around 28 percent and lease revenue almost doubled, according to analyst estimates.

ECM results for 2007 will be published on Wednesday, March 26.

Shares of ECM, a company majority owned by Milan Janku and based in Luxembourg, are traded on the Prague Stock Exchange.

Karel Potmesil of Cyrrus put ECM profit at EUR21.9m or Kc557m, which would be a growth of 15.5 percent year-on-year.

Patrick Vyroubal of Atlantik FT estimated the company's profit at EUR23.9m (around Kc609m) and Ceska sporitelna analyst Petr Bartek expects EUR24.8m (about Kc631m) profit.

Net asset value (NAV) is considered a key economic indicator, and Potmesil says it increased by 28.5 percent to EUR250.6m (around Kc6.4bn). Vyroubal expects a growth of 27 percent.

In a mid-term horizon, ECM set as a goal to raise NAV figure by an average 25 percent a year.

Net lease income amounted to EUR13.1m (some Kc334m), a year-on-year rise of 108 percent, said Bartek.

Potmesil is more sceptical estimating the income at EUR11.8m (some Kc300m).

Vyroubal also expects the lease revenue to double last year.

According to preliminary figures published by ECM on March 6, operating profit reached EUR30m or Kc752m last year, three times the amount seen for the preceding year. Sales totalled EUR50.1m (about Kc1.2bn), while in 2006 they stood at EUR17.5m (around Kc439m).

ECM was founded by Janku in 1991. Janku owns the developer through a Dutch fund. ECM is also active in Russia, Poland and China.