Diekat to refocus on private sector for growth

Athanasios Manousos, the man running the Romanian operations of Diekat, the Greek construction group, states that in line with the policy designed to boost the group”s domestic business, the group is to tackle private projects on the market.

Manousos, 48, has changed the direction of development of Diekat on the Romanian market. Over recent years, Diekat had relied on European institution-financed infrastructure works for growth on the Romanian market.

Athanasios Manousos is thus going back to the initial strategy ten years after Diekat entered the domestic constructions market.

Diekat operates on the construction market through two companies: Diekat Construct and the Bucharest subsidiary of Diekat Athens.

At the same time, the Diekat group owns 79.45% in Inscut Bucharest, a construction tools and vehicles firm.

Manousos has also been the general manager of Inscut since 2000.

“We estimate private projects will come to weigh about 75% in Diekat group”s turnover in Romania this year. In terms of infrastructure projects, we had some problems because of reimbursement delays and in the first half of last year payments from the state came later than scheduled,” Athanasios Manousos, general manager of Diekat Construct, told ZF.

He took over the management of the company in February 2005, replacing Alexandros Ignatiadis.

“Reorientation to the private sector, which is highly dynamic at this moment, will boost our turnover to about 24 million euros this year. In 2007, amid a rising volume of private sector works, we foresee an increase by around 25-30%,” specifies Manousos.

In 2005, the two Diekat construction firms derived turnover worth 19.7 million euros in Romania, with Diekat Construct turnover standing at 13.5 million euros.

The two companies” cumulated gross profit amounted to 550,000 euros last year.

The figures Manousos presented do not include Inscut results.

The representatives of the Greek company state they are now considering the possibility of floating a stake in Diekat Construct on the Bucharest Stock Exchange in 2007.

Diekat Athens is already listed on the stock exchange of the Greek capital city. “We are researching our listing on the Bucharest Stock Exchange and seeking a floatation formula. We will probably list our company on the Stock Exchange by the end of next year,” explains Manousos.

The intention to list Diekat on the Bucharest Stock Exchange had been announced as early as three years ago.

Starting August 2005, Diekat Construct has been carrying out a project linked to the setting up and expansion of the mobile telephony network for Cosmote Romanian Mobile Telecommunications. The company will develop a logistic centre in the Policolor area, with investments to reach about 2 million euros.

Diekat in Romania

* Operates through three firms: Diekat Construct, the Bucharest subsidiary of Diekat Athens and Inscut Bucharest

* In 2005, its two construction companies derived turnover standing at 19.7 million euros

* Is considering the possibility of listing a stake in Diekat Construct on the Bucharest Stock Exchange

* Will refocus on private sector projects, estimating these will weigh about 75% in Diekat group”s turnover in Romania this year