Lack of public sector projects causes 15% decline in Power Net Consulting's business

Local IT solutions integrator Power Net Consult has been focusing on private sector this year as the state stopped investing in IT projects.

The share of the contracts with the state in Power Net Consulting’s business shrank to 40% compared with 70% last year, said Emil Munteanu, managing partner of the company.

Under the circumstances, the company anticipated 10-15% decline in turnover this year to some 15 million euros.

The company ended 2009 with 1.5 million euros in gross profit, while turnover stood at 17 million euros, according to Trade Registry data. Power Net Consulting’s revenues have risen quite a lot in recent years as a result of doing business with the state. In 2008 the company reached 27 million euros in turnover, the highest level since it was set up.

“2010 is a more difficult year than 2009 and much more difficult that 2008. This translates into no public sector projects being carried out, while the projects we have in the private sector have gone down from hundreds to tens of thousands of euros because of the lack of money,” Munteanu explains, adding Power Net Consulting has ongoing projects that take months to complete because of the lack of funds.