Turnover up, profits down for Eforie

Turism Hoteluri Restaurante Marea Neagra Company (formerly known as Eforie) plans to increase its turnover in ROL from the 366.2bn ROL (9 million euros) it generated in 2004 to a level of 400bn ROL (10.8 million euros) by the end of 2005, an increase of around 9%. Despite this, the company”s gross profits are expected to fall by more than 50%, from 2 million euros (82bn ROL) to 0.83 million euros (30.7bn ROL), as shown by the spending and revenue budget approved by company shareholders. The decline in profits, according to data sent to the Bucharest Stock Exchange, will come as the result of the reduction in revenues derived from the sales of assets. “The 30.7bn ROL level of gross profits set in the spending and revenue budget actually accounts for the operating income the company intends to make in 2005 and does not include the profits made from the sale of assets,” explained Mihai Pescu, the company”s chief financial officer. “A decline in operating income is expected, however, mainly due to the fact that some of the rehabilitation works included in the investment plans are repair works that are not separately capitalised and become part of the total expenses,” he added. ZF