UTI Group aims to float one company

The numerous companies having voiced floatation plans have been joined by a new name: UTI.
UTI Group, operating in the field of physical security, IT and communication systems, construction installations and administrative services, is planning to float its main company, UTI Systems S.A. next year.
“We aim to list UTI Systems S.A. in 2004. We are now in the stage of preparations, prior to floatation. By mid this year, we are planning to draft a strategy,” Tiberiu Urdareanu, chairman of UTI Group told Ziarul Financiar.
UTI Systems, a company operating in IT, communications and security systems, last year logged turnover worth some $10 million, while the profit rate accounted for 12-13% of turnover.
“We want UTI Systems S.A. to grow, since it operates in fields (IT, security, construction installations) with a great potential for growth and with an interesting average profit rate. We aim to consolidate our leading position on the market of security solutions and to obtain similar positions on the IT and installations markets. This vision needs a financial support that we may attract also by floatation,” the UTI Group chairman added.
UTI group last year posted some $35 million in turnover and a profit rate of 12 percent, Tiberiu Urdareanu says. Urdareanu holds a 96% stake in UTI Group.
The complex security systems accounted for the bulk of turnover last year (about $18m in 2002), followed by civil constructions (8 million dollars), IT and communications ($6.5 million) and administrative services (guarding, cleaning, technical maintenance) – some 2.5 million dollars.
The group has clients such as the National Defence Ministry, the Interior Ministry, the Romanian Parliament, Cernavoda power plant, banks, customs houses, the Bucharest-Otopeni international airport, foreign companies or corporations. The companies included in the UTI Group have worked for Banca Comerciala RomA„sna (Romanian Commercial Bank), Banca RomA„sna de Dezvoltare (Romanian Development Bank), Shell, MOL, Metro, MobiFon, BMW, Eximbank, Demir Bank and Raiffeisen Bank.
Although there are no official statistics, UTO Group controls some 40% of the market of “physical security projects in Romania, which is different from the market of international security projects, which is 60% held by UTI,” according to estimates made by the group’s owner. UTI Group operates on the physical security market through Cobra Security, while competitors include Bidepa, Romguard and Argus.
UTI officials forecast a 20% turnover increase for this year, up from the $35 million posted in 2002.