ComputerLand reviews profits after agro agency pulls out

The contract concerned spot checks on a certain number of farms that receive EU subsidies. The value of the deal was zł.23.6 million. CL's subcontractor, Techmex, was to receive zł.19.9 million for carrying out the checks. CL claims the fault lies on the part of the subcontractor, which CL is to claim compensation from. ARMiR believes that CL was late in finishing its task, although the Agency knew from the beginning that one month would not be long enough to do so. Nevertheless, ARMiR demanded zł.10.4 million compensation from CL. "We signed the deal with ARMiR a month later than other consortiums. We would have completed it in a few days. Other companies received ARMiR's consent to prolong the deadline while only we received a negative answer," said Michał Michalski, CL spokesperson. As a result, CL had to lower its net profit projections from an initial zł.20 million to zł.10 million on revenues of zł.800 million. CL's share price fell on Tuesday by 5.7% to zł.107.5 per share as a result of the news as well as Techmex' shares that cost zł.15 (a 16.7% slump). (Parkiet, p. 5) D.W.