Fortifying its position

However, the management of the company is confidently predicting record results in 2007 when profits from recent investments should start to bear fruit.

"Our investment spendings reached the peak level last year of zł.90.9 million. We invested in a Russian plant in Vladislav and expanded our production plant in Hajnówek. These were huge undertakings but we expect to reach the break-even point at a record high speed - by Q3 this year, September at the latest," said Andrzej Korzeb, a member of Forte's management board.

With almost 70 percent of the company's production being exported, Forte's results have also been adversely affected by the strong złoty, and the group is now striving to move its break-even currency point from zł.3.80 to zł.3.50.

"We would like to feel safe with a euro rate at zł.3.50. We will be able to achieve this goal in Q3 this year and it will enable us to maintain a better operational yield," Korzeb explained.

Forte Group is also expecting to gain over zł.4 million in synergy effects from the merger of its two production companies, Furnel SA and BMF SA. The entirety of the companies' assets will be taken over by Fabryka Mebli Forte SA.

Forte's CEO, Maciej Formanowicz, didn't want to reveal Forte's estimated net profit for 2006 but said he expected overall sales to be zł.500 million. "This is a safe forecast. We can achieve turnover above this figure without any effort," he said.

The management has also recommended paying out a dividend of zł.0.20 per share.