New WSE Res-ident

Resbud has announced plans to enter the Warsaw Stock Exchange this September.

"We want to use the simplified procedure to enter the bourse. We believe this will allow us to strengthen our credibility. It might also be an interesting option to raise money for our future development," said Sławomir Duda, president of Resbud.

Currently the Rzeszów-based construction company is listed on CeTO, a stock-exchange platform set up by major Polish banks and brokerage houses. Once on the WSE, Resbud, whose major shareholder is the listed ABM Solid, plans to issue new shares.

"One of the sources of capital is the sale of shares in our subsidiaries, but this may not be enough," said Duda. "If a company is listed on the WSE, it's worth taking advantage of this source of new capital. Currently, we aren't able to prepare the issue because we have had too little time, but the new issue after floating on the WSE will be seriously considered by the board in the coming months . The final decision depends on the shareholders of course," he added.

Last year Resbud's revenues amounted to zł.48.4 million and net profit reached zł.4.2 million. While in H1 2007 revenues amounting to zł.32 million were better than the same period last year, the company noted a loss of zł.780,000.

Duda says the company will post a net profit by the end of the year. "The unsatisfactory result is caused by the increase in costs of building materials - because the contracts we had signed took into account lower prices - as well as the restructurization processes within the company," added Duda.