Ster-Projekt's record loss - and there's worse to come

Additionally, the auditors pointed out the size of the loss may be even greater as Ster- Project failed to submit documents stating the sums sunk into Prokom I nvestments, a company owned by Ryszard Krauze, whose 1.6% stake Ster Projekt bought in March 2004 for zł.16 million and which are now worth much less. Ster-Projekt's 2004 result is the worst in the company's history. In 2003 the enterprise generated a consolidated profit of zł.8 million on sales on zł.328 million. Analysts attribute Ster-Projekt's poor performance to a 25% drop in sales, high depreciation of assets and stock and costly management. The release of the report did not affect Ster-Projekt standing on the Warsaw Stock Exchange, as on Monday its index fell only by 0.74% and shares traded for zł.6.70 each. (Parkiet p. 4) M.G.