Financial company SIF Muntenia gauges 46% drop of gross profit to 57.8m lei this year

The management of the financial company SIF Muntenia (SIF4) estimates the gross profit this year will lose 46 percent over the previous one, to 57.8 million lei, a collateral effect of the economic downturn which triggers spending cut.

Shareholders will tackle this year's budget on April 24. The gross profit provisioned for this year is 54 percent of that in 2008, owing to the economic hardships generated by the crisis.

Administrators of the company said the top priorities in 2009 are conserving values in the portfolio and drastically cutting spending. Therefore, administrative expenses will be reduced by 22 percent.

The company's net profit rose an annual 5.57 percent to 91.5 million lei from 86.6 million lei in 2007.
 
Last year revenues advanced by 48 percent to 199.6 million lei over 134.93 million lei in 2007. Spending grew to 93.63 million lei, a two-fold hike over the 39.9 million lei in 2007.

Company assets slipped by more than a third to 1.39 billion lei over the 2.17 billon lei at the end of 2007 owing to the crashing of shares on the Bucharest bourse following the global credit crunch.

SIF Muntenia is listed at the first tier of the bourse under the symbol SIF4. It has a share capital of 80.7 million lei divided into 807 million shares at a face value of 0.10 lei.

The company's capitalization stands at 435.8 million lei, for a trading price of 0.51 lei today.

NewsIn