ding Comp’s CEO, Jacek Papaj, quoted in today’s daily Parkiet, company sales for 1Q07 should grow between 10% and 20% y/y. He also expects margins to be stable year-on-year. The company benefits from the rebound in the public administration, in the last 2 months of 2006 Comp signed contracts for PLN 15m and during 1Q07 initiated public administration contracts for PLN 21m, including a PLN 3m with Border Protection Office. Jacek Papaj also mentioned that the merger with CSS and the transaction with Prokom
go smoothly according to the initial schedules.
Our view: It is difficult to say the given outlook is on non-consolidated or consolidated level. However, in our opinion, in both cases CEO’s statements are disappointing, as after very poor 2006 we are expecting a material rebound both in top line and the margins in 2007. On numerous other occasions CEO was signalizing that he expects good results for 1Q07. We believe the news could have a negative trading impact.