Atlas Estate

Press Release - Condensed Consolidated Quarterly Report Q3 2009

Date Posted: 16/11/2009

Chairman’s Statement

 I am pleased to report the unaudited financial results for Atlas Estates Limited (“Atlas” or “the Company”) and its subsidiary undertakings (“the Group”) for the nine and three months ended 30 September 2009.   The Company, in its interim results as reported on 14 August 2009, highlighted the very tough market conditions seen in the CEE region for the first half of 2009.  The CEE markets have seen improvements in the third quarter of 2009.  However we are cautious about prospects for a full scale recovery and continue to monitor the markets closely and to put in place the appropriate measures to ensure the stability of the Group.  This includes continuing to reduce costs without damaging operational effectiveness and ensuring our major development projects are completed on time and within budget.  In this quarter we completed the construction of the Platinum Towers residential development in Warsaw and received the permit to hand over apartments to our clients.  The effect on lending capabilities of the banks following the credit crunch remains a key issue for the CEE region and a lack of access to capital is a continuing risk to business.  Management works closely with the banks on its facilities.  In addition to the completion of the Platinum Towers, the Group is expected to complete its second major project for 2009, the Capital Art Apartments stage 2 developments, by the end of 2009.  These constructions have been dependent upon access to finance and the support of two major banks has been vital. The progression of the business has been adversely affected by falling property valuations and the instability in the economies in the CEE region.  In response the banks that previously financed growth in the CEE region are seeking to reduce their exposure and the funding for new business projects or construction is virtually non existent.  In this environment the Company’s objectives have been to retain cash for investment, to realise value from disposals and to apply strong cost control throughout and ensuring projects are completed on time and within budgets.



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