Public procurement allows Action to meet forecasts

2007-05-25

Action, a manufacturer and distributor of computer hardware, has signed a contract on the supply of hardware for Wasko, an IT company. The latter is a subcontractor of companies which supply computers for schools in co-operation with the Ministry of National Education.
The contract is worth over PLN 44m (€11.6m), the equivalent of approximately 10% of Action’s own capital. The hardware is to be supplied by 22 June 2007.
Action expects to earn over PLN 80m (€21.1m) from public contracts for hardware supplies by the end of the financial year, i.e. 31 July, and the net profit forecast of PLN 22.9m (€6m) should, therefore, be met.
The distributor has also launched an online shop, a.pl, which will sell 260,000 items at the outset. The launch cost PLN 3m (€0.79m), not including marketing, and Action expects that a.pl will bring in revenues of PLN 40m (€10.5m) within a year. In the second year of operations it is expected to earn PLN 100m (€26.3m) and to break even.

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