02/04/2006. EXPECTATIVAS-SUR. Sando increases its sales by 40%, but its profits are frozen.

02/04/2006

After a year in which it saw its activity reduced by a halt to civil works, 2005 did away with all doubts and confirmed the good health of Grupo Sando, with the greatest increase in volume of business over registered this decade. The solidity of civil works and the progress of the real estate area cemented the results of the construction company which achieved 40% more sales last year than in 2004: 520 million euros. This year, the Malaga company which has the highest turnover, forecasts sales of over 600 million.
Despite this increase in activity, the gross profits for last year were the same as the previous year (47.1 million). The change in accountancy criteria, the increase in the price of crude oil and cement and the halt in the quarries explain this decrease in profits according to the company.
The main business of the Malaga company continues to be its construction division. Civil works provided 52.9% of the total volume of business of Sando, which last year was the tender winner of 2.44% of the works put out for tender by the Public Works department. Nevertheless, the real estate division is fighting to increase its share of the Sando income.
Sales in this area rocketed in 2005 by 110% to reach 102.1 million euros. Last year, 534 new houses were started and this year double this is expected: 1.300 houses, according to Luis Sánchez Manzano, Chief Executive.
The company will remember 2005 as the year it started its international adventure with the creation of the subsidiary company Sando Real Estate Polska in Poland, which wants to be a stepping stone for the rest of the divisions of the company. Its first operation will be the construction of a thousand houses in Warsaw.

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