Ljubljana, 25 July 2003

On 25 July the Supervisory Board discussed the company’s activities in the first half-year and hailed the very good business practice.

The overall business result exceeded the expected outcome by 13%, while at the end of the year it will have increased by 30% to 35% compared to last year.

Sales revenue is SIT 3,894 million, as was expected for 2003, while the regular business result is 28% higher than anticipated.

In the first half of 2003 the business activities of BTC plc exceeded the expectations by 13%. The intensive investment policy, greater scale of distributive-logistical services and growth in employee numbers have also characterised the first half-year. 

The key characteristic of the company’s business activities in the first half of 2003 is its intensive investment policy. The company invested SIT 1.6 billion in the first six months. The biggest investments are as follows:

Shopping centre in Murska Sobota – the biggest centre in the region

The end of June was marked by the construction of new premises within the Murska Sobota shopping centre in which BTC invested SIT 1.2 million. These premises are occupied by Spar, BTC’s business partner. The shopping centre gained a further 7,700 m2. Encompassing 20,500 m2, it has become the biggest shopping centre in the Pomurje region. Work on renovating the old shopping centre is already under way and is expected to be completed by October 2003. A contract for the construction of a ‘vse za dom’ (everything for the home) centre to cover 5,570 m2 is due to be signed. Building of the centre will most probably be finished in the first half of 2004.

Land purchase, upgrading of Hall A and the renovation of various buildings

The company has earmarked SIT 289,854,000 for land purchases in Ljubljana, SIT 122,000,000 for the renovation of various buildings being transformed from warehouses into office spaces and shops, and the upgrading of Hall A which is being carried out by the company and its lessees. The project will involve the renovation of aisles, ventilation systems, new sanitation, the building of new roof domes to provide more light, and the renovation of shop windows and entrances. By the end of November 2003 Hall A will have received a new and fresh interior, blending in with the facade that was renovated last year. The upgrading of the market is also expected, including the construction of a roof and kiosks.

Water Park

The Water Park project has reached its final stage. The company will soon acquire the building permit and its completion is expected in 2004. The Water Park will employ 40 people.

11% growth in employee numbers

In the first half of 2003 the number of employees rose by 11%, mostly due to the distributive-logistical services in the new Logistical centre Spar on Letališka street which started work in early January 2003. BTC will expand the business capacity of the logistical centre by offering its services to a cold-storage programme, which is expected in August 2003.

The ISO 9001 2000 Certificate of Quality

The first half of 2003 saw the BTC company being awarded with a certificate of quality based on a new standard named the ISO 9001 2000. This new certificate puts more emphasis on the company’s innovation and appealing, project-oriented development programmes. BTC plc was awarded the ISO 9001 Certificate of Quality in 1998.

A half-year report pursuant to Zakon o gospodarskih družbah, Zakon o trgu vrednostnih papirjev and Pravila poslovanja Ljubljanske borze will be published in August 2003.

For more information:
Marketing and Public Relations Department BTC plc
Šmartinska 152
SI – 1533 Ljubljana
Phone: 01 585 13 19
Fax: 01 585 13 76
e-mail: maja.oven@btc.si