Blue Tower builder sees revenues halve each year as a result of client insolvency

Total Confort construction firm of Bucharest, which built, among others, the Blue Tower housing complex of Colentina, which went bankrupt, last year reached turnover worth around 10m euros, half the 2009 level, amid the challenges real estate developers are coping with.

The decline mainly came as some projects in Total Confort's portfolio were frozen, as clients were no longer able to get banking funding or sell a significant number of housing units under construction.
"In 2011, it's hard to forecast the trend of turnover. At any rate, the trend of the last three years was for turnover to halve each year: from almost 40m euros in 2008 to 20m euros in 2009 and 10m euros last year. We hope the construction market should pick up in the second half of the year, but for the time being this is only a hope, we're not counting on concrete signals," Daniel Roman, the company's manager and one of its shareholders, told ZF.
In 2010, the company stayed in the black, but with a very small profit.