Flamingo Computers, the number one IT systems retailer in Romania, has brought a new chairman, Dragos Simion, on board. His mission is to prepare the company for floatation in about three years. Dragos Simion, former CEO of Quadrant Asset Management, a company managing investment funds, got a three-year warrant that can be extended. "My previous expertise will have a bearing on the development of Flamingo Computers, which does not necessarily entail turning to investment funds. We do not want to attract foreign capital but rather go public in about three years, by the end of my mandate," Simion said.
Until now, the company used to be run by Dragos Cinca, the majority shareholder of the Flamingo Group. From now on, however, Cinca will only work as chairman of Flamingo Group's board of directors. The Flamingo Group, which is comprised of three companies, Flamingo International that handles distribution outside Romania, Flamingo Distribution Center - domestic distribution and Flamingo Computers - retailer, estimates to post $72 million turnover for the entire year.
"We hope we'll soon log $100 million, " Dan Topala, Flamingo International chairman says. The officials did not provide any detail as to the projected turnover for 2004.
In order to attain the $100 million threshold as soon as possible, Flamingo Computers intends to open 40 more stores across the country next year, starting from the 60 scheduled for this year.
Out of the total stores, 30% are located in Bucharest and 70% are located in the provinces. Out of the total turnover, approximately 33% is derived from retail and 67% from distribution.
The company estimates it has sold 35,000 systems (desktops, laptops etc.) this year, anticipating it will sell 50,000 in 2004.
"The investments in opening the 40 stores will be covered from our own resources," Dragos Simion said, without going into details as to the exact amount to be spent. The sure thing is that the entire profit of the company will be primarily reinvested in expanding the retail chain and that Flamingo will not be disbursing dividends in 2004.
The Finance Ministry data show Flamingo Computers to have posted 15.8bn ROL net losses last year, while Flamingo International made nearly 30bn ROL net income. Flamingo Distribution Center was established in late last year.
Dragos Cinca said the net income was up this year, but did not provide any further details as to exact amount.
In order to maximise revenue, Flaming Computers is expanding not only its retail chain but also the range of products retailed by including electronics.
iuliana.susanu@zf.ro
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