Cargus, the domestic and international courier company derived gross profit worth 2.1 million euros last year, down from the previous year's figures, according to the company's preliminary results.

"Compared with 2005, when we posted profit worth approximately 2.5 million euros and turnover amounting to 15.3 million euros, we witnessed a slight decline in 2006, due to the fact that we spent more on investments," said Augustin Plesea, general manager of the company.

Last year Cargus invested 2.5 million euros in a car fleet, software programmes and promotional activities.

The company estimates turnover will rise this year to 29 million euros, a 45% increase from last year.

"The express courier service accounts for the bulk of our turnover," Augustin Plesea said.

Cargus estimates turnover will stand at approximately 20 million euros for 2006, a rise of 30% on the previous period but still behind expectations.

However, this year, the company is expecting EU accession to bolster its international courier services, which are expected to play an important role in 2007.

"In the wake of the EU integration, courier companies will witness a surge in the number of deliveries, especially international deliveries, as well as a rise in turnover," Plesea also mentioned.

Cargus launched its international courier services in 2005, when the company started a joint venture with GeoPost Yurtici Kargo, a Turkish company held by the French postal company. The partnership was formed in a bid to capture a 10% market share of the international courier market within 2-3 years.

Cargus competes with DHL and TNT on the international courier market, although this may change as TCE Logistica has recently unveiled plans to enter the international courier market in partnership with a global company this year. Aside from TNT and DHL, which hold 80