System Plus group of companies, which operates in distribution and integration of IT systems, says that although it has overdue bills to collect and banks will not supplement its lending lines, it still anticipates a 10-15% increase in turnover to 57 million euros next year.
The group ended 2007 with a 41 million-euro volume of business, 28% higher than the year before, while the IT market grew by 16.7% according to IDC. In 2008, System Plus expects the growth pace of its business to be the same, so that turnover could exceed 52 million euros.
"The results in the first eleven months of 2008 announce a similar increase in turnover for this year, too. In 2009, however we hope to attain a 10-15% growth. The profit margin is harder to estimate because of uncertainties on the financial markets," said Toma Patrascu, System Plus marketing and development manager.
He says the effects of the international economic situation have shown in bill payment.
"Although demand on the market remains high, we are experiencing problems in collecting the money, especially from retail players. A more special situation is that of one of the most important players on this segment, which is seriously strapped for cash." He would not name that particular company, but said System Plus had not halted deliveries to that retailer yet.
Patrascu added that another problem was caused by the reluctance of banks to significantly increase the lines of credit for working capital. "This is why the increase in turnover in the fourth quarter could be lower than initially forecast," he explains.
The company official believes the growth pace on the market will slow down next year, especially on the retail segment. "As for the private sector, I think the situation will start reverting to normal in the second half of 2009, I do not think we will go into recession. The s
