Czech furniture maker Techo raises profit by 17%

Feb 25, 2009. /Lesprom Network/. Techo, a leading Czech office furniture maker, raised profit by 17.3% year-on-year to CZK 90.2 million ($ 4 million) last year, while its sales grew by 7% to CZK 1.27 billion ($57 million), the company said in a press release. "Economic results for last year reflected above all a slowdown in world economies and the beginning of recession in the eurozone as well as in Central and Eastern Europe," Techo CEO Jiri Kejval said. Lower profits were also due to a considerable strengthening of the crown's rate to the euro and the British pound last year. Kejval said that Techo had to sack most of its staff it had hired through employment agencies because of a drop in orders. A year ago, the company employed more than 100 staff through agencies. Lay-offs should not affect the firm's regular staff for the time being. Techo's profit for last year also includes income from dividend from its subsidiary and sale of a stake in Techo UK. Techo considers Central and Eastern Europe as the key region for its further activities. "We will seek to strengthen our positions on these markets and also try to expand our activities to other locations such as Russia, Georgia, Ukraine and the Balkan States," Techo's director for strategic development Jan Petrak said. Techo was established by Jiri Kejval in 1991. Apart from the Czech Republic, the company has also operated in Romania, Hungary, Georgia, Slovakia and Great Britain. Since 2007, Techo has been in the hands of Dutch company Royal Ahrend which holds 100% of its shares. Royal Ahrend bought into Techo in 2003. The firm acquired Kejval's remaining shares last year.