Siveco GM: The stock exchange is not ready for us. In 5 years we may be present in 50 countries

Siveco will not be floating on the stock exchange next year, even though shareholders are considering stock exchange listing as an option, according to Irina Socol, general manager of Siveco.

“I do not think the stock exchange is ready for us at the moment, or ready for any large company, for that matter. Floating on the stock exchange is not an option for us this year or the next,” said Socol.

When Siveco will list on the stock exchange, it will decide on a Romanian stock exchange such as the one in Sibiu or Bucharest rather than an external one such as Warsaw or London, she added.

At the moment, a ratio of 30-40 percent of the company’s turnover comes from projects with the state. “I expect that our projects with the state will grow spectacularly,” she said, adding that Romanian companies should apply more for projects with the public sector while the Romanian state should encourage local companies.

“For instance, in Croatia we participated in a tender regarding a health insurances project where our offer was far better than that of our competitors- 70 percent better. In spite of this, the Croatian state chose a local company that was last on the list, just because it was local. I felt nothing but appreciation for the Croatian state because encouraging local firms is a positive thing,” she explained.

At the moment, Siveco employs more than 1,000 specialists. The company posted a turnover of EUR 65 million last year, while estimations are that this year it will reach the EUR 70 million brink.

A ratio of 30 percent of the turnover last year came from projects abroad. Contracts are generally closed on a four year period, which gives the company stability and a precious financial backup.

“Profit margins are not very high in our industry. Our profitability margin is somewhere between 3-6 percent but we would like to take it up to 8 percent,” said Socol.

At the moment, Siveco has established presence in 17 countries but chances are that in five years time, the company will be present in 50 countries.

“We expect to approach the international market with new solutions regarding health, customs activities, and even projects developed in Brussels,” said Socol.

The company’s shareholding structure is: Siveco Netherlands (42.2 percent), investment funds Intel Capital Corporation and Enterprise Investors (32.5 percent), as well as the Siveco Romania management (25.3 percent), according to the company’s website.

“The existence of an investment into a company is vital. You cannot do business development just by organic growth, our experience has taught us that,” says Socol.

Also, Siveco is not looking for acquisitions at the moment, as the takeover model does not pay, said Socol.

Referring to the takeover of Bulgarian company Latona, Socol said this “was not a successful step.”

“I am saying this because the management time dedicated to the absorption of a company was longer than we initially planned for and also enforcing our standards of quality took longer than expected,” she explained.
Otilia Haraga

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