OREANDA-NEWS. The Board of Directors of OJSC Russian Communal Utility Systems has held a regular meeting. Considered and approved were the results of the financial and business activities of the company in 2006, the business plan for 2007, a system for motivation of the senior managing directors of OJSC RCUS in 2007, and other issues.

A significant event in the company's business in 2006 was a change in the structure of the stock capital as a result of which 75% of shares was consolidated by IES Holding. During 2006, OJSC RCUS started activities in three new territories: the Republic of Udmurtia, in Bryansk and Nizhny Novgorod Regions. In 2006 the consolidated revenues of the OJSC RCUS group of companies amounted to 19,352.4 bn rubles (without VAT) and the net profit was 736,3 mln rubles. The cost of the company's net assets increased during the year 2.6-fold to 1,161.76 bn rubles (without VAT), as of 01.01.2007. The profitability of sales has increased to 3,7% (versus 2,2% in 2005).

The Board of Directors approved the main performance indicators of the business plan for the OJSC RCUS group of companies for 2007. The plan stipulates, in particular, increase in the amount of sales by 30% and the growth of net assets controlled by the RCUS group of companies to no less than 4,8 bn rubles. The company intends to implement in 2007 investment projects worth 1,3 bn rubles.

The Board of Directors also considered participation of OJSC RCUS in the authorized capital of OJSC Tambov Regional Sale Company. A decision was made to purchase 400 ordinary registered uncertified shares worth in total 3 mln ruble making 40% of the authorized capital of OJSC Tambov Regional Sale Company.

On 15 May, the annual general meeting of RCUS shareholders will be held in Moscow.