XXIC cuts expenditures and staff

XXI Century (XXIC: U/R) announced yesterday it decided to curtail its CapEx and reduce its number of staff. The company also reviewed its short-term strategy: it will focus on highly demanded core projects in commercial and premium-class residential real estate. Alexander Romanov: We consider the company’s decision a forced measure. Executing a strategy of rapid expansion, XXI Century’s administrative expense totaled USD 22 mln vs. only USD 20 mln in operating income last year. The tight conditions on capital markets have made their pervious expansion policy unsustainable.