02-19-2006, 12:03 PM
Quote:The dramatic recovery of a fallen dotcom superstar to share of the year has raised questions about how a company with annual revenues of £7m can attract an earnings multiple higher than Google's...
QXL's resurgence is rooted in a takeover battle that erupted with an attempted management buyout in late 2004...
The squabble for control of a business that made modest revenues of £7m in 2004 - and was making large losses at the time - left observers scratching their heads. The answer to that mystery lies in Poznan, Poland, where QXL established a highly profitable business. The Polish operation is crucial to any underlying valuation of QXL. In the current financial year it posted an interim pre-tax profit of £4.7m, more than four times the accumulated profits from the remaining QXL sites.
Unfortunately, QXL does not own its Polish operation. The company is trying to win back the business in a bitter legal battle with the managers of its Polish unit. Around a dozen civil and criminal proceedings are under way in Poland regarding NIAA, a company registered as a 92% shareholder of QXL Poland. NIAA is owned by companies controlled by the general manager of QXL Poland, Arjan Bakker, and his common law wife. Both sides are embroiled in litigation over who owns the lucrative business.
full article: http://technology.guardian.co.uk/news/st...21,00.html