AS EMV

COMMENTARY TO THE FINANCIAL RESULTS

18.11.99

 

COMMENTARY TO THE FINANCIAL RESULTS 09/1999

 

The 9-months 1999 consolidated net sales of EMV group amounted to 

478.7 million EEK, and net profit 3.4 million EEK. 

 

	             EMV holding	   Consolidated 	   

		                 	Net sales	profit	

AS EMV 			                  435.3	        4.9	

AS EMV SOILMEC	        100%		   16.4	       -2.3	

SIA EMV Latvia	        100% 		    7.8	       -0.8

AS EMV Kinnisvara	100%      	    3.9	        0.7

AS Maarjamäe Maja      85.7%		   15.3	        0

AS Lennujaama Parkla	100%		    -	         -

 

AS Pintaro	       36.0%		               -0.1

AS Tartu Maja 

Betoontooted	       25.0%			        1.0

Total:		                	478.7	        3.4

 

The consolidated statements do not include the results of 

subsidiaries ZAO EMV and EMV Systembau GmbH, as no business 

activities took place in these companies in 1999. The activities of 

ZAO EMV and EMV Systembau GmbH have not been continuous; AS EMV and 

the group will carry no additional expenses on liquidation of these 

companies. 

Also the consolidated statements do not include the results of AS 

Süda Maja, where AS EMV acquired 24.7% holding for 2.1 million EEK. 

AS Süda Maja is established for development of apartment building 

in Süda street, Tallinn. AS EMV views the project as short-term 

financial investment; the company has concluded a repurchase 

agreement on the shares purchased, with deadline of 31.12.99.

In September AS EMV established an 100% subsidiary AS Lennujaama 

Parkla. The activities of AS Lennujaama Parkla are dependent on 

realization of project of Tallinn Air Port parking lot.

 

The group's turnover has declined on annual basis by 20.8% or 125.8 

million EEK. The lower-than-forecasted turnover and financial 

result of AS EMV Soilmec and also unprofitable construction objects 

of AS EMV have had a substantial effect on the group's results. The 

respective losses, however, were earlier calculated into the annual 

forecasts of AS EMV.

 

01.10.1999 was a deadline for buy-out of share options to the 

executives of AS EMV. Option price was 33.25 EEK; no-one exercised 

the aforementioned right. The company thus did not issue 160 000 

new shares as initially planned.

 

As of end-October 1999, the total volume of construction contracts 

in progress amounted to 195 million EEK. 

 

 

Marko Kaha

Financial Director

+372 64 03 310