Last update: 05.07.2024 06:10 (GMT+3)
AS Tallinna Vesi FINANCIAL RESULTS 01.08.2005
RESULTS OF OPERATIONS IN THE SIX MONTHS TO 30 JUNE 2005, EUR
KEY PERFORMANCE INDICATORS
Amounts in million EUR
6 months 6 months Change
2 005 2 004
Sales 19.4 17.8 9.1%
Main operating activities 17.7 15.3 15.8%
Other operating activities 1.7 2.5 -31.9%
Gross profit 11.6 9.3 23.9%
Gross profit margin % 59.7% 52.6% 13.6%
Operating profit 8.9 8.6 3.4%
Operating profit margin % 46.0% 48.5% -5.2%
Profit before taxes 7.2 6.9 4.1%
Profit before taxes margin 37.1% 38.8% -4.5%
Net profit 4.9 5.2 -5.7%
ROA % 3.3% 3.9% -13.5%
Debt to Total Assets 58.2% 57.1% 2.0%
ROA – Net profit /Total Assets
Debt to Total capital employed – Total Liabilities / Total capital
employed
Income statement
In the first half of 2005 sales from the Company’s main operating
activities grew by 2.4 mln EUR, or 15.8% to 17.7 mln EUR. This
increase was in accordance with expectations and is largely
attributable to the increase in water and sewerage tariffs from 1
January 2005 for the Company’s residential and commercial
customers. Sales volumes of water supplied and wastewater treated
in the residential and commercial sectors grew, year on year, by
1.4% and 2% respectively. Sales volumes of wastewater treatment
services provided to surrounding municipalities outside of the
services area reached almost 450,000 m3 in the first six months of
2005, an increase of 9% on the corresponding period in 2004.
Profits from other operating activities the first half of 2005,
primarily connections income, were 0.2 mln EUR, a 0.1 mln EUR
decrease from 2004 levels.
Cost of goods sold for the main operating activity were held down
to 6.3 mln EUR in the first half of 2005, an increase of 0.1 mln
EUR or 1.8% from the equivalent period in 2004. With inflation
at 3.1% for the twelve month period to June 2005 this is a real
decrease and, was achieved by cost savings resulting from improved
procurements and processes in the operations activity.
The Company’s gross profit for the first six months of 2005 was
11.6 mln EUR, which represents an increase of 2.3 mln EUR, or
23.9%, compared to gross profit of 9.3 mln EUR for the first six
months of 2004.
As a result the Company achieved an improved gross profit margin
of 59.7% for the first six months of 2005 compared to 52.6% for
the first six months of 2004. This reflects the Company’s ability
to control operating costs and convert the sales growth into
improved profit margins.
Other expenses increased by 1.9 mln EUR, from 0.7 mln EUR in the
first half of 2004 up to 2.7 mln EUR in first half 2005. This was
mainly attributable to the one-off IPO costs incurred by the
Company in order to be listed on the Tallinn Stock Exchange.
IPO costs in total were 1.6 mln EUR, being made up of 1.2 mln EUR
for professional services and 0.4 mln EUR for the cost of a staff
bonus (every person working for the Company received 639 EUR
bonus).
The Company’s operating profit for the first six months of 2005
was 8.9 mln EUR, which represented an increase of 0.3 mln EUR, or
3.4%, over the operating profit of 8.6 mln EUR for the first six
months of 2004.
Income taxes increased by 0.6 mln EUR, from 1.7 mln EUR in first
half 2004 up to 2.3 mln EUR in first half 2005 as a result of the
improved dividend.
The Company’s net profit for the first half of 2005, including the
impact of one-off IPO costs, was 4.9 mln EUR, a decrease of 0.3
mln EUR compared to the corresponding period in 2004.
Balance sheet
The Company’s total assets were 147.5 mln EUR as at 30 June 2005,
an increase of 12.3 mln EUR year-on-year. Current assets increased
by 5.7 mln EUR
Tangible and intangible fixed assets and asset constructions in
progress totalled 124.2 mln EUR at 30 June 2005, an increase of
4.3 mln EUR of the fixed asset base in the year, reflecting the
Company’s investment in assets in order to continually improve
services to customers.
Current liabilities increased by 5.5 mln EUR, reflecting an
increase in deferred income (2.9 mln EUR prepayment for the sale
of fixed assets and a 3.0 mln EUR increase in the current portion
of long-term loans). Long-term liabilities increased by 3.2 mln
EUR up to 70.6 mln EUR at the end of June 2005 mainly due to the
final drawdown of the EBRD loan in the value of 7 mln EUR in
April, which was partially offset by the first repayment of
principle on the long-term loan in the amount of 2.8 mln EUR in
May 2005.
Cash flow
In the first half of 2005, the Company’s cash flow from operating
activities was 7.1 mln EUR, a 0.2 mln EUR, or 3%, increase
compared to the first half of 2004 reflecting the increased
operating profit in the period.
Total cash inflow in the first six months was 2.2 mln EUR compared
to a cash outflow of –1.5 mln EUR in the first six months of 2004.
Cash and cash equivalents stood at 8.7 mln EUR as at 30 June 2005,
an increase of 4.9 mln EUR from 30 June 2004.
Dividends and share performance
In first half of 2005, the Company paid out a dividend in a value
of 7.2 mln EUR based on the operational results of 2004
Starting from 1 June 2005, AS Tallinna Vesi shares have been
listed on the main list of the Tallinn Stock Exchange. At the end
of the reporting period, 30 June 2005, the closing price of the AS
Tallinna Vesi share was 11.33 EUR, which is a 23% premium on the
initial public offering settlement price of 9.25 EUR.
INCOME STATEMENT
(Thousand EUR)
6 months 6 months
2005 2004
Sales from main operating 17 676 15 261
activities
Revenues from other operating 1 708 2 510
activities
Net sales 19 385 17 771
Cost of goods sold main operating -6 278 -6 169
activities
Cost of goods sold other -1 527 -2 253
operating activities
GROSS PROFIT 11 580 9 349
Marketing expenses -213 -205
General administration expenses -2 659 -1 378
Other income/ expenses (-) 209 857
OPERATING PROFIT 8 917 8 623
Financial income / expenses (-) -1 735 -1 726
PROFIT BEFORE TAXES 7 182 6 897
Income tax on dividends -2 260 -1 679
NET PROFIT FOR THE PERIOD 4 922 5 218
Attributable to:
Equity holders of A-shares 4 921 5 217
B-share holder 0,6 0,6
Earnings per share in euros 0,25 0,26
BALANCE SHEER
(Thousand EUR)
30 June 30 June
ASSETS 2005 2004
CURRENT ASSETS
Cash at bank and in hand 8 704 3 843
Customer receivables 3 425 2 802
Other receivables 249 0
Accrued income and prepaid 520 421
expenses
Inventories 227 362
Assets for sale 100 131
TOTAL CURRENT ASSETS 13 225 7 559
NON-CURRENT ASSETS
Shares of associated companies 0 393
Long-term deposit 4 997 2 029
Other long-term investment assets 0 163
Tangible assets 116 501 113 013
Intangible assets 1 796 1 226
Construction in progress 5 887 5 620
Unfinished pipelines - new 4 831 4 956
connections
Prepayments for fixed assets 233 249
TOTAL NON-CURRENT ASSETS 134 246 127 648
TOTAL ASSETS 147 471 135 207
LIABILITIES
CURRENT LIABILITIES
Current portion of long-term 99 124
finance lease
Current portion of long-term bank 5 736 2 692
loans
Trade and other payables, incl. 4 016 2 963
dividends
Taxes payable 1 448 2 784
Short-term provisions 6 173
Deferred income 3 971 1 045
TOTAL CURRENT LIABILITIES 15 275 9 781
NON-CURRENT LIABILITIES
Finance lease 64 162
Bank loans 70 508 67 241
Other payables 6 6
TOTAL NON-CURRENT LIABILITIES 70 579 67 409
TOTAL LIABILITIES 85 854 77 190
EQUITY CAPITAL
Share capital 12 782 12 782
Share premium 24 734 24 734
Statutory legal reserve 1 278 5 969
Accumulated profit 17 901 9 314
Net profit for the period 4 922 5 218
Equity attributable to the parent 0 0
company
Minority interest 0 0
TOTAL EQUITY CAPITAL 61 617 58 017
TOTAL LIABILITIES AND EQUITY 147 471 135 207
CAPITAL
CASH FLOW STATEMENT
(Thousand EUR)
6 months 6 months
2005 2004
CASH FLOWS FROM OPERATING
ACTIVITIES
Operating profit 8 917 8 623
Adjustment for depreciation 2 472 2 492
Adjustment for income and -182 -257
expenses from constructions
Other finance income and expenses -84 -72
Profit from sale of fixed assets -759 -19
Expensed fixed assets 11 2
Capitalization of operating -751 -1 174
expenses
Movement in current assets -807 -82
involved in operating activities
Movement in liabilities involved 132 -821
in operating activities
Interest paid -1 877 -1 829
Total cash flow from operating 7 074 6 864
activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sale of shares of 0 0
associated company
Acquisition of fixed assets -4 078 -2 768
Payment of pipelines financed by -1 266 -1 766
construction income
Proceeds from pipelines financed 1 874 1 988
by construction income
Repayments of loans to third 0 0
parties
Proceeds from sale of and 3 010 19
prepayments received for fixed
assets
Proceeds from sale of real estate 748 144
investments
Interest received 151 95
Total cash flow from investing 440 -2 288
activities
CASH FLOWS FROM FINANCING
ACTIVITIES
Received long-term loans 7 003 0
Repayment of long-term loans -2 790 -1 214
Finance lease payments -59 -104
Dividends paid -7 158 -4 793
Income tax on dividends -2 260 0
Total cash flow from financing -5 264 -6 112
activities
Change in cash and bank accounts 2 249 -1 535
CASH AND EQUIVALENTS AT THE 6 455 5 378
BEGINNING OF THE PERIOD
CASH AND EQUIVALENTS AT THE END 8 704 3 843
OF THE PERIOD
Eteri Harring
Head of Treasury and IR
Tel. + 372 6262 225
eteri.harring@tvesi.ee
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