AS EMV

ANNOUNCEMENT

01.06.99

 

COMMENTARY TO THE Q1 1999 FINANCIAL RESULTS OF AS EMV 

 

The Q1 1999 consolidated net sales of EMV group amounted to 76.7 

million EEK and loss 6.8 million EEK. The group’s loss proceeded mainly 

from low turnover in Q1, hence the figures for expenses and income for 

the period included in the accounting statements (compiled in 

accordance with the principles of the International Accounting 

Standards (IAS 11)) are proportional with total expected expenses and 

revenue.

 

However, the Q1 financial results of EMV group were as expected. The 

Management Board of AS EMV will make a proposal to the 03.06.99 meeting 

of the Supervisory Board of AS EMV to approve EMV group turnover 

forecast at the level of 680 million EEK and net profit forecast of 14 

million EEK for year 1999.

 

 

                          EMV         Net sales        incl.	  consolidated   Profit

                       holding          	     to other         turnover

						 companies in group 

AS EMV                                    62.2          1.2              61.0    -4.5

AS EMV SOILMEC           100%              5.1          0.1               5.0    -2.1

SIA EMV Latvia           100%              3.5                            3.5    -0.1

AS EMV Kinnisvara        100%              2.1          0.7               1.4     0.3

AS Maarjamäe Maja       85.7%              5.8                            5.8     0.1

Total:                                                                   76.7    -6.3        

 

 

In addition to the subsidiaries, AS EMV holds shares in the following 

affiliated companies: AS Pintaro (AS EMV holding 36.0%) and AS Tartu 

Maja Betoontooted (AS EMV holding 25.0%), which accounted for 0.5 

million EEK of the group’s Q1 loss.

Compared to the respective period last year, the group’s net sales 

decreased by 91.3 million EEK.

 

Relatively low turnover and loss proceeded from the following 

circumstances:

-due to the seasonal nature of construction business, the share of Q1 

turnover in annual turnover figure of AS EMV has always been relatively 

low. Comparing Q1 1998 with the current year, the number of objects in 

construction earning turnover in winter months was relatively low this 

year. AS of the beginning of the year, AS EMV had concluded 

construction contracts for total of 440 million EEK, of which only 60 

million EEK were realized in Q1.

-proceeding from the expense-based profit accounting principles and 

considering continuously extending acceptance deadlines, construction-

related expenses and income of AS EMV is deferred in great extent to 

the future periods, whereas the fixed costs are independent from 

turnover from construction works.

-the company has disposed its subsidiaries and fields of activities, 

the total turnover of which in Q1 1998 was 22.7 million EEK, incl. 

concrete factory (in Q1 1998, turnover 17 million EEK, i.e. 9% of group 

total turnover) 

-due to reduction of the number of employees, the company carried in Q1 

non-recurring costs of 1.2 million EEK

 

As of 31.03.99, the balance sheet volume of EMV group was 237.3 million 

EEK. the balance sheet volume has decreased in a year by 65.1 million 

EEK, and in three months (compared with end of 1998) by 33.5 million 

EEK.

 

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

concluded by AS EMV for year 1999 is 410 million EEK, which is 100 

million EEK more than the volume of orders in the respective period 

last year. This number does not include successful offer for 

construction works on prison in Tartu, since the respective contract is 

not yet concluded.

 

 

Marko Kaha

Manager of the financial analysis department 

Tel: +372 6 403 310