AS MERKO EHITUS

ANNOUNCEMENT

05.08.99

 

CONSOLIDATED FINANCIAL RESULTS OF MERKO EHITUS AFTER DISPOSAL OF 

100% SHAREHOLDING IN E.L.L. KINNISVARA (AS OF 30.06.1999)

 

As of 30.06.1999, the value of E.L.L. Kinnisvara on AS Merko Ehitus balance sheet 

amounted to 77 531 thousand EEK. Upon exercising of the call options, the company 

will receive 19 999 thousand EEK, which will be reflected on the accounting balance 

sheet under "other current receivables".

 

Net sales on the accounting income statement increase to the level of 22 297 thousand 

EEK, which is equal to E.L.L. Kinnisvara intra-group turnover 28 784 thousand EEK less 

E.L.L. Kinnisvara off-group turnover 6 487 thousand EEK. Both pre-tax profit as well 

as net profit decrease by 57 526 thousand EEK on the accounting income statement due 

to elimination of revenues and expenses of E.L.L. Kinnisvara, elimination of E.L.L. 

Kinnisvara from the account of long-term financial investments and earlier eliminated 

balance of intra-group profits-losses.

 

After elimination of the results of E.L.L. Kinnisvara, the sum of retained earnings 

and net profit for the year totals 4 661 thousand EEK.

 

After elimination of the results of E.L.L. Kinnisvara, the volume of owners’ equity 

amounts to 101 788 thousand EEK, balance sheet size is 221 138 thousand EEK, current 

assets total 175 838 thousand EEK and current liabilities 107 705 thousand EEK. Level 

of owners’ equity stands at 46% and current ratio at 1.6

 

 

 

BALANCE SHEET

30.06.1999

Consolidated, unaudited

in thousand EEK

 

                                                       Accounting             Actual

                                                       30.06.1999         30.06.1999

 

Cash and bank                                              10 256            19 999

 

Marketable securities                                      15 125            15 650

 

Accounts receivable                                        85 340            82 722

Allowance for doubtful accounts                               -30               -30

                         Total accounts receivable         85 310            82 692

Receivables from affiliated enterprises                     1 152             1 284

Other current receivables                                  42 404            22 461

                         Total other receivables           43 556            23 745

 

Interests received                                            326               334

Other accrued income                                        3 320             3 320

                         Total accrued income               3 646             3 654

 

Prepaid/refundable tax receivables                          7 293             7 330

Other prepaid expenses                                      3 473             3 712

                         Total prepaid expenses            10 766            11 042

 

Raw materials                                               2 691             2 691

Work-in-progress

Finished goods                                                 53            24 176

Merchandise purchased for resale                            3 758             3 810

Customer prepayments                                          677               677

                          Total inventories                 7 179            31 354

TOTAL CURRENT ASSETS                                      175 838           188 136

 

Shares in affiliated enterprises                            8 968            14 144

Other shares, units and bonds                                 115             1 565

Other non-current receivables                               4 750            26 536

                          Total financial assets           13 833            42 245

 

Land and buildings                                         22 877            85 809

Building rights                                             1 603             7 787

Plant and equipment                                        11 297            11 296

Other equipment and fixtures                                8 535             8 890

Accumulated depreciation                                  -14 327           -16 326

Unfinished building                                            44             1 303

Prepayments for fixed assets                                                      8

                          Total tangible assets            30 029            98 767

 

Development costs                                               3                 3

Goodwill                                                    1 435             1 435

                          Total intangible assets           1 438             1 438

 

TOTAL NON-CURRENT ASSETS                                   45 300           142 450

 

TOTAL ASSETS                                              221 138           330 586

 

 

Debentures (except bank loans)                              2 129             2 129

Current period repayments of long-term bank loans                             1 725

Short-term loans from financial institutions                1 366             1 366

                           Total borrowings                 3 495             5 220

 

Customer prepayments                                       14 675            30 836

Supplier payables                                          45 746            46 166

 

Payables to subsidiaries and parent                         4 896             4 896

Payables to affiliated enterprises                          3 516             3 516

                           Total other payables             8 412             8 412

 

Tax liabilities                                             6 469             6 595

 

Salary-related expenses                                     5 145             5 254

Interest payable                                              352               352

Other accrued expenses                                        831               831

                           Total accrued expenses           6 328             6 437

 

Short-term provisions                                       2 296             2 296

Other prepaid revenues                                     20 284            20 284

TOTAL CURRENT LIABILITIES                                 107 705           126 246

 

Non-convertible borrowings                                  8 069             8 068

Bank loans                                                                   32 544

                           Total long-term borrowings       8 069            40 612

 

Due to subsidiaries and parent                                 42                42

Other long-term provisions                                  1 181             2 012

TOTAL NON-CURRENT LIABILITIES                               9 292            42 666

 

Share capital                                              88 500            88 500

Capital surplus                                             2 950             2 950

Mandatory reserve capital                                   4 875             4 875

Retained earnings                                          49 305            49 305

Net profit for the year                                   -44 644            12 882

Exchange differences                                          802               809

TOTAL OWNERS' EQUITY                                      101 788           159 321

 

MINORITY INTEREST                                           2 353             2 353

 

TOTAL LIABILITIES AND OWNERS' EQUITY                      221 138           330 586

 

 

 

 

 

INCOME STATEMENT

01.01.99-30.06.99

Consolidated, unaudited

in thousand EEK

 

                                                              Accounting               Actual

                                                                 H1 1999              H1 1999

Net sales                                                        364 545              342 248

Change in work-in-progress inventories                               -47               17 888

Capitalized self-constructed assets                                                        72

Other revenue                                                      4 568                4 568

                                         TOTAL REVENUES          369 066              364 776

Raw materials, goods and services                                268 361              268 568

Other operating expenses                                          36 889               39 640

Personnel expenses                                                21 765               22 303

          incl. salary-related expenses                           16 368               16 773

                social taxes                                       5 397                5 530

Depreciation and value adjustments on non-current assets           3 430                4 463

Other expenses                                                     7 057                7 058

                                         TOTAL EXPENSES          337 502              342 032

OPERATING PROFIT                                                  31 564               22 744

Income from subsidiaries

Income from affiliated enterprises                                 2 263                2 263

Financial revenues from other long-term financial investments

Foreign exchange gain                                                518                  518

Other interest and financial income                                2 545                2 581

                                    TOTAL FINANCIAL INCOME         5 326                5 362

Financial expenses related to subsidiaries                        68 844

Financial expenses related to affiliated enterprises                 405                1 647

Interest expenses                                                  1 540                2 828

Foreign exchange loss                                                 49                   53

Other financial expenses                                             105                  105

                                     TOTAL FINANCIAL EXPENSES     70 943                4 633

PROFIT FROM NORMAL OPERATIONS                                    -34 053               23 473

Extraordinary expenses  

 

Profit before income tax                                         -34 053               23 473

Income tax                                                        10 919               10 919

Deferred income tax                                                 -299                 -299

NET PROFIT FOR THE YEAR                                          -44 673               12 853

incl. minority interest                                              -29                  -29

     NET PROFIT FOR THE GROUP                                    -44 644               12 882

 

 

INCOME STATEMENT (TO OPERATING PROFIT)

 

Net sales                                                        364 545              342 248

Cost of goods sold                                               312 783              298 370

GROSS PROFIT                                                      51 762               43 878

Marketing expenses                                                 4 264                4 680

Administrative expenses                                           13 537               14 056

Other revenue                                                      4 568                4 568

Other expenses                                                     6 965                6 966

OPERATING PROFIT                                                  31 564               22 744

 

 

Ülo Metsaots

Financial Director, Member of the Management Board

+372 6 105 110