MERKO EHITUS

COMMENTARY TO FINANCIAL RESULTS

 

COMMENTARY TO GROUP FINANCIAL RESULTS, 9M 2000

 

The 9m 2000 unaudited and consolidated net sales of Merko Ehitus 

group amounted to EEK 910 million, and net profit was EEK 39.7 

million. The respective figures year ago were net sales of EEK 

523.9 million and net profit of EEK 18.7 million (excluding 

extraordinary financial expense EEK 56.2 million from spinoff of 

E.L.L. Kinnisvara).

 

The consolidated financial results of Merko Ehitus group include 

the results of parent company AS Merko Ehitus, and its 100% 

subsidiaries SIA Merks (project management and construction) in 

Latvia, UAB Merko Statyba (project management and construction) in 

Lithuania, and Gustaf (construction), and 66% holding in subsidiary 

Merko Tartu (construction), and 65% holding in subsidiary Matek 

(production of small houses and timber construction).

 

In addition to the subsidiaries, the profit figure of Merko Ehitus 

group also includes the results of the affiliated enterprises 

Normanni Linnagrupi AS (project management, 50% holding) and 

Insenervõrgud (engineering, 50% holding) and Tartu Maja 

Betoontooted (production of concrete, 25% holding).

 

Financial ratios illustrating the activities of Merko Ehitus group 

in 9m 2000 were:

 

		 		      9m 2000	       9m 1999 

Net profit margin			 4.4%		 3.6%*

Gross profit margin		 	 4.0%		 7.2%*

Return on equity (annual)		43.6%		19.0%*

Return on assets (annual)		14.5%		 8.2%*

Current ratio				 1.3  		 1.7

Invoice turnover (annual)		 7.0	 	12.6

Equity-to-assets ratio	 		29.8%		47.9%

 

* excluding extraordinary financial expense EEK 56.2 million from 

spinoff of E.L.L. Kinnisvara

 

Net profit margin: net profit / net sales

Gross profit margin: gross profit / net sales

Return on equity (annual): (net profit * 4/3) / average equity 

during the period

Return on assets (annual): (net profit * 4/3) / average assets 

during the period 

Current ratio: current assets / current liabilities

Invoice turnover (annual): (net sales * 4/3) / accounts receivable

Equity-to-assets ratio: owners equity / total assets

 

The 9m 2000 consolidated income statement and balance 

sheet are compiled in accordance with the principles of the 

International Accounting Standards (IAS), and correspond with the 

Estonian legal acts regulating the accounting principles used.

 

 

Ülo Metsaots

CFO

+372 61 05 110