AS MERKO EHITUS

ANNOUNCEMENT

23.03.99

 

COMMENTARY TO THE CONSOLIDATED AND AUDITED 12 MONTHS 1998 FINANCIAL 

RESULTS OF AS MERKO EHITUS 

 

The 1998 12 months consolidated and audited net turnover of AS Merko 

Ehitus group amounted to 900.0 million EEK (including net sales of 

843.2 million EEK and construction works as investment 56.8 million EEK 

(of which the most substantial one is Electrolux Eesti business center 

45.8 million EEK)), and gross profit amounted to 38.5 million EEK. 

 

The 1997 12 months net turnover totaled 526.5 million EEK, and gross 

profit 26.0 million EEK.

 

AS Merko Ehitus group met the annual turnover forecast (700 million 

EEK) by 129%, and annual profit forecast (35 million EEK) by 110%.

 

The consolidated financial results of AS Merko Ehitus group include the 

results of AS Merko Ehitus and 100% subsidiaries AS Gustaf 

(construction), AS E.L.L. Kinnisvara (real estate development) , AS  

Merko Insenerehitus (engineer construction), SIA Merks  (located in the 

Republic of Latvia, project management and construction), UAB Merko 

Statyba  (located in the Republic of Lithuania, project management and 

construction), Merko Project Finance & Consulting Ltd. (located in 

Great Britain, project financing and consultations), and 66% holding in 

subsidiary AS Merko Tartu (construction), and 73% holding in subsidiary 

OÜ Matek (production of small houses and wood constructions).

 

In addition to the subsidiaries, the profit of AS Merko Ehitus group 

also includes the results of the affiliated enterprises Normanni 

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

Investeeringute AS (investments, project management and real estate 

development, 50% holding), AS Insenervõrgud (engineer construction, 49% 

holding), AS Stik Elekter (electrical works, 34% holding), affiliated 

enterprise ESS Kinnisvarahoolduse AS (real estate administration, 30% 

holding) and Eesti Ehitusekspordi AS (owns 100% of AS Tartu Maja 

Betoontooted, 25% holding).

 

Among the subsidiaries and affiliated enterprises, the best results 

were achieved by AS Gustaf. The consolidated net sales of AS Gustaf 

totaled 94.9 million EEK, and gross profit amounted to 4.0 million EEK.

 

The 1998 12 months consolidated and audited income statement is 

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

Financial Director, Member of the Management Board

+372 610 5110