AS MERKO EHITUS

ANNOUNCEMENT

05.08.99

 

COMMENTARY TO THE FINANCIAL RESULTS 06/99

 

The H1 1999 unaudited and consolidated net sales of AS Merko Ehitus 

group amounted to 342.2 million EEK, total revenues 364.8 million 

EEK 

and net profit was 12.9 million EEK. The respective figures in H1 

1998 

were net sales of 413.5 million EEK (83% of H1 1999 result), total 

revenues 444.5 million EEK (82% of H1 1999 result), and net profit 

of 

21.1 million EEK (61% of H1 1999 result).

 

The financial results of AS Merko Ehitus group consolidate the 

results 

of AS Merko Ehitus, and its 100% subsidiaries AS Gustaf 

(construction), 

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

Insenerehitus 

(enginerial construction), SIA Merks  (project management and 

construction), UAB Merko Statyba  (project management and 

construction), Merko Project Finance & Consulting Ltd. (project 

financing and consultation) and 66% holding in subsidiary AS Merko 

Tartu (construction), and 73% holding in subsidiary OÜ Matek 

(production of small houses and timber construction).

 

In addition to the subsidiaries, the profit figure 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, 

20% 

holding) and AS Tartu Maja Betoontooted (production of concrete, 

25% 

holding).

 

Some ratios for H1 1999:

 

                             H1 1999                H1 1998

 

Profit margin                   3.8%                    5.1%

Gross margin                    6.7%                    7.6%

Owners’ equity                 48.2%                   50.9%

Current ratio                   1.5                     1.4

Accounts receivable 

turnover (annual)               8.3                    13.0

 

 

The H1 1999 consolidated and audited 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

Financial Director, member of the Management Board

+372 6 105 110