AS PENNU COMPUTER TECHNOLOGY GROUP

ANNOUNCEMENT

05.03.99

 

 

COMMENTARY TO THE UNCONSOLIDATED UNAUDITED FINANCIAL RESULTS OF THE I 

HALF YEAR 1998/99 

 

The 1998/99 I half year unconsolidated unaudited net sales of AS 

Pennu Computer Technology Group  amounted to 74.4 million EEK, which 

is 22% less than during the same period in 1997/98. The 

unconsolidated loss totaled 30.3 million EEK (1997/98 profit 

respectively 4.3 million EEK), including the loss of 27 million EEK 

proceeding from the securities-related financial operations and 

provisions on the accounts receivable.

The unconsolidated balance sheet volume of AS Pennu Computer 

Technology Group as of 31.12.98 amounted to 44.1 million EEK, which 

has decreased 2 times in comparison with the unconsolidated balance 

sheet volume of 89.1 million EEK, as of 31.12.97. 

The volume of accounts receivable decreased by more than 10 million 

EEK, to 12.5 million EEK. As a result of the increase in exports, the 

tax prepayments increased by 3.4 million EEK. The volume of 

inventories was decreased by 9 million EEK, to 10.3 million EEK. in 

relation with disposal of subsidiaries and associated companies, the 

financial assets decreased by 28.3 million EEK, to the level of 10.8 

million EEK (disposed subsidiaries included ID Süsteemide AS, Kernel 

and Infotek (two last ones sold to subsidiary AS PCT Arvutid), 

subsidiary Järve Kinnisvarahoolduse AS). 

Current liabilities increased by 11.7 million EEK, supplier payables 

decreased by 2 million EEK, payables to subsidiaries decreased by 

more than 28 million EEK (incl. loan repaid to Järve 

Kinnisvarahoolduse AS). Non-current liabilities increased by 3.5 

million EEK.

The unconsolidated current assets of AS Pennu Computer Technology 

Group as of 31.12.98 totaled 31.4 million EEK, accounting for 71% of 

the balance sheet volume (the respective figure as of 31.12.97 

amounted to 48.1 million EEK, 54%). Current liabilities decreased 

from 31.12.97 by 17 million EEK, accounting for 67% of the balance 

sheet volume. Non-current liabilities accounted for 9% of the balance 

sheet volume. Compared with the standings as of 31.12.97, the total 

liabilities decreased by more than 13 million EEK. 

As of 31.12.98, the volume of the owners’ equity totaled 10.3 million 

EEK, accounting for 23.5% of the balance sheet volume.

 

After the acquisition of 50% shareholding in PCT Grupp by CC 

Computers OY, the new Management Board conducted a thorough internal 

control, in course of which all transactions of the II half year 

1998, their backgrounds and impact on the company’s financial results 

were analyzed. 

 

As a result of the control, the loss proceeding from the I half year 

of 1998/99 transactions of PCT Grupp was determined:

 

Transaction				Volume			Date

Disposal of 30% shareholding 

in ID Süsteemide AS 		   - 332 375 EEK	18. Oct 1998

Discount and disposal of 5000 

shares of Hansapank		   - 453 750 EEK	27. Oct 1998

Disposal of shares of AS Järve 

Kinnisvarahooldus 		 -11 299 198 EEK	28. Oct 1998

Total loss			- 12 087 323 EEK	

 

 

 

After balance sheet analysis, the following provisions were made:

 

100 % AS PCT Liising shares 		 - 3 869 044 EEK

EEK 15 million EEK loan to 

AS PCT Liising				 - 8 000 000 EEK

Provisions of accounts receivable	 - 3 000 000 EEK

Total provisions			- 14 869 044 EEK

Owners’ equity after provisions	       	       14. 1 EEK

 

 

RESTRUCTURING SCHEDULE

During the second half of the 1998/99 financial year, Pennu CTG will 

focus on restructuring of the organization, which will start with the 

analyses of specific situation and market, and determination of 

strategies and company structure. 

The main phase of the restructuring process, based on the results of 

the analysis, shall in all probability take place in February and 

March, when also the activity and budget plans for the 1999/2000 

financial year should be determined. 

 

 

 

Arho Anttila

Managing director

AS Pennu Computer Technology Group 

Tel. +372 650 5402