MERKO EHITUS

COMMENTARY TO FINANCIAL RESULTS



COMMENTS TO THE FINANCIAL RESULTS 1999



The 1999 12 months unaudited consolidated net sales of AS Merko Ehitus 

affiliated group were 733,7 million EEK and net profit was 16,5 million EEK 

(excluding the extraordinary financial expense of 56,2 million EEK due to 

the spinoff of E.L.L. Kinnisvara).  



The consolidated financial results of AS Merko Ehitus affiliated group include 

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

(construction), AS Merko Insenerehitus (civil engineering), 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 65% 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 (engineering construction, 50% holding) and AS Tartu Maja 

Betoontooted (production of concrete, 25% holding).



Financial ratios for 1999: 

					1999			1998

Net profit margin 			 2,2 %*			 4,6 %

Return on equity			12,6 %*			28,2 %

Return on assets 			 5,0 %*		        13,3 %

Current ratio				 1,3			 1,3

Days sales outstanding			  43			  59

Equity-to-assets ratio			  39 %			  40 %



1999 12 months consolidated income statement and balance sheet are compiled 

in accordance with the principles of International Accounting Standards (IAS) 

and with the accounting regulations valid in the Republic of Estonia.





Ülo Metsaots

Financial Director

+372 6105110