MERKO EHITUS

COMMENTARY TO FINANCIAL RESULTS

 

COMMENTARY TO H1 2000 FINANCIAL RESULTS

 

The H1 2000 unaudited and consolidated net sales of Merko Ehitus 

group amounted to EEK 518.3 million, and net profit was EEK 25.8 

million. The respective figures year ago were net sales of EEK 342.2 

million (51.5% y-o-y increase) and net profit of EEK 12.9 million 

(100% y-o-y increase).

 

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 

H1 2000 were:

 

		H1 2000 		H1 1999 

Net profit margin			  4.9%		  3.8%

Gross profit margin		 	  4.9%		  6.7%

Return on equity (annual)		 43.4%		 16.5%

Return on assets (annual)		 15.3%		  7.3%

Current ratio				  1.3		  1.5

Invoice turnover (annual)		  8.2		  8.3

Equity-to-assets ratio	 		 34.4%		 48.2%

 

The H1 2000 consolidated and unaudited 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