Pēd. atjaunots: 02.07.2024 21:58 (GMT+3)
AS Tallinna Vesi FINANCIAL RESULTS 01.11.2005
Results of operations in the nine months to 30 September 2005
Key performance indicators
Amounts in million EUR
9 months 9 months Change
2005 2004
Sales 28.2 25.8 9.2%
Main operating activities 26.2 22.8 14.9%
Other operating activities 2.0 3.0 -34.3%
Gross profit 16.9 13.7 24.0%
Gross profit margin % 60.1% 52.9% 13.6%
Operating profit 13.4 12.4 7.3%
Operating profit margin % 47.4% 48.2% -1.7%
Profit before taxes 10.7 9.8 8.9%
Profit before taxes margin 38.0% 38.1% -0.3%
Net profit 8.5 8.2 3.6%
ROA % 5.6% 5.9% -5.3%
Debt to total capital 57.2% 56.2% 1.8%
employed
ROA - Net profit /Total Assets
Debt to Total capital employed - Total Liabilities / Total capital employed
CEO of Tallinna Vesi, Bob Gallienne: "The Company is pleased to announce quarter
3 results in line with expectations. Profit before tax for the quarter increased
by 3.5 mln euros due to revenue growth and strong cost control. The company
continues to outperform its contractual levels of service and has once again
received official confirmation from the Supervisory Foundation that all 97 levels
of service were fully met in 2004. To ensure compliance with the water quality
standards, which will come into effect in 2007, we are continuing to make
significant investments in fixed assets. Due to this we already are achieving a
97.08% compliance with the 2007 standards. In the third quarter of 2005 the
company invested 3.6 mln euros in the purchase and construction of fixed assets,
significantly higher than the depreciation charge of 1.2 mln euros.
Since we last reported the company has, on 14 October 2005, received the
Environmental Management and Audit Scheme (EMAS) certification from the
Ministry of Environment. The Company was chosen as a pilot project for this EU
award in Estonia and is very proud to be the first Company in Estonia to receive
the certification. Another clear demonstration of our committment to the
environment. In addition we implemented our new Customer Service and Billing
system which will enable us to significantly improve the range of service options
available to our customers."
Income Statement
In the first nine months of 2005 sales from the Company's main operating
activities grew by 3.4 mln EUR, or 14.9% to 26.2 mln EUR. Sales from water and
wastewater increased by 16.6%, which was in accordance with expectations and is
largely attributable to the increase in water and sewerage tariffs from 1 January
2005 for the Company's residential and commercial customers. Sales volumes of
water and wastewater supplied and treated in the residential and commercial
sectors grew, year on year, by 0.3% and 0.5% respectively. Sales volumes of
wastewater treatment services provided to surrounding municipalities outside of
the services area reached almost 734,000 m3 in the first nine months of 2005, an
increase of 5% on the corresponding period in 2004. Sales from stormwater
treatment and disposal, fire hydrant and other work and services increased to 2.6
mln EUR, or by 1.7% compared to the same period in 2004.
Profits from other operating activities the first nine months of 2005, primarily
connections income, were 0.2 mln EUR, a 0.1 mln EUR decrease from 2004 levels.
Cost of goods sold for the main operating activity was held down to 9.5 mln EUR
in the first nine months of 2005, an increase of 0.01 mln EUR or 0.1% from the
equivalent period in 2004. With inflation at 4.9% for the twelve month period to
Sept 2005 this is a real decrease and, was achieved by cost savings resulting
from improved procurements and processes in the operations activity.
The Company's gross profit for the first nine months of 2005 was 16.9 mln EUR,
which represents an increase of 3.3 mln EUR, or 24.0%, compared to a gross profit
of 13.65 mln EUR for the first nine months of 2004.
As a result of the above factors the Company achieved an improved gross profit
margin of 60.1% for the first nine months of 2005 compared to 52.9% for the first
nine months of 2004. This indicates the Company's ability to control operating
costs and to convert the sales growth in main operating activities into improved
profit margins.
General administration expenses increased by 1.5 mln EUR from 1.9 mln EUR in the
first nine months of 2004 up to 3.4 mln EUR in first nine months of 2005. This
was attributable to the one-off IPO costs, Tallinn Stock Exchange listing costs
and lower capitalisation of operating expenses.
Other income, net, was 0.1 mln EUR for the first nine months of 2005,
representing a decrease of 0.9 mln EUR compared to other income, net, from the
corresponding period in 2004. In 2005, other income gained from land sales has
been offset by IPO costs of 0.5 mln EUR, whereas in the first nine months of
2004, land sales and provisions released to the profit and loss account resulted
in a positive revenue stream of 1 mln EUR.
IPO costs in total were 1.7 mln EUR, being made up of 1.3 mln EUR for
professional services and 0.4 mln EUR for the cost of a staff bonus.
The Company's operating profit for the first nine months of 2005 was 13.4 mln
EUR, which represented an increase of 0.9 mln EUR, or 7.3%, over the operating
profit of 12.4 mln EUR for the first nine months of 2004.
Income taxes increased by 0.6 mln EUR, from 1.7 mln EUR in first nine months 2004
up to 2.3 mln EUR in first nine months of 2005 as a result of the improved
dividend.
The Company's net profit for the first nine months of 2005, including the impact
of one-off IPO costs, was 8.45 mln EUR, a increase of 0.3 mln EUR compared to the
corresponding period in 2004.
Balance sheet
The Company's total assets were 152.1 mln EUR as at 30 Sept 2005, an increase of
13 mln EUR year-on-year. Current assets increased by 5.5 mln EUR, largely
attributable to an increase in cash.
Tangible and intangible fixed assets and asset constructions in progress totalled
124.8 mln EUR at 30 Sept 2005, an increase of 4.1 mln EUR of the fixed asset base
in the year, demonstrating the Company's investment in assets in order to
continually improve services to customers.
Current liabilities increased by 6.6 mln EUR, reflecting an increase in deferred
income (2.9 mln EUR prepayment for the sale of fixed assets and a 3 mln EUR
increase in the current portion of long-term loans). Long-term liabilities
increased by 2.2 mln EUR up to 70.6 mln EUR at the end of Sept 2005 mainly due to
the final drawdown of the EBRD loan in the value of 7 mln EUR in April, which was
partially offset by the first repayment of principle on the long-term loan in the
amount of 2.8 mln EUR in May 2005.
Cash flow
In the first nine months of 2005, the Company's cash flow from operating
activities was 11.6 mln EUR, a 0.8 mln EUR, or 7.9%, increase compared to the
first nine months of 2004 reflecting the increased operating profit in the
period.
Total cash inflow in the first nine months was 4.65 mln EUR compared to a cash
inflow of 0.9 mln EUR in the first nine months of 2004. Cash and cash equivalents
stood at 11.1 mln EUR as at 30 Sept 2005, an increase of 4.9 mln EUR from 30 Sept
2004.
Dividends and share performance
In first nine months of 2005, the Company paid out a dividend in a value of 7.2
mln EUR based on the operational results of 2004
Starting from 1 June 2005, AS Tallinna Vesi shares have been listed on the main
list of the Tallinn Stock Exchange. AS Tallinna Vesi shareholders, with a holding
over 5% as of 30 September 2005, were:
United Utilities (Tallinn) BV 35.3%
City of Tallinn 34.7%
Nordea Bank Finland Plc clients account trading 11.69%
At the end of the reporting period, 30 Sept 2005, the closing price of the AS
Tallinna Vesi share was 14.35 EUR, which is a 55.1% premium on the initial public
offering settlement price of 9.25 EUR.
INCOME STATEMENT
(thousand EUR) 9 months 9 months
2005 2004
Sales from main operating activities 26 179 22 776
Revenues from other operating activities 1 990 3 029
Net sales 28 169 25 805
Cost of goods sold main operating activities -9 466 -9 458
Cost of goods sold other operating activities -1 772 -2 694
GROSS PROFIT 16 931 13 653
Marketing expenses -313 -289
General administration expenses -3 378 -1 919
Other income/ expenses (-) 112 1 000
OPERATING PROFIT 13 352 12 445
Financial income / expenses (-) -2 641 -2 608
PROFIT BEFORE TAXES 10 711 9 837
Income tax on dividends -2 260 -1 679
NET PROFIT FOR THE PERIOD 8 450 8 158
Attributable to:
Equity holders of A-shares 8 450 8 157
B-share holder 0,6 0,6
Earnings per share in EUR 0,42 0,41
BALANCE SHEET
(thousand EUR) 30.09.2005 30.09.2004
ASSETS
CURRENT ASSETS
Cash at bank and in hand 11 110 6 246
Customer receivables 2 966 3 064
Other receivables 814 2
Accrued income and prepaid expenses 541 470
Inventories 199 326
Assets for sale 89 131
TOTAL CURRENT ASSETS 15 719 10 238
NON-CURRENT ASSETS
Shares of associated companies 0 395
Long-term deposit 5 023 2 039
Other long-term investment assets 0 161
Tangible assets 115 944 113 036
Intangible assets 1 685 1 199
Construction in progress 7 208 6 468
Unfinished pipelines - new connections 6 301 5 318
Prepayments for fixed assets 233 249
TOTAL NON-CURRENT ASSETS 136 394 128 864
TOTAL ASSETS 152 113 139 102
LIABILITIES
CURRENT LIABILITIES
Current portion of long-term finance lease 93 117
Current portion of long-term bank loans 5 736 2 692
Trade and other payables, incl. dividends 4 945 4 413
Taxes payable 1 168 1 137
Short-term provisions 15 404
Deferred income 4 427 973
TOTAL CURRENT LIABILITIES 16 384 9 737
NON-CURRENT LIABILITIES
Finance lease 44 136
Bank loans 70 533 68 266
Other payables 6 6
TOTAL NON-CURRENT LIABILITIES 70 583 68 408
TOTAL LIABILITIES 86 967 78 145
EQUITY CAPITAL
Share capital 12 782 12 782
Share premium 24 734 24 734
Statutory legal reserve 1 278 5 969
Accumulated profit 17 901 9 314
Net profit for the period 8 450 8 158
TOTAL EQUITY CAPITAL 65 146 60 957
TOTAL LIABILITIES AND EQUITY CAPITAL 152 113 139 102
CASH FLOW STATEMENT
(thousand EUR) 9 months 9 months
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 13 352 12 445
Adjustment for depreciation 3 714 3 840
Adjustment for income and expenses from -218 -311
constructions
Other finance income and expenses -119 -113
Profit from sale of fixed assets -770 -175
Expensed fixed assets 14 7
Capitalization of operating expenses -1 064 -1 822
Movement in current assets involved in operating -902 -349
activities
Movement in liabilities involved in operating -510 -930
activities
Interest paid -1 880 -1 824
Total cash flow from operating activities 11 617 10 770
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of shares of associated 0 0
company
Acquisition of fixed assets (incl pipelines -8 253 -5 996
construction)
Proceeds from pipelines financed by construction 2 583 2 411
income
Repayments of loans to third parties 0 0
Proceeds from sale of and prepayments received 3 021 236
for fixed assets
Proceeds from sale of real estate investments 748 144
Interest received 228 127
Total cash flow from investing activities -1 672 -3 079
CASH FLOWS FROM FINANCING ACTIVITIES
Received long-term loans 7 003 1 000
Repayment of long-term loans -2 790 -1 214
Finance lease payments -84 -136
Dividends paid -7 158 -4 793
Income tax on dividends -2 260 -1 679
Total cash flow from financing activities -5 290 -6 823
Change in cash and bank accounts 4 655 868
CASH AND EQUIVALENTS AT THE BEGINNING OF THE 6 455 5 378
PERIOD
CASH AND EQUIVALENTS AT THE END OF THE PERIOD 11 110 6 246
Eteri Harring
Head of Treasury and Investor Relations
Ph. + 372 6262 225
eteri.harring@tvesi.ee
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