AS MERKO EHITUS

ANNOUNCEMENT

05.11.99

 

COMMENTARY TO THE FINANCIAL RESULTS 09/99

 

The 9-months 1999 unaudited and consolidated net sales of AS Merko 

Ehitus group amounted to 523.9 million EEK, and after-tax net profit 

from normal operations was 18.6 million EEK. The company posted an 

after-tax net loss of 37.5 million EEK due to extraordinary financial 

expenses related with disposal of shareholding in AS E.L.L. Kinnisvara.

The respective figures year ago were 577.6 million EEK of net sales 

(90.7% of 9-months 1999 result), and after-tax net profit from normal 

operations of 28.7 million EEK (64.7% of 9-months 1998 result).

 

The consolidated financial results of AS Merko Ehitus group include the 

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

(construction), AS Merko Insenerehitus (engineering 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 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 9-months 1999:

					       9-m 1999	     9-m 1998

Profit margin (normal operations)  		   3.5%		 5.0%

Return on assets (normal operations)		   6.1%		10.9%

Current ratio  					   1.7		 1.3

Days sales outstanding   			  28.7		49.9

Equity-to-assets ratio				  47.9%		44.2%

 

The 9-months 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 61 05 110