AS Eesti Ehitus Financial Report February 09,
2007
Preliminary unaudited financial results for 2006
Revenue and
segments
Preliminary unaudited consolidated revenues for 2006 amounted
to EEK 2.504
billion (E160 million), a solid 49.5 per cent increase on a
year ago. In terms of
business segments, the Residential and non-residential
segment contributed 54 per
cent (53.5 per cent growth) and the Civil
engineering segment 46 per cent (43.6
per cent growth). In geographical
terms, 91.5 per cent of the Group's revenue was
earned in Estonia; Ukraine
contributed 8.5 per cent (a year ago the corresponding
figures were 93.5 per
cent and 6.5 per cent).
Revenue by segments
Business segments
2004 2005 2006
Civil engineering 53% 45%
46%
Residential and non-residential 47% 55%
54%
Actual revenue structure corresponds now to the Group's
long-term revenue
structure objective according to which the two segments
ought to generate more or
less equal revenue to maintain competitiveness and
presence in every main segment
of construction market.
Compared to 2005,
the Commercial buildings sub-segment has become the biggest one
among
Residential and non-residential segment whereas Residential buildings
sub-
segment has shown the biggest growth rate.
Revenue allocation in the
Residential and non-residential segment 2004 2005
2006
Residential buildings 10% 11%
17%
Public buildings 44% 35%
18%
Commercial buildings 24% 37%
41%
Industrial and warehouse facilities 22% 17%
24%
The largest sub-segment in Civil engineering segment is Road
construction and
maintenance, being also the biggest sub-segment in the
whole Group. The fastest
growing sub-segment in Civil engineering has been
Environmental construction.
At the end of 2006, the Group's order backlog
totalled EEK 2.7 billion (E173
million) against EEK 1.2 billion (E79
million) a year ago.
Profitability and cash flows
In 2006, the Group's
gross margin improved by 1.8 percentage point to 12.3 per
cent (2005: 10.5
per cent). Two direct cost items affecting gross margin the
most, labour
costs and subcontracting and materials costs have increased at the
slower
pace than Group's revenues (33.4% and 49.1% respectively),
contributing
thereby to the improvement of the gross margin.
The ratio of
administrative expenses to revenue was 5.0 per cent (2005: 4.3 per
cent),
which outpaced revenue growth by 23.3 per cent, largely on account of
an
increase in labour costs,which, in turn was mostly affected by the
results-based
bonuses.
Operating margin for 2006 was 8.2 per cent (a year
ago 7.0 per cent), whereas
operating margin excluding gains on sale of
property and real estate was 7.1 per
cent (a year ago 6.2 per
cent).
Preliminary unaudited consolidated net profit for 2006 amounted to a
strong EEK
190.3 million (E12.2 million) against EEK 94 million (E6 million)
earned a year
ago. The profit attributable to equity holders of the
parent amounted to EEK
176.9 million (E11.3 million) against EEK 86.8
million (E5.5 million) for 2005.
Net operating cash flows have remained on
the same level compared to a year ago.
The figure for 2006 was EEK 152.6
million (E9.8 million) while a year ago
operating cash flows were EEK
156.8 million (E10 million).
Considering the preliminary financial results
for 2006 and the Group's dividend
policy, the Board will make to the
ordinary general meeting of shareholders a
reasoned proposal to payout
dividends EEK 3 per share.
The full interim report for the fourth quarter of
2006 will be disclosed on or
about February 16, 2007.
Significant
ratios and figures
Ratio / figure 2004
2005 2006
Revenue growth 47,5%
5,4% 49,5%
Average number of employees 610
722 871
Revenue per employee, EEK thousands 2 603 2 319
2 875
Labour costs to revenue, % 9,2% 10,9%
10,9%
Administrative expenses to revenue, % 3,4% 4,3%
5,0%
EBITDA, EEK thousands 119 424 143 850 236
602
EBITDA margin, % 7,5% 8,6%
9,4%
Gross margin, % 9,6% 10,5%
12,3%
Operating margin, % 6,1% 7,0%
8,2%
operating margin excluding gains on
sale of property and real estate, %
6,0% 6,2% 7,1%
Net margin, %
5,0% 5,6% 7,6%
Return on invested capital, %
40,4% 31,1% 34,0%
Return on assets, %
21,2% 15,8% 17,6%
Return on equity, %
59,8% 59,9% 56,6%
Equity ratio, %
32,5% 20,2% 35,1%
Current ratio
1,28 1,14 1,33
Revenue per employee = revenue / average
number of employees
Labour costs to revenue = labour costs /
revenue
Administrative expenses to revenue = administrative expenses /
revenue
EBITDA = earnings before interest, taxes, depreciation and
amortisation
EBITDA margin = EBITDA / revenue
Gross margin = gross profit /
revenue
Operating margin = operating profit / revenue
Operating margin
excluding gains on sale of property and real estate =
(operating profit -
gains on sale of property - gains on sale of real estate) /
revenue
Net
margin = net profit for the period / revenue
Return on invested capital =
(profit before tax + interest expense) / the
period's average
(interest-bearing liabilities + equity)
Return on assets = operating profit /
average total assets for the period
Return on equity = net profit for the
period / average total equity for the
period
Equity ratio = total equity /
total equity and liabilities
Current ratio = total current assets / total
current liabilities
Andri Hõbemägi
AS Eesti Ehitus
Tel: (+372) 6400
450
E-mail: eestiehitus@eestiehitus.ee
|