Markaðsfréttir
  Útgefendur
  Fréttaflokkar
  Leit
  Vefur Kauphallar
  English version
    
Fyrirtækjalisti > Nýjustu fréttir > Fréttir á ákveðnum degi > Fréttir frá tímabili
Prentvæn útgáfa
MILE
Milestone - 2Q Results 2006   31.8.2006 16:47:47
Flokkur: Afkomufréttir   Skuldabréfafréttir      Íslenska  English
 Milestone 06 2006.pdf
 Milestone 2Q 2006.pdf
The consolidated profit of Milestone ehf

The consolidated profit of Milestone ehf. for the first six months of year 2006 amounted to over ISK 1.9 billion after tax. During the year, the company's growth has been defined by the advent of strong units and good profits of associated companies. Milestone's operation during the period is characterized by extensive investments, operation of subsidiaries and management of associated companies. As a great part of the portfolio of assets is composed by listed companies, the profit generates from general market conditions. At the same time, exchange rate changes of the Icelandic krona have affected the operation and financial standing of the company.

 

The company's main investments were made at the beginning of May when Milestone purchased Glitnir's share of 33.4% in the insurance company Sjova and holds thereby all shares in the company. On June 30, the company purchased all shares in L&H eignarhaldsfelag, which among other things runs the pharmaceutical chain Lyf & heilsa. The purchase reinforces the company's position in the pharmaceutical and health sector.

The same accounting methods are used in the preparation of these Interim Financial Statements as for the Financial Statements of year 2005 but the presentation of the Interim Financial Statements has been changed.  The Financial Statements for the year 2006 will be in accordance with the International Financial Reporting Standards but it is still unclear how much the introduction of the international standards will affect the company's equity.

 

The company's financial standing has been characterized by growth during the past years thanks to investments and reinforcement of equity. The Group's total assets have increased from the beginning of year 2005 from around ISK 11.4 billion to around ISK 115.5 billion and by over ISK 31.6 billion during the first six months of the year. The company's financial standing is strong and is based on reliable assets that have generated good profits during the year. Sjova's part in the Group has reinforced the Group's operation with effective income flow. Milestone's purchase of L&H eignarhaldsfelag will also reinforce the operations but share in profits of this company has not been allowed for in the consolidated income statement or the statement of cash flows in these Interim Financial Statements. According to the income statement, capitalized income tax amounts to ISK 3,134 million but according to the current tax ratio, income tax amounts to ISK 219 million.  The difference is in particular due to the fact that tax liability is not calculated on the basis of a share in a subsidiary, which amounts to ISK 2,987 million. A translation difference on currencies to the amount of  ISK 6.3 billion is expensed in the consolidated Interim Financial Statements.

 

Profits of Milestone's subsidiary, Sjova, on insurance and investment activities amounted to ISK 4.1 billion before tax during the first six months of the year in comparison to ISK 1.7 billion the previous year. Deficit in the company's insurance activities, less investment income, amounted to ISK 271 million during the first six months of the year compared to ISK 1.1 billion for the same period last year. The insurance activities have been incurring deficit for years but are now expected to start recovering.

 

Sjova's insurance activities have generated great results. The company's operating expenses decreased by over 30% during the first six months of the year compared to last year.  The complex ratio of the company's insurance activities, which is operating expenses and claims in proportion to premiums for the period, was 108.7% for the first six months of the year compared to 120.9% for the same period last year.

 

The Group's equity at the beginning of the year amounted to over ISK 25.8 billion but the Group's equity at the end of the period amounted to over ISK 24.1 billion.  Equity ratio of the parent company at the end of the period was in excess of 30% and of the Group little under 21%.

 

The outlook is good for the company's operations for the next six months. Operations of subsidiaries are stable and restructuring projects are going according to plan. Key markets have been developing in a positive direction and Milestone's portfolio of assets has already generated good profits for the period after June 30. The reinforcement of the Icelandic krona has already had positive effects on the Group's operation and financial standing.

 

Main results of the first half of 2006 (all amounts in ISK million)

 

 

 

 

 

 

 

 

 

 

 

 

2006

2005

2005

2004

Income statement

1.1.-30.6

1.1.-30.6

1.1.-31.12

1.1.-31.12.

 

 

 

 

 

Profit from investments and derivatives

(        423)

4.890

18.792

1.199

Operating revenue

4.429

0

4.176

0

Operating expenses

(     5.221)

(          17)

(       5.109)

(             8)

(Loss) profit before income tax

(     1.215)

4.873

17.859

1.191

Income tax

3.134

(        804)

(        3.069)

(           216)

Profit of the period

1.919

4.069

14.790

975

 

 

 

 

 

 

 

 

 

 

Statement of cash flows

 

 

 

 

 

 

 

 

 

Net cash provided by (used in ) operating activities

6.498

807

6.938

(            20)

Net cash used in investing activities

(    28.408)

(   22.670)

(      26.823)

(       7.796)

Net cash provided by (used in) financing activities

21.197

24.583

24.257

7.810

(Decrease) increase in cash and cash equivalents

(        713)

2.720

4.372

(             6)

 

 

 

 

 

 

 

 

 

 

Balance sheet

30.6.2006

30.6.2005

31.12.2005

31.12.2004

 

 

 

 

 

Total assets

115.482

44.474 

83.821

11.395

Total equity

24.171

14.653 

25.871

2.949

Total liabilities

91.311

29.821 

57.950

8.446

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

Equity ratio*

20,9% 

32,9% 

30,9% 

25,9% 

Return on equity

16,2% 

285,7% 

207,4% 

49,4% 

 

 

 

 

 

* Equity ratio of the parent was 30,1% at the end of June 2006.

 

 

 

 

 

 

 

 

 


Til baka