AS Merko Ehitus consolidated audited financial results for 2020 remain unchanged compared to the preliminary disclosure on 11 February 2021.
STATEMENT OF THE CHAIRMAN OF THE MANAGEMENT BOARD
2020 was a successful year for Merko – we managed to reach our financial goals and finished the financial year with the best result we have seen in recent years, despite COVID-19 restrictions. Our earlier strategic decision to focus more on apartment development has borne fruit – we sold a total of 900 new homes in the three Baltic states combined. This is more than ever and it is the result of our team’s efforts over several years as well as our customers’ continued trust in Merko. Our goal is to keep this trust going forward as we continue to invest in creating new homes and a better living environment.
Although many new investments in the construction market were put on hold due to the pandemic, the group’s new construction contracts’ volume grew higher in 2020. A strong contract portfolio ensures us steady business volumes in a persistently difficult economic environment. However, risks in construction have increased further: the pandemic has increased uncertainty as to economic development, possible disruptions in supply chains, unexpected price changes and availability of manpower. In such circumstances we aim to keep the company’s financial status strong and be prepared to make quick decisions.
The COVID-19 crisis brought into spotlight the need to maintain the health of one’s employees and business partners as well as to ensure a safe working environment, but also a safe apartment purchase process. In the early weeks of the pandemic we quickly developed a corona prevention action plan that was implemented in our group companies and we are proud to state that other construction companies also followed suit.
In 2020 Merko celebrated 30 years in the business. Today, we are an international company that does half of its business outside Estonia. Over decades we have built a multitude of modern and lasting buildings as well as life quality improving civil engineering objects in Estonia, Latvia and Lithuania, and for the past five years also in Norway. We focus on a long-term outlook, lasting solutions, and quality. We uphold the same values when contributing to society. We are a supporter of Estonian art, we collaborate with universities, and through developing the health trails network we help to acknowledge the importance of regular exercise. The world is changing rapidly and so we build with the future in mind. Digital solutions, changing consumer behaviour, increasingly more environmental-friendly way of thinking and a new professional generation will help us succeed also in the decades to come.
I would like to thank all of Merko’s employees and business partners for a productive year as well as our clients and home buyers who have put their faith in Merko. I would also like to extend my gratitude to all the shareholders who believe in Merko’s future.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in thousand euros
Cost of goods sold
General and administrative expenses
Other operating income
Other operating expenses
Profit (loss) from joint ventures
Profit before tax
Corporate income tax expense
Net profit for financial year
incl. net profit attributable to equity holders of the parent
net profit attributable to non-controlling interest
Other comprehensive income (loss), which can subsequently be classified in the income statement
Currency translation differences of foreign entities
Comprehensive income for the period
incl. attributable to equity holders of the parent
attributable to non-controlling interest
Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
in thousand euros
Cash and cash equivalents
Trade and other receivables
Prepaid corporate income tax
Investments in joint ventures
Other long-term loans and receivables
Deferred income tax assets
Property, plant and equipment
Payables and prepayments
Income tax liability
Deferred income tax liability
Other long-term payables
Equity attributable to equity holders of the parent
Statutory reserve capital
Currency translation differences
TOTAL LIABILITIES AND EQUITY
AS Merko Ehitus audited annual report for 2020 is attached to the announcement and is also published on NASDAQ Tallinn and Merko’s web page (group.merko.ee).
Chairman of Management Board
AS Merko Ehitus
+372 650 1250
Head of Group Finance Unit
AS Merko Ehitus
+372 650 1250
AS Merko Ehitus (group.merko.ee) group consists of AS Merko Ehitus Eesti in Estonia, SIA Merks in Latvia, UAB Merko Statyba in Lithuania and Peritus Entreprenør AS in Norway. Besides providing construction service as a main contractor, the group’s other major area of activity is apartment development. As at the end of 2020, the group employed 666 people, and the group’s revenue for 2020 was EUR 316 million.