Hungagent H1 profits fall 69.5%
Monday, August 8, 2005, 00:00
Hungagent, owner of Hart-Technik, one of Hungary's largest tool trading companies, had consolidated net profit of Ft 13 million in the first half of 2005, down 69.5% from the same period a year earlier, according to consolidated figures. Hungagent blamed financial losses for the decline in profits, noting revenue rose 2.7% to Ft 405.1million during the period. Hungagent had pre-tax profit of Ft 23 million in the first half of 2005, down 56.3% from the same period a year earlier. Financial losses came to Ft 15 million, compared to financial profits of Ft 12 million a year earlier. Hungagent explained the financial losses with a sharp 12-fold rise in financial expenses and a revaluation of securities. Operating profits also fell, however, by 5.6 % to Ft 38 million. Gross profit rose, but personnel costs rose 16% in a year to Ft 74 million. Export sales rose a sharp 25% to Ft 78 million, but domestic sales fell 1.5 % to Ft 327 million. Hungagent's domestic sales volume rose, but not enough to offset falling prices. Total assets rose 29% to Ft 1.152 %. Hungagent H1 profits fall mainly on financial losses properties to reflect their market value alone added Ft 286 million to total assets. Hungagent sold its 6pc stake in Agrimill-Agrimpex in a public purchase offer in May. The sale reduced invested financial assets by Ft 195 million and increased government securities among current assets by a similar amount. Deutsche Balaton AG is Hungagent's majority shareholder, which increased its holding from 89.72% at the start of 2005 to 90.13% in March.