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E-Star first-half net income, revenue rise sharply as a result of EETEK acquisition

Hungarian energy-efficiency, alternative- and renewable-energy company E-Star Alternative Energy Services recorded fourfold increases in net income and revenue in the first half of 2011 due to the consolidation of the results of acquired Polish peer EETEK Group, E-Star Alternative's consolidated, unaudited first-half IFRS report published on Thursday show.

E-Star closed the EETEK acquisiton, included two Hungarian projects in addition to the group's operations in Poland, on July 12, 2011. E-Star said earlier it would pay €21 million for the Polish group.

Sales revenue rose to €37.1 million in the first half of 2011, up just under fourfold from €9.74 million one year earlier.

E-Star had net income of €7.66 million in the first half of 2011, up more than fourfold from €1.78 million in H1 2010.

EBITDA rose to €3.38 million from €2.88 million , and a major boost came from net financial profit of €6.98 million registered in H1 this year instead of net financial losses of €168,000 one year earlier.

The company had total assets of €131.1 million on June 30, 2011, more than doubled from June 30, 2010 as fixed assets almost doubled to €72.33 million and current assets more than doubled to €58.80 million .

Total equity grew to €34.99 million from €14.36 million at the end of June 2010. Long-term liabilities rose to €51.41 million from €27.30 million and short-term liabilities rose to €44.73 million from €21.20 million.

E-Star announced in May that it had signed a deal to acquire 100% of Poland's EETEK Group for €21 million, doubling the company's size boosting revenue by €40 million.

This is the first time that E-Star, an A-category issuer at the Budapest Stock Exchange, publishes its report in euros.