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Fotex first-half net income rises 9.7% on declining sales costs

Asset-management company Fotex posted net income of €3.22 million in the first half of 2010, up 9.7% from €2.93 million a year earlier as sales were little changed and most expenses dropped, the company announced in its consolidated, unaudited preliminary IFRS report for the period. Net profit before tax rose 1.4% to €3.998 million.

Fotex generated sales revenue of €18.279 million in the first half of 2010, down slightly from revenue of 18.281 million in H1 of 2009. Export sales rose 52.1% while consolidated domestic sales fell 14.6% yr/yr.

Sales costs fell more, by 6% to €4.08 million, while operating costs rose 2.1% to €10.32 million. Except for a 29.2% rise of depreciation and amortization costs, all operating expenses were down from a year earlier, including a 4.8% drop in personal-type expenses. The group reduced the number of full-time employees by 73 in one year.

Revenue from property utilization, the group's main activity, fell 4.3% from H1 2009, the company said, citing a week domestic property lease market but the group's manufacturing companies, representing about 20.9% of total sales, rose 7.2%. The company noted that its wholly owned crystal company Ajka Kristály recorded a 66.1% yr/yr increase in net sales in the first half of the year, including a 96.8% rise in export sales.

Total assets rose 19.3% in twelve months to €156.83 million at the end of the first half of 2010, and total liabilities rose 78.8% to €47.41 million. Net assets rose 4.3% to €09.422 million.

Fotex shares trade in the A-category at the Budapest Stock Exchange. (MTI-ECONEWS)