Annual_report_2006

A N N U A L R E P O R T 30 REPORT BY THE BOARD OF DIRECTORS • Increase in ownership interest in ŽĎAS, a.s. in connection with the purchase of shares from minority shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + SKK 105.7 million • Increase in the registered capital of ŽP EKO QELET a.s. . . . . . . . . . . . . . . . . + SKK 24.0 million • Purchased ownership interest in GAMO a.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . + SKK 13,1 million • Establishment of HRON – AIR s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + SKK 11.0 million • Increase in the registered capital of ŽP PRAKO s.r.o. . . . . . . . . . . . . . . . . . . . . + SKK 10.1 million • Entry into Norstone Nízke Tatry, s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + SKK 3.0 million • Its subsequent renaming and merger with ŽP–Invest s.r.o. . . . . . . . . . . . . . . + SKK 3.0 million • Purchase of remaining part of ŽP Tažírny trub Svinov s.r.o. . . . . . . . . + SKK 784.8 thousand • Entry into Motor–Car Podbrezová s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . + SKK 490.0 thousand • Acquisition of a 5.17% ownership interest in insurance company STABILITA d.d.p., a.s., in connection with its transformation to a joint-stock company . . . . . . . . . + SKK 2.8 million • Sale of a 3.364% ownership interest in SIDERIA, zdrav. poisťovňa, a.s. . . . – SKK 5.7 million • Winding-up of SCRAPING, s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – SKK 27.9 thousand During the previous year, the following additions/disposals were posted to accounts of finan- cial investments, with the following impact on respective ownership interests held by Železiarne Podbrezová a.s. in individual entities: ŽĎAS, a.s. In economic terms, 2006 can be evaluated as the most successful year in the new histo- ry of joint-stock company ŽĎAS, which there- by met the expectations as regards both prosperity and the Company’s overall dynamic growth. It may be concluded that the Company managed to achieve the strategic objectives as set out by Železiarne Podbrezová a.s. and thus strengthened its position in relation to European and global competition. During the previous year, ŽĎAS, a.s., sold goods and manufactured and sold products and services totalling CZK 3 189 million (SKK 4 005 million), which is an increase of 9.3% compared to 2005. Exports represented 49.25% of the increase. When evaluating the economic development in 2006 compared to the previous period, the total growth of economic indicators can be concluded, i.e. profitability of sales by 38.4%, output by 12.1%, and profit by 51.2%. The previous year was the fourth consecu- tive year that the Company managed to generate profit after taxation, amounting to CZK 220 435 thousand (SKK 276 866 thou- sand). The Board of Directors recommended that the Company’s General Meeting approve payout of dividends from the 2006 profit. The Company’s registered capital amounted to CZK 1 395 million (SKK 1 752 million), with total assets of CZK 3 255 million (SKK 4 083 million) and 38.8% leverage ratio. In 2006, the Company employed 2 780 employees, which is a decrease of 3.7% compared to 2005.. Tále, a.s. In 2006, joint-stock company Tále confirmed the high quality of its provided services. This was reflected in the structure and an addi- tional increase in visitor numbers. The quality of the golf course is manifested by the num- ber of organised events and outstanding quality assessments from recognized authorities. Emphasis should also be placed on the fact that during the winter season Tále, a.s., was one of the few ski resorts which managed to provide non-stop operation despite the extremely unfavourable weather.