Annual Report 2007

31 Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 7 REPORT BY THE BOARD OF DIRECTORS which is a decrease of 1%, while added value per employee of CZK 555 252 rep- resented growth of over 15%. 2008 will again be significant for ŽĎAS, a.s. The critical task in this and following years will be the fundamental modernisation and development of the production platform through further investments, while strengthening the company’s own R&D and utilizing support from EU funds. ŽĎAS will continue to develop its business activities in Russia, Ukraine, and Kazakhstan where the company can build on good past references. Co-operation with the subsidiary TS Plzeň a.s. will allow the further exploiting of synergic effects resulting from the dominant position in shaping machine supplies. In 2007, Tále, a.s., recorded sales of merchandise and services in the total amount of SKK 135.8 million, representing a 1.9% decrease compared to 2006. The drop is attributable to a partial decrease in sales due to a shorter winter season and the closing of the Stupka Hotel for refurbishment and repairs. However, despite the aforementioned decrease, the company recorded positive results of operations for the forth time. Tále, a.s. closed 2007 with profit after tax amounting to SKK 1.4 million. During the year, the company managed share capital of SKK 385.0 million after its increase and changes in the shareholders’ structure. Total assets amounted to SKK 491.3 million, with a 16.6% share of external debt on total liabilities. In 2007, the company had 115 employees on average, representing a slight decrease in the employment rate compared to the prior year. By the efficient operation of the holiday and sports resort in 2008 we will aim to further enhance the quality of provided services and the resort’s reputation. We will continue project preparations for the construction of the Brezinky golf course and commence construction of an apartment building in Tále. The company operates in the collection, sorting, and processing of steel scrap and non-ferrous metals. 2007 was extremely important for ŽP EKO QELET a.s. from various aspects. Perhaps the most important was the construction of a new car wreck processing and waste metal treatment plant in Hliník nad Hronom with total annual production capacity of 92 thousand tons, which complies with the most rigorous environmental criteria. The ecological importance of this project is extremely significant for all of Slovakia: accordingly the project was co-financed by the Recycling Fund of the Slovak Republic. In 2008, the plant in Hliník nad Hronom will be in test operation in order to confirm the project parameters guaranteed by the manufacturer. The project has already received Slovakia-wide recognition in the waste management sector. In 2007, the company significantly strengthened its market position. Thanks to the regular supplies to Železiarne Podbrezová a.s. for which high-quality steel scrap is of the priority, ŽP EKO QELET a.s. was able to invest in the construction of further collection yards. At present, the company has 35 operations and collection yards. In 2007, ŽP EKO QELET became the largest Slovak company which operates in the steel scrap industry with a market share of over 25% on supplies in Slovakia. In 2007, the company recorded sales of merchandise, products, and services in the total amount of SKK 1 825.5 million and profit of SKK 1.0 million. ŽP EKO QELET a.s. supplied to Železiarne Podbrezová a.s. a total of 186.3 thou- sand tonnes of steel scrap in 2007, which accounts for 56.5% of total purchases Tále, a.s. ŽP EKO QELET a.s.