ECONOMY

Michaniki posts major profit growth in the year’s first half

Listed construction company Michaniki showed a 28.76 percent increase in group net profits in the year’s first half, which rose from -13.06 million in 2006 to -16.82 million in the January-June 2007 period. Its turnover also grew by 33.13 percent in the same period, from -77.1 million to -102.7 million year-on-year. Earnings before interest, tax, depreciation and amortization (EBITDA) grew by a considerable 70.1 percent annually, while pretax profits increased by 39.7 percent. Particularly in the construction sector, the company is executing a series of public and private projects with net pretax profit margins of 17.46 percent. Michaniki believes that this level is sustainable, with a possible reduction of up to 1.5 percent once the new projects begin. Its board will continue its strategy of selective participation in the projects proclaimed, intending to obtain similar profit margins.