The group’s income in 2013 amounted to ISK 5bn as opposed to ISK 7.6bn the previous year. There was a significant decrease in domestic income, falling approximately 34% from the previous year with investments in Iceland in 2013 at an historic low when account is taken of GDP. The company’s equity at year-end amounted to ISK 1bn and its equity ratio was 26%.
There were few new projects in Iceland during 2013 and we continued our investments overseas. The year was characterised by cost control actions which involved reducing staff numbers and strengthening the company’s infrastructure. The effects of these actions, however, will not be fully realised before the 1st quarter of 2014.
The company continued to invest in development projects in 2013 in countries such as Hungary and Norway. We have complete faith that these investments will provide us with profitable projects in 2014. We saw signs of improvement by the fourth quarter of 2013 and the company has been returning a profit during the first quarter of this year, which is in accordance with expectations. The plans of the new Government to improve the corporate tax and operating environment bring hopes that such actions will stimulate the economy although developments have been slower than anticipated. The establishment of a transparent tax system and regulatory framework for investments in Iceland is of the greatest importance, irrespective of whether the investments in question are by means of domestic or foreign funds.
“We used 2013 to adapt and strengthen our foundations to increase the long term productivity of the company. We will continue our advance in overseas markets and anticipate that the greatest growth will be in the energy sector.“
Profit before depreciation
Operating (loss) profit
Finance income (expenses)
Profit (loss) of the year
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As stated earlier, the operation in 2013 was a disappointment. We have, however, adapted successfully to the operating environment and see exciting although challenging times ahead.