We have the satisfaction of presenting you with the annual account which once again reflect the excellent financial situation of our company and the very positive development of the business. We consider the analysis of these financial statements to be the best guarantee of the management carried out over the past financial year of 2004 by all members of the company.
The turnover has gone up no less than 49.20% on last year’s figure and is in excess of 62 million euros. It should also be noted that the direct costs have practically been maintained at the same percentage over sales; they have only increased from 76.8% to 78.85%, and other operating costs in percentage terms have decreased with respect to the previous year and represent 13 percent of sales.
The joint effect of all of this has been a increase of 62.28% in operating profit over 2003. If we add the positive outcome, we reach a growth of 60.91% on the profits from regular activities over those of 2003, amounting to over 5 million euros, representing 8.09 over sales.
Finally, the profit and loss balance, which has gone up to 3,327,493.29 euros. This figure represents 5.29% of the net turnover: for every 100 euros of sales, the company receives 5.29 euros after taxes, which represents a very important ratio within our sector of activity.
With regard to the figures on the balance sheet, it should be noted that equity stands at 4,015,380.68 euros, which completely covers the fixed assets and 15% of the assets; the working capital amounts to 3,087,924.93 euros, almost 14% higher than the figure required in the short term; and the composition of the current assets of 15% are liquid assets.
Finally, to indicate some of the aspects of the statement of source and application of funds: in the 2004 accounting period, the funds generated in operations came to over 3.6 million euros, with 60% growth over 2003. 32% of that amount has been utilized to improve the working capital, which in this way has increased from a ratio of 1.11 to the present ratio of 1.14, and 16% has been put to new investments in the fixed assets.
The basic lines of our business strategy are directed towards maintaining the development of our business with a growth rate similar to that of 2004, in such a way that in this year we will obtain similar percentage increases in the main figures, maintaining the quality and solvency of our balance sheet.
These budgets are confirmed by the results obtained so far, bearing in mind the enormous difficulties that are in general facing all economic activity on both a national and international level, and in particular in the specific sector of our activity.
Given the characteristics of our financial sector, there has been no activity in this area.
During the 2004 period, there have been no transactions with our own shares.
There have been no events or incidents of any importance after the closing of the yearly accounts that could have any effect on the figures for 2004 or that need to be brought to the attention of the shareholders.
Marbella, 31st March 2005.