Business News

Sava Group Loss Just Shy of EUR 100m

Kranj, 26 April (STA) - Conglomerate Sava posted a net loss of EUR 99.9m for 2010 compared to a EUR 23.4m net profit for 2009, largely on account of write-downs on its stake in troubled hardware retailer Merkur, the company said in its earnings report Tuesday. Sales grew 2% to EUR 176.7m.

The supervisory and management boards will ask the shareholders to leave accumulated profit untouched, as the company has used up the bulk of reserves from previous year to deal with the write-downs. To whip its finances into shape, Sava also plans to sell off financial assets.

Sava has already put its 24% stake in the bank Abanka up for sale. It is also the biggest shareholder of the bank Gorenjska banka (46.06%) and holds significant stakes in two big financial firms, but it has not disclosed whether these holdings will also be offloaded.

Sava was supposed to report its audited earnings report by 31 March, according to Ljubljana Stock Exchange rules. But problems caused by the preparation of financial reports at two associated companies delayed the report by nearly a month.

Sava lost nearly 2% in midday trading on the LJSE today, to EUR 57. The share is down 40% so far this year compared to a 10% loss for the SBI TOP benchmark.

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