Annual report 2013
The VVO Group had a turnover of EUR 346.6 (335.4) million for the period 1 January–31 December 2013. The VVO Non-subsidised segment recorded a turnover of EUR 174.3 (169.5) million, and the VVO State-subsidised segment EUR 183.3 (175.3) million. Turnover was increased by the growth in revenue from rental activities.
The Group posted an operating profit of EUR 116.2 (112.7) million, representing 33.5 (33.6) per cent of turnover. Profit before taxes amounted to EUR 75.9 (62.5) million. The result includes EUR 8.7 (5.0) million in sales gains from fixed assets. Our favourable profit performance is based on the successful management of maintenance costs, a small tenant turnover rate, a good usage rate, and low financial costs. Financial income and expenses included in the result totalled EUR -40.3 (-50.2) million. The increase can be seen in the VVO Non-subsidised segment in particular, with profit before taxes amounting to EUR 57.2 (43.3) million. The VVO State-subsidised segment recorded a profit before taxes amounting to EUR 18.9 (19.4) million.
The recognition practice for VVO Group repair expenses has been specified. Repair expenses of the cost principle product group, which do not increase the ability to generate revenue, are recognised as expenses. The income statement and balance sheet for 2012 have been altered to correspond to the changes made. The change in recognition practice increased repair expenses for 2013 by EUR 11.4 (7.8) million.
Deferred tax assets and liabilities are recognised according to the new community tax rate. This increased equity in the consolidated balance sheet by EUR 22.6 million. The effect of the change in community tax rate on deferred taxes and profit after taxes for the financial year was EUR 19.3 million.