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Slovenia Business Week no. 19: Slovenian Companies Increase Profit in 2006

Slovenian companies recorded profits for the 5th consecutive year

beating total losses by EUR 2.57bn in 2006, 41% more than in 2005, the Slovenian Public Legal Records and Related Services Agency (AJPES) said on Wednesday, 16 May.

The report by AJPES includes records of 45,330 companies which reported their financial data, it however does not include banks, insurance companies and some investment firms as well as data on companies in bankruptcy or liquidation proceedings.

The included companies employed 478,839 workers in 2006, 4% more than in 2005, while their total revenues rose by 14% to EUR 66.86bn.

A total of 30,294 companies (66.8%) ended 2006 with a total net profit of EUR 3.14bn, with 959 posting a profit of more than EUR 417,000.

Net losses of EUR 565m were meanwhile reported by 12,890 companies (28.4%) with 230 of them closing the year more than EUR 417,000 in the red.

The EUR 3.14bn of net profit was 26% higher in 2006 over 2005, while net losses were 15% lower. The profit has been increasing in the five-year period, the report says.

According to AJPES, 92.8% of the companies belong to micro companies, 3.9% are small companies and 1.6% medium-sized ones. The share of large companies, employing over half of the workers, stands at 1.7%.

Slovenian industry was the most successful in manufacturing, both regarding the number of employees as well as revenues. Manufacturing is followed by retail, vehicle maintenance and production of consumer goods.

The average gross salary in the Slovenian companies that submitted the data stood at EUR 1,119.

AJPES also analysed annual reports by 59,692 sole proprietors which employed 58,920 people with a total EUR 4.99bn of revenues. A total of 14.3% of sole proprietors ended 2006 with a loss.

They include 99.97% of small sole proprietors that paid out an average gross wage of EUR 674, the AJPES report reads.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency