Operations of Group of Companies Improtex Unprofitable

LLC Improtex, one of the first private companies in independent Azerbaijan, operates at a loss. Owned by the former Minister of Labor and Social Development Fizuli Alekperov (2006-2013), the group at the end of 2013 suffered an operating loss of 58.8 thousand manat, according to the audited financial report.

According to the consolidated financial report, Ltd. Improtex, as well as three other companies of the Group (Improtex Motors, Improtex Travel Tours and Conferences and Improtex Transexpress) had income from core activities (sale and service of automobiles BMW, travel services and so forth), wshich amounted to 3,592 thousand manat, 12% less than in 2012. The cost of sales amounted to 3,115.6 thousand manat. However, given the administrative and so on expenses and interest payments to banks, the group suffered a loss.

In 2013, the parent company received dividends of 351.8 thousand manat. It probably comes to the company’s share in the International Bank of Azerbaijan. Another structure of this group (small enterprise Improtex, formerly part of the group) was also a shareholder of the IBA, but was eliminated in 2013.

As at 31 December the unpaid losses of the group Ltd. Improtex fell to 824 thousand manat. For three years the financial losses of the group were 1,280 thousand manat.

Note that according to the state register of commercial legal entities, Alekperov‘s family also owns other businesses that do not relate directly to the group Improtex. Among them are LLC Improtex Trucks and Buses, Improtex Industries, Improtex Marine and Sport Facilities, Imrex Co Ltd, small businesses Improtex Trading, Improtex Commerce, Improtex Production and others. ------08B