Beautify 1,300 million losses
The annual accounts of Social Housing for last year were confirmed at the company's board meeting yesterday, but according to the account, profit for its operations amounted to almost ISK 1,300 million during the year.
The company is a non -profit company owned by the City of Reykjavik, but its role is to rent out social rental housing that has been allocated from the city's welfare division.
Does not return income for operation
Kjartan Magnússon, board member of the Social Housing and Citizens of the Independence Party, commented on the account in the booking in the minutes.
In his Protocol, Kjartan points out that it does not give a correct picture of the operation of Social Housing to cover the valuation of investment assets of just under ISK 2,600 million, as is done. He believes such a value increase in the company's real estate has been made to beautify the company's income statement.
« Finally, such a change of assessment is calculated, which does not generate real income for the operation. » Without the valuation in question, the company's loss amounts to ISK 1,298 million in 2024.
Further borrowing ahead
Operating income from Social Housing amounted to ISK 7,078 million during the year, operating expenses ISK 4,104 million and net financial expenses ISK 4,272 million.
Kjartan then points out that working capital from operations amounts to only ISK 1,654 million during the year and is properly below the repayments of long -term loans, which amount to ISK 1,606 million.
Thus, there is very little room for investment and it is likely that they will be financed with further borrowing, while the company's liabilities amounted to just under ISK 65 billion at year -end and increased by 2.9% between years.
Far below what is normal
Kjartan is also concerned about the working capital ratio at the end of the year, which is only 0.46, far below what can be considered normal. It is usually considered desirable that the working capital ratio is not below 1.0.
Cash and cash equivalents at the end of the year were only ISK 46 million, which decreased by ISK 383 million from ISK 429 million between years.
Further discussion can be found in the Morgunblaðið which came out today, Friday.
