SCM Posts Its First IFRS Financials.

System Capital Management (SCM), Ukraine’s largest corporation, which controls assets in metal & mining, machine building, telecommunications, energy & coal industry, food industry and banking & financial services disclosed the highlights of its first IFRS financials. These financials were prepared by PriceWaterHouseCoopers for 2004. The company’s consolidated gross revenue in 2004 amounted to USD 5.2 bln and its net income comprised USD 1.1 bln, while assets totaled USD 5.2 bln. SCM employs 155 ths people. It is owned by Rinat Akhmetov, one Ukaraine’s richest men, and soon to be Rada deputy on the Party of Regions ticket. Concorde Capital: Assets linked to the SCM group include Azovstal (AZST: HOLD), Khartsyzk Tube (HRTR: SELL), Azovzahalmash (AZGM: BUY), Mariupol Heavy Machinery (MZVM: BUY), Pivnichny GOK (SGOK), Tsentralny GOK (CGOK) and a number of others. We see the publication of some SCM’s IFRS financials as an important step toward further transparency. We expect SCM to improve corporate governance and enhance its protection of minority shareholder rights in the companies it controls.