Assets of the José de Mello Group up 39% in 2000

José de Mello, SGPS, SA, closed 2000 with a remarkable improvement to its main indicators.

Consolidated assets of the José de Mello Group increased by 39% during 2000, up from €1,252 million at the end of 1999 to €1,740.8 million.

This increase was chiefly the result of the agreement involving the merge of the financial area of the José de Mello Group (Banco Mello and Companhia de Seguros Império) with Banco Comercial Português, which provided a holding of about 4.9% in BCP, and of the increase of the holding in Brisa, through José de Mello Investimentos, from 3.2% to about 7%.

Therefore, and also as a result of the increase of the share capital from €69.831 million to €169.591 million, the consolidated shareholders’ equity of the José de Mello Group stood at about €299.279 million at the end of 2000, an increase of about 60%.

Consolidated revenues were also substantially higher than in the previous year, up by about 50% at about €825 million.

Goodwill written down by €106.75 million

The agreement closed with Banco Comercial Português altered the composition of the José de Mello, SGPS, SA, balance sheet and it also allowed the net profit for 2000 to be used almost entirely to write down the goodwill in the sum of €106.7 million. After allowing for this, a net profit was returned in the sum of nearly €1.2 million.

According to Vasco de Mello, chairman of the José de Mello, SGPS, SA, executive committee, the decision to write down goodwill in full during a single year was taken in the light of changes to the accounting policy involving goodwill arising from the consolidation, and it has created the conditions required to generate excellent results in the coming years.

Holding company increases its executive committee

The business during 2000 was also marked by the sale of the ship-repair business carried on by Lisnave and by sustained development of the business in the areas of health-care (José de Mello Saúde), chemical industry (CUF), shipping (Soponata) and energy production (Finertec).

Another outstanding factor in the activity of the José de Mello Group in 2000 was the incorporation of two new holding companies – Adamastor Capital for the new technologies area and José de Mello Residências e Serviços in the retirement home business.

During 2001, the number of members of the José de Mello, SGPS, SA, executive committee was increased from three to five, Vasco de Mello and João de Mello having joined Pedro de Mello, Salvador de Mello e Pedro Rocha e Melo.

This alteration means that Vasco de Mello now chairs the executive committee of the José de Mello holding company alongside his position as director of Brisa.