Administrative Court rules in favour of Klövern on 2003 tax surcharge

Real estate firm Klövern (STO: KLOV) said emphatically that the Administrative Court ”quashed” previously imposed tax surcharge of 493 million for 2003 tax assessment. The court said that while Klövern has objectively submitted incorrect information but that a surcharge to be imposed on that would be unreasonable.

Klövern has had a respite with the payment and has not made any charges on its accounts. Therefore there is no impact on its profit accounts. The Tax Agency may appeal to the Administrative Court of Appeal. The stock was up by 1% in line with the rest of the market.

Klövern Q2 2011

Growth region oriented Klövern (STO: KLOV) was third in line from the real estate sector in Stockholm to report. It also did well as was expected. Operating surplus for first six months is the best ever for the company. The company CEO ’feels good’ that rental levels are rising and Klövern managed to keep property management earnings at the same level despite increased financial costs.

Earnings per share for second quarter were 1.01 SEK where as in 2010 Q2 it was 0.73 SEK. Cash flow was slightly negative after 223 million of investment activities and dividend payment. Klövern is slightly over half a per cent an hour before close. Full interim report is available here.