Audited annual report 2014


AS Pro Kapital Grupp Council has on 17.04.2014 approved the audited annual report for the financial year 2014.

Company’s audited and consolidated revenue for financial year 2014 amounted to 10,335 million euros. Compared to the 2013 revenue of 12,287 million euro the revenue decreased by 15,9%. Company’s audited net profit amounted to 21,235 million euro, in the year 2013 the Company´ net loss amounted to 2,578 million euro.

Results of 2014 were significantly influenced by the Management decision to reclassify part of inventories as investment property. Due to reclassification, the company recorded extra income in amount close to 30 million euros which comes from difference between former inventories in cost value and investment properties in fair value. Fair value is based on valuations provided by an independent valuator Newsec Valuations.

The profit for the period in audited annual report and interim report of fourth quarter 2014 (21 235 and 22 369 thousand euros respectively) differs by 1 134 thousand euros, the amount of currency exchange differences from Latvian subsidiaries recorded in preceding periods. As Latvia joined Eurozone on 01 January 2014 the exchange differences are considered realized and are written off into costs. In the interim report the costs of exchange differences were recorded in comprehensive income statement through retained earnings, the auditors have advised to record those losses of exchange difference through income statement for the period. This adjustment increased financial costs, but did not reflect on the company’s balance sheet, the value of assets and owners’ equity remains the same.

In 2014 the Company started with construction works of new buildings in Tondi Elukvartal, Tallinn and Saltiniu Namai residential complex in Vilnius. By the present moment in total over 50 apartments and business units have been sold in those projects, the first new apartment building in Tondi Elukvartal is finished and the Company is planning to continue with construction works of following buildings provided the market sentiment remains positive. The excavation works for the building foundation of the shopping and entertainment centre in Tallinn, Peterburi 2, were also completed and the Company has started the tender process for choosing the main contractor.

The consolidated and audited annual report of AS Pro Kapital Grupp for financial year 2014 is also available at the office of the Company located at Põhja pst 21 Tallinn and also on the company's webpage www.prokapital.com.

         Allan Remmelkoor
         Member of the Management Board
         Tel.: +372 6144 920
         Email: allan.remmelkoor@prokapital.ee


Attachments

PKG 2014 ENG.pdf