Directors’ report for the first quarter 2015
General information
In first quarter 2015, there were no changes in the group structure. At 31 March 2015, the group comprises of 24 companies (31 December 2014: 24).
Significant subsidiaries
Company name | Location | Segment | Share capital (nominal value) |
Equity balance at 31 March 2015 |
The group's interest |
In thousands of euros | |||||
Arco Manastirski EOOD | Bulgaria | development | 2,676 | 3,447 | 100% |
Arco Invest EOOD | Bulgaria | development | 25,976 | -769 | 100% |
Kolde AS | Estonia | development | 28 | -215 | 100% |
Kerberon OÜ | Estonia | development | 5 | 1,194 | 100% |
Marsili II SIA | Latvia | development | 1,524 | 940 | 100% |
Arco Development SIA | Latvia | development | 6,473 | -1,961 | 100% |
Arco Real Estate AS | Estonia | service | 42 | -653 | 100% |
Arco Real Estate SIA¹ | Latvia | service | 1,905 | 107 | 70.6% |
Arco Imoti EOOD | Bulgaria | service | 444 | 130 | 100% |
¹- Non-controlling interest in Arco Real Estate SIA equals to the group’s total non-controlling interest
Key Performance Indicators
In first three months 2015, the group’s revenue from continuing operations was 4.4 million euros, exceeding almost four times the revenue of Q1 2014, when revenue amounted to 1.1 million euros. At the same time, the revenue of service division has been decreased by 8% compared to first quarter of previous year. The increase of the group’s revenue for the first quarter 2015 comes from Development division, where revenue amounted to 3.8 million euros (in Q1 2014: 0.4 million euros), of which 3.5 million euros from the sale of apartments in the group’s development projects in Bulgaria.
In Q1 2015, operating profit (=EBIT) from continuing operations was 0.9 million euros and net profit 0.7 million euros, a year ago the same figures were 0.6 million euros and 0.4 million euros respectively. Moreover, the result of Q1 2014 was impacted by gain from the sale of a subsidiary in amount of more than 0.6 million euros.
Equity to assets ratio continues to improve, being 40.1% at 31 March 2015. At 31 December 2014, the figure was 33.5%.
The group’s net loans have decreased by 2.6 million euros in Q1 2015. As at 31 March 2015, the weighted average annual interest rate of loans is 5.4%. This is a decrease by 0.4 percentage point since the end of year 2014.
In first 3 months 2015, were sold 48 apartments and 5 commercial spaces in projects developed in the group. In Q1 2014, were sold only 2 apartments.
Q1 2015 | Q1 2014 | ||
In millions of euros | |||
Revenue | |||
Development | 3.8 | 0.4 | |
Service | 0.8 | 0.8 | |
Eliminations | -0.2 | -0.1 | |
Total revenue | 4.4 | 1.1 | |
Operating profit (EBIT) | |||
Development | 1.0 | 0.0 | |
Service | 0.0 | 0.1 | |
Unallocated income and expenses | -0.1 | 0.5 | |
Eliminations | 0.0 | 0.0 | |
Total operating profit (EBIT) | 0.9 | 0.6 | |
Finance income and expense | -0.2 | -0.2 | |
Net profit | 0.7 | 0.4 | |
Main ratios | |||
EPS (in euros) | 0.12 | 0.08 | |
ROIC (rolling, four quarters) | 4.8% | 21.2% | |
ROE (rolling, four quarters) | 13.8% | 62.0% | |
ROA (rolling, four quarters) | 4.3% | 14.4% | |
31 March 2015 | 31 Dec 2014 | ||
In millions of euros | |||
Total assets, at period end | 24.3 | 27.0 | |
Invested capital, at period end | 22.2 | 24.1 | |
Net loans, at period end | 10.7 | 13.3 | |
Equity, at period end | 9.8 | 9.1 | |
Average loan term (in years) | 2.4 | 2.3 | |
Average annual interest rate of loans | 5.4% | 5.8% | |
Number of staff, at period end | 184 | 189 |
Cash flows
Q1 2015 | Q1 2014 | |||
In millions of euros | ||||
Cash flows from/used in operating activities | 3.0 | -1.1 | ||
Cash flows from/used in investing activities | -0.1 | 0.0 | ||
Cash flows from/used in financing activities | -2.8 | 1.1 | ||
Net cash flows | 0.1 | 0.0 | ||
Cash and cash equivalents at beginning of period | 1.7 | 0.8 | ||
Cash and cash equivalents at end of period | 1.8 | 0.8 |
Revenue and net profit/loss from continuing operations | |||||||||||||||||
Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 | Total 2012 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Total 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Total 2014 | Q1 2015 | ||
In millions of euros | |||||||||||||||||
Revenue | 1.3 | 3.7 | 2.4 | 3.5 | 10.9 | 1.7 | 3.5 | 3.5 | 2.0 | 10.7 | 1.1 | 1.1 | 1.2 | 5.8 | 9.2 | 4.4 | |
Net profit/loss | -1.2 | -0.3 | 0.3 | -16.5 | -17.7 | 0.0 | 1.4 | 0.1 | 2.0 | 3.5 | 0.4 | -0.3 | 0.4 | 0.6 | 1.1 | 0.7 |
In Q4 2012, financial results were negatively affected by recognition of provisions and revaluation of assets and liabilities in total amount of 15.6 million euros.
Group Chief Executive’s review
The first quarter will be the strongest quarter of 2015 of Arco Vara, providing nearly a half of total revenue predicted for 2015 and over a half of net profit. The sales results of the quarter have also allowed to strongly decrease the loan obligations of the group by a total of 2.5 million euros. The group funded development works of the first quarter in Sofia and Tallinn with its own means, without taking any new loans.
We delivered the majority of apartments at Sofia Manastirski stage II (block AB) to clients. As at the end of the quarter, only 11 apartments and 3 business premises out of 135 units are not yet sold in the apartment building. 7 more apartments are waiting for delivery on the basis of a concluded pre-sales agreement, revenue of which will be recognized in the second quarter. We predict that all apartments of block AB will be sold by the end of the year despite the repeated increase in prices.
We have also started the construction of the final third stage (block D) of the Manastirski project. The speed of pre-sales of block D has also been worrisomely fast. In two months, when the construction of the structure had reached third floor level, nearly a half of the volume of the entire project had been covered with pre-sale agreements. A sobering fact to bring out is that in addition to apartments, we must also successfully realise the business premises of block D which border the street, eight units in total. The demand of small business owners can be assessed after the sale of apartments and after people have moved into the development area. Revenue from block D will be stated in the income statement and cash flows only in the first quarter of 2016 to a significant degree, after the construction is completed and the permit for use is obtained.
To sum up, at this rate the Manastirski apartment stock will be empty by the end of the year. Obtaining a plot of land necessary for continued development in Sofia in 2017 has developed from an urgent question to a critical question. Meanwhile, we must not lose time with the development project at Paldiski road 70c in Tallinn (Kodulahe).
The rent revenue for building premises in Madrid Blvd, Sofia (business and office premises) remains stable at the level of 235 thousand euros per quarter and meets our expectations. The biggest challenge and risk is stabilising rent revenue long-term and finding new tenants for office premises starting from the third quarter of 2015 if necessary. The company started preparations for modernising and redevelopment of rental premises. A pleasing fact is the occupancy rate of rental apartments of Madrid Blvd (14 units) exceeding 65% and the additional rental income received from those, which exceeds 100 thousand euros per year. As the group made a scheduled repayment of the bank loan on the Madrid Blvd building in amount of 950 thousand euros in the first quarter, the repayment date of the principal part of the bank loan has been extended to December 2017 and this enables to make long-term plans for profitable realisation of the building as a rental object of keeping it in the balance sheet of the group as a stable cash generator. We also sold three apartments at Madrid Blvd in the first quarter and made an additional repayment of the project’s bank loan in amount of 203 thousand euros. The number of apartments on sale and for rent has thereby decreased to a total of 30 units. However, the sale of apartments is still not fast enough compared even to our own Manastirski development and we are considering an additional investment for the gradual letting of apartments in stock.
The designing process of Paldiski road in Tallinn (Kodulahe) conforms to the planned schedule and we are hoping to begin the construction and pre-sale of the apartment building of the first stage, with over 120 apartments, at the end of 2015. The delivery of the first apartments is planned for the first quarter of 2017. The objective is to launch a residental product which exceeds the expectations of consumers developed on the Tallinn market.
The sale of development products in Riga (apartments at Bisumuisa-1 and residental plots at Marsili) has essentially ground to a halt and the only good aspect here is that the stock of development projects in Riga and the cash under this is small. The problem is low credit worthiness and borrowing capacity of the market and the unclear perspective in the upcoming year. The group does not plan any new developments in Latvia for 2015.
The results of the second quarter of the group are predicted to be weaker than the results of the first quarter due to the decreasing stock and resulting decreased sales volumes. The third quarter should be weaker than the second quarter in turn, as the stock will have decreased further by then. The Manastirski block D will be completed by the end of the forth quarter, which may influence the sales results of the quarter and will briefly increase the stock of apartments by another 80 units.
DEVELOPMENTS IN ARCO VARA HOME MARKETS
Sofia
In Q1 2015, were made 4,800 sale and purchase transactions with real-estate in Sofia, which is 31% more than in first quarter of last year but 31% less than in forth quarter of 2014. Grounding to the experience of brokers in Arco Vara Bulgarian agency there is growing demand for two-bedroom apartments, especially in the segment with apartment size between 60-85 m2 and price range between 55-65 thousand euros. On one-bedroom apartments is noticed increasing interest for more expensive segment apartments and decreasing demand in lowest price segment (apartment price below 50 thousand euros). The real estate market is recovered mainly in Sofia, there is no signs of growing trend in other regions of Bulgaria. Analysts predict that 2015 summer season in Black Sea coast could be modest in economic terms due to the conflict between Russia and Ukraine and high dependence on tourists from Russia.
Riga
In Q1 2015, transaction activity in Riga market continued decreasing trend, started already in second half of 2014. In first quarter, were concluded 2,192 real estate sales transactions, which is 16% less than in Q4 2014 and 19% less than in Q1 2014. 1,615 apartment sales transactions concluded in first 3 months of 2015, dropped by 17% compared to previous quarter and by 24% compared to Q1 2014. In first quarter 2015, the new projects share was 12% out of all sales transactions with apartments. The rate has been fluctuating between 15-20% during the year 2014. On new apartment segment most sales were concluded with apartments in the price range between 1,000 and 1,400 euros per m2, there were only a few transactions in the price range over 2,500 euros per m2. The further activity of the Riga real estate market will be influenced by a law amendment which will enter into force on 1 March 2015, providing that in the case of bankruptcy proceedings of a private person, the mortgage loan granted to him or her is paid also when the realizable value of the mortgage is less than the outstanding loan (so-called non-recourse loans). Though, such loan agreement type is not obligatory for borrower but only an option. As the self-financing requirements of banks will increase up to at least 30-40% on non-recourse loans, then it is predictable that this agreement type will not be very popular. Latvia and Riga, out of three Arco Vara home markets, is most vulnerable to the adverse developments in Russia and surrounding countries bounded economically and politically to Russia. Trends in Latvian real estate market evidence that clearly.
Tallinn
In Tallinn, 2,905 transactions of purchase and sale of real estate have been completed in Q1 2015, decreased by 4% compared to previous quarter and increased by 4% compared to the Q1 2014. 1,931 transactions for purchase and sale of apartment ownerships were carried out in first quarter in Tallinn, which is 6% less than in Q4 2014 and 3% more than in Q1 2014. The median sales price for apartment ownerships was 1,402 euros per m2 in Q1 2015, which is 1% higher compared to Q4 2014 and 5% higher than in Q1 2014. Then comparing three Arco Vara home markets Tallinn remains relatively the most active market having most stable transaction volumes and sales prices. New apartment building development projects continuing to enter into the market. Increasing supply has stopped the growth in prices, there is already made downwards corrections to sales prices in several projects. The apartment buyer values more and more of quality therefore the construction quality on new developments is rather increasing.
SERVICE DIVISION
In Q1 2015, revenue of service division was 779 thousand euros, that included intra-group revenue of 143 thousand euros (in Q1 2014: 845 thousand and 127 thousand euros, respectively). Revenue of service division from main services (real estate brokerage and valuation services) decreased by 9% compared to the same period of previous year. Revenue increased in Bulgaria and decreased in Latvia and Estonia. Different from Estonia and Latvia, intra-group brokerage has significant share in revenue of Bulgarian agency (56% in Q1 2015 and 52% in Q1 2014).
Revenue of real estate agencies from brokerage and valuation
Q1 2015 | Q1 2014 | Change, % | ||
In thousands of euros | ||||
Estonia | 278 | 334 | -17% | |
Latvia | 243 | 293 | -17% | |
Bulgaria | 180 | 146 | 23% | |
Total | 701 | 773 | -9% |
As a logical consequence of decreasing revenue, Estonian and Latvian agencies end up with the loss in first quarter 2015: Estonian agency’s net loss was 7 thousand euros and Latvian agency’s net loss was 15 thousand euros. In Q1 2014, Estonian and Latvian agency’s had net profit of 9 thousand euros and 17 thousand euros, respectively. Bulgarian agency’s net profit was 51 thousand euros in Q1 2015 (in Q1 2014: 41 thousand euros).
In addition to brokerage and valuation services, the service division also provides real estate management services as well as accommodation service in Bulgaria. The revenue from real estate management was 41 thousand euros in Q1 2015, 28 thousand euros of which was intra-group revenue (in Q1 2014: 45 thousand and 32 thousand euros, respectively). Revenue from accommodation services amounted to 23 thousand euros in first 3 months 2015 (in Q1 2014: 15 thousand euros).
The number of staff in service division has been decreased to 171 employees as at 31 March 2015, which is 5 people less compared to year end 2014.
DEVELOPMENT DIVISION
In Q1 2015, revenue of development division totalled 3,782 thousand euros (in Q1 2014: 397 thousand euros). The big leap in revenues comes from the sale of real estate in the group’s own development projects, amounting to 3,505 thousand euros in Q1 2015 (only 128 thousand euros in Q1 2014). In Q1 2015, were sold 46 apartments and 5 smaller commercial spaces in Manastirski Livadi project II stage and two apartments in Madrid Blvd project in Bulgaria. In first 3 months of 2014, were sold only 2 apartments in Bisumuiza-1 project in Riga. Most of other revenue of development division consisted of rental income from commercial and office space in Madrid Blvd building in Sofia, amounted to 237 thousand euros in Q1 2015 (in Q1 2014: 246 thousand euros).
In Q1 2015, operating profit of development division was 966 thousand euros (in Q1 2014: 44 thousand euros.
In Q1 2015, has been continued the apartment sales on second stage of Manastirski Livadi project, as well as concluded the contracts for apartments presold in 2014. As at 31 March 2015, 11 apartments and 3 commercial spaces remained in stock, out of 135 in total. Also, 7 presold apartments waited for the finalisation of sale transaction. In Bulgaria, there are 2 more apartments unsold in Manastirski Livadi I stage (block C) apartment building and 30 apartments in Madrid Blvd complex. 14 apartments and all parking places, out of all Madrid Blvd unsold assets, are rented out.
In Latvia, there remain 4 last apartments unsold in Bisumuisa-1 project in Riga as well as 15 residental plots in Marsili near Riga. In first three months 2015, there were no sales in Latvia.
In Estonia, there was concluded design contract in February for the first stage apartment building in Paldiski road 70C project. The construction of the apartment building (more than 120 apartments) should start in fourth quarter of 2015.
As at 31 March 2015, 5 people were employed in development division, the same as at the end of year 2014.
SUMMARY TABLE OF ARCO VARA’S PROJECTS AS AT 31 MARCH 2015
Project name | Address | Product main type | Stage | Area of plot(s) (m2) | GSA / GLA (above grade) available or <future target> | No of units (above grade) available or <future target> |
Manastirski A/B | Manastirski, Sofia | Apartments | S5 | - | 2,166 | 21 |
Manastirski C | Manastirski, Sofia | Apartments | S5 | - | 204 | 2 |
Manastirski D | Manastirski, Sofia | Apartments | S4 | 2,223 | 6,672 | 88 |
Madrid Blvd | Madrid Blvd, Sofia | Lease: Retail/Office | S5/S6 | - | 7,350 | 16 |
Madrid Blvd | Madrid Blvd, Sofia | Apartments | S5/S6 | - | 3,429 | 30 |
Bisumuiza-1 | Kometas 2, Riga | Apartments | S5 | - | 105 | 1 |
Bisumuiza-1 | Kometas 4, Riga | Apartments | S5 | - | 278 | 3 |
Marsili residental plots | Marsili, near Riga | Residental plots | S5 | - | 27,545 | 15 |
Marsili residental plots | Marsili, near Riga | Residental plots | S2 | 120,220 | <120,220> | <68> |
Instituudi 7, 9 | Instituudi tee 7,9 Harku | Apartments | S3/S5 | 5,003 | 2,035 | 32 |
PM 70C | Paldiski road 70C, Tallinn | Apartments | S3 | 28,498 | 21,420 | 334 |
Lehiku carpet building | Lehiku 21,23 Tallinn | Apartments | S2 | 5,915 | <1,100> | <5> |
Liimi | Liimi 1b, Tallinn | Lease: Office | S2 | 2,463 | <6,500> | <1> |
Viimsiranna | Haabneeme, Viimsi vald | Office/Mix | S3/S5 | 14,174 | 500 | 1 |
Note: Value presented inbetween < > means future target value as the project is in early (S1, S2) development stage and the building rights or the design have not been finished yet. The table does not reflect sellable or lettable volumes below grade including parking spaces and storages.
Description of stages
S1: Land plot acquired
S2: Building Rights Procedure
S3: Design and Preparation Works
S4: Construction
S5: Marketing and Sale
S6: Facility Management and/or Lease
PEOPLE
As at 31 March 2015, 184 people worked for the group (189 at the end of 2014). Employee remuneration expenses in Q1 2015 amounted to 0.6 million euros (in Q1 2014: 0.6 million euros).
The remuneration of the member of the management board/chief executive and the members of the supervisory board of the group’s parent company including social security charges in first three months 2015 amounted to 25 thousand euros compared with 27 thousand euros in Q1 2014.
MANAGEMENT BOARD AND SUPERVISORY COUNCIL
The management board of Arco Vara AS has one member. Since 22 October 2012, the member of the management board and chief executive of Arco Vara AS has been Tarmo Sild.
At 31 March 2015, the supervisory board of Arco Vara AS has 5 members. As at the end of 2014, the supervisory board had 7 members. On 10 February 2015, extraordinary shareholders meeting recalled previous supervisory board and elected new supervisory board with 5 members. Hillar-Peeter Luitsalu, Allar Niinepuu and Rain Lõhmus, remained from the previous supervisory board and two new members are Steven Yaroslav Gorelik and Kert Keskpaik. The members of previous supervisory board Toomas Tool, Arvo Nõges, Aivar Pilv and Stephan David Balikn will not continue in new board.
More information on key persons of Arco Vara you can find on company’s corporate web page www.arcorealestate.com.
DESCRIPTION OF THE MAIN RISKS
Credit risk
The group’s credit risk arises mainly from two sources: real estate development activities and reliability of the banks where bank deposits are placed. As on real estate transactions a lot of counterparty financing goes through banks, co-operation with financing banks is common to mitigate counterparty risk. And not all cash and cash equivalents are placed on the same banking group. As a consequence, the group considers credit risk as substantially mitigated.
Liquidity and interest rate risks
The base currency of all of the group’s loan agreements is euro and the base interest rate is 3 or 6 months EURIBOR. As a result, the group is exposed to developments in international capital markets. The group does not use hedging instruments to mitigate its long-term interest rate risk. In first three months 2015, the group’s interest-bearing liabilities have decreased by 2.5 million euros and at 31 March 2015 amounted to 12.5 million euros, of which 1.6 million euros is due within next 12 months. In the same time, the group’s cash and cash equivalents totalled 1.8 million euros as at 31 March 2015. In Q1 2015, interest payments on interest-bearing liabilities totalled 0.3 million euros. The group’s weighted average loan interest rate is 5.4% as at 31 March 2015. This is a decrease by 0.4 percentage point in 3 months 2015. The main reason for the decrease of average interest rate is the premature redemption of bonds in February 2015. The bonds bore higher than average interest rate. Side effect had also continuing decrease of EURIBOR rates.
Currency risk
Purchase and sales contracts of provided services are mostly signed in local currencies: euros (EUR) or Bulgarian lev (BGN). Real estate sales are mostly nominated in euros, as a result of which the group’s assets and liabilities structure does not denote a significant currency risk. The group is not protected against currency devaluations. Most liquid funds are held in demand or short-term deposits denominated in euros.
Share and shareholders
Arco Vara AS has issued a total of 6,117,012 ordinary shares with nominal value of 0.7 euros per share. The shares are freely traded on NASDAQ OMX Tallinn stock exchange. As at 31 March 2015, the company had 1,669 shareholders (at 31 December 2014: 1,668 shareholders) and the share price closed at 1.16 euros. The price has increased by 40.1% within three months 2015 (closing price at the end of 2014 was 0.828 euros). During the period, the highest price per share was 1.29 euros and lowest price 0.83 euros. As at 31 March 2015, market capitalization of shares amounted to 7,096 thousand euros and P/E ratio of the share was 5.5 (at 31 December 2014: 5,065 thousand euros and 5.5, respectively).
Major shareholders at 31 March 2015 | No of shares | Interest % |
AS Baltplast | 862,820 | 14.1% |
AS Lõhmus Holdings | 602,378 | 9.8% |
Gamma Holding Investment OÜ | 549,000 | 9.0% |
Alarmo Kapital OÜ | 489,188 | 8.0% |
HM Investeeringud OÜ | 460,000 | 7.5% |
LHV PENSIONIFOND L | 378,765 | 6.2% |
FIREBIRD REPUBLICS FUND LTD | 356,428 | 5.8% |
FIREBIRD AVRORA FUND, LTD. | 185,800 | 3.0% |
LHV PENSIONIFOND XL | 169,583 | 2.8% |
FIREBIRD FUND L.P. | 150,522 | 2.5% |
Other shareholders | 1,912,528 | 31.3% |
Total | 6,117,012 | 100.0% |
Holdings of members of the management and supervisory boards (and connected persons) at 31 March 2015 | Position | No of shares | Interest % |
Rain Lõhmus (AS Lõhmus Holdings) | member of supervisory board | 602,378 | 9.8% |
Hillar-Peeter Luitsalu (HM Investeeringud OÜ, connected persons) | chairman of supervisory board | 498,884 | 8.2% |
Tarmo Sild and Allar Niinepuu (Alarmo Kapital OÜ) |
member of management board/ member of supervisory board |
489,188 | 8.0% |
Kert Keskpaik (privately and through K Vara OÜ) | member of supervisory board | 191,787 | 3.1% |
Steven Yaroslav Gorelik ¹ | member of supervisory board | 3,150 | 0.1% |
Total | 1,785,387 | 29.2% |
¹ - Steven Yaroslav Gorelik is active as fund manager in three investment funds holding interest in Arco Vara (Firebird Republics Fund Ltd, Firebird Avrora Fund Ltd and Firebird Fund L.P) of 692,750 shares (total of 11.3% interest).
Condensed consolidated interim financial statements
Consolidated statement of comprehensive income
Note | Q1 2015 | Q1 2014 | ||
In thousands of euros | ||||
Continuing operations | ||||
Revenue from sale of own real estate | 3,505 | 128 | ||
Revenue from rendering of services | 2,3 | 892 | 985 | |
Total revenue | 4,397 | 1,113 | ||
Cost of sales | 4 | -2,900 | -618 | |
Gross profit | 1,497 | 495 | ||
Other income | 17 | 16 | ||
Marketing and distribution expenses | 5 | -109 | -100 | |
Administrative expenses | 6 | -475 | -453 | |
Other expenses | -12 | -8 | ||
Gain on sale of subsidiary | 0 | 662 | ||
Operating profit | 918 | 612 | ||
Finance income and costs | 7 | -190 | -207 | |
Net profit from continuing operations | 728 | 405 | ||
Discontinued operations | ||||
Loss from discontinued operations | -11 | -13 | ||
Net profit for the period | 717 | 392 | ||
attributable to owners of the parent | 722 | 387 | ||
attributable to non-controlling interests | -5 | 5 | ||
Total comprehensive income for the period | 717 | 392 | ||
attributable to owners of the parent | 722 | 387 | ||
attributable to non-controlling interests | -5 | 5 | ||
Earnings per share (in euros) | 8 | |||
- basic | 0.12 | 0.08 | ||
- diluted | 0.11 | 0.08 |
Consolidated statement of financial position
Note | 31 March 2015 | 31 Dec 2014 | ||
In thousands of euros | ||||
Cash and cash equivalents | 1,797 | 1,691 | ||
Receivables and prepayments | 9 | 647 | 1,205 | |
Inventories | 10 | 9,710 | 11,970 | |
Total current assets | 12,154 | 14,866 | ||
Receivables and prepayments | 9 | 0 | 5 | |
Investment property | 11 | 11,576 | 11,585 | |
Property, plant and equipment | 485 | 434 | ||
Intangible assets | 130 | 113 | ||
Total non-current assets | 12,191 | 12,137 | ||
TOTAL ASSETS | 24,345 | 27,003 | ||
Loans and borrowings | 12 | 1,638 | 3,194 | |
Payables and deferred income | 13 | 1,792 | 2,659 | |
Provisions | 274 | 274 | ||
Total current liabilities | 3,704 | 6,127 | ||
Loans and borrowings | 12 | 10,874 | 11,826 | |
Total non-current liabilities | 10,874 | 11,826 | ||
TOTAL LIABILITIES | 14,578 | 17,953 | ||
Share capital | 4,282 | 4,282 | ||
Share premium | 292 | 292 | ||
Statutory capital reserve | 2,011 | 2,011 | ||
Other reserves | 179 | 179 | ||
Retained earnings | 2,972 | 2,250 | ||
Total equity attributable to owners of the parent | 9,736 | 9,014 | ||
Equity attributable to non-controlling interests | 31 | 36 | ||
TOTAL EQUITY | 9,767 | 9,050 | ||
TOTAL LIABILITIES AND EQUITY | 24,345 | 27,003 |
Consolidated statement of cash flows
Note | Q1 2015 | Q1 2014 | ||
In thousands of euros | ||||
Cash receipts from customers | 5,893 | 1,691 | ||
Cash paid to suppliers | -1,285 | -2,404 | ||
Taxes paid | -1,508 | -285 | ||
Taxes recovered | 5 | 122 | ||
Cash paid to employees | -235 | -224 | ||
Other cash payments and receipts related to operating activities | 127 | -14 | ||
NET CASH FROM/USED IN OPERATING ACTIVITIES | 2,997 | -1,114 | ||
Purchase of property, plant and equipment | -56 | -8 | ||
Proceeds from sale of a subsidiary | 0 | 10 | ||
Loans provided | 0 | -3 | ||
Placement of security deposits | 0 | -258 | ||
Release of security deposits | 0 | 263 | ||
Interest received | 1 | 1 | ||
NET CASH FROM/USED IN INVESTING ACTIVITIES | -55 | 5 | ||
Proceeds from loans received | 12 | 0 | 1,345 | |
Settlement of loans and finance lease liabilities | 12 | -2,533 | -71 | |
Interest paid | -303 | -214 | ||
Other payments related to financing activities | 0 | -5 | ||
NET CASH FROM/USED IN FINANCING ACTIVITIES | -2,836 | 1,055 | ||
NET CASH FLOW | 106 | -54 | ||
Cash and cash equivalents at beginning of period | 1,691 | 818 | ||
Change in cash and cash equivalents | 106 | -54 | ||
Cash and cash equivalents at end of period | 1,797 | 764 |
Consolidated statement of changes in equity
Equity attributable to owners of the parent | Non-controlling interests | Total equity | |||||||||
Share capital | Share premium | Statutory capital reserve | Other reserves | Retained earnings | Total | ||||||
In thousands of euros | |||||||||||
Balance as at 31 December 2013 | 3,319 | 0 | 2,011 | 60 | 1,452 | 6,842 | 12 | 6,854 | |||
Change in non-controlling interests | 0 | 0 | 0 | 0 | -5 | -5 | 5 | 0 | |||
Total comprehensive income for the period |
0 | 0 | 0 | 0 | 387 | 387 | 5 | 392 | |||
Balance as at 31 March 2014 | 3,319 | 0 | 2,011 | 60 | 1,834 | 7,224 | 22 | 7,246 | |||
Balance as at 31 December 2014 | 4,282 | 292 | 2,011 | 179 | 2,250 | 9,014 | 36 | 9,050 | |||
Total comprehensive income for the period |
0 | 0 | 0 | 0 | 722 | 722 | -5 | 717 | |||
Balance as at 31 March 2015 | 4,282 | 292 | 2,011 | 179 | 2,972 | 9,736 | 31 | 9,767 |
Marek Pontus
CFO
Arco Vara AS
Tel: +372 614 4662
marek.pontus@arcovara.ee
http://www.arcorealestate.com