Arco Vara AS Interim Report (unaudited) for first quarter 2015


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   -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   -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)      
- 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   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


Attachments

AVG 2015 Q1 ENG.PDF