During the second quarter of 2015 Pro Kapital started construction works of the new T1 shopping and entertainment centre in Tallinn, which is the Company´s largest single-object development project. The value of the contract signed with Merko Ehitus is ca 70 million Euros without VAT. By the moment of issuing the present report lease agreements for over 55% of the leasable area have been signed and active negotiations with several local and international operators are carried on. The Company continued also the construction works in two of its new residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
During and after the reporting period 2 tranches of emission of secured callable fixed rate bonds to the professional investors have been carried through which in total 134 bonds were subscribed in amount of ca 13,5 million Euros. Starting from July the bonds are listed on Nasdaq Stockholm. The proceeds are mainly planned for the development projects of the Company.
Total revenue for six months of 2015 was 9,9 million euros, an increase of 67% compared to the reference period (2014 6 months: 5,9 million euros). Net operating result during six months increased by 0,8 million euros (63%) compared to the reference period, totalling to losses of 0,4 million euros (2014 6 months loss of 1,2 million euros). Net operating profit for the second quarter was 0,3 million euros (2014 Q2 loss of 0,6 million euros). Net result for six months of 2015 has increased by 0,4 million euros (19%) compared to the reference period, totalling to losses of 1,6 million euros (2014 6 months loss of 2 million euros). Net result for the second quarter was loss of 0,4 million euros (2014 Q2 loss of 1,1 million euros).
Presales for Vilnius Šaltinių Namai project and Tallinn’s Tondi residential quarter have been successfully continued. At the moment of issuing interim report 18 premises out of 19 in Vilnius K7 building have been sold (notary deeds concluded for 18 of them) and reservations for 18 apartments out of 44 in K4-1 building have been signed. In Tallinn, Tondi quarter, by the moment of issuing the present report the first building of Marsi Street has been completed, 24 apartments have been handed over to the clients and 4 out of 31 apartments are yet on sale. In the second building 12 presale agreements and in the third building 9 presale agreement have been signed. For Kliversala project in Riga 8 presale agreements have been signed out of 49 apartments.
Key financial figures
2015 6M | 2014 6M | 2015 Q2 | 2014 Q2 | |
Revenue, th EUR | 9 894 | 5 909 | 6 759 | 2 748 |
Gross profit, th EUR | 2 367 | 1 410 | 1 770 | 647 |
Gross profit, % | 24% | 24% | 26% | 24% |
Operating result, th EUR | -440 | -1 191 | 282 | -640 |
Operating result, % | -4% | -20% | 4% | -23% |
Net result, th EUR | -1 580 | -1 960 | -422 | -1 050 |
Net result, % | -16% | -33% | -6% | -38% |
Earnings per share, EUR | -0,03 | -0,04 | -0,01 | -0,02 |
30.06.2015 |
31.12.2014 | 30.06.2014 | ||
Total Assets, th EUR | 128 789 | 125 031 | 97 392 | |
Total Liabilities, th EUR | 45 150 | 39 243 | 34 248 | |
Total Equity, th EUR | 83 639 | 85 788 | 63 144 | |
Debt/ Equity | 0,54 | 0,46 | 0,54 | |
Return on Assets, % | -1,3% | 17,9% | -2,0% | |
Return on Equity, % | -2,0% | 26,1% | -3,1% | |
Net asset value per share, EUR | 1,55 | 1,59 | 1,17 |
Consolidated interim statements of financial position
in thousands of euros | Notes | 30.06.2015 | 31.12.2014 | |
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 9 861 | 1 881 | ||
Current receivables | 1 084 | 2 463 | ||
Inventories | 12 093 | 14 535 | ||
Total Current Assets | 23 038 | 18 879 | ||
Non-Current Assets | ||||
Non-current receivables | 49 | 150 | ||
Property, plant and equipment | 5 | 17 323 | 17 619 | |
Investment property | 6 | 88 110 | 88 110 | |
Intangible assets | 269 | 273 | ||
Total Non-Current Assets | 105 751 | 106 152 | ||
TOTAL ASSETS | 128 789 | 125 031 |
LIABILITIES AND EQUITY |
|||||
Current Liabilities | |||||
Current debt | 7 | 11 351 | 16 348 | ||
Customer advances | 1 467 | 1 548 | |||
Current payables | 7 546 | 4 761 | |||
Taxes payable | 543 | 177 | |||
Short-term provisions | 5 | 5 | |||
Total Current Liabilities | 20 912 | 22 839 | |||
Non-Current Liabilities | |||||
Long-term debt | 7 | 21 166 | 13 430 | ||
Other long-term liabilities | 222 | 79 | |||
Deferred income tax liability | 2 693 | 2 744 | |||
Long-term provisions | 157 | 151 | |||
Total Non-Current Liabilities | 24 238 | 16 404 | |||
TOTAL LIABILITIES | 45 150 | 39 243 | |||
Equity attributable to equity holders of the parent | |||||
Share capital in nominal value | 10 821 | 10 821 | |||
Paid in capital | 1 474 | 1 474 | |||
Statutory reserve | 1 082 | 1 064 | |||
Revaluation reserve | 9 389 | 9 389 | |||
Foreign currency differences | -143 | -143 | |||
Retained earnings | 61 141 | 39 778 | |||
Profit (loss) for the period | -1 703 | 21 381 | |||
Total equity attributable to equity holders of the parent | 82 061 | 83 764 | |||
Non-controlling interest | 1 578 | 2 024 | |||
TOTAL EQUITY | 83 639 | 85 788 | |||
TOTAL LIABILITIES AND EQUITY | 128 789 | 125 031 |
Consolidated interim statements of comprehensive income
in thousands of euros | Notes | 2015 6M | 2014 6M | 2015 Q2 | 2014 Q2 |
Operating income | |||||
Revenue | 8 | 9 894 | 5 909 | 6 759 | 2 748 |
Cost of goods sold | 9 | -7 527 | -4 499 | -4 989 | -2 101 |
Gross profit | 10 | 2 367 | 1 410 | 1 770 | 647 |
Marketing expenses | -293 | -243 | -194 | -127 | |
Administrative expenses | 11 | -2 388 | -2 330 | -1 207 | -1 126 |
Other income | 94 | 235 | 49 | 159 | |
Other expenses | -220 | -263 | -136 | -193 | |
Operating profit (loss) | -440 | -1 191 | 282 | -640 | |
Financial income | 12 | 9 | 41 | 7 | 9 |
Financial expense | 12 | -1 135 | -796 | -709 | -410 |
Profit (loss) before income tax | -1 566 | -1 946 | -420 | -1 041 | |
Income tax | -14 | -14 | -2 | -9 | |
Net profit (loss) for the period | -1 580 | -1 960 | -420 | -1 050 | |
Equity holders of the parent | -1 703 | -1 946 | -537 | -1 035 | |
Non-controlling interest | 123 | -14 | 115 | -15 | |
Earnings per share (EUR) | 13 | -0,03 | -0,04 | -0,01 | -0,02 |
Diluted earnings per share (EUR) | 13 | -0,03 | -0,04 | -0,01 | -0,02 |
Consolidated interim statements of cash flows
in thousands of euros | Note | 2015 6M | 2014 6M | 2015 Q2 | 2014 Q2 |
Cash flows from operating activities | |||||
Profit (loss) for the year | -1 580 | -1 960 | -422 | -1 050 | |
Adjustments for: | |||||
Depreciation and amortisation of non-current assets | 5 | 331 | 325 | 158 | 130 |
Change in fair value of investment property | 6 | 180 | 261 | 180 | 208 |
Gain/loss from sale of PPE | 0 | -2 | 0 | 0 | |
Gain/loss from disposal of subsidiary | 4 | 0 | -19 | 0 | -2 |
Finance income and costs, net | 12 | 1 126 | 829 | 702 | 475 |
Other non-monetary changes (net amounts) | 82 | 532 | 257 | 686 | |
Movements in working capital: | |||||
Change in trade receivables and prepayments | 1 380 | -132 | 976 | -79 | |
Change in inventories | 2 442 | 721 | 2 390 | -7 | |
Change in liabilities and prepayments | -520 | 824 | 60 | 663 | |
Change in provisions | 6 | -21 | 3 | -22 | |
Net cash generated by operating activities | 3 447 | 1 358 | 4 304 | 1 002 | |
Cash flows from investing activities | |||||
Payments for property, plant and equipment | 5 | -40 | -34 | -34 | -5 |
Proceeds from disposal of property, plant and equipment | 0 | 6 | 0 | 0 | |
Payments for investment property | 6 | -180 | -261 | -112 | -208 |
Interest received | 3 | 4 | 1 | 2 | |
Net cash used in investing activities | -217 | -285 | -145 | -211 | |
Cash flows from financing activities | |||||
Proceeds from non-convertible bonds | 7 000 | 300 | 7 000 | 300 | |
Repurchase of convertible bonds | -62 | 0 | -62 | 0 | |
Proceeds from borrowings | 2 197 | 1 347 | 406 | 620 | |
Repayment of borrowings | -3 705 | -2 077 | -2 884 | -631 | |
Interest paid | -680 | -582 | -95 | -493 | |
Net cash used in/ generated by financing activities | 4 750 | -1 012 | 4 365 | -204 | |
Net change in cash and cash equivalents | 7 980 | 61 | 8 524 | 587 | |
Cash and cash equivalents at the beginning of the period | 1 881 | 2 759 | 1 337 | 2 233 | |
Cash and cash equivalents at the end of the period | 9 861 | 2 820 | 9 861 | 2 820 | |
Allan Remmmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: prokapital@prokapital.ee