CONSOLIDATED INTERIM REPORT FOR II QUARTER AND 6 MONTHS OF 2015 (UNAUDITED)


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


Attachments

PKG Q2 2015 ENGL.pdf