CONSOLIDATED INTERIM REPORT FOR III QUARTER AND 9 MONTHS OF 2015 (UNAUDITED)


During the third quarter of 2015 Pro Kapital continued the construction works of the new T1 shopping and entertainment centre in Tallinn, which is the Company´s largest single-object development project. Active negotiations with several local and international retail operators were carried on with over 55% of the leasable area being covered with signed lease agreements. The Company continued also the construction works in two of its residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.

Total revenue for nine months of 2015 was 12,9 million euros, an increase of 58% compared to the reference period (2014 9 months: 8,2 million euros). Net operating result during nine months increased by 0,8 million euros (47%) compared to the reference period, totalling to losses of 0,9 million euros (2014 9 months loss of 1,7 million euros). Net operating profit for the third quarter was 0,5 million euros (2014 Q3 loss of 0,5 million euros). Net result for nine months of 2015 has increased by 0,1 million euros (3%) compared to the reference period, totalling to losses of 2,8 million euros (2014 9 months loss of 2,9 million euros). Net result for the third quarter was loss of 1,3 million euros (2014 Q3 loss of 0,9 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 25 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, 27 apartments have been handed over to the clients and 4 out of 31 apartments are yet on sale. In the second building 6 apartments have been handed over to the clients, 9 presale agreements have been signed and in the third building 11 presale agreement have been signed. For Kliversala project in Riga 8 presale agreements have been signed out of 49 apartments.

 

Key financial figures

  2015 9M 2014 9M 2015 Q3 2014 Q3
         
Revenue, th EUR 12 911 8 161 3 017 2 252
Gross profit, th EUR 3 327 2 339 960 929
Gross profit, % 26% 29% 32% 41%
Operating result, th EUR -906 -1 720 -466 -529
Operating result, % -7% -21% -15% -23%
Net result, th EUR -2 833 -2 906 -1 253 -946
Net result, % -22% -36% -42% -42%
         
Earnings per share, EUR -0,05 -0,05 -0,02 -0,02
         
  30.09.2015 31.12.2014 30.09.2014  
         
Total Assets, th EUR 127 522 125 031 98 531  
Total Liabilities, th EUR 45 136 39 243 36 204  
Total Equity, th EUR 82 386 85 788 62 201  
Debt/ Equity * 0,55 0,46 0,58  
         
         
Return on Assets, % ** -2,2% 17,9% -2,9%  
Return on Equity, % *** -3,6% 26,1% -4,7%  
         
Net asset value per share, EUR **** 1,52 1,59 1,15  

 

Consolidated interim statements of financial position

  

in thousands of euros Notes 30.09.2015 31.12.2014
       
ASSETS      
Current Assets      
  Cash and cash equivalents   8 244 1 881
  Current receivables   1 079 2 463
  Inventories   12 597 14 535
Total Current Assets   21 920 18 879
         
Non-Current Assets      
  Non-current receivables   50 150
  Property, plant and equipment 5 17 162 17 619
  Investment property                   6 88 110 88 110
  Intangible assets   280 273
Total Non-Current Assets   105 602 106 152
       
TOTAL ASSETS   127 522 125 031

  

in thousands of euros Notes 30.09.2015 31.12.2014
LIABILITIES AND EQUITY      
Current Liabilities      
  Current debt                                                          7 7 171 16 348
  Customer advances   1 707 1 548
  Current payables   3 002 4 761
  Taxes payable   415 177
  Short-term provisions   91 5
Total Current Liabilities   12 386 22 839
         
Non-Current Liabilities      
  Long-term debt  7 29 650 13 430
  Other long-term liabilities   10 79
  Deferred income tax liability   2 677 2 744
  Long-term provisions   413 151
Total Non-Current Liabilities   32 750 16 404
       
TOTAL LIABILITIES   45 136 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   -2 935 21 381
Total equity attributable to equity holders of the parent   80 829 83 764
       
Non-controlling interest   1 557 2 024
TOTAL EQUITY   82 386 85 788
       
TOTAL LIABILITIES AND EQUITY   127 522 125 031

 

Consolidated interim statements of comprehensive income

 

in thousands of euros Notes 2015 9M 2014 9M 2015 Q3
         
Operating income        
Revenue 8 12 911 8 161 3 017
Cost of goods sold 9 -9 584 -5 822 -2 057
Gross profit 10 3 327 2 339 960
         
Marketing expenses   -414 -375 -121
Administrative expenses 11 -3 755 -3 981 -1 367
Other income   204 357 110
Other expenses   -268 -60 -48
Operating profit (loss)   -906 -1 720 -466
         
Financial income 12 11 44 2
Financial expense 12 -1 922 -1209 -787
Profit (loss) before income tax   -2 817 -2 885 -1 251
Income tax   -16 -21 -2
Net profit (loss) for the period   -2 833 -2 906 -1 253
         
         
         
Equity holders of the parent   -2 935 -2 770 -1 232
Non-controlling interest   102 -136 -21
         
         
Earnings per share (EUR) 13 -0,05 -0,05 -0,02
Diluted earnings per share (EUR) 13 -0,05 -0,05 -0,02

 

Consolidated interim statements of cash flows

 

in thousands of euros Note 2015 9M 2014 9M 2015 Q3 2014 Q3
           
Cash flows from operating activities          
Profit (loss) for the year   -2 833 -2 906 -1 253 -946
Adjustments for:          
     Depreciation and amortisation of non-current assets 5 504 527 158 202
     Change in fair value of investment property 6 206 560 26 299
     Gain/loss from sale of PPE   0 -3 0 -1
     Gain/loss from disposal of subsidiary 4 0 -19 0 0
     Finance income and costs, net 12 1 911 1 121 785 292
     Other non-monetary changes (net amounts)   229 647 164 115
Movements in working capital:          
     Change in trade receivables and prepayments 1 384 -495 4 -363
     Change in inventories   1 937 -1 181 -505 -1 902
     Change in liabilities and prepayments   -1 362 2 350 -842 1 526
     Change in provisions   346 -42 340 -21
Net cash generated by operating activities 2 322 559 -1 125 -799
         
Cash flows from investing activities          
Payments for property, plant and equipment 5 -50 -79 -10 -45
Proceeds from disposal of property, plant and equipment   0 7 0 1
Payments for intangible assets   -13 0 -13 0
Payments for investment property 6 -206 -560 -26 -299
Proceeds from disposal of subsidiaries   0 142 0 142
Interest received   4 6 1 2
Net cash used in investing activities   -265 -484 -48 -199
           
Cash flows from financing activities          
Proceeds from non-convertible bonds   7 652 547 652 247
Repurchase of convertible bonds   -62 0 0 0
Proceeds from borrowings   2 808 1 840 611 493
Repayment of borrowings   -4 219 -2 265 -514 -188
Interest paid   -1 873 -1 062 -1 193 -480
Net cash used in/ generated by financing activities   4 306 -940 -444 72
           
Net change in cash and cash equivalents 6 363 -865 -1 617 -926
           
Cash and cash equivalents at the beginning of the period 1 881 2 759 9 861 2 820
Cash and cash equivalents at the end of the period 8 244 1 894 8 244 1 894

 

 

 

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


Attachments

PKG Q3 2015 ENGL.pdf