During the first quarter of 2016 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. The Company continued also the construction works in two of its residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
In Vilnius by the issuing of the present report 32 presale agreements have been concluded out of 44 in building K4-1. In Tondi quarter in Tallinn construction of two first buildings are completed, with 15 flats out of 62 yet in sale. In the 3rd building 17 presale agreements have been signed out of 31 flats. Presales have been started also for the 4th building with 3 reservation agreements signed out of 31 flats. In Riga 7 presale agreements have been signed out of 47 flats in the first residential building in Kliversala project.
During the 1st quarter and subsequently after the reporting period, the Company concluded two tranches of emission of bonds to the professional investors with the total issue price of 16 003 059 euros. The proceeds are mainly planned for the development projects of the Company.
Total revenue for three months of 2016 was 2,8 million euros, a decrease of 11% compared to the reference period (2015 3 months: 3,1 million euros). Net operating result during three months decreased by 0,2 million euros (31%) compared to the reference period, totalling to losses of 0,9 million euros (2015 3 months loss of 0,7 million euros). Net result for three months of 2016 has decreased by 0,3 million euros (28%) compared to the reference period, totalling to losses of 1,5 million euros (2015 3 months loss of 1,2 million euros).
Key financial figures
| 2016 3M | 2015 3M | 2015 12M | |
| Revenue, th EUR | 2 777 | 3 135 | 18 322 |
| Gross profit, th EUR | 263 | 597 | 4 448 |
| Gross profit, % | 9% | 19% | 24% |
| Operating result, th EUR | -949 | -722 | 1 424 |
| Operating result, % | -34% | -23% | 8% |
| Net result, th EUR | -1 481 | -1 158 | -2 010 |
| Net result, % | -53% | -37% | -11% |
| Earnings per share, EUR | -0,03 | -0,02 | -0,04 |
| 31.03.2016 | 31.03.2015 | 31.12.2015 | |
| Total Assets, th EUR | 131 478 | 123 764 | 130 356 |
| Total Liabilities, th EUR | 48 341 | 39 752 | 46 892 |
| Total Equity, th EUR | 83 137 | 84 012 | 83 464 |
| Debt/ Equity * | 0,58 | 0,47 | 0,56 |
| Return on Assets, % ** | -1,1% | -0,9% | -1,5% |
| Return on Equity, % *** | -1,8% | -1,4% | -2,4% |
| Net asset value per share, EUR **** | 1,53 | 1,55 | 1,54 |
Consolidated interim statements of financial position
| in thousands of euros | Notes | 31.03.2016 | 31.03.2015 | 31.12.2015 | |
| ASSETS | |||||
| Current Assets | |||||
| Cash and cash equivalents | 5 787 | 1 337 | 6 392 | ||
| Current receivables | 1 194 | 2 059 | 1 608 | ||
| Inventories | 13 005 | 14 482 | 12 438 | ||
| Total Current Assets | 19 986 | 17 878 | 20 438 | ||
| Non-Current Assets | |||||
| Non-current receivables | 47 | 45 | 48 | ||
| Property, plant and equipment | 5 | 16 942 | 17 460 | 17 103 | |
| Investment property | 6 | 94 227 | 88 110 | 92 457 | |
| Intangible assets | 276 | 271 | 277 | ||
| Total Non-Current Assets | 111 492 | 105 886 | 109 885 | ||
| TOTAL ASSETS | 131 478 | 123 764 | 130 323 | ||
| in thousands of euros | Notes | 31.03.2016 | 31.03.2015 | 31.12.2015 | ||
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities | ||||||
| Current debt | 7 | 9 046 | 16 798 | 8 004 | ||
| Customer advances | 1 620 | 1 403 | 1 692 | |||
| Current payables | 3 867 | 4 090 | 5 103 | |||
| Taxes payable | 288 | 414 | 264 | |||
| Short-term provisions | 3 | 5 | 87 | |||
| Total Current Liabilities | 14 824 | 22 710 | 15 150 | |||
| Non-Current Liabilities | ||||||
| Long-term debt | 7 | 27 173 | 13 416 | 27 054 | ||
| Other long-term liabilities | 2 501 | 739 | 837 | |||
| Deferred income tax liability | 3 486 | 2 733 | 3 503 | |||
| Long-term provisions | 357 | 154 | 347 | |||
| Total Non-Current Liabilities | 33 517 | 17 042 | 31 741 | |||
| TOTAL LIABILITIES | 48 341 | 39 752 | 46 891 | |||
| Equity attributable to equity holders of the parent | ||||||
| Share capital in nominal value | 10 841 | 10 821 | 10 841 | |||
| Paid in capital | 1 669 | 1 474 | 1 669 | |||
| Statutory reserve | 1 082 | 1 064 | 1 082 | |||
| Revaluation reserve | 9 462 | 9 389 | 9 462 | |||
| Foreign currency differences | 0 | -143 | 0 | |||
| Retained earnings | 59 283 | -61 159 | 60 677 | |||
| Profit (loss) for the period | -1 465 | -1 166 | -1 934 | |||
| Total equity attributable to equity holders of the parent | 80 872 | 82 598 | 81 797 | |||
| Non-controlling interest | 2 265 | 1 414 | 1 635 | |||
| TOTAL EQUITY | 83 137 | 84 012 | 83 432 | |||
| TOTAL LIABILITIES AND EQUITY | 131 478 | 123 764 | 130 323 | |||
Consolidated interim statements of comprehensive income
| in thousands of euros | Notes | 2016 3M | 2015 3M | 2015 12M |
| Operating income | ||||
| Revenue | 8 | 2 777 | 3 135 | 18 322 |
| Cost of goods sold | 9 | -2 514 | -2 538 | -13 874 |
| Gross profit | 10 | 263 | 597 | 4 448 |
| Marketing expenses | -117 | -99 | -466 | |
| Administrative expenses | 11 | -1 181 | -1 181 | -5 250 |
| Other income | 105 | 45 | 3 353 | |
| Other expenses | -19 | -84 | -661 | |
| Operating loss | -949 | -722 | 1 424 | |
| Financial income | 12 | 2 | 2 | 13 |
| Financial expense | 12 | -528 | -426 | -2 606 |
| Loss before income tax | -1 475 | -1 146 | -1 169 | |
| Income tax | -6 | -12 | -841 | |
| Net loss for the period | -1 481 | -1 158 | -2 010 | |
| Equity holders of the parent | -1 465 | -1 166 | -1 934 | |
| Non-controlling interest | -16 | 8 | -76 | |
| Other comprehensive income, net of income tax | ||||
| Items that may be classified subsequently to profit or loss | ||||
| Exchange differences on translating foreign operations | 0 | 0 | 143 | |
| Items that will not be classified subsequently to profit or loss | ||||
| Net change in properties revaluation reserve | 0 | 0 | 73 | |
| Total comprehensive loss for the year | -1 481 | -1 158 | -1 794 | |
| Equity holders of the parent | -1 465 | -1 166 | -1 718 | |
| Non-controlling interest | -16 | 8 | -76 | |
| Earnings per share (EUR) | 13 | -0,03 | -0,02 | -0,04 |
| Diluted earnings per share (EUR) | 13 | -0,03 | -0,02 | -0,04 |
Consolidated interim statements of cash flows
| in thousands of euros | Note | 2016 3M | 2015 3M | 2015 12M |
| Cash flows from operating activities | ||||
| Loss for the year | -1 158 | -1 158 | -2 010 | |
| Adjustments for: | ||||
| Depreciation and amortisation of non-current assets | 5 | 174 | 173 | 693 |
| Change in fair value of non-current assets | 0 | 0 | -44 | |
| Change in fair value of investment property | 6 | 0 | 0 | -3 041 |
| Finance income and costs | 12 | 526 | 424 | 2 593 |
| Other non-monetary changes (net amounts) | 29 | -175 | 645 | |
| Changes in working capital: | ||||
| Trade receivables and prepayments | 777 | 404 | 957 | |
| Inventories | -567 | 52 | 2 097 | |
| Liabilities and prepayments | 381 | -580 | 878 | |
| Provisions | -76 | 3 | 730 | |
| Net cash from operating activities | -237 | -857 | 3 498 | |
| Cash flows from investing activities | ||||
| Payments for property, plant and equipment | 5 | -13 | -6 | -55 |
| Payments for intangible assets | -1 | 0 | -13 | |
| Payments for investment property | 6 | -1 770 | -68 | -1 306 |
| Interests received | 2 | 2 | 6 | |
| Net cash from investing activities | -1 782 | -72 | -1 368 | |
| Cash flows from financing activities | ||||
| Proceeds from increase of share and paid in capital | 0 | 0 | 214 | |
| Proceeds from changes in non-controlling interests | 1 187 | 0 | 153 | |
| Payment for purchase of minority shareholding | -361 | 0 | 0 | |
| Proceeds from issue of bonds | 901 | 0 | 7 652 | |
| Redemption of convertible bonds | -12 | 0 | -62 | |
| Proceeds from borrowings | 789 | 1 791 | 3 673 | |
| Repayment of borrowings | -521 | -821 | -6 794 | |
| Interests paid | -569 | -585 | -2 455 | |
| Net cash from financing activities | 1 414 | 385 | 2 381 | |
| Net change in cash and cash equivalents | -605 | -544 | 4 511 | |
| Cash and cash equivalents at the beginning of the period | 6 392 | 1 881 | 1 881 | |
| Cash and cash equivalents at the end of the period | 5 787 | 1 337 | 6 392 | |
Allan Remmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: prokapital@prokapital.ee
