During the second 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 started construction works in Kliversala residential quarter and continued the constructing in other two of its residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
In Vilnius by the issuing of the present report 36 presale agreements have been concluded out of 44 in building K4-1. Projecting works were continued for obtaining the building licence for the 2nd stage residential buildings, where 23 reservation agreements have been signed.
In Tallinn, Tondi quarter, the Company has completed three apartment buildings where 66 apartments out of 93 have been handed over to the clients. Presales have been started also for the 4th building with 3 presale agreements signed. The construction works were continued for converting a historical barrack on Tondi 53 land plot into an office building and projecting works for renovating other two historical barracks into office and residential buildings were continued. During the reporting period Tallinn City Council established partly the detail plan of the Tallinna Kalasadam area, according to which the Company shall have the right to erect 6-18 buildings with gross volume of 38 300 m2 together with the recreational areas and coastal promenade. For the final architectural solutions an open competition shall be organised by the Company.
In Riga, the construction works for the first residential building in Kliversala project have been started and 7 presale agreements have been signed out of 47 flats in total. The projecting works were continued also for Tallinas Residential Complex.
During the six months the Company completed two tranches of emission of bonds 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 six months of 2016 was 8,2 million euros, a decrease of 17% compared to the reference period (2015 6 months: 9,9 million euros). Revenues have decreased in real estate segment which is influenced by completion of the buildings as revenues are recorded at the moment notary deed of sales is concluded. Decrease in gross profit affected also the net result as well as increased costs related to new emissions of secured bonds.
Net operating result during six months decreased by 0,8 million euros (188%) compared to the reference period, totalling to losses of 1,3 million euros (2015 6 months loss of 0,4 million euros). Net operating result for the second quarter was loss of 0,3 million euros (2015 Q2: profit 0,3 million euros). Net result for six months of 2016 has decreased by 1,6 million euros (99%) compared to the reference period, totalling to losses of 3,1 million euros (2015 6 months loss of 1,6 million euros). Net result for the second quarter was loss of 1,7 million euros (2015 Q2: -0,4 million euros).
Key financial figures
| 2016 6M | 2015 6M | 2016 Q2 | 2015 Q2 | |
| Revenue, th EUR | 8 203 | 9 894 | 5 426 | 6 759 |
| Gross profit, th EUR | 1 409 | 2 367 | 1 146 | 1 770 |
| Gross profit, % | 17% | 24% | 21% | 26% |
| Operating result, th EUR | -1 268 | -440 | -319 | 282 |
| Operating result, % | -15% | -4% | -6% | 4% |
| Net result, th EUR | -3 149 | -1 580 | -1 668 | -422 |
| Net result, % | -38% | -16% | -31% | -6% |
| Earnings per share, EUR | -0,06 | -0,03 | -0,03 | -0,01 |
|
30.06.2016 |
30.06.2015 | 31.12.2015 | ||
| Total Assets, th EUR | 142 008 | 128 789 | 130 356 | |
| Total Liabilities, th EUR | 60 459 | 45 151 | 46 892 | |
| Total Equity, th EUR | 81 549 | 83 640 | 83 464 | |
| Debt/ Equity * | 0,74 | 0,54 | 0,56 | |
| Return on Assets, % ** | -2,3% | -1,2% | -1,5% | |
| Return on Equity, % *** | -3,8% | -1,9% | -2,4% | |
| Net asset value per share, EUR **** | 1,50 | 1,55 | 1,54 |
Consolidated interim statements of financial position
| in thousands of euros | Notes | 30.06.2016 | 31.12.2015 | |
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | 12 642 | 6 392 | ||
| Current receivables | 1 261 | 1 608 | ||
| Inventories | 11 243 | 12 438 | ||
| Assets held for sale | 2 813 | 0 | ||
| Total Current Assets | 27 959 | 20 438 | ||
| Non-Current Assets | ||||
| Non-current receivables | 45 | 48 | ||
| Property, plant and equipment | 5 | 16 849 | 17 103 | |
| Investment property | 6 | 96 880 | 92 457 | |
| Intangible assets | 275 | 277 | ||
| Total Non-Current Assets | 114 049 | 109 885 | ||
| TOTAL ASSETS | 142 008 | 130 323 | ||
| LIABILITIES AND EQUITY | |||||
| Current Liabilities | |||||
| Current debt | 7 | 11 600 | 8 004 | ||
| Customer advances | 1 673 | 1 692 | |||
| Current payables | 3 965 | 5 103 | |||
| Taxes payable | 263 | 264 | |||
| Short-term provisions | 32 | 87 | |||
| Total Current Liabilities | 17 533 | 15 150 | |||
| Non-Current Liabilities | |||||
| Long-term debt | 7 | 38 449 | 27 054 | ||
| Other long-term liabilities | 640 | 837 | |||
| Deferred income tax liability | 3 469 | 3 503 | |||
| Long-term provisions | 368 | 347 | |||
| Total Non-Current Liabilities | 42 926 | 31 741 | |||
| TOTAL LIABILITIES | 60 459 | 46 891 | |||
| Equity attributable to equity holders of the parent | |||||
| Share capital in nominal value* | 10 848 | 10 841 | |||
| Paid in capital* | 1 742 | 1 669 | |||
| Statutory reserve | 1 082 | 1 082 | |||
| Revaluation reserve | 9 462 | 9 462 | |||
| Retained earnings | 59 283 | 60 677 | |||
| Profit (loss) for the period | -3 116 | -1 934 | |||
|
Total equity attributable to equity holders of the parent |
79 301 | 81 797 | |||
| Non-controlling interest | 2 248 | 1 635 | |||
| TOTAL EQUITY | 81 549 | 83 432 | |||
| TOTAL LIABILITIES AND EQUITY | 142 008 | 130 323 | |||
Consolidated interim statements of comprehensive income
| in thousands of euros | Notes | 2016 6M | 2015 6M | 2016 Q2 | 2015 Q2 |
| Operating income | |||||
| Revenue | 8 | 8 203 | 9 894 | 5 426 | 6 759 |
| Cost of goods sold | 9 | -6 794 | -7 527 | -4 280 | -4 989 |
| Gross profit | 10 | 1 409 | 2 367 | 1 146 | 1 770 |
| Marketing expenses | -202 | -293 | -85 | -194 | |
| Administrative expenses | 11 | -2 569 | -2 388 | -1 388 | -1 207 |
| Other income | 152 | 94 | 47 | 49 | |
| Other expenses | -58 | -220 | -39 | -136 | |
| Operating profit/ loss | -1 268 | -440 | -319 | 282 | |
| Financial income | 12 | 16 | 9 | 14 | 7 |
| Financial expense | 12 | -1 883 | -1 135 | -1 355 | -709 |
| Loss before income tax | -3 135 | -1 566 | -1 660 | -420 | |
| Income tax | -14 | -14 | -8 | -2 | |
| Net loss for the period | -3 149 | -1 580 | -1 668 | -422 | |
| Equity holders of the parent | -3 116 | -1 703 | -1 651 | -537 | |
| Non-controlling interest | -33 | 123 | -17 | 115 | |
| Earnings per share (EUR) | 13 | -0,06 | -0,03 | -0,03 | -0,01 |
| Diluted earnings per share (EUR) | 13 | -0,06 | -0,03 | -0,03 | -0,01 |
Consolidated interim statements of cash flows
| in thousands of euros | Note | 2016 6M | 2015 6M | 2016 Q2 | 2015 Q2 |
| Cash flows from operating activities | |||||
| Loss for the year | -3 149 | -1 580 | -1 668 | -422 | |
| Adjustments for: | |||||
| Depreciation and amortisation of non-current assets | 5 | 357 | 331 | 183 | 158 |
| Change in fair value of investment property | 6 | 0 | 180 | 0 | 180 |
| Finance income and costs | 12 | 1 867 | 1 126 | 1 341 | 702 |
| Other non-monetary changes (net amounts) | 50 | 82 | 21 | 257 | |
| Changes in working capital: | |||||
| Trade receivables and prepayments | 349 | 1 380 | -428 | 976 | |
| Inventories | 1 194 | 2 442 | 1 761 | 2 390 | |
| Liabilities and prepayments | -1 071 | -520 | -1 452 | 60 | |
| Provisions | -34 | 6 | 42 | 3 | |
| Net cash from operating activities | -437 | 3 447 | -200 | 4 304 | |
| Cash flows from investing activities | |||||
| Payments for property, plant and equipment | 5 | -100 | -40 | -87 | -34 |
| Payments for intangible assets | -1 | 0 | 0 | 0 | |
| Payments for investment property | 6 | -4 423 | -180 | -2 653 | -112 |
| Payments for other investments | -2 813 | 0 | -2 813 | 0 | |
| Interests received | 16 | 3 | 14 | 1 | |
| Net cash from investing activities | -7 321 | -217 | -5 539 | -145 | |
| Cash flows from financing activities | |||||
| Proceeds from changes in non-controlling interests | 1 187 | 0 | 0 | 0 | |
| Payment for purchase of minority shareholding | -361 | 0 | 0 | 0 | |
| Proceeds from issue of bonds | 15 450 | 7 000 | 14 549 | 7 000 | |
| Redemption of convertible bonds | -12 | -62 | 0 | -62 | |
| Proceeds from borrowings | 1 554 | 2 197 | 765 | 406 | |
| Repayment of borrowings | -1 950 | -3 705 | -1 429 | -2 884 | |
| Interests paid | -1 860 | -680 | -1 291 | -95 | |
| Net cash from financing activities | 14 008 | 4 750 | 12 594 | 4 365 |
| Net change in cash and cash equivalents | 6 250 | 7 980 | 6 855 | 8 524 | |
| Cash and cash equivalents at the beginning of the period | 6 392 | 1 881 | 5 787 | 1 337 | |
| Cash and cash equivalents at the end of the period | 12 642 | 9 861 | 12 642 | 9 861 | |
