During the first quarter of 2017 Pro Kapital continued the construction works of the new T1 Mall of Tallinn 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 development activities also in Kliversala residential quarter in Riga and residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
In Vilnius by the issuing of the present report 41 apartments out of 44 in building K4-1 have been handed over to the clients. In January 2017, the construction works for the 2nd stage residential buildings were started and 36 preliminary agreements have been signed.
In Tallinn, Tondi quarter, the Company has completed three apartment buildings where 84 apartments out of 93 have been handed over to the clients. Presales continued for the 4th building with 15 presale agreements signed and also in the 5th building with 4 presale agreements signed. For the Marsi 6 historical building that will be renovated into a special design loft apartments, 31 presale agreements out of 45 flats have been signed. On 20 February 2017 the project “Kesk-küla” was announced as the winner of the architectural competition for Kalasadam area, the author of which is Kadarik Tüür Arhitektid OÜ. In total 11 entries were submitted from Estonian and international studios.
In Riga, the construction works for the first residential building in Kliversala project were continued and 8 presale agreements have been signed out of 47 flats in total. The projecting works were continued also for Tallinas Residential Complex.
Total revenue for the first three months in 2017 was 3 614 thousand euros, an increase of 30% compared to the reference period (2016 3M: 2 777 thousand euros).
Net operating result for the first three months in 2017 increased by 452 thousand euros (48%) compared to the reference period, totalling to loss of 497 thousand euros (2016 3M: 949 thousand euros loss).
Net result for the first three months in 2017 has increased by 52 thousand euros (4%) compared to the reference period, totalling to losses of 1 429 thousand euros (2016 3M: losses of 1 481 thousand euros).
| Key financial figures | |||
| 2017 3M | 2016 3M | 2016 12M | |
| Revenue, th EUR | 3 614 | 2 777 | 20 652 |
| Gross profit, th EUR | 935 | 263 | 6 054 |
| Gross profit, % | 26% | 9% | 29% |
| Operating result, th EUR | -497 | -949 | -309 |
| Operating result, % | -14% | -34% | -1% |
| Net result, th EUR | -1 429 | -1 481 | -4025 |
| Net result, % | -40% | -53% | -19% |
| Earnings per share, EUR | -0,03 | -0,03 | -0,07 |
| 31.03.2017 | 31.03.2016 | 31.12.2016 | |
| Total Assets, th EUR | 144 439 | 131 478 | 142 314 |
| Total Liabilities, th EUR | 66 143 | 48 341 | 62 110 |
| Total Equity, th EUR | 78 296 | 83 137 | 80 204 |
| Debt/ Equity | 0,84 | 0,58 | 0,77 |
| Return on Assets, % | -1,00% | -1,10% | -1,50% |
| Return on Equity, % | -1,80% | -1,80% | -2,40% |
| Net asset value per share, EUR | 1,44 | 1,53 | 1,51 |
| Consolidated interim statements of financial position | ||||
| in thousands of euros | 31.03.2017 | 31.12.2016 | ||
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | 3 331 | 5 382 | ||
| Current receivables | 4 568 | 4 475 | ||
| Inventories | 27 086 | 14 144 | ||
| Total Current Assets | 34 985 | 24 001 | ||
| Non-Current Assets | ||||
| Non-current receivables | 41 | 42 | ||
| Property, plant and equipment | 18 261 | 18 336 | ||
| Investment property | 90 855 | 99 660 | ||
| Intangible assets | 297 | 275 | ||
| Total Non-Current Assets | 109 454 | 118 313 | ||
| TOTAL ASSETS | 144 439 | 142 314 | ||
| in thousands of euros | 31.03.2017 | 31.12.2016 | ||
| LIABILITIES AND EQUITY | ||||
| Current Liabilities | ||||
| Current debt | 7 654 | 8 261 | ||
| Customer advances | 3 846 | 2 226 | ||
| Current payables | 3 978 | 8 502 | ||
| Taxes payable | 675 | 547 | ||
| Short-term provisions | 203 | 5 | ||
| Total Current Liabilities | 16 356 | 19 541 | ||
| Non-Current Liabilities | ||||
| Long-term debt | 44 433 | 38 040 | ||
| Other long-term liabilities | 1 827 | 804 | ||
| Deferred income tax liability | 3 348 | 3 360 | ||
| Long-term provisions | 179 | 365 | ||
| Total Non-Current Liabilities | 49 787 | 42 569 | ||
| TOTAL LIABILITIES | 66 143 | 62 110 | ||
| Equity attributable to equity holders of the parent | ||||
| Share capital in nominal value | 10 854 | 10 854 | ||
| Paid in capital | 1 816 | 1 816 | ||
| Statutory reserve | 1 082 | 1 082 | ||
| Revaluation reserve | 9 462 | 9 462 | ||
| Retained earnings | 55 017 | 59 104 | ||
| Profit (loss) for the period | -1 411 | -3 913 | ||
| Total equity attributable to equity holders of the parent | 76 820 | 78 405 | ||
| Non-controlling interest | 1 476 | 1 799 | ||
| TOTAL EQUITY | 78 296 | 80 204 | ||
| TOTAL LIABILITIES AND EQUITY | 144 439 | 142 314 | ||
| Consolidated interim statements of comprehensive income | ||||
| in thousands of euros | 2017 3M | 2016 3M | 2016 12M | |
| Operating income | ||||
| Revenue | 3 614 | 2 777 | 20 652 | |
| Cost of goods sold | -2 679 | -2 514 | -14 598 | |
| Gross profit | 935 | 263 | 6 054 | |
| Marketing expenses | -214 | -117 | -518 | |
| Administrative expenses | -1 277 | -1 181 | -5 396 | |
| Other income | 64 | 105 | 254 | |
| Other expenses | -5 | -19 | -703 | |
| Operating profit/ loss | -497 | -949 | -309 | |
| Financial income | 1 | 2 | 13 | |
| Financial expense | -889 | -528 | -3 512 | |
| Loss before income tax | -1 385 | -1 475 | -3 808 | |
| Income tax | -44 | -6 | -217 | |
| Net loss for the period | -1 429 | -1 481 | -4 025 | |
| Equity holders of the parent | -1 411 | -1 465 | -3 913 | |
| Non-controlling interest | -18 | -16 | -112 | |
| Earnings per share (EUR) | -0,03 | -0,03 | -0,07 | |
| Diluted earnings per share (EUR) | -0,03 | -0,03 | -0,07 | |
| Consolidated interim statements of cash flows | ||||
| in thousands of euros | 2017 3M | 2016 3M | 2016 12M | |
| Cash flows from operating activities | ||||
| Loss for the year | -1 429 | -1 481 | -4 025 | |
| Adjustments for: | ||||
| Depreciation and amortisation of non-current assets | 175 | 174 | 695 | |
| Change in fair value of investment property | 0 | 0 | 30 | |
| Gain from sale of non-current assets | 0 | 0 | -4 | |
| Change in fair value of investment property | 0 | 0 | 599 | |
| Finance income and costs | 887 | 526 | 3 499 | |
| Other non-monetary changes (net amounts) | 12 584 | 29 | 302 | |
| Changes in working capital: | ||||
| Trade receivables and prepayments | -93 | 777 | -2 862 | |
| Inventories | -12 942 | -567 | -1 707 | |
| Liabilities and prepayments | -1 752 | 381 | 4 185 | |
| Provisions | 12 | -76 | -64 | |
| Net cash from operating activities | -2 558 | -237 | 648 | |
| Cash flows from investing activities | ||||
| Payments for property, plant and equipment | -98 | -13 | -1 206 | |
| Payments for intangible assets | -24 | -1 | -2 | |
| Payments for investment property | -4 085 | -1 770 | -8 552 | |
| Proceeds from sales of non-current assets | 0 | 0 | 7 | |
| Interests received | 1 | 2 | 13 | |
| Net cash from investing activities | -4 206 | -1 782 | -9 740 | |
| Cash flows from financing activities | ||||
| Net changes in non-controlling interests | -480 | 826 | 276 | |
| Proceeds from issue of bonds | 0 | 901 | 12 637 | |
| Redemption of convertible bonds | -522 | -12 | -123 | |
| Redemption of non-convertible bonds | 0 | 0 | -1 000 | |
| Proceeds from borrowings | 6 450 | 789 | 2 961 | |
| Repayment of borrowings | -168 | -521 | -3 310 | |
| Interests paid | -567 | -569 | -3 359 | |
| Net cash from financing activities | 4 713 | 1 414 | 8 082 | |
| Net change in cash and cash equivalents | -2 051 | -605 | -1 010 | |
| Cash and cash equivalents at the beginning of the period | 5 382 | 6 392 | 6 392 | |
| Cash and cash equivalents at the end of the period | 3 331 | 5 787 | 5 382 | |
Allan Remmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: prokapital@prokapital.ee
