CORRECTION: Audited annual report 2020

Tallinn, ESTONIA


AS Pro Kapital Grupp corrects the content of the stock exchange announcement in the previously published stock exchange announcement “Audited Annual Report 2020”. Due to human error, the section “Differences between comparative information of unaudited financial results for the year ended 31 December 2020 presented in this report and interim financial results of 2020, which were published on 26 February” was referring to the unaudited financial results and notes published in the first quarter 2021 report. Therefore, the Company republishes the entire text of the stock exchange announcement together with the annual report.

On 11 June 2021, the Supervisory Council of AS Pro Kapital Grupp has approved the company’s 2020 audited annual report.

 Prior period errors

When determining the fair value of investment property, double counting of assets or liabilities that are separately recognised in the balance sheet should be avoided. When making the adjustment to the fair value of investment property in the balance sheet as at 31 December 2019, the Management did not take into account the fact that a receivable had already been recognised for a portion of the future cash flows. The carrying amount of the T1 Mall of Tallinn investment property is therefore 108.6 million euros as at 31 December 2019, restated by 2.3 million euros already recognised in the balance sheet.

The following table summarises the impact of the prior period error on the financial statements of the Group.

Consolidated statement of profit and loss and other comprehensive income

in thousands of euros2019 (Restated)2019
Other operating expenses-26 602-24 341
Including net result from fair value adjustments from investment property-26 497-24 236
Operating profit/ loss-17 439-15 178
Profit/ loss before income tax-31 454-29 193
Profit/ loss from continuing operations-31 433-29 172
Total comprehensive loss for the year-31 433-29 172
Attributable to:  
     Owners of the Company-29 078-26 981
     Non-controlling interests-2 355-2 191
   
Earnings per share  
     Basic (euros per share)-0.51-0.48
     Diluted (euros per share)-0.51-0.48

Consolidated statement of financial position

in thousands of euros31.12.2019 (Restated)31.12.2019
Non-current assets  
Investment property145 104147 365
Total non-current assets155 438157 699
TOTAL ASSETS208 560210 821
   
Equity attributable to owners of the Company  
Profit/ loss for the financial year-29 078-26 981
Total equity attributable to owners of the Company69 04271 139
Non-controlling interest263427
TOTAL EQUITY69 30571 566
   
TOTAL LIABILITIES AND EQUITY208 560210 821

Differences between audited financial results for the year ended 31 December 2020 and interim financial results of 2020, which were published on 26 February 2021

Consolidated statement of comprehensive income

in thousands of euros2020 12M (Audited)2020 12M
Administrative expenses-6 154-5 587
Other expenses-43 586-41 978
    Including net result from fair value adjustments from investment property-43 128-41 902 
Operating profit/ loss-43 108-40 933
Profit/ loss before income tax-59 102-56 927
Profit/ loss for the period-59 456-57 281
Attributable to:  
               Equity holders of the parent                                                -55 678-53 648
               Non-controlling interest-3 778-3 633
Items that will not be reclassified subsequently to profit or loss   
Net change in properties revaluation reserve-2780
Total comprehensive income/ loss for the year-59 734-57 281
Attributable to:  
               Equity holders of the parent-55 956-53 648
               Non-controlling interest-3 778-3 633
Earnings per share for the period (EUR)-0.98-0.95
      

In the course of auditing process, the amendments have been made to administrative expenses and other expenses in relation to the subsidiary AS Tallinna Moekombinaat. Administrative costs increased by 567 thousand euros (Note 25) due to recording additional credit losses for expected rental revenues. Changes in other expenses are related to the fair value adjustment by 1 226 thousand euros (Note 26) and recording penalties of 382 thousand euros which have been accounted for off balance sheet and were recognised due to adjusting event (Notes 26, 31). Non-controlling interest has changed accordingly. Net change in properties revaluation reserve has decreased by 278 thousand euros and is related to the German hotel fair value (Note 12). Total effect of changes in the statement of comprehensive income is 2 453 thousand euros additional loss for the period.

Consolidated statement of financial position

In thousands of euros31.12.2020 (Audited)31.12.2020
Non-current assets  
 Non-current receivables3 5174 085
 Property, plant and equipment6 7457 023
 Investment property                   98 512101 998
Total non-current assets109 506113 838
TOTAL ASSETS179 048183 380
   
Current liabilities  
 Current debt                                                          107 58179 939
 Current payables22 21121 829
Total current liabilities138 575110 551
Non-current liabilities  
 Long-term debt  27 25554 897
Total non-current liabilities30 90258 544
TOTAL LIABILITIES169 477169 095
   
Equity attributable to owners of the Company  
 Revaluation reserve2 9843 262
 Retained earnings47 64749 744
 Profit/ loss for the period-55 678-53 648
Total equity attributable to owners of the Company13 08617 491
Non-controlling interest-3 515-3 206
TOTAL EQUITY9 57114 285
   
TOTAL LIABILITIES AND EQUITY179 048183 380

In the course of auditing process, the amendments have been made to non-current assets, liabilities and equity. Non-current receivables decreased by 567 thousand euros due to recording additional credit losses on expected rental revenues (Note 11). PPE and revaluation reserve have been influenced by change in fair value of the German hotel in amount of 278 thousand euros (Note 12). The value of investment property has decreased by 3 486 thousand euros, of which 2 261 thousand euros is the effect from 2019 as described above and the rest from 2020 for similar adjustment (Note 13). Current payables have increased by penalties in amount of 382 thousand euros which have been accounted for off-balance sheet and recorded due to adjusting event (Note 15). Long-term debt has decreased and current debt has increased as per reclassification of secured bonds balance sheet value because of the event of not meeting financial covenants (Notes 18, 34). Total effect of net changes in the statement of financial position is a decrease of 4 332 thousand euros of which 2 261 is related to restatement in 2019.

The audited annual report of AS Pro Kapital Grupp for the financial year of 2020 is available at the headquarter of the company, located at Sõjakooli 11, Tallinn. The report can also be found on the company's webpage www.prokapital.com.

Angelika Annus
CFO
AS Pro Kapital Grupp
Phone: +372 614 4920
prokapital@prokapital.ee

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Attachments

PKG 2020 ENG