During the second quarter of 2017 Pro Kapital continued 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 – Šaltini? Namai in Vilnius and
Kristiine City in Tallinn, in Tondi.
In Vilnius by the issuing of the present report 42 apartments out of 44 in
building K4-1 have been handed over to the clients. In January 2017, the
construction works for the second stage residential buildings started and 56
preliminary agreements have been signed.
In Tallinn, Kristiine City (Tondi quarter), the Company has completed three
apartment buildings where 87 apartments out of 93 have been handed over to the
clients. Presale continued for the fourth building with 24 presale agreements
signed and started also in the fifth building with 12 presale agreements
already signed. Presale for Marsi 6 historical building that will be renovated
into a special design loft apartments have been continued successfully having
38 presale agreements out of 45 flats signed.
In Riga, the construction works for the first residential building in
Kliversala project were continued and 9 presale agreements have been signed out
of 47 flats in total. The projecting works were continued also for Tallinas
Residential Complex and were initiated for the first stage of office complex in
Zvaigznes Quarter.
After the reporting period Pro Kapital concluded the sale transaction of its
hotel activities both in Tallinn and in Riga. The goal of the transaction was
to exit Tallinn and Riga hotel market which has not been a core business for
the Company and to help to speed up the development of its real estate projects
in the market which has positive trends.
Total revenue of the Company for six months in 2017 was 7 566 thousand euros, a
decrease of 8% compared to the reference period (2016 6 months: 8 203 thousand
euros). Total revenue of the second quarter was 3 952 thousand euros comparing
to 5 426 thousand euros in 2016.
Net operating result during six months increased by 744 thousand euros (59%)
compared to the reference period, totalling to loss of 524 thousand euros (2016
6 months: loss of 1 268 thousand euros). Net operating result for the second
quarter was loss of 27 thousand euros (2016 Q2: loss of 319 thousand euros).
Net result for six months of 2017 has increased by 839 thousand euros (27%)
compared to the reference period, totalling to loss of 2 310 thousand euros
(2016 6 months: loss of 3 149 thousand euros). Net result for the second
quarter was loss of 881 thousand euros (2016 Q2: loss of 1 668 thousand euros).
Key financial figures
2017 6M 2016 6M 2017 Q2 2016 Q2
Revenue, th EUR 7 566 8 203 3 952 5 426
Gross profit, th EUR 2 347 1 409 1 412 1 146
Gross profit, % 31% 17% 36% 21%
Operating result, th EUR -524 -1 268 -27 -319
Operating result, % -7% -15% -1% -6%
Net result, th EUR -2 310 -3 149 -881 -1 668
Net result, % -31% -38% -22% -31%
Earnings per share, EUR -0,04 -0,06 -0,02 -0,03
30.06.2017 30.06.2016 31.12.2016
Total Assets, th EUR 151 944 142 008 142 314
Total Liabilities, th EUR 74 529 60 459 62 110
Total Equity, th EUR 77 415 81 549 80 204
Debt/ Equity 0,96 0,74 0,77
Return on Assets, % -1,6% -2,3% -3,0%
Return on Equity, % -2,9% -3,8% -4,8%
Net asset value per share, EUR 1,43 1,50 1,48
Consolidated interim statements of financial position
in thousands of euros 30.06.2017 31.12.2016
ASSETS
Current Assets
Cash and cash equivalents 3 181 5 382
Current receivables 4 737 4 475
Inventories 29 524 14 144
Total Current Assets 37 442 24 001
Non-Current Assets
Non-current receivables 40 42
Property, plant and equipment 18 130 18 336
Investment property 96 038 99 660
Intangible assets 294 275
Total Non-Current Assets 114 502 118 313
TOTAL ASSETS 151 944 142 314
in thousands of euros 30.06.2017 31.12.2016
LIABILITIES AND EQUITY
Current Liabilities
Current debt 7 319 8 261
Customer advances 5 290 2 226
Current payables 5 316 8 502
Taxes payable 318 547
Short-term provisions 145 5
Total Current Liabilities 18 388 19 541
Non-Current Liabilities
Long-term debt 50 580 38 040
Other long-term liabilities 2 182 804
Deferred income tax liability 3 330 3 360
Long-term provisions 49 365
Total Non-Current Liabilities 56 141 42 569
TOTAL LIABILITIES 74 529 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 -2 265 -3 913
Total equity attributable to equity holders of the 75 966 78 405
parent
Non-controlling interest 1 449 1 799
TOTAL EQUITY 77 415 80 204
TOTAL LIABILITIES AND EQUITY 151 944 142 314
Consolidated interim statements of comprehensive income
in thousands of euros 2017 6M 2016 6M 2017 Q2 2016 Q2
Operating income
Revenue 7 566 8 203 3 952 5 426
Cost of goods sold -5 219 -6 794 -2 540 -4 280
Gross profit 2 347 1 409 1 412 1 146
Marketing expenses -503 -202 -289 -85
Administrative expenses -2 642 -2 569 -1 365 -1 388
Other income 302 152 238 47
Other expenses -28 -58 -23 -39
Operating profit/ loss -524 -1 268 -27 -319
Financial income 2 16 1 14
Financial expense -1 747 -1 883 -858 -1 355
Loss before income tax -2 269 -3 135 -884 -1 660
Income tax -41 -14 3 -8
Net loss for the period -2 310 -3 149 -881 -1 668
Equity holders of the parent -2 265 -3 116 -854 -1 651
Non-controlling interest -45 -33 -27 -17
Earnings per share (EUR) -0,04 -0,06 -0,02 -0,03
Diluted earnings per share (EUR) -0,04 -0,06 -0,02 -0,03
Consolidated interim statements of cash flows
in thousands of euros 2017 6M 2016 6M 2017 Q2 2016 Q2
Cash flows from operating activities
Loss for the year -3 149 -881 -1 668
Adjustments for:
Depreciation and amortisation of non-current 351 357 176 183
assets
Finance income and costs 1 744 1 867 857 1 341
Other non-monetary changes (net amounts) 12 898 50 314 21
Changes in working capital:
Trade receivables and prepayments -260 349 -167 -428
Inventories -15 380 1 194 -2 438 1 761
Liabilities and prepayments 997 -1 071 2 749 -1 452
Provisions -175 -34 -187 42
Net cash from operating activities -2 135 -437 423 -200
Cash flows from investing activities
Payments for property, plant and equipment -141 -100 -43 -87
Payments for intangible assets -24 -1 0 0
Payments for investment property -9 057 -4 423 -4 972 -2 653
Proceeds from sales of non-current assets 0 -2 813 0 -2 813
Interests received 3 16 2 14
Net cash from investing activities -9 219 -7 321 -5 013 -5 539
Cash flows from financing activities
Net changes in non-controlling interests -480 826 0 0
Proceeds from bonds 1 164 15 450 1 164 14 549
Redemption of convertible bonds -539 -12 -17 0
Proceeds from borrowings 11 034 1 554 4 584 765
Repayment of borrowings -324 -1 950 -156 -1 429
Interests paid -1 702 -1 860 -1 135 -1 291
Net cash from financing activities 9 153 14 008 4 440 12 594
Net change in cash and cash equivalents -2 201 6 250 -150 6 855
Cash and cash equivalents at the beginning 5 382 6 392 3 331 5 787
of the period
Cash and cash equivalents at the end of the 3 181 12 642 3 181 12 642
period
Allan Remmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: prokapital@prokapital.ee |