Introduction to AS Pro Kapital Grupp's Annual Report
The Supervisory Board of AS Pro Kapital Grupp has officially approved the Group’s audited annual report for the year 2024. This report reflects the company’s performance and strategic developments during the year.
Financial Performance Overview
In 2024, AS Pro Kapital Grupp recorded a revenue of 18.2 million euros. This figure marks a decline of 4.9 million euros compared to the previous financial year. The reduction in revenue can be attributed to diminished sales volumes, as most available units were already sold. The core objective for the group in 2024 shifted towards major construction projects, which included the final phase of the Kalaranna District in Tallinn. The first completed units were handed over in December 2024.
Additionally, two new projects have been introduced: Uus-Kindrali in Tallinn and Šaltini? Namai Attico in Vilnius, which are slated for completion by the end of 2025. In Riga, the Group successfully sold all remaining units in the River Breeze Residence.
Profit Margins and Losses
The gross profit for AS Pro Kapital Grupp reached 5.4 million euros in 2024, down from 7.0 million euros in the previous year. The financial year concluded with a net loss of 3.9 million euros, reflecting the adjustments made and the focus on future developments.
Examining Prior Period Errors
In accordance with IFRS 9, the company reassessed its financial liabilities due to modifications made in January 2024. This change involved an increase in the interest rate from 8% to 11% on secured bonds. Since this alteration was not deemed substantial, it was accounted for as an extension of the existing agreement. The carrying amount of this financial liability was adjusted accordingly, and future interest expenses will estimate based on the revised cash flows. The overall financial impact recorded was 1,071 thousand euros.
Comparative Financial Results
There are notable differences between the audited financial results for the year ending on 31 December 2024 and previous interim results published earlier. The financial expenses were first indicated as 4,276 thousand euros in the audited report, showing a sharp rise from the interim report's 3,205 thousand euros. This change ultimately led to a revised profit/loss before income tax noted at -4,030 thousand euros compared to -2,959 thousand euros earlier.
Financial Position Analysis
The adjustments made during the audit pertained to the recognition and classification of both current and non-current liabilities, as well as equity in the balance sheet. The surge in current liabilities—by 5,381 thousand euros—resulted from the changes in bond conditions, leading to reclassifications of certain liabilities. The current debt increased to 21,893 thousand euros, implying an uptick from 15,427 thousand euros in prior reports.
Long-term Debt and Equity
AS Pro Kapital Grupp also outlined its long-term debt, which reflected a reduction from 31,660 thousand euros to 27,350 thousand euros. This adjustment illustrates both the reclassification due to a redemption obligation and a reflection of the financial liability modifications. Following these amendments, the retained earnings and total equity decreased by 1,071 thousand euros.
Future Prospects and Strategic Commitment
Looking ahead, AS Pro Kapital Grupp remains committed to its growth strategy. The company is optimistic about its ongoing projects and potential new developments, which are essential for enhancing its market presence. The construction sector continues to be a significant focus, and efforts to adapt to the market dynamics will be crucial.
Company Contact Information
For further information or inquiries, contact:
Ann-Kristin Kuusik
CFO
AS Pro Kapital Grupp
Phone: +372 614 4920
Email: prokapital@prokapital.ee
Frequently Asked Questions
What were the revenue figures for AS Pro Kapital Grupp in 2024?
AS Pro Kapital Grupp reported a revenue of 18.2 million euros in 2024, indicating a decrease compared to the previous year.
What were the main reasons for the decrease in revenue?
The decline in revenue was primarily due to lower sales volumes, with most available units already sold, shifting focus towards construction projects.
How did financial modifications impact AS Pro Kapital Grupp's liabilities?
Amendments to secured bonds entailed interest rate adjustments that were not deemed substantial, impacting liabilities and interest calculations appropriately.
What is the company's outlook for future projects?
AS Pro Kapital Grupp aims to continue developing new projects while completing ongoing constructions, crucial for future growth and stability.
How can stakeholders obtain more detailed financial reports?
Stakeholders can access the full annual report and additional financial documents on the company’s official website.
