2024 Annual Insights: AS Pro Kapital Grupp's Performance Review
AS Pro Kapital Grupp's Audited Annual Report for 2024
The Supervisory Board of AS Pro Kapital Grupp has officially approved the Group’s audited annual report, capturing the financial performance for 2024.
Financial Performance Overview
In 2024, the Group reported revenue of 18.2 million euros, reflecting a decline of 4.9 million euros compared to the financial year prior. This revenue drop can primarily be attributed to slower sales activity, as many of the existing units were already sold. Throughout the year, the Group shifted its focus towards new construction projects to stimulate future growth.
Key Construction Projects
The year saw significant milestones in Tallinn, where the final phase of the Kalaranna District was actively developed, with the first units being handed over in December of the same year. New projects, namely Uus-Kindrali in Tallinn and Šaltini? Namai Attico in Vilnius, were initiated, both expected to reach completion by the end of 2025. Additionally, the successful sale of remaining units in the River Breeze Residence in Riga marked a positive note in the Group's sales strategy.
Profitability Analysis
The Group’s gross profit for 2024 stood at 5.4 million euros, down from 7.0 million euros in 2023. Notably, the conclusion of the year resulted in a net loss of 3.9 million euros.
Addressing Prior Period Errors
In reviewing the financials, a significant mechanism under IFRS 9 concerning the modification of financial liabilities was highlighted. With the increase in interest rates from 8% to 11% on secured bonds issued by the Group, this adjustment was not substantial enough to warrant a total derecognition of the initial liability. As a result, interest calculations were amended based on this updated schema.
Variances in Annual Financial Results
The adjustments made during the audit have differentiated the audited financial results from interim reports. The consolidated statement detailing profit or loss exhibited variances in financial expenses and net profit, summarizing the impacts of these adjustments on overall income. The detailed breakdown showcased a notable shift in liabilities and profitability assessment.
Addressing Financial Liabilities
In the audit process, a comprehensive review of both current and non-current liabilities was conducted. The adjustments led to an increase in current liabilities by 5.381 million euros, affecting total liabilities and equity structure. This increment stemmed from the bond modifications and the reclassification of obligations due by the end of the financial year.
Summary of Financial Position as of December 31, 2024
An overview of the consolidated statement of financial position indicated a mixture of current and long-term debts, showcasing fluctuations in the overall liabilities, especially in long-term debt, which declined by 4.310 million euros.
Outlook and Future Directions
As AS Pro Kapital Grupp moves forward, maintaining focus on their development projects is critical. With the imminent launches and anticipated completions set for 2025, the Group aims to navigate recovery in sales and enhance profitability. Strategic measures are expected to address market conditions and drive performance improvement.
Concluding Remarks
The audited annual report for 2024 affirms the Group’s commitment to transparency and financial health. Supported by various strategic construction projects and adjustments in accounting practices, AS Pro Kapital Grupp strives to position itself favorably in the evolving landscape.
Frequently Asked Questions
What was the revenue of AS Pro Kapital Grupp in 2024?
The Group's revenue amounted to 18.2 million euros, showing a decrease from the previous year.
What were the main reasons for the decline in revenue?
The revenue decline resulted mainly from slower sales volumes as most units were already sold, alongside a shift towards new construction projects.
How did financial adjustments impact the Group's net loss?
Adjustments resulted in a net loss of 3.9 million euros due to increased financial expenses linked to changes in financial liabilities.
What significant projects were initiated in 2024?
Major projects include the final stage of Kalaranna District in Tallinn and new developments such as Uus-Kindrali and Šaltini? Namai Attico.
Who can I contact for more information?
You can reach Ann-Kristin Kuusik, CFO of AS Pro Kapital Grupp, at +372 614 4920 or via email at prokapital@prokapital.ee.
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