During the third quarter of 2015 Pro Kapital continued the construction works of the new T1 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 with over 55% of the leasable area being covered with signed lease agreements. The Company continued also the construction works in two of its residential development projects – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
Total revenue for nine months of 2015 was 12,9 million euros, an increase of 58% compared to the reference period (2014 9 months: 8,2 million euros). Net operating result during nine months increased by 0,8 million euros (47%) compared to the reference period, totalling to losses of 0,9 million euros (2014 9 months loss of 1,7 million euros). Net operating profit for the third quarter was 0,5 million euros (2014 Q3 loss of 0,5 million euros). Net result for nine months of 2015 has increased by 0,1 million euros (3%) compared to the reference period, totalling to losses of 2,8 million euros (2014 9 months loss of 2,9 million euros). Net result for the third quarter was loss of 1,3 million euros (2014 Q3 loss of 0,9 million euros).
Presales for Vilnius Šaltinių Namai project and Tallinn’s Tondi residential quarter have been successfully continued. At the moment of issuing interim report 18 premises out of 19 in Vilnius K7 building have been sold (notary deeds concluded for 18 of them) and reservations for 25 apartments out of 44 in K4-1 building have been signed. In Tallinn, Tondi quarter, by the moment of issuing the present report the first building of Marsi Street has been completed, 27 apartments have been handed over to the clients and 4 out of 31 apartments are yet on sale. In the second building 6 apartments have been handed over to the clients, 9 presale agreements have been signed and in the third building 11 presale agreement have been signed. For Kliversala project in Riga 8 presale agreements have been signed out of 49 apartments.
Key financial figures
| 2015 9M | 2014 9M | 2015 Q3 | 2014 Q3 | |
| Revenue, th EUR | 12 911 | 8 161 | 3 017 | 2 252 |
| Gross profit, th EUR | 3 327 | 2 339 | 960 | 929 |
| Gross profit, % | 26% | 29% | 32% | 41% |
| Operating result, th EUR | -906 | -1 720 | -466 | -529 |
| Operating result, % | -7% | -21% | -15% | -23% |
| Net result, th EUR | -2 833 | -2 906 | -1 253 | -946 |
| Net result, % | -22% | -36% | -42% | -42% |
| Earnings per share, EUR | -0,05 | -0,05 | -0,02 | -0,02 |
| 30.09.2015 | 31.12.2014 | 30.09.2014 | ||
| Total Assets, th EUR | 127 522 | 125 031 | 98 531 | |
| Total Liabilities, th EUR | 45 136 | 39 243 | 36 204 | |
| Total Equity, th EUR | 82 386 | 85 788 | 62 201 | |
| Debt/ Equity * | 0,55 | 0,46 | 0,58 | |
| Return on Assets, % ** | -2,2% | 17,9% | -2,9% | |
| Return on Equity, % *** | -3,6% | 26,1% | -4,7% | |
| Net asset value per share, EUR **** | 1,52 | 1,59 | 1,15 |
Consolidated interim statements of financial position
| in thousands of euros | Notes | 30.09.2015 | 31.12.2014 | |
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | 8 244 | 1 881 | ||
| Current receivables | 1 079 | 2 463 | ||
| Inventories | 12 597 | 14 535 | ||
| Total Current Assets | 21 920 | 18 879 | ||
| Non-Current Assets | ||||
| Non-current receivables | 50 | 150 | ||
| Property, plant and equipment | 5 | 17 162 | 17 619 | |
| Investment property | 6 | 88 110 | 88 110 | |
| Intangible assets | 280 | 273 | ||
| Total Non-Current Assets | 105 602 | 106 152 | ||
| TOTAL ASSETS | 127 522 | 125 031 | ||
| in thousands of euros | Notes | 30.09.2015 | 31.12.2014 | ||
| LIABILITIES AND EQUITY | |||||
| Current Liabilities | |||||
| Current debt | 7 | 7 171 | 16 348 | ||
| Customer advances | 1 707 | 1 548 | |||
| Current payables | 3 002 | 4 761 | |||
| Taxes payable | 415 | 177 | |||
| Short-term provisions | 91 | 5 | |||
| Total Current Liabilities | 12 386 | 22 839 | |||
| Non-Current Liabilities | |||||
| Long-term debt | 7 | 29 650 | 13 430 | ||
| Other long-term liabilities | 10 | 79 | |||
| Deferred income tax liability | 2 677 | 2 744 | |||
| Long-term provisions | 413 | 151 | |||
| Total Non-Current Liabilities | 32 750 | 16 404 | |||
| TOTAL LIABILITIES | 45 136 | 39 243 | |||
| Equity attributable to equity holders of the parent | |||||
| Share capital in nominal value | 10 821 | 10 821 | |||
| Paid in capital | 1 474 | 1 474 | |||
| Statutory reserve | 1 082 | 1 064 | |||
| Revaluation reserve | 9 389 | 9 389 | |||
| Foreign currency differences | -143 | -143 | |||
| Retained earnings | 61 141 | 39 778 | |||
| Profit/ loss for the period | -2 935 | 21 381 | |||
| Total equity attributable to equity holders of the parent | 80 829 | 83 764 | |||
| Non-controlling interest | 1 557 | 2 024 | |||
| TOTAL EQUITY | 82 386 | 85 788 | |||
| TOTAL LIABILITIES AND EQUITY | 127 522 | 125 031 | |||
Consolidated interim statements of comprehensive income
| in thousands of euros | Notes | 2015 9M | 2014 9M | 2015 Q3 |
| Operating income | ||||
| Revenue | 8 | 12 911 | 8 161 | 3 017 |
| Cost of goods sold | 9 | -9 584 | -5 822 | -2 057 |
| Gross profit | 10 | 3 327 | 2 339 | 960 |
| Marketing expenses | -414 | -375 | -121 | |
| Administrative expenses | 11 | -3 755 | -3 981 | -1 367 |
| Other income | 204 | 357 | 110 | |
| Other expenses | -268 | -60 | -48 | |
| Operating profit (loss) | -906 | -1 720 | -466 | |
| Financial income | 12 | 11 | 44 | 2 |
| Financial expense | 12 | -1 922 | -1209 | -787 |
| Profit (loss) before income tax | -2 817 | -2 885 | -1 251 | |
| Income tax | -16 | -21 | -2 | |
| Net profit (loss) for the period | -2 833 | -2 906 | -1 253 | |
| Equity holders of the parent | -2 935 | -2 770 | -1 232 | |
| Non-controlling interest | 102 | -136 | -21 | |
| Earnings per share (EUR) | 13 | -0,05 | -0,05 | -0,02 |
| Diluted earnings per share (EUR) | 13 | -0,05 | -0,05 | -0,02 |
Consolidated interim statements of cash flows
| in thousands of euros | Note | 2015 9M | 2014 9M | 2015 Q3 | 2014 Q3 |
| Cash flows from operating activities | |||||
| Profit (loss) for the year | -2 833 | -2 906 | -1 253 | -946 | |
| Adjustments for: | |||||
| Depreciation and amortisation of non-current assets | 5 | 504 | 527 | 158 | 202 |
| Change in fair value of investment property | 6 | 206 | 560 | 26 | 299 |
| Gain/loss from sale of PPE | 0 | -3 | 0 | -1 | |
| Gain/loss from disposal of subsidiary | 4 | 0 | -19 | 0 | 0 |
| Finance income and costs, net | 12 | 1 911 | 1 121 | 785 | 292 |
| Other non-monetary changes (net amounts) | 229 | 647 | 164 | 115 | |
| Movements in working capital: | |||||
| Change in trade receivables and prepayments | 1 384 | -495 | 4 | -363 | |
| Change in inventories | 1 937 | -1 181 | -505 | -1 902 | |
| Change in liabilities and prepayments | -1 362 | 2 350 | -842 | 1 526 | |
| Change in provisions | 346 | -42 | 340 | -21 | |
| Net cash generated by operating activities | 2 322 | 559 | -1 125 | -799 | |
| Cash flows from investing activities | |||||
| Payments for property, plant and equipment | 5 | -50 | -79 | -10 | -45 |
| Proceeds from disposal of property, plant and equipment | 0 | 7 | 0 | 1 | |
| Payments for intangible assets | -13 | 0 | -13 | 0 | |
| Payments for investment property | 6 | -206 | -560 | -26 | -299 |
| Proceeds from disposal of subsidiaries | 0 | 142 | 0 | 142 | |
| Interest received | 4 | 6 | 1 | 2 | |
| Net cash used in investing activities | -265 | -484 | -48 | -199 | |
| Cash flows from financing activities | |||||
| Proceeds from non-convertible bonds | 7 652 | 547 | 652 | 247 | |
| Repurchase of convertible bonds | -62 | 0 | 0 | 0 | |
| Proceeds from borrowings | 2 808 | 1 840 | 611 | 493 | |
| Repayment of borrowings | -4 219 | -2 265 | -514 | -188 | |
| Interest paid | -1 873 | -1 062 | -1 193 | -480 | |
| Net cash used in/ generated by financing activities | 4 306 | -940 | -444 | 72 | |
| Net change in cash and cash equivalents | 6 363 | -865 | -1 617 | -926 | |
| Cash and cash equivalents at the beginning of the period | 1 881 | 2 759 | 9 861 | 2 820 | |
| Cash and cash equivalents at the end of the period | 8 244 | 1 894 | 8 244 | 1 894 | |
Allan Remmelkoor Member of the Management Board Tel.: +372 6144 920 Email: prokapital@prokapital.ee
