During the third quarter of 2016 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. The financing agreement for the project was also signed with total volume of 65 million euros with TSSP, a leading global credit platform. 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 – Šaltinių Namai in Vilnius and Tondi Quarter in Tallinn.
In Vilnius by the issuing of the present report 33 apartments out of 44 in building K4-1 have been handed over to the clients and 3 apartments are still in process. Projecting works were continued for obtaining the building licence for the 2nd stage residential buildings, where 33 reservation agreements have been signed.
In Tallinn, Tondi quarter, the Company has completed three apartment buildings where 71 apartments out of 93 have been handed over to the clients. Presales continued also for the 4th building with 7 presale agreements signed. The construction works were completed for converting a historical barrack on Tondi 53 land plot into an office building where starting from 1st of September the head office of the Company is located. Projecting works for renovating other two historical barracks into office and residential buildings were also continued. On 1 November the architectural competition was launched for Kalasadam area with the deadline for entries on 1 February 2017. According to the detail plan the Company shall have the right to erect 6-18 buildings with gross volume of 38 300 m2 together with recreational areas, coastal promenade and buildings for restaurant and Yacht Club.
In Riga, the construction works for the first residential building in Kliversala project were continued and 7 presale agreements have been signed out of 47 flats in total. The projecting works were continued also for Tallinas Residential Complex.
During the nine months the Company completed two tranches of emission of bonds with the total issue price of 16 003 059 euros. The proceeds are mainly planned for the development projects of the Company.
Total revenue for nine months of 2016 was 16,2 million euros, a increase of 25% compared to the reference period (2015 9 months: 12,9 million euros). Revenues have increased in real estate segment. This segment is influenced by completion of the buildings as revenues are recorded at the moment notary deed of sales is concluded. Increase in gross profit influenced positively operating profit. The net result remained negative due to high financial costs, though recorded net losses of 2,4 million euros for nine months in 2016 were 16% lower as compared to 2,8 million euros losses in the same period last year.
Net operating result during nine months increased by 1,5 million euros (165%) compared to the reference period, totalling to profit of 0,6 million euros (2015 9 months loss of 0,9 million euros). Net operating result for the third quarter was profit of 1,8 million euros (2015 Q3: loss of 0,5 million euros). Net result for nine months of 2016 has increased by 0,4 million euros (16%) compared to the reference period, totalling to losses of 2,4 million euros (2015 9 months loss of 2,8 million euros). Net result for the third quarter was profit of 0,8 million euros (2015 Q3: loss of 1,3 million euros).
| Key financial figures | ||||
| 2016 9M | 2015 9M | 2016 Q3 | 2015 Q3 | |
| Revenue, th EUR | 16 177 | 12 911 | 7 974 | 3 017 |
| Gross profit, th EUR | 4 630 | 3 327 | 3 221 | 960 |
| Gross profit, % | 29% | 26% | 40% | 32% |
| Operating result, th EUR | 563 | -906 | 1 831 | -466 |
| Operating result, % | 3% | -7% | 23% | -15% |
| Net result, th EUR | -2 370 | -2 833 | 779 | -1 253 |
| Net result, % | -15% | -22% | 10% | -42% |
| Earnings per share, EUR | -0,04 | -0,05 | 0,01 | -0,02 |
| 30.09.2016 | 30.09.2015 | 31.12.2015 | ||
| Total Assets, th EUR | 140 202 | 127 522 | 130 323 | |
| Total Liabilities, th EUR | 57 874 | 45 136 | 46 891 | |
| Total Equity, th EUR | 82 328 | 82 386 | 83 432 | |
| Debt/ Equity | 0,70 | 0,55 | 0,56 | |
| Return on Assets, % | -1,80% | -2,20% | -1,50% | |
| Return on Equity, % | -2,90% | -3,60% | -2,40% | |
| Net asset value per share, EUR | 1,52 | 1,52 | 1,54 |
| Consolidated interim statements of financial position | |||
| in thousands of euros | 30.09.2016 | 31.12.2015 | |
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | 13 214 | 6 392 | |
| Current receivables | 1 475 | 1 608 | |
| Inventories | 9 816 | 12 438 | |
| Total Current Assets | 24 505 | 20 438 | |
| Non-Current Assets | |||
| Non-current receivables | 44 | 48 | |
| Property, plant and equipment | 18 009 | 17 103 | |
| Investment property | 97 371 | 92 457 | |
| Intangible assets | 273 | 277 | |
| Total Non-Current Assets | 115 697 | 109 885 | |
| TOTAL ASSETS | 140 202 | 130 323 | |
| in thousands of euros | 30.09.2016 | 31.12.2015 | |
| LIABILITIES AND EQUITY | |||
| Current Liabilities | |||
| Current debt | 10 541 | 8 004 | |
| Customer advances | 1 351 | 1 692 | |
| Current payables | 4 231 | 5 103 | |
| Taxes payable | 787 | 264 | |
| Short-term provisions | 66 | 87 | |
| Total Current Liabilities | 16 976 | 15 150 | |
| Non-Current Liabilities | |||
| Long-term debt | 36 460 | 27 054 | |
| Other long-term liabilities | 610 | 837 | |
| Deferred income tax liability | 3 449 | 3 503 | |
| Long-term provisions | 379 | 347 | |
| Total Non-Current Liabilities | 40 898 | 31 741 | |
| TOTAL LIABILITIES | 57 874 | 46 891 | |
| Equity attributable to equity holders of the parent | |||
| Share capital in nominal value | 10 848 | 10 841 | |
| Paid in capital | 1 742 | 1 669 | |
| Statutory reserve | 1 082 | 1 082 | |
| Revaluation reserve | 9 462 | 9 462 | |
| Retained earnings | 59 283 | 60 677 | |
| Profit (loss) for the period | -2 315 | -1 934 | |
| Total equity attributable to equity holders of the parent | 80 102 | 81 797 | |
| Non-controlling interest | 2 226 | 1 635 | |
| TOTAL EQUITY | 82 328 | 83 432 | |
| TOTAL LIABILITIES AND EQUITY | 140 202 | 130 323 | |
| Consolidated interim statements of comprehensive income | ||||
| in thousands of euros | 2016 9M | 2015 9M | 2016 Q3 | 2015 Q3 |
| Operating income | ||||
| Revenue | 16 177 | 12 911 | 7 974 | 3 017 |
| Cost of goods sold | -11 547 | -9 584 | -4 753 | -2 057 |
| Gross profit | 4 630 | 3 327 | 3 221 | 960 |
| Marketing expenses | -343 | -414 | -141 | -121 |
| Administrative expenses | -3 853 | -3 755 | -1 284 | -1 367 |
| Other income | 200 | 204 | 48 | 110 |
| Other expenses | -71 | -268 | -13 | -48 |
| Operating profit/ loss | 563 | -906 | 1 831 | -466 |
| Financial income | 5 | 11 | -11 | 2 |
| Financial expense | -2 720 | -1 922 | -837 | -787 |
| Loss before income tax | -2 152 | -2 817 | 983 | -1 251 |
| Income tax | -218 | -16 | -204 | -2 |
| Net loss for the period | -2 370 | -2 833 | 779 | -1 253 |
| Equity holders of the parent | -2 315 | -2 935 | 802 | -1 232 |
| Non-controlling interest | -55 | 102 | -23 | -21 |
| Consolidated interim statements of cash flows | |||||
| in thousands of euros | 2016 9M | 2015 9M | 2016 Q3 | 2015 Q3 | |
| Cash flows from operating activities | |||||
| Loss for the year | -2 370 | -2 833 | 779 | -1 253 | |
| Adjustments for: | |||||
| Depreciation and amortisation of non-current assets | 529 | 504 | 172 | 173 | |
| Change in fair value of investment property | 0 | 206 | 0 | 26 | |
| Finance income and costs | 2 715 | 1 911 | 848 | 785 | |
| Other non-monetary changes (net amounts) | -51 | 229 | -101 | 147 | |
| Changes in working capital: | |||||
| Trade receivables and prepayments | 137 | 1 384 | -212 | 4 | |
| Inventories | 2 622 | 1 937 | 1 428 | -505 | |
| Liabilities and prepayments | -917 | -1 362 | 154 | -842 | |
| Provisions | 10 | 346 | 44 | 340 | |
| Net cash from operating activities | 2 675 | 2 322 | 3 112 | -1 125 | |
| Cash flows from investing activities | |||||
| Payments for property, plant and equipment | -686 | -50 | -586 | -10 | |
| Payments for intangible assets | -1 | -13 | 0 | -13 | |
| Payments for investment property | -5 659 | -206 | -1 236 | -26 | |
| Payments for other investments | 0 | 0 | 2 813 | 0 | |
| Interests received | 16 | 3 | -12 | 1 | |
| Net cash from investing activities | -6 342 | -265 | 979 | -48 | |
| Cash flows from financing activities | |||||
| Proceeds from changes in non-controlling interests | 1 187 | 0 | 0 | 0 | |
| Payment for purchase of minority shareholding | -361 | 0 | 0 | 0 | |
| Proceeds from issue of bonds | 12 637 | 7 652 | -2 813 | 652 | |
| Redemption of convertible bonds | -12 | -62 | 0 | 0 | |
| Proceeds from borrowings | 2 025 | 2 808 | 471 | 611 | |
| Repayment of borrowings | -2 754 | -4 219 | -804 | -514 | |
| Interests paid | -2 233 | -1 873 | -373 | -1 193 | |
| Net cash from financing activities | 10 489 | 4 306 | -3 519 | -444 | |
| Net change in cash and cash equivalents | 6 822 | 6 363 | 572 | -1 617 | |
| Cash and cash equivalents at the beginning of the period | 6 392 | 1 881 | 12 642 | 9 861 | |
| Cash and cash equivalents at the end of the period | 13 214 | 8 244 | 13 214 | 8 244 | |
Allan Remmelkoor Member of the Management Board Tel.: +372 6144 920 Email: prokapital@prokapital.ee
