Audited annual report 2024 of AS Pro Kapital Grupp
Audited annual report 2024 of AS Pro Kapital Grupp
The Supervisory Board of AS Pro Kapital Grupp has approved the Group's audited
annual report for 2024.
In 2024, AS Pro Kapital Grupp (hereafter referred to as the Group) revenue
amounted to 18.2 million euros, representing a decrease of 4.9 million euros
compared to the previous financial year. The decrease in revenue resulted from
lower sales volumes, as most of the available units had already been sold, and
the Group's main focus in 2024 remained on the construction of new development
projects. In Tallinn, the Group continued with the construction of the final
stage of the Kalaranna District and began handing over the first completed units
in December 2024. At the same time, new projects Uus-Kindrali in Tallinn and
Shaltini? Namai Attico in Vilnius were launched, with both scheduled for
completion by the end of 2025. In Riga, the Group successfully sold all
remaining units in River Breeze Residence.
The Group's gross profit for 2024 amounted to 5.4 million euros, compared to
7.0 million euros in 2023.
The year ended with a net loss of 3.9 million euros.
Prior Period Errors
The accounting treatment for the modification of financial liabilities under
IFRS 9 requires that, when the terms of a financial liability are modified, the
entity must assess whether the modification is substantial enough to result in
the derecognition of the original liability and the recognition of a new one. If
the modification is not substantial, the carrying amount of the existing
liability is adjusted based on the present value of the modified cash flows, and
the resulting effect is recognised in profit or loss.
In January 2024, the terms of the secured bonds issued by the Group were
amended, including an increase in the interest rate from 8% to 11%. As the
modification did not qualify as substantial under IFRS 9 and was treated as an
extension of the existing agreement, the financial impact should have been
recognised at the beginning of 2024. As a result, the carrying amount of the
financial liability was adjusted, and going forward, interest expense is
calculated based on the revised cash flows. A portion of the reduction in
interest expense was recognised during the reporting period, and further
reductions will continue in subsequent years in line with the modified cash flow
schedule. The total impact on the Group's income statement and the financial
liability recognised in the balance sheet was 1 071 thousand euros.
Differences Between the Audited Financial Results for the Year Ended 31 December
2024 and the 12-Month Interim Financial Results Published on 28 February 2025:
Consolidated statement of profit or loss and other comprehensive income
2024
in thousands of euros audited annual report 2024 12M interim report
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Financial expense -4 276 -3 205
Profit / loss before income tax -4 030 -2 959
Net profit / loss for the period -3 875 -2 804
Attributable to:
Equity holders of the parent -3 675 -2 604
Non-controlling interests -200 -200
Total comprehensive loss for the
year -3 990 -2 919
Attributable to:
Equity holders of the parent -3 790 -2 719
Non-controlling interests -200 -200
Earnings per share for the
period EUR -0,06 -0.05
As part of the audit, financial expenses were adjusted. Consequently, a loss of
1 413 thousand euros arising from the modification of the financial liability
was recognised in profit or loss. The adjustment to the liability also resulted
in a reduction of 342 thousand euros in previously accrued interest expense
during 2024. The net impact on the income statement amounted to 1 071 thousand
euros, as disclosed in Note 29.
Consolidated statement of financial position
31.12.2024 audited annual 31.12.2024 12M
in thousands of euros report interim report
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Current liabilities
Current debt 21 893 15 427
Trade and other payables 5 600 6 685
Total current liabilities 37 968 32 587
Non-current liabilities
Long-term debt 27 350 31 660
Total non-current liabilities 29 569 33 879
TOTAL LIABILITIES 67 537 66 466
Equity attributable to owners of
the Company
Retained earnings 30 523 31 594
Total equity attributable to the
owners of the Company 50 633 51 704
TOTAL EQUITY 51 221 52 292
During the audit, adjustments were made to the recognition and classification of
current and non-current liabilities as well as of equity in the balance sheet.
The increase in current liabilities by 5 381 thousand euros resulted from the
bond modification (interest rate change) and the resulting increase in the
carrying amount of the financial liability, as well as from an additional
contractual obligation to redeem secured bonds in the amount of 5 million euros
by 31 December 2025, which led to a reclassification of these liabilities as
current (Note 16). Furthermore, accrued interest obligations related to secured
and unsecured bonds were reclassified, amounting to 1 085 thousand euros, which
increased current debt and reduced trade and other payables (Notes 16, 17).
Long-term debt decreased by 4 310 thousand euros, reflecting both the
reclassification due to the redemption obligation and the adjustment of the
financial liability arising from the modification (Note 18).
Following the adjustments, the retained earnings and total equity decreased by
1 071 thousand euros. The cumulative effect of these adjustments on the total
balance sheet volume was 0 euros.
AS Pro Kapital Grupp consolidated annual report 2024 in ESEF format together
with independent auditor's report is attached to this announcement and will be
made available on the company's website
https://www.prokapital.com/en/financials/
Ann-Kristin Kuusik
CFO
AS Pro Kapital Grupp
Phone: +372 614 4920
[email protected]