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Audited annual report 2020

·5-min read

On 11 June 2021, the Supervisory Council of AS Pro Kapital Grupp has approved the company’s 2020 audited annual report.

Prior period errors

When determining the fair value of investment property, double counting of assets or liabilities that are separately recognised in the balance sheet should be avoided. When making the adjustment to the fair value of investment property in the balance sheet as at 31 December 2019, the Management did not take into account the fact that a receivable had already been recognised for a portion of the future cash flows. The carrying amount of the T1 Mall of Tallinn investment property is therefore 108.6 million euros as at 31 December 2019, restated by 2.3 million euros already recognised in the balance sheet.

The following table summarises the impact of the prior period error on the financial statements of the Group.

Consolidated statement of profit and loss and other comprehensive income

in thousands of euros

2019 (Restated)

2019

Other operating expenses

-26 602

-24 341

Including net result from fair value adjustments from investment property

-26 497

-24 236

Operating profit/ loss

-17 439

-15 178

Profit/ loss before income tax

-31 454

-29 193

Profit/ loss from continuing operations

-31 433

-29 172

Total comprehensive loss for the year

-31 433

-29 172

Attributable to:

Owners of the Company

-29 078

-26 981

Non-controlling interests

-2 355

-2 191

Earnings per share

Basic (euros per share)

-0.51

-0.48

Diluted (euros per share)

-0.51

-0.48

Consolidated statement of financial position

in thousands of euros

31.12.2019 (Restated)

31.12.2019

Non-current assets

Investment property

145 104

147 365

Total non-current assets

155 438

157 699

TOTAL ASSETS

208 560

210 821

Equity attributable to owners of the Company

Profit/ loss for the financial year

-29 078

-26 981

Total equity attributable to owners of the Company

69 042

71 139

Non-controlling interest

263

427

TOTAL EQUITY

69 305

71 566

TOTAL LIABILITIES AND EQUITY

208 560

210 821

Differences between comparative information of unaudited financial results for the year ended 31 December 2020 presented in this report and interim financial results of 2020, which were published on 26 February 2021

Consolidated statement of comprehensive income

in thousands of euros

2020 12M (Unaudited)

2020 12M

Administrative expenses

-6 154

-5 587

Other expenses

-43 586

-41 978

Including net result from fair value adjustments from investment property

-43 128

-41 902

Operating profit/ loss

-43 108

-40 933

Profit/ loss before income tax

-59 102

-56 927

Profit/ loss for the period

-59 456

-57 281

Attributable to:

Equity holders of the parent

-55 678

-53 648

Non-controlling interest

-3 778

-3 633

Items that will not be reclassified subsequently to profit or loss

Net change in properties revaluation reserve

-278

0

Total comprehensive income/ loss for the year

-59 734

-57 281

Attributable to:

Equity holders of the parent

-55 956

-53 648

Non-controlling interest

-3 778

-3 633

Earnings per share for the period (EUR)

-0.98

-0.95

In the course of auditing process, the amendments have been made to administrative expenses and other expenses in relation to the subsidiary AS Tallinna Moekombinaat. Administrative costs increased by 567 thousand euros due to recording additional credit losses for expected rental revenues. Changes in other expenses are related to the fair value adjustment by 1 226 thousand euros and recording penalties of 382 thousand euros which have been accounted for off balance sheet and were recognised due to adjusting event (Note 18). Non-controlling interest has changed accordingly. Net change in properties revaluation reserve has decreased by 278 thousand euros and is related to the German hotel fair value. Total effect of changes in the statement of comprehensive income is 2 453 thousand euros additional loss for the period.

Consolidated statement of financial position

In thousands of euros

31.12.2020 (Unaudited)

31.12.2020

Non-current assets

Non-current receivables

3 517

4 085

Property, plant and equipment

6 745

7 023

Investment property

98 512

101 998

Total non-current assets

109 506

113 838

TOTAL ASSETS

179 048

183 380

Current liabilities

Current debt

107 581

79 939

Current payables

22 211

21 829

Total current liabilities

138 575

110 551

Non-current liabilities

Long-term debt

27 255

54 897

Total non-current liabilities

30 902

58 544

TOTAL LIABILITIES

169 477

169 095

Equity attributable to owners of the Company

Revaluation reserve

2 984

3 262

Retained earnings

47 647

49 744

Profit/ loss for the period

-55 678

-53 648

Total equity attributable to owners of the Company

13 086

17 491

Non-controlling interest

-3 515

-3 206

TOTAL EQUITY

9 571

14 285

TOTAL LIABILITIES AND EQUITY

179 048

183 380

In the course of auditing process, the amendments have been made to non-current assets, liabilities and equity. Non-current receivables decreased by 567 thousand euros due to recording additional credit losses on expected rental revenues. PPE and revaluation reserve have been influenced by change in fair value of the German hotel in amount of 278 thousand euros. The value of investment property has decreased by 3 486 thousand euros, of which 2 261 thousand euros is the effect from 2019 as described above and the rest from 2020 for similar adjustment. Current payables have increased by penalties in amount of 382 thousand euros which have been accounted for off-balance sheet and recorded due to adjusting event. Long-term debt has decreased and current debt has increased as per reclassification of secured bonds balance sheet value because of the event of not meeting financial covenants due to adjusting event (Notes 9 and 19). Total effect of net changes in the statement of financial position is a decrease of 4 332 thousand euros of which 2 261 is related to restatement in 2019.

The audited annual report of AS Pro Kapital Grupp for the financial year of 2020 is available at the headquarter of the company, located at Sõjakooli 11, Tallinn. The report can also be found on the company's webpage www.prokapital.com.

Angelika Annus
CFO
AS Pro Kapital Grupp
Phone: +372 614 4920
prokapital@prokapital.ee

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