Published: 2019-06-14 14:57:10 CEST
UPP & CO Kauno 53
Annual report

UPP & CO Kauno 53 OÜ Consolidated Audited 2018 Annual Report

Management Report 

UPP & CO Kauno 53 OÜ, the parent company of the consolidation group (hereinafter “K53”) was established for the purpose of making and managing investment property and raising capital for this transaction.

During the previous accounting period, the entity acquired 100% share in Promalita UAB, a company registered in the Republic of Lithuania, which owns a logistics center near Vilnius. The closed net area of the center is 21,232 m2 and it has been fully leased out. The anchor lessee is Rimi commercial chain.

In the financial year, the sales revenue of the consolidation group amounted to 1,247 (2017: 794) thousand euros. The consolidation group has no employees and thus, there are no labor costs, but remuneration has been calculated to members of the management board. During the financial year, these costs inclusive of the taxes amounted to 1,037 (2017: 0.6) thousand euros. The management is not entitled to any other benefits.

During the financial year, changes were made in the managing bodies of K53 and its subsidiary Promalita UAB. The meeting of the shareholders and supervisory board of K53 held in 13 September decided to make changes in the management board and supervisory board of K53 and the management board of its subsidiary Promalita UAB.

Marko Tali, the former member of the supervisory board of K53, was elected to the management boards of both companies. The former management board members Hallar Loogma and Kevin Soon were removed from the management board.  Hallar Loogma will continue as the member of the supervisory board of K53.

In connection with the takeover of the lease premises by Rimi, there was a need to make several minor works in order to adapt the premises for Rimi’s business activity. The final works were completed at the end of the second quarter of the financial year. The lease premises were in use by Rimi since the end of January already, which means that lease income was received from these premises throughout the financial year.

In January 2018, cooperation ended with the lessee UAB CAT Cargo Logistics. The premises that had previously been leased to them were taken over by the anchor lessee of K53, Rimi Lietuva. There was no vacancy with regard to the change in lease premises.

The general (macroeconomic) development of the business environment of the accounting entity is good and the impact of it on the financial performance is neutral. The operating activities of the accounting entity do not take place on a seasonal basis, the business activities are not cyclical. There are no significant environmental and social impacts resulting from the activities of the entity.

No risks related to changes in foreign exchange rates, interest rates and stock exchange rates have occurred during the financial year or during the period of preparation of the report.

Since the entity has been established solely for the described activity, no structural changes are planned to be made in the business activity.

There are no significant projects in the field of research and development and the related expenditure in the accounting year and the following years. The entity has not undertaken any obligations or issued any guarantees which could significantly influence the performance of the following financial years.


The main financial ratios 2018 2017
Debt-to-equity ratio (times) 16.25 60.02
Debt ratio (times) 0.95 0.99
Long-term debt ratio (times) 0.95 0.99
Return on equity % 72.19% 98.95%
Equity ratio (times) 0.05 0.01
ROA % 3.62% 1.41%

UPP & CO Kauno 53 OÜ and its subsidiary Promalita UAB will carry on their activities as a going concern.

Marko Tali

Member of the Management Board


The Financial Statements

Consolidated Statement of Income

(in Euros)

  2018 30.01.2017-31.12.2017 Note
Sales revenue 1,247,276 794,385 12
Other operating income 350,000 337 5
Miscellaneous operating expenses -19,220 -19,442 13
Labor expense -1,037 -618 14
Depreciation and impairment of non-current assets -229,666 -11,771 6
Other operating expenses -11 0  
Operating profit (loss) 1,347,342 762,891  
Interest income 3 6  
Interest expense -574,124 -412,504 15
Other financial income and expense 0 1,800  
Profit (loss) before income tax 773,221 352,193  
Income tax expense -159,968 -116,204 16
Annual period profit (loss) 613,253 235,989  
Profit (loss) belonging to shareholders in parent company 613,253 235,989  


Consolidated Statement of Financial Position

(in Euros)

  31.12.2018 31.12.2017 Note
Current assets      
Cash and cash equivalents 159,684 39,745 2
Receivables and prepayments 9,751 8,844 3
Total current assets 169,435 48,589  
Non-current assets      
Investment property 15,700,000 15,350,000 5
Property, plant and equipment 22,113 38,309 6
Intangible assets 1,067,348 1,280,818 7
Total non-current assets 16,789,461 16,669,127  
Total assets 16,958,896 16,717,716  
Liabilities and equity      
Current liabilities      
Loan liabilities 460,000 460,000 8
Payables and prepayments 132,512 152,398 9
Total current liabilities 592,512 612,398  
Non-current liabilities      
Loan liabilities 13,345,183 13,855,083 8
Provisions 2,171,716 2,011,748 10
Total non-current liabilities 15,516,899 15,866,831  
Total liabilities 16,109,411 16,479,229  
Equity held by shareholders in parent company      
Issued capital 2,500 2,500 11
Retained earnings (loss) 233,732 -2  
Annual period profit (loss) 613,253 235,989  
Total equity held by shareholders in parent company 849,485 238,487  
Total equity  849,485 238,487  
Total liabilities and equity 16,958,896 16,717,716  


         Siim Sild
         +372 5626 0107

AA 2018 UPP & Co Kauno 53 (eng).pdf