Published: 2019-09-25 11:32:30 CEST
UPP & CO Kauno 53
Company Announcement

Correction: UPP & CO Kauno 53 OÜ consolidated unaudited financial results for 6 months of 2019

The Issuer published its financial results for 6 months of 2019 on 23rd September 2019. There was a mistake in the announcement headline, where it was indiacated that the interim report also includes financial results for Q2 2019. This is not the case, as the interim report only includes financial results for the interim period 6 months of 2019. With the current announcement, the Issuer has amended the headline for the interim report announcement.

 

MANAGEMENT REPORT

General information

UPP & CO Kauno 53 OÜ (hereinafter the Company) was founded for the purpose of financing, acquisition and management of the investment property Vievis Logistics Park (buildings and registered immovable). The location of Vievis Logistics Park is Kauno 53, Vievis, Republic of Lithuania, cadastral register number 4400-1185-1420. The Company was founded on 30.01.2017 and it did not engage in economic activities until 17.04.2017 when the warehouse of Vievis Logistics Park was acquired.

The commercial activities of the Company are not affected by seasonal factors and lack any social or environmental impact.

The Company has been founded solely for the purpose of financing, acquisition and management of Vievis Logistics Park; therefore no strategic changes in the commercial activities of the Company have been planned.

The management is not in possession of any information concerning trends, uncertainties, claims, obligations or events that could likely have a significant impact on the prospects of the Company in the period following the reporting period outside the regular commercial activities of the Company.

The commercial activities of the Company constitute collecting income from rent, managing the real estate object, and servicing loan obligations. Loan obligations comprise bonds with a fixed interest rate and an investment loan whose interest is also fixed with a derivative contract. In terms of income, there is stable triple net lease income from lessees that is for the most part fixed with medium to long-term contracts and indexed according to inflation. Arising from the commercial activities of the Company, its economic activities and financial results are generally not easily affected by various external factors.

Comment on economic performance and management report

The operating profit for the first half-year of 2019 amounted to 509,911 euros, which is 15% lower compared to the same period in the previous year (599,155 euros). The lower operating profit for the reporting period was caused due to increased depreciation of fixed assets. Upon the acquisition of the subsidiary Promalita UAB, the Company acquired goodwill and, due to the depreciation thereof, the depreciation of fixed assets has increased.

In other aspects, the economic performance is similar to the compared reporting period. The Company is profitable and the increase in retained earnings ensures the required flexibility for bond redemption in the future. The Company is not planning to disburse the retained earnings before bond redemption. The Company has gradually reduced its obligation towards OP Bank, which strengthens the cash flow of the Company and provides the fundamentals for increase in profitability in the future. The value of the investment property of the Company has increased by 2.3%.

No significant events other than regular operating activities, including the timely receipt of rent and utility charges, took place as of the end of the first half-year of 2019.

There are no vacancies on the investment property as of the end of the reporting period.

Management board and Supervisory board

The management board of UPP & CO Kauno 53 OÜ consists of one member: Marko Tali, Chairman of the Management Board.

The supervisory board of UPP & CO Kauno 53 OÜ consists of three members: Mart Tooming, Tarmo Rooteman, Hallar Loogma.

No remuneration or other benefits are provided to the members of the management board and the supervisory board.

Other than the management board and the supervisory board, the Company has no employees.

UPP & CO Kauno 53 OÜ is a going concern.

Financial ratios of the Group   2019
6 months
2018
6 months
Net profit margin %   22.60% 37.36%
Debt/equity ratio 13.67 30.03
Return on equity %   14.68% 49.21%
Equity ratio   0.06 0.03
Net profit margin %   14% 4%
ROA %   0.86% 1.38%

 

CONSOLIDATED INTERIM ANNUAL ACCOUNTS

CONSOLIDATED BALANCE SHEET

(EUR)

  30.06.2019   30.06.2018   Note
           
Cash 317,211   100,748   2
Receivables and prepayments 10,734   14,797    
Total current assets 327,945   115,545    
           
Investment properties 15,700,000   15,350,000   4
Tangible fixed assets 17,841   29,888    
Goodwill 960,614   1,280,818   5
Total fixed assets 16,678,455   16,660,706    
           
TOTAL ASSETS 17,006,400   16,776,251    
           
Short-term loans payable 460,000   460,000   6
Payables and prepayments 143,213   115,812   7
Total current liabilities 603,213   575,812    
           
Long-term loans payable 13,153,516   13,639,683   6
Long-term provisions 2,254,021   2,091,191   8
Total non-current liabilities 15,407,537   15,730,874    
           
TOTAL LIABILITIES 16,010,750   16,306,686    
           
Share capital 2,500   2,500   9
Retained earnings 993,150   467,065    
TOTAL EQUITY 995,650   469,565    
           
TOTAL LIABILITIES AND EQUITY 17,006,400   16,776,251    

 

CONSOLIDATED INCOME STATEMENT

(EUR), per year

      2019 6 months   2018 6 months   Note
               
Sales revenue     646,651   618,475   10
Other operating revenue     0   2,921    
               
Other operating expenses     −25,568   −12,944   11
Staff costs     −168   −876    
Depreciation of fixed assets     −111,004   −8,421   5
               
Operating profit     509,911   599,155    
               
Financial income (expenses)     −280,704   −288,635   12
               
Profit before income tax     229,207   310,520    
Income tax     −83,042   −79,442   13
Net profit for financial year     145,165   231,078    
               
including the share of the owners of the parent company in net profit     145,165   231,078    


 

         Siim Sild
         Director
         +372 5626 0107
         siim.sild@unitedpartners.ee


K53 cons. vahearuanne ENG 30.06.19.pdf