Published: 2020-03-27 14:13:47 CET
UPP & CO Kauno 53
Interim information

UPP & CO Kauno 53 OÜ Q4 and 12 months of 2019 consolidated interim report (unaudited)

MANAGEMENT REPORT

General information

UPP & CO Kauno 53 OÜ (hereafter ‘the Company’ and ‘Group’ when referred together with subsidiaries) 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.

UPP & CO Kauno 53 OÜ is a going concern.

The impact of COVID-19 on the Company’s economic activity

The novel coronavirus outbreak started in early 2020 and caused a global economic downturn in March 2020. The COVID-19 also reached the Baltic states, causing border closures for foreign nationals, school closures and panic shopping for consumer stapels. The full effect of the economic downturn caused by the pandemic remains to be seen.

The Company’s economic activities have not been directly affected by the virus outbreak. The outbreak has affected the economic activities of the Company's property leasing companies, which indirectly will affect the Company's financial performance. The magnitude of the impact of the COVID-19 outbreak and the consequent economic downturn on the Company's financial performance is difficult to assess because, at the time of writing, the extent of the pandemic is unknown and there are little to no signs of the outbreak slowing down. The Management Board's best estimate is that, in the event that the outbreak of the virus and the resulting economic downturn do not materially worsen, the effect of these circumstances on the Company's financial performance will be moderate, due to the area of ​​activity of the Company's property leasing companies.

Important events

Apart from the COVID-19 outbreak, there were no significant events or changes in the Company or the Group during the year. There were no changes or major events in the logistics center or its tenants during the year.

No significant R&D projects or related expenditures are foreseen in the current or subsequent years. Nor has the Group entered into any commitments or guarantees that could materially affect the results of the next financial years.

As of the end of the reporting period the property is fully leased.

Comment on economic performance and management report

Net operating revenues were 320 222 euros for the fourth quarter of 2019, increased by 3,6% from 309 130 euros for the fourth quarter of 2018. Net operating revenues for the financial year 2019 were 1 287 781 euros, increased by 3,2% from 1 247 276 euros for the financial year 2018. The net operating revenues are in line with the management expectations, the silght increase is due to the rental rate indexation which occurred in early 2019.

Adjusted net operating income was 307 625 euros for the fourth quarter of 2019, increased by 0,4% from 306 342 euros for the fourth quarter of 2018. Adjusted net operating income for the financial year 2019 was 1 239 897 euros, increased by 1% from 1 227 008 euros for the financial year 2018. The adjusted net operating income is in line with the management expectations.

Adjusted net income was 148 076 euros for the fourth quarter of 2019, increased by 20% from 122 679 euros for the fourth quarter of 2018. Adjusted net income for financial year 2019 was 536 688 euros, increased by 13,6% from 472 439 euros for the financial year 2018. The increase in adjusted net income is caused by the reduced taxable income for 2019, which resulted in less tax burden. The higher taxable income for 2018 was caused by the revaluation of the Investment Property, which added 350 000 euros to taxable income for 2018.

At the end of the reporting period the Company ordered the assessment of the fair value of the Investment property. The valuation was carried out by accredited real estate evaluators.

 

CONSOLIDATED INTERIM ANNUAL ACCOUNTS

CONSOLIDATED BALANCE SHEET

(EUR)

  31.12.2019   31.12.2018  
         
Cash 362 919   159 684  
Receivables and prepayments 11 458   9 751  
Total current assets 374 377   169 435  
         
Investment properties 15 750 000   15 700 000  
Tangible fixed assets 14 049   22 113  
Goodwill 853 880   1 067 348  
Total fixed assets 16 617 929   16 789 461  
         
TOTAL ASSETS 16 992 306   16 958 896  
         
Short-term loans payable 460 000   460 000  
Payables and prepayments 143 297   132 512  
Total current liabilities 603 297   592 512  
         
Long-term loans payable 12 885 183   13 345 183  
Long-term provisions 2 309 664   2 192 196  
Total non-current liabilities 15 194 847   15 537 379  
         
TOTAL LIABILITIES 15 798 144   16 129 891  
         
Share capital 2 500   2 500  
Retained earnings 1 191 662   826 505  
TOTAL EQUITY 1 194 162   829 005  
         
TOTAL LIABILITIES AND EQUITY 16 992 306   16 958 896  

 

CONSOLIDATED INCOME STATEMENT

(EUR), per year

    2019 12 months   2019 4Q   2018 12 months   2018 4Q  
                   
Sales revenue 1 287 781   320 222   1 247 276   309 130  
Other operating revenue 50 000   50 000   350 000   355 431  
                   
Other operating expenses -46 255   -12 557   -18 320   -2 709  
Staff costs   -292   -40   -1037   -79  
Depreciation of fixed assets -221 531   -55 207   -229 666   -217 352  
Ohter costs   -1337   0   -911   0  
Operating profit 1 068 366   302 418   1 347 342   444 421  
                   
Financial income (expenses) -562 170   -140 076   -574 121   -143 019  
                   
Profit before income tax 506 196   162 342   773 221   301 402  
Income tax   -141 039   -19 473   -180 448   -40 644  
Net profit for financial year 365 157   142 869   592 773   260 758  
                   
including the share of the owners of the parent company in net profit 365 157   142 869   592 773   260 758  

   

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


K53 cons. 31.12.2019 EN.pdf