OREANDA-NEWS. August 07, 2015.

General information

During the first six months 2015, there were no changes in the group structure. At 30 June 2015, the group comprises of 24 companies.

Significant subsidiaries

Company name Location Segment Share capital (nominal value) Equity balance 
at 30 June 2015		 The group's interest
In thousands of euros          
Arco Manastirski EOOD Bulgaria development 2,676 3,513 100%
Arco Invest EOOD Bulgaria development 25,976 -766 100%
Kolde AS Estonia development 28 -266 100%
Kerberon O? Estonia development 5 1,189 100%
Marsili II SIA Latvia development 1,524 936 100%
Arco Development SIA Latvia development 6,473 -1,987 100%
Arco Real Estate AS Estonia service 42 -686 100%
Arco Real Estate SIA? Latvia service 1,905 74 70.6%
Arco Imoti EOOD Bulgaria service 444 189 100%

- Non-controlling interest in Arco Real Estate SIA equals to the group’s total non-controlling interest

Key Performance Indicators

In first six months 2015, the group’s revenue was 6.5 million euros, exceeding almost three times the revenue of first half of 2014, when revenue amounted to 2.2 million euros. In Q2, revenue was 2.1 million euros (in Q2 2014: 1.1 million euros). The increase of the group’s revenue comes from Development division, where revenue amounted to 5.2 million euros in six months 2015 (in 6 months 2014: 0.8 million euros), of which 4.6 million euros from the sale of apartments in the group’s development projects in Bulgaria. The revenue of service division has remained basically in the same level decreased by 1% compared to six months of previous year. Q2 2015 revenue of services division increased by 6% compared to Q2 of previous year.

In six months 2015, operating profit (=EBIT) was 1.1 million euros and net profit 0.7 million euros, a year ago the same figures were 0.4 million euros and 29 thousand euros respectively. Moreover, the result of 2014 was impacted by gain from the sale of a subsidiary in amount of more than 0.6 million euros. In Q2 this year, operating profit was 0.2 million euros and net loss amounted to 12 thousand euros. In Q2 2014, the group had operating loss of 0.1 million euros and net loss of 0.4 million euros.

Equity to assets ratio arose up to 40.9% at 30 June 2015. At 31 December 2014, the figure was 33.5%.

The group’s net loans have decreased by 2.4 million euros in six months 2015. As at 30 June 2015, the weighted average annual interest rate of loans was 5.1%. This is a decrease by 0.4 percentage points compared to 31 December 2014.

In six months 2015, were sold 61 apartments (of which 13 were sold in Q2) and 5 commercial spaces in projects developed in the group. In six months 2014, were sold only 3 apartments (of which one in Q2).

    6 months 2015 6 months 2014 Q2 2015 Q2 2014
In millions of euros          
Revenue          
Development   5.2 0.8 1.4 0.4
Service   1.6 1.6 0.8 0.8
Eliminations   -0.3 -0.2 -0.1 -0.1
Total revenue   6.5 2.2 2.1 1.1
           
Operating profit (EBIT)          
Development   1.2 0.1 0.3 0.0
Service   0.1 0.1 0.0 0.1
Unallocated income and expenses   0.0 0.4 -0.2 -0.1
Eliminations   -0.2 -0.2 0.1 -0.1
Total operating profit (EBIT)   1.1 0.4 0.2 -0.1
           
Finance income and expense   -0.4 -0.4 -0.2 -0.2
Net profit   0.7 0.0 0.0 -0.3
           
Main ratios          
EPS (in euros)   0.12 0.00 0.00 -0.08
ROIC (rolling, four quarters)   6.3% 8.5%    
ROE (rolling, four quarters)   17.1% 29.0%    
ROA (rolling, four quarters)   5.7% 7.4%    
           
    30 June 2015 31 Dec 2014    
In millions of euros          
Total assets, at period end   23.7 27.0    
Invested capital, at period end   21.7 24.1    
Net loans, at period end   10.9 13.3    
Equity, at period end   9.7 9.1    
           
Average loan term (in years)   2.3 2.3    
Average annual interest rate of loans   5.1% 5.8%    
Number of staff, at period end   173 189    

   

Cash flows

      6 months 2015 6 months 2014   Q2 2015 Q2 2014
In millions of euros              
Cash flows from/used in operating activities     3.2 -1.9   0.2 -0.7
Cash flows from/used in investing activities     -0.1 0.1   0.0 0.1
Cash flows from/used in financing activities     -3.7 1.6   -0.9 0.5
Net cash flows     -0.6 -0.2   -0.7 -0.1
               
Cash and cash equivalents at beginning of period     1.7 0.8   1.8 0.7
Cash and cash equivalents at end of period     1.1 0.6   1.1 0.6

 

FORMULAS USED 

Earnings per share (EPS) = net profit attributable to owners of the parent / (weighted average number of ordinary shares outstanding during the period – own shares)

Invested capital = current interest-bearing liabilities + non-current liabilities + equity (at end of period)

Net loans = current interest-bearing liabilities + non-current liabilities – cash and cash equivalents – short-term investments in securities (at end of period)

Return on invested capital (ROIC) = past four quarters’ net profit / average invested capital

Return on equity (ROE) = past four quarters’ net profit / average equity

Return on assets (ROA) = past four quarters’ net profit / average total assets

Number of staff at period-end = number of people working for the group under employment or authorization (service) contracts

 

Revenue and net profit/loss from continuing operations    
    Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Total 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Total 2014 Q1 2015 Q2 2015
In millions of euros                                    
Revenue   1.3 3.7 2.4 3.5 10.9 1.7 3.5 3.5 2.0 10.7 1.1 1.1 1.2 5.8 9.2 4.4 2.1
Net profit/loss   -1.2 -0.3 0.3 -16.5 -17.7 0.0 1.4 0.1 2.0 3.5 0.4 -0.3 0.4 0.6 1.1 0.7 0.0

 

In Q4 2012, financial results were negatively affected by recognition of provisions and revaluation of assets and liabilities in total amount of 15.6 million euros.

 

Group Chief Executive’s review

The second quarter and also the third quarter are the most modest quarters for Arco Vara in 2015, as expected. Revenue of 2 million euros and net loss of 12 thousand for the second quarter mean that we are levelling out the income and waiting for the next moment of growth and profit. Until the fourth quarter, revenue is limited to:

1) selling out existing apartments in Sofia and Riga, where the total remaining number of apartments to be sold is less than 40 (in addition to business premises and parking spaces to be sold),

2) gaining maximum revenue from providing brokerage and valuation services in Estonia, Latvia and Bulgaria, and

3) continuing to earn rental income in Madrid Blvd building in Sofia. 

However, the second and third quarter only look sleepy from the accounting perspective, because the company is already involved in purchasing new apartment developments, preparation, and construction and preliminary sales of Manastirski block D. Therefore, I would like to use the chance to comment mainly on the part of our activities and future which is not reflected in our accounting reports.

The ongoing construction of Manastirski block D is currently the only development of the group where the cranes are up. Over 65% of sellable area is covered with preliminary sales contracts by the reporting date. Manastirski block D will increase revenue and profit of the group in the fourth quarter of 2015. The part which we cannot manage to hand over to clients in the fourth quarter (sell in the accounting sense) remains on sale and will be reflected in the income statement during 2016.

In order to avoid the stoppage of development processes in Sofia in 2016, the group has concluded a contract for the purchase of the next potential real estate property for development in the Iztok district, on which we published a notice on 9 July 2015. The construction volume of the project is approximately the same as Manastirski block D, but the expected sales revenue is higher due to the advantages of the region. At present, the detailed plan of the land plots is being amended to better suit the needs of the clients of Arco Vara. Amending the detailed plan is also a prerequisite for completing the purchase transaction of the property. If everything goes according to plans, we will acquire the property at the end of this year and begin construction in the second half of 2016.

In parallel, we continue searching for other properties suitable for development and preliminary negotiations. However, it should be noted that in order to increase development volumes in Sofia, in addition to the Iztok development project mentioned above, we must also find additional funding and we are also working towards that. The balance sheet of the group and the structure of its assets and liabilities are suitable for conducting two larger development projects simultaneously (e.g. in Tallinn and Sofia) but they may not be sufficient for a third or fourth large development.

There are fairly extensive renovation and reconstruction works going on in Madrid Blvd building in Sofia, which will get ready by the end of the year in various stages. The objective of the works is to make office and business premises more attractive, add a currently absent restaurant area to the shopping street, increase the number of apartments to be rented out to 16 in total and add the opportunity of using solar power to the penthouse apartments on sale. In the fourth quarter, one challenge is renting out office spaces (GLA over 5,000 m2) after the rental contract of the existing key tenant expires. The annual rental income generated in the Madrid Blvd building is planned to keep at the level of over 1 million euros. The loan balance of Piraeus Bank on the building has decreased to 10.4 million euros and for this, the group owns 115 underground parking spaces, 28 apartments (3,216 m2), 14 of which have been let out, and a total of over 7,000 m2 of business and office premises.

In Tallinn, the technical project of the first stage of Kodulahe development project has been completed and the subsidiary of the group Kodulahe O? is applying for a building permit to the local municipality. In the third quarter, we are hoping to obtain the building permit as well as conduct a construction tender, which will also finalize the prices of products to be sold and allow us to begin marketing the products. The sales volume of apartments to be sold in the first stage exceeds 8,000 m2. The group also decreased the loan liability on the Kodulahe development project land plots by 900 thousand euros.

We also continued the proceedings on detailed plans for various real estate properties we own in Tallinn (Lehiku tee 21-23, Liimi 1B, etc.) and hope to obtain building rights by 2016 at the latest. The group also acquired a land plot suitable for development in the P?rnu city centre next to the central market on Suur-Sepa Street.

The sale of development products in Riga (apartments at Bisumuisa-1 and residential plots in Marsili) is still dwindling. In July, after the reporting date, one apartment and one plot were sold. The only good aspect there is still that the number of development products in stock in Riga is small and there is little money attached to it. The group does not plan any new developments in 2015 there.

To sum up, it can be said that the group has achieved the goals set by the management earlier and we continue preparations for the next big leaps in sales revenue as well as profit. The annual forecast of the group’s profit is still 1 million euros and revenue is predicted to be 11 million euros.

SERVICE DIVISION

In Q2 2015, revenue of service division was 802 thousand euros (in Q2 2014: 765 thousand euros), that included intra-group revenue of 117 thousand euros (in Q2 2014: 101 thousand euros). Revenue of service division from main services (real estate brokerage and valuation services) was 1,409 thousand euros decreased by 4% compared to the same period of previous year. At the same time, second quarter revenue from main services increased by 2% compared to Q2 2014. Revenue increased substantially in Bulgaria, seeing a 43% increase if compared 6 months of both years and even 68% increase if compared second quarters. In Q2, second quarter result of previous year was exceeded also in Estonia. In Latvian real estate agency, the revenue from main services has strongly decreased: by 23% if compared 6 months periods and by 30% if compared second quarters. Revenue trends of real estate agencies are good indicators to estimate the market activity. For example, in the first half of 2015 the number of real estate transactions in Sofia has increased more than a third, compared to the same period of previous year. As we have predicted in our recent interim reports, Latvian real estate market activity has fallen this year. This is the main reason for the drop in sales figures of our Latvian agency.

Revenue of real estate agencies from brokerage and valuation 

    6 months 2015 6 months 2014 Change, %   Q2 2015 Q2 2014 Change, %
In thousands of euros                
Estonia   595 634 -6%   317 300 6%
Latvia   436 567 -23%   193 274 -30%
Bulgaria   378 264 43%   198 118 68%
Total   1,409 1,465 -4%   708 692 2%

In six months 2015, the Estonian and Latvian agencies have operated on a loss: 40 thousand and 48 thousand euros, respectively. In first half of 2014, Estonian and Latvian agencies had net profit of 14 thousand euros and 26 thousand euros, respectively. Bulgarian agency’s net profit was 111 thousand euros in first six months 2015 (in 6 months 2014: 67 thousand euros) and 59 thousand euros in Q2 2015 (in Q2 2014: 25 thousand euros).

In addition to brokerage and valuation services, the service division also provides real estate management services as well as accommodation service in Bulgaria. The revenue from real estate management was 82 thousand euros in 6 months 2015, 57 thousand euros of which was intra-group revenue (in 6 months 2014: 90 thousand and 63 thousand euros, respectively). Revenue from accommodation services amounted to 55 thousand euros in first six months of 2015 (in 6 months 2014: 35 thousand euros).

Service division numbers for brokerage deals and valuation reports, and number of staff are shown in following graphs.

The number of staff in service division has been decreased to 160 employees as at 30 June 2015, which is 16 people less compared to year end 2014.  

DEVELOPMENT DIVISION

In 6 months 2015, revenue of development division totalled 5,170 thousand euros (in 6 months 2014: 802 thousand euros), of which 1,388 thousand euros in Q2 2015 (in Q2 2014: 405 thousand euros). The big leap in revenues comes from the sale of properties in the group’s own development projects, amounting to 4,616 thousand euros in first half of 2015 (compared to only 263 thousand euros in 6 months 2014). In Q2 2015, were sold 10 apartments in Manastirski Livadi project II stage and three apartments in Madrid Blvd project in Bulgaria. In six months, has been sold total of 61 apartments and 5 commercial spaces in Bulgaria. In first six months 2014, were sold only three apartments in Bisumuiza-1 project in Riga.

Most of the remaining revenue of development division consist of rental income from commercial and office premises in Madrid Blvd building in Sofia, amounted to 237 thousand euros in Q2 2015 and 474 thousand euros in 6 months (in Q2 2014: 257 thousand euros and 6 months 2014: 520 thousand euros).

In six months 2015, operating profit of development division was 1,221 thousand euros, of which 255 thousand euros in Q2.  In six months 2014, was earned 64 thousand euros of operating profit, of which 20 thousand euros in Q2.

In Q2 2015, has been continued the apartment sales on second stage of Manastirski Livadi project. As at 30 June 2015, 6 apartments and 3 commercial spaces remained in stock, out of 135 in total. Also, 4 presold apartments waited for the finalisation of sale transaction. In Bulgaria, final sale of two last apartments in Manastirski Livadi I stage (block C) apartment building were not concluded yet, revenue will be accrued in third quarter.

As at 30 June 2015, 60 apartments out of 80 have been presold in third stage of Manastirski Livadi project, construction of the building is ongoing. In addition to the 20 apartments, there remained unsold yet 8 smaller commercial spaces and part of parking spaces.

28 apartments remained unsold in Madrid Blvd complex. 14 apartments and all parking places, out of all Madrid Blvd unsold assets, are rented out. As at reporting date, two more apartments are prepared for letting out. Current key tenant on office space in Madrid building is moving out in August. Therefore, the commercial and offices spaces will be renovated and new tenants will be searched for in second half of the year.

In Latvia, there remain 4 last apartments unsold in Bisumuisa-1 project in Riga as well as 15 residental plots in Marsili near Riga. In first six months 2015, there were no sales in Latvia. After the reporting date, one apartment in Bisumuisa-1 project and one plot in Marsili have been sold.

In Estonia, there was concluded design contract in February for the first stage apartment building (more than 120 apartments) in Kodulahe project. At the reporting date, the construction permit was proceeding in local municipality. The construction of the apartment building should start in fourth quarter of 2015, after the construction and financing tenders will succeed.

In June 2015, a smaller land plot in Suur-Sepa street, in centre town of P?rnu, was acquired as an addition to the group’s land bank. The plot is suitable for residential building.

As at 30 June 2015, 5 people were employed in development division, the same as at the end of year 2014.  

SUMMARY TABLE OF ARCO VARA’S PROJECTS AS AT 30 JUNE 2015

Project name Address Product main type Stage Area of plot(s) (m2) GSA / GLA (above grade) available or    No of units (above grade) available or
Manastirski A/B Manastirski, Sofia Apartments S5 - 1,300 13
Manastirski C Manastirski, Sofia Apartments S5 - 204 2
Manastirski D Manastirski, Sofia Apartments S4 2,223 6,672 88
Madrid Blvd  Madrid Blvd, Sofia Lease: Retail/Office S5/S6 - 7,350 16
Madrid Blvd  Madrid Blvd, Sofia Apartments S5/S6 - 3,216 28
Bisumuiza-1 Kometas 2, Riga Apartments S5 - 105 1
Bisumuiza-1 Kometas 4, Riga Apartments S5 - 278 3
Marsili residental plots Marsili, near Riga Residental plots S5 - 27,545 15
Marsili residental plots Marsili, near Riga Residental plots S2 120,220 <120,220> <68>
Instituudi 7, 9 Instituudi tee 7,9 Harku Apartments S3/S5 5,003 2,035 32
PM 70C Paldiski road 70C, Tallinn Apartments S3 28,498 21,420 334
Lehiku carpet building Lehiku 21,23 Tallinn Apartments S2 5,915 <1,100> <5>
Liimi Liimi 1b, Tallinn Lease: Office S2 2,463 <6,500> <1>
Suur-Sepa 20 Suur-Sepa 20, P?rnu Apartments S1 1,711 <800> <14>
Viimsiranna Haabneeme, Viimsi vald Office/Mix S3/S5 14,174 500 1

Note: Value presented inbetween < > means future target value as the project is in early (S1, S2) development stage and the building rights or the design have not been finished yet. The table does not reflect sellable or lettable volumes below grade including parking spaces and storages.

Description of stages

S1: Land plot acquired

S2: Building Rights Procedure

S3: Design and Preparation Works

S4: Construction

S5: Marketing and Sale

S6: Facility Management and/or Lease

PEOPLE

As at 30 June 2015, 173 people worked for the group (189 at the end of 2014). Employee remuneration expenses in six months 2015 amounted to 1.3 million euros (in 6 months 2014: 1.2 million euros).

The remuneration of the member of the management board/chief executive and the members of the supervisory board of the group’s parent company including social security charges in first six months 2015 amounted to 54 thousand euros, the same 54 thousand euros in 6 months 2014.  

MANAGEMENT BOARD AND SUPERVISORY BOARD

The management board of Arco Vara AS has one member. Since 22 October 2012, the member of the management board and chief executive of Arco Vara AS has been Tarmo Sild.

At 30 June 2015, the supervisory board of Arco Vara AS has 5 members. As at the end of 2014, the supervisory board had 7 members. On 10 February 2015, extraordinary shareholders meeting recalled previous supervisory board and elected new supervisory board with 5 members: Hillar-Peeter Luitsalu, Allar Niinepuu and Rain L?hmus (re-elected from the previous board), and Steven Yaroslav Gorelik and Kert Keskpaik (newly elected to the new board). The members of previous supervisory board Toomas Tool, Arvo N?ges, Aivar Pilv and Stephan David Balikn will not continue in new board.

More information on key persons of Arco Vara you can find on company’s corporate web page www.arcorealestate.com.  

Credit risk

The group’s credit risk arises mainly from two sources: real estate development activities and reliability of the banks where bank deposits are placed. As on real estate transactions a lot of counterparty financing goes through banks, co-operation with financing banks is common to mitigate counterparty risk. And not all cash and cash equivalents are placed on the same banking group. As a consequence, the group considers credit risk as substantially mitigated.

Liquidity and interest rate risks

The base currency of all of the group’s loan agreements is euro and the base interest rate is 3 or 6 months EURIBOR. As a result, the group is exposed to developments on the international capital markets. The group does not use hedging instruments to mitigate its long-term interest rate risk. In first six months 2015, the group’s interest-bearing liabilities have decreased by 3.1 million euros and at 30 June 2015 amounted to 12.0 million euros, of which 1.3 million euros is due within next 12 months. At the same time, the group’s cash and cash equivalents totalled 1.1 million euros as at 30 June 2015. In 6 months 2015, interest payments on interest-bearing liabilities totalled 0.5 million euros. The group’s weighted average loan interest rate is 5.1% as at 30 June 2015. This is a decrease by 0.7 percentage points in six months 2015. The main reason for the decrease of average interest rate is the premature redemption of bonds in February 2015. The bonds bore higher than average interest rate. Marginal effect had also continuing decrease of EURIBOR rates.

Currency risk

Purchase and sales contracts of provided services are mostly signed in local currencies: euros (EUR) or Bulgarian lev (BGN). Real estate sales are mostly nominated in euros, as a result of which the group’s assets and liabilities structure does not denote a significant currency risk. The group is not protected against currency devaluations. Most liquid funds are held in demand or short-term deposits denominated in euros.

Share and shareholders

Arco Vara AS has issued a total of 6,117,012 ordinary shares with nominal value of 0.7 euros per share. The shares are freely traded on NASDAQ OMX Tallinn stock exchange. As at 30 June 2015, the company had 1,639 shareholders (at 31 December 2014: 1,668 shareholders) and the share price closed at 1.19 euros. The price has increased by 43.7% within six months 2015 (closing price at the end of 2014 was 0.828 euros). During the period, the highest price per share was 1.29 euros and lowest price 0.83 euros. As at 30 June 2015, market capitalization of shares amounted to 7,279 thousand euros and P/E ratio of the share was 4.6 (at 31 December 2014: 5,065 thousand euros and 5.5, respectively).

Major shareholders at 30 June 2015 No of shares Interest %
NORDEA BANK FINLAND PLC, CLIENTS                   862,820 14.1%
AS L?hmus Holdings                   602,378 9.8%
Gamma Holding Investment O?                   549,000 9.0%
Alarmo Kapital O?                   489,188 8.0%
HM Investeeringud O?                   460,000 7.5%
LHV PENSIONIFOND L                   378,765 6.2%
FIREBIRD REPUBLICS FUND LTD                   356,428 5.8%
FIREBIRD AVRORA FUND, LTD.                   185,800 3.0%
LHV PENSIONIFOND XL                   169,583 2.8%
FIREBIRD FUND L.P.                   150,522 2.5%
Other shareholders                1,912,528 31.3%
Total                6,117,012  100.0%


Holdings of members of the management and supervisory boards at 30 June 2015 Position No of shares Interest %
Rain L?hmus (AS L?hmus Holdings) member of supervisory board         602,378 9.8%
Hillar-Peeter Luitsalu (HM Investeeringud O?, related persons) chairman of supervisory board         498,884 8.2%
Tarmo Sild and Allar Niinepuu (Alarmo Kapital O?) member of management board/
member of supervisory board		         489,188 8.0%
Kert Keskpaik (privately and through K Vara O?) member of supervisory board         191,787 3.1%
Steven Yaroslav Gorelik ? member of supervisory board             3,150 0.1%
Total        1,785,387 29.2%

Steven Yaroslav Gorelik is active as fund manager in three investment funds holding interest in Arco Vara (Firebird Republics Fund Ltd, Firebird Avrora Fund Ltd and Firebird Fund L.P) of 692,750 shares (total of 11.3% interest).  

Condensed consolidated interim financial statements

 

Consolidated statement of comprehensive income

  Note   6 months 2015 6 months 2014   Q2 2015 Q2 2014
In thousands of euros              
Continuing operations              
Revenue from sale of own real estate     4,616 263   1,111 135
Revenue from rendering of services     1,841 1,908   949 923
Total revenue 2, 3   6,457 2,171   2,060 1,058
               
Cost of sales 4   -4,169 -1,249   -1,269 -631
Gross profit     2,288 922   791 427
               
Other income     23 19   6 3
Marketing and distribution expenses 5   -234 -174   -125 -74
Administrative expenses 6   -945 -915   -470 -462
Other expenses     -26 -37   -14 -29
Gain on sale of subsidiary     0 662   0 0
Operating profit/loss     1,106 477   188 -135
               
Finance income and costs 7   -388 -435   -198 -228
Net profit/loss from continuing operations     718 42   -10 -363
               
Discontinued operations              
Profit/loss from discontinued operations     -13 -13   -2 0
               
Net profit/loss for the period     705 29   -12 -363
   attributable to owners of the parent     719 22   -3 -365
   attributable to non-controlling interests     -14 7   -9 2
               
Total comprehensive income/expense for the period     705 29   -12 -363
   attributable to owners of the parent     719 22   -3 -365
   attributable to non-controlling interests     -14 7   -9 2
               
Earnings per share (in euros) 8            
- basic     0.12 0.00   0.00 -0.08
    - diluted     0.11 0.00   0.00 -0.07

 

Consolidated statement of financial position 

  Note   30 June 2015 31 December 2014
In thousands of euros        
Cash and cash equivalents     1,078 1,691
Receivables and prepayments 9   545 1,205
Inventories 10   9,903 11,970
Total current assets     11,526 14,866
         
Receivables and prepayments 9   8 5
Investment property 11   11,529 11,585
Property, plant and equipment     487 434
Intangible assets     145 113
Total non-current assets     12,169 12,137
TOTAL ASSETS     23,695 27,003
         
Loans and borrowings 12   1,341 3,194
Payables and deferred income 13   1,817 2,659
Provisions     228 274
Total current liabilities     3,386 6,127
         
Loans and borrowings 12   10,615 11,826
Total non-current liabilities     10,615 11,826
TOTAL LIABILITIES     14,001 17,953
         
Share capital     4,282 4,282
Share premium     292 292
Statutory capital reserve     2,011 2,011
Other reserves     179 179
Retained earnings     2,908 2,250
Total equity attributable to owners of the parent     9,672 9,014
Equity attributable to non-controlling interests     22 36
TOTAL EQUITY     9,694 9,050
TOTAL LIABILITIES AND EQUITY     23,695 27,003

 

Consolidated statement of cash flows

  Note   6 months 2015 6 months 2014   Q2 2015 Q2 2014
In thousands of euros              
Cash receipts from customers     8,695 3,259   2,802 1,568
Cash paid to suppliers     -2,958 -4,483   -1,673 -2,079
Taxes paid     -2,040 -536   -532 -251
Taxes recovered     5 349   0 227
Cash paid to employees     -539 -427   -304 -203
Other cash payments and receipts related to operating activities     33 -46   -94 -32
NET CASH FROM/USED IN OPERATING ACTIVITIES     3,196 -1,884   199 -770
               
Purchase of property, plant and equipment     -99 -15   -43 -7
Proceeds from sale of property, plant and equipment     0 0   0 0
Proceeds from sale of investment property     0 0   0 0
Proceeds from sale of a subsidiary     0 10   0 0
Loans provided     0 -3   0 0
Placement of security deposits     0 -327   0 -69
Release of security deposits     0 452   0 189
Interest received     3 2   2 1
NET CASH FROM/USED IN INVESTING ACTIVITIES     -96 119   -41 114
               
Proceeds from loans received 12   870 2,581   870 1,236
Settlement of loans and finance lease liabilities 12   -3,965 -545   -1,432 -474
Interest paid     -475 -426   -172 -212
Dividends paid     -61 0   -61 0
Other payments related to financing activities     -82 -23   -82 -18
NET CASH FROM/USED IN FINANCING ACTIVITIES     -3,713 1,587   -877 532
               
NET CASH FLOW     -613 -178   -719 -124
               
Cash and cash equivalents at beginning of period     1,691 818   1,797 764
Decrease in cash and cash equivalents     -613 -178   -719 -124
Cash and cash equivalents at end of period     1,078 640   1,078 640

 

Consolidated statement of changes in equity

    Equity attributable to owners of the parent   Non-controlling interests   Total equity
    Share capital Share premium Statutory capital reserve Other reserves Retained earnings Total        
In thousands of euros                      
Balance as at 31 December 2013   3,319 0 2,011 60 1,452 6,842   12   6,854
Change in non-controlling interests   0 0 0 0 -5 -5   5   0
Total comprehensive income for the period   0 0 0 0 22 22   7   29
Balance as at 30 June 2014   3,319 0 2,011 60 1,469 6,859   24   6,883
                       
Balance as at 31 December 2014   4,282 292 2,011 179 2,250 9,014   36   9,050
Total comprehensive income for the period   0 0 0 0 719 719   -14   705
Profit distribution   0 0 0 0 -61 -61   0   -61
Balance as at 30 June 2015   4,282 292 2,011 179 2,908 9,672   22   9,694