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.
