Audited annual report 2017

On 23 April 2018, the Supervisory Council of AS Pro Kapital Grupp has approved the company’s 2017 audited annual report.

In 2017, the company continued with the development of the T1 Mall of Tallinn and construction works in three residential projects: Kristiine City in Tallinn, River Breeze Residence in Riga and Šaltiniu Namai residential complex in Vilnius. In Tallinn, the fourth of Kristina Houses was completed and three following buildings are currently under construction. At the beginning of 2018 renovation works of Marsi 6 in Kristiine City were completed. In Riga, construction of luxurious 47 apartments are being completed on the bank of river Daugava. In the beginning of the next year four new apartment buildings will be completed in Vilnius in the vicinity of the old town. 

The company’s audited and consolidated revenue from continuing operations for the financial year of 2017 amounted to 12,077 million euros. Compared to 17,610 million euros in 2016, the revenue decreased by 31,4%. Revenues have decreased due to reduced inventories as the company completed one more apartment building only at the end of the year. The company records revenues from sales of real estate at the moment of signing notarized sales agreements and handing premises over to the buyers.  The company’s gross profit from continuing operations was 4,561 million euros, which was 7,3% less than the 4,922 million euros in 2016. However, the gross profit margin increased by 35% in 2017. The company’s audited net loss from continuing operations amounted to 0,953 million euros comparing to 4,645 million euros in 2016. The net result in 2016 was positively influenced by the effect of sales of hotels in the amount of 3,045 million euros and real estate revaluation in the amount of 0,53 million euros.  

The audited net result for the period and the net result disclosed on 27 February 2018 in the interim report for the fourth quarter in 2017 do not differ. However, corrections have been made to the income statement: financial income has decreased by 1,452 million euros, other operating income has increased by 1,798 million euros and other operating expenses by 0,346 million euros. This adjustment is a result of reclassification of profit from the sale of the hotel companies. Cost of sales, administration expenses, finance income and finance cost of discontinued operations have also been adjusted. These adjustments effected the same components of the income statement for continuing operations. The net result of discontinued operations decreased and the net result of continuing operations increased by 55 thousand euros in total.

The audited annual report of AS Pro Kapital Grupp for the financial year of 2017 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.

Allan Remmelkoor
Member of the Board
AS Pro Kapital Grupp
Phone: +372 614 4920
prokapital@prokapital.ee

Attachment

• PKG Annual Report 2017 ENG