Audited annual report 2024 of AS Pro Kapital Grupp

Audited annual report 2024 of AS Pro Kapital Grupp

The Supervisory Board of AS Pro Kapital Grupp has approved the Group’s audited annual report for 2024.

In 2024, AS Pro Kapital Grupp (hereafter referred to as the Group) revenue amounted to 18.2 million euros, representing a decrease of 4.9 million euros compared to the previous financial year. The decrease in revenue resulted from lower sales volumes, as most of the available units had already been sold, and the Group’s main focus in 2024 remained on the construction of new development projects. In Tallinn, the Group continued with the construction of the final stage of the Kalaranna District and began handing over the first completed units in December 2024. At the same time, new projects Uus-Kindrali in Tallinn and Šaltiniu Namai Attico in Vilnius were launched, with both scheduled for completion by the end of 2025. In Riga, the Group successfully sold all remaining units in River Breeze Residence.

The Group’s gross profit for 2024 amounted to 5.4 million euros, compared to 7.0 million euros in 2023.
The year ended with a net loss of 3.9 million euros.

Prior Period Errors

The accounting treatment for the modification of financial liabilities under IFRS 9 requires that, when the terms of a financial liability are modified, the entity must assess whether the modification is substantial enough to result in the derecognition of the original liability and the recognition of a new one. If the modification is not substantial, the carrying amount of the existing liability is adjusted based on the present value of the modified cash flows, and the resulting effect is recognised in profit or loss.
In January 2024, the terms of the secured bonds issued by the Group were amended, including an increase in the interest rate from 8% to 11%. As the modification did not qualify as substantial under IFRS 9 and was treated as an extension of the existing agreement, the financial impact should have been recognised at the beginning of 2024. As a result, the carrying amount of the financial liability was adjusted, and going forward, interest expense is calculated based on the revised cash flows. A portion of the reduction in interest expense was recognised during the reporting period, and further reductions will continue in subsequent years in line with the modified cash flow schedule. The total impact on the Group’s income statement and the financial liability recognised in the balance sheet was 1 071 thousand euros.

Differences Between the Audited Financial Results for the Year Ended 31 December 2024 and the 12-Month Interim Financial Results Published on 28 February 2025:

Consolidated statement of profit or loss and other comprehensive income

in thousands of euros	2024 audited annual report	2024 12M interim report
Financial expense	-4 276	-3 205
Profit / loss before income tax	-4 030	-2 959
Net profit / loss for the period	-3 875	-2 804
Attributable to:
Equity holders of the parent	-3 675	-2 604
Non-controlling interests	-200	-200
Total comprehensive loss for the year	-3 990	-2 919
Attributable to:
Equity holders of the parent	-3 790	-2 719
Non-controlling interests	-200	-200
Earnings per share for the period €	-0,06	-0.05

As part of the audit, financial expenses were adjusted. Consequently, a loss of 1 413 thousand euros arising from the modification of the financial liability was recognised in profit or loss. The adjustment to the liability also resulted in a reduction of 342 thousand euros in previously accrued interest expense during 2024. The net impact on the income statement amounted to 1 071 thousand euros, as disclosed in Note 29.

Consolidated statement of financial position

in thousands of euros	31.12.2024 audited annual report	31.12.2024 12M interim report
Current liabilities
Current debt	21 893	15 427
Trade and other payables	5 600	6 685
Total current liabilities	37 968	32 587
Non-current liabilities
Long-term debt	27 350	31 660
Total non-current liabilities	29 569	33 879
TOTAL LIABILITIES	67 537	66 466
Equity attributable to owners of the Company
Retained earnings	30 523	31 594
Total equity attributable to the owners of the Company	50 633	51 704
TOTAL EQUITY	51 221	52 292

During the audit, adjustments were made to the recognition and classification of current and non-current liabilities as well as of equity in the balance sheet. The increase in current liabilities by 5 381 thousand euros resulted from the bond modification (interest rate change) and the resulting increase in the carrying amount of the financial liability, as well as from an additional contractual obligation to redeem secured bonds in the amount of 5 million euros by 31 December 2025, which led to a reclassification of these liabilities as current (Note 16). Furthermore, accrued interest obligations related to secured and unsecured bonds were reclassified, amounting to 1 085 thousand euros, which increased current debt and reduced trade and other payables (Notes 16, 17). Long-term debt decreased by 4 310 thousand euros, reflecting both the reclassification due to the redemption obligation and the adjustment of the financial liability arising from the modification (Note 18).
Following the adjustments, the retained earnings and total equity decreased by 1 071 thousand euros. The cumulative effect of these adjustments on the total balance sheet volume was 0 euros.

AS Pro Kapital Grupp consolidated annual report 2024 in ESEF format together with independent auditor’s report is attached to this announcement and will be made available on the company’s website https://www.prokapital.com/en/financials/

Ann-Kristin Kuusik
CFO
AS Pro Kapital Grupp
Phone: +372 614 4920
prokapital@prokapital.ee

Attachments

• PKG Annual Report 2024
• asprokapitalgrupp-2024-12-31-en_