UPP & CO Kauno 53 OÜ
Interim Report
July – September 2018
Main Events of 3Q 2018
Changes in the corporate governance bodies of UPP & CO Kauno 53 OÜ and its subsidiary Priomalita UAB
During the September 13th shareholders and supervisory meeting of UPP & CO Kauno 53 OÜ (the Issuer), it was decided to change the board of directors and supervisory board of the Company and its subsidiary Promalita UAB.
Marko Tali, former member of the supervisory board of the Company was appointed as a new member of the board for the Company and Promalita UAB. Present board members of the Company Hallar Loogma and Kevin Soon were called back from the board. Hallar Loogma will also be called back from the board of Promalita UAB. Hallar Loogma will continue as a member of the supervisory board of the Company. On October 8th the changes in the management bodies of the Company were registered in the company register, the changes in Promalita UAB management shall commence during October.
Technical audit for the warehouse
Between 14th – 17th of August, Cityservice conducted a throughout technical audit for the property. Majority of the deficiencies discovered are mechanical, meaning that they have been caused by a small impact with a truck or a forklift and are easily repairable. No major deficiencies were discovered when auditing the supportive structures, water and sewage, electrical systems and ventilation systems.
Vacancy, payment behaviour and indexation
As of 30th of September 2018, there is no vacancy in the building and all rental and utilities payments are received in time from all tenants.
Quarterly interest payment
Interest for UPP & CO Kauno 53 OÜ bonds was paid on October 17th, 2018. Interest was paid to the investors who held the notes as of October 12th, 2018.
Financial Performance (consolidated)
3Q 2018 – Net profit EUR 122 910
Net Sales and Net Profit
- Net Sales amounted to EUR 309 129 in 3rd quarter
- Net Operating Income amounted to EUR 305 482 in 3rd quarter
Expenses
- Operating expenses amounted to EUR 7 442 in 3rd quarter
- Interest expense on loans and bonds issued amounted to EUR 142 074
Interest-bearing liabilities
- Bank loan repaid in 3rd quarter EUR 117 000, loan outstanding EUR 8 546 335
- Issued bonds outstanding EUR 4 700 000
DSCR
- Issuer consolidated 1.2
Statement of the Management Board
The financial and other additional information published in the Interim Report July – September 2018 is true and complete. Consolidated financial statements give a true and fair view of the actual financial position, results of operations and cash flows of the Company. According to the Terms and Conditions of the Note Issue, the Company confirms that during the interim report period there has been non-occurrence of an Extraordinary Early Redemption Event and according to Clause 3.4.12 of the Terms the Collateral is properly insured at all times.
Consolidated financial statements in the report for the period July – September 2018 are not audited.
Marko Tali
Member of the Management Board
Tallinn, 23.10.2018
Income Statement
(the Company, “Promalita” UAB and consolidated)
| PROFIT/LOSS STATEMENT | K53 | Promalita | Cons. | YTD | Cons. |
| in euros | 100% | 3Q2018 | 2Q2018 | ||
| Sales revenues | 0 | 309 129 | 309 129 | 927 604 | 309 129 |
| Other operating income | 0 | 3 795 | 3 795 | 6 716 | 2 921 |
| Total revenues from operating activities | 0 | 312 924 | 312 924 | 934 320 | 312 050 |
| Cost of goods sold | 0 | 0 | 0 | 0 | 0 |
| Administrative expenses | -2 020 | -1 446 | -3 466 | -16 410 | -4 789 |
| Personnel expenses | 0 | -81 | -81 | -957 | -438 |
| Depreciation of fixed assets | 0 | -3 895 | -3 895 | -12 316 | -3 908 |
| Total operating expenses | -2 020 | -5 422 | -7 442 | -29 683 | -9 135 |
| Profit (loss) from operating activities | -2 020 | 307 502 | 305 482 | 904 637 | 302 915 |
| Financial revenues (costs) | 6 362 | -148 436 | -142 074 | -430 709 | -144 966 |
| Net profit (loss) before taxation | 4 342 | 159 066 | 163 408 | 473 928 | 157 949 |
| Corporate income tax | 0 | -40 498 | -40 498 | -119 940 | -39 894 |
| Net profit (loss) of the period | 4 342 | 118 568 | 122 910 | 353 988 | 118 055 |
Balance Sheets
(the Company, “Promalita” UAB and consolidated)
| BALANCE SHEET | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 30.09.2018 | 30.06.2018 | |
| ASSETS | ||||
| Current assets | ||||
| Cash and bank | 38 010 | 18 731 | 56 741 | 100 748 |
| Accounts receivable and prepayments | 36 014 | 117 471 | 117 776 | 14 797 |
| Stock | 0 | 0 | 0 | 0 |
| Total current assets | 74 024 | 136 202 | 174 517 | 115 545 |
| Non-current assets | ||||
| Long-term financial investments | 3 200 | 0 | 0 | 0 |
| Log-term loans | 5 460 850 | 0 | 0 | 0 |
| Real Estate investments | 0 | 15 350 000 | 15 350 000 | 15 350 000 |
| Fixed assets | 0 | 25 995 | 25 995 | 29 888 |
| Goodwill | 0 | 1 280 818 | 1 280 818 | 1 280 818 |
| Total non-current assets | 5 464 050 | 16 656 813 | 16 656 813 | 16 660 706 |
| TOTAL ASSETS | 5 538 074 | 16 793 015 | 16 831 330 | 16 776 251 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Short-term loans | 0 | 115 000 | 115 000 | 230 000 |
| Accounts payables and other settlements | 79 849 | 78 581 | 122 483 | 115 812 |
| Total current liabilties | 79 849 | 193 581 | 237 483 | 345 812 |
| Non-current liabilities | ||||
| Long-term bank loan | 0 | 8 433 333 | 8 433 333 | 8 433 333 |
| Long-term bonds | 4 700 000 | 0 | 4 700 000 | 4 700 000 |
| Long-term shareholder's loan | 736 350 | 5 460 850 | 736 350 | 736 350 |
| Long-term provisions | 0 | 2 131 689 | 2 131 689 | 2 091 191 |
| Total non-current liabilities | 5 436 350 | 16 025 872 | 16 001 372 | 15 960 874 |
| TOTAL LIABILITIES | 5 516 199 | 16 219 453 | 16 238 855 | 16 306 686 |
| EQUITY | ||||
| Share capital | 2 500 | 2 500 | 2 500 | 2 500 |
| Retained earning | 19 375 | 571 062 | 589 975 | 467 065 |
| Retained earning from previous periods | 9 527 | 224 660 | 235 987 | 235 987 |
| Retained earnings from current period | 9 848 | 346 402 | 353 988 | 231 078 |
| TOTAL EQUITY | 21 875 | 573 562 | 592 475 | 469 565 |
| TOTAL LIABILITIES AND EQUITY | 5 538 074 | 16 793 015 | 16 831 330 | 16 776 251 |
Cash Flow Statement
(the Company, “Promalita” UAB and consolidated)
| CASH FLOW STATEMENT | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 3Q2018 | 2Q2018 | |
| Profit from operating activities | -2 020 | 307 502 | 305 482 | 302 915 |
| Amortization | 0 | 3 895 | 3 895 | 3 908 |
| Corrections | 0 | 0 | 0 | 0 |
| Change in operating receivables and prepayments | 295 | -103 376 | -103 081 | -4 066 |
| Change in reserves | 0 | 0 | 0 | 0 |
| Change in operating liabilities and advances | 0 | 4 606 | 4 606 | -3 136 |
| Cash flows from operations | -1 725 | 212 627 | 210 902 | 299 621 |
| Repayment of loans issued | 27 850 | 0 | 0 | 0 |
| Received interest | 74 824 | 0 | 0 | 1 |
| Cash flows from investments | 102 674 | 0 | 0 | 1 |
| Loans received and bonds issued | 2 000 | 0 | 2 000 | 52 600 |
| Repayments of loans and redeemed bonds | -2 000 | -142 850 | -117 000 | -175 000 |
| Paid interest | -101 748 | -112 985 | -139 909 | -144 969 |
| Cash flows from financing | -101 748 | -255 835 | -254 909 | -267 369 |
| Total cash flows | -799 | -43 208 | -44 007 | 32 253 |
| Cash at the beginning of period | 38 809 | 61 939 | 100 748 | 68 495 |
| Changes in cash | -799 | -43 208 | -44 007 | 32 253 |
| Cash at the end of period | 38 010 | 18 731 | 56 741 | 100 748 |
UPP & CO Kauno 53 OÜ
Pärnu mnt. 141
11314 Tallinn, Estonia
Phone +372 6616 450
E-mail: property@unitedpartners.ee
United Partners, Director
Siim Sild
Phone: +372 5626 0107
e-mail: siim.sild@unitedpartners.ee
