Creating homes in a
smart way
...directly tapping the market’s pulse
2011
Arco Vara will build a residental house in Tallinn, Tehnika 53
Based on the detailed plan approved by the Tallinn City Council, Arco Vara will build a four-storied house in the Kassisaba district of cultural and environmental value (address Tehnika 53).
According to the design prepared by the architects of JVR, the ground floors are reserved for businesses, on the second, third and fourth floor, there are 2-4-room apartments with balconies.
There are 21 parking places in the cellar; the two parking places on the street are for the customers of business areas.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara As
Phone: +372 6144630
This email address is being protected from spambots. You need JavaScript enabled to view it.
Notice on change in major holding
11.02.2011: Notice on change in major holding
Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.
The Management Board of Baltplast OÜ informed Arco Vara AS that starting from 11.02.2011, Baltplast OÜ owns 18.9805% of Arco Vara AS shares. Thus, the number of Arco Vara AS shares in the ownership of Baltplast OÜ has reduced to less than 20% of issuer’s share capital.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com
Notice on change in major holding
Stock exchange announcement
Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.
On 14 February 2011, Firebird Republics Fund Ltd and Firebird Avrora Fund Ltd informed Arco Vara AS of acquisition of 106,897 Arco Vara AS shares by Firebird Avrora Fund Ltd on 11 February 2011. Together with the 156,064 shares belonging to Firebird Republics Fund Ltd, they now own 5.4% (262,961) Arco Vara AS shares.
The management company of Firebird Avrora Fund Ltd is Firebird Avrora Advisors LLC and the management company of Firebird Republics Fund Ltd is Firebird Management LLC. Both management companies are managed by Eastern Star Consulting Inc.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com
INTERIM REPORT FOURTH QUARTER AND 12 MONTHS 2010
Group Chief Executive’s review
In 2010, a total of 129 apartments and plots were sold in the projects of Arco Vara - 73 in Estonia, 45 in Latvia and 11 in Bulgaria. Our largest ever completely self-developed project Boulevard Residence Madrid in Sofia was granted a use permit at the end of June. Most of the commercial rental premises that were covered with preliminary contracts have already been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. Our Development division continues completing apartments in the Bishumuiza-1 project in Riga and developing the Manastirski project in Sofia.
The increasing sales of the past quarters have reduced the inventory balance significantly and construction prices continue to be favourable. Therefore, we have launched new developments in order to be ready to satisfy the emerging market demand. The Group’s subsidiary AS Kolde joined forces with AS Merko Ehitus for building and financing the next phase of the Kodukolde development project. The new housing complex will consist of four apartment buildings with 100 apartment units and 40 underground garage spaces with a gross enclosed area of 8,760 square metres. The first two buildings will be completed in spring 2011. We are pleased to report that construction is on schedule and pre-completion sales exceed all expectations. We are also holding negotiations with potential business partners and banks with a view to starting and financing the construction of the Tivoli project. Subsequent to the reporting date, we have held an architectural competition and have launched preparatory site work. Construction should commence in spring 2011. In addition, at the beginning of 2011 we have announced a plan to build a four-floor apartment building in Tehnika street in Tallinn.
The Service division continues to benefit from administrative cost savings yielded by effective restructuring. Although sales have contracted too, this has happened at a slower pace. As a result, in the third quarter the division was able to post its first post-crisis quarterly operating profit of 1.3 million kroons (0.08 million euros). In 2010 the number of brokerage transactions grew by 11% year-over-year and the number of valuation reports issued increased by 25% although the number of brokers and appraisers decreased by 4%.
The division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. The division is planning to increase the number of brokers in order to be ready for the recovery of the real estate market.
During the year, the Construction division secured new contracts of 347 million kroons (22.2 million euros). At the reporting date, the order backlog amounted to 262 million kroons (16.8 million euros) compared with 80.0 million kroons (5.1 million euros) at the end of 2009. The main customers continue to be the public sector and local governments. In addition to environmental and infrastructure projects, funds are being allocated to the education sector. It should be noted that in 2010 practically all of the Group’s construction revenue was external – the proportion of internally generated sales was negligible.
The reporting period brought significant improvement to most of the Group’s financial performance indicators - both revenue and gross profit grew on a quarterly basis. Over several years, all divisions ended the third quarter with an operating profit. The reduction of fixed costs that began in 2009 has had a positive impact also on the results for 2010. Management will continue monitoring fixed costs. Compared with the previous year administrative expenses have shrunk by 26%.
To improve liquidity, the Group has disposed of a number of smaller investment properties that were not under its complete control or otherwise did not fit the corporate strategy.
In addition, the Group extended the loans taken from Piraeus Bank Bulgaria for the development of the Madrid project in Sofia and SEB Pank for the Navigator and Tivoli projects in Tallinn of 360.7 million kroons (23.1 million euros) in aggregate. As a result, the maturity date of the loan taken for the Madrid project was deferred by three years from 2012 to 2015 and the term of the Navigator and Tivoli projects was extended until 31 January 2011.
In December 2009 the shareholders of Arco Vara AS decided to reduce the company’s share capital. A corresponding Commercial Registry entry took effect on 16 March 2010. The reduction of share capital has curbed the volatility of the share price, has allowed more effective pricing of the share on the stock exchange (through a decrease in the difference between the bid and ask prices) and has created new opportunities for further strengthening the capital structure.
In 2010 Arco Vara AS’ wholly-held subsidiary Arco Investeeringute AS transferred its claim against Celia Crowd AS (formerly Ühendatud Kapital AS) to AS EMF Invest for 52 million kroons (3.3 million euros). The transaction improved the Group’s fourth quarter results by an exceptional sales gain of 18.9 million kroons (1.2 million euros).
Change in accounting for jointly controlled entities
The Group’s management has revised the policy for accounting for interests in jointly controlled entities. Previously, interests in jointly controlled entities were accounted for using proportionate consolidation. As from 1 January 2010, interests in jointly controlled entities are accounted for using the equity method. Management believes that the equity method provides a more faithful representation of the Group’s assets, liabilities and equity.
KEY PERFORMANCE INDICATORS
· In 2010 the Group generated revenue and other income of 358.4 million kroons (22.9 million euros), a 27% decrease year-over-year
· Operating loss for 2010 amounted to 2.0 million kroons (0.1 million euros), a 98% improvement on 2009
· Net loss was 4.6 million kroons (0.3 million euros), a 99% improvement on 2009
· Equity to assets ratio at period-end was 39.4% (end of 2009: 36.7%). Return on equity was negative (2009: negative). Return on invested capital was 1.8% (2009: negative)
· At the end of 2010, our order backlog (in the construction business) stood at 262.2 million kroons (16.8 million euros), compared with 79.6 million kroons (5.1 million euros) at the end of 2009
· In the twelve months of 2010 we sold a total of 129 apartments and plots (2009: 82).
EEK | EUR | ||||||||
12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | 12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | ||
In millions | |||||||||
Revenue and other income | 358.4 | 493.1 | 129.2 | 131.7 | 22.9 | 31.5 | 8.3 | 8.4 | |
Operating profit / loss | -2.0 | -91.7 | 8.5 | 36.9 | -0.1 | -5.9 | 0.5 | 2.4 | |
Incl. net loss from the revaluation of investment properties and inventories | -8.2 | -40.6 | -2.6 | -40.6 | -0.5 | -2.6 | -0.2 | -2.6 | |
Profit / loss before tax | -4.2 | -363.9 | 15.2 | 3.5 | -0.3 | -23.3 | 1.0 | 0.2 | |
Incl. net gain/loss from the disposal of financial assets | -2.4 | -4.5 | 0.0 | 0.0 | -0.2 | -0.3 | 0.0 | 0.0 | |
Net profit / loss | -4.6 | -363.1 | 15.3 | 5.6 | -0.3 | -23.2 | 1.0 | 0.4 | |
EPS (in kroons and euros) | -0.92 | -76.26 | 3.26 | 1.46 | -0.06 | -4.87 | 0.21 | 0.09 | |
Total assets at period end | 1,104.4 | 1,224.4 | 70.6 | 78.3 | |||||
Invested capital at period end | 931.5 | 1,015.3 | 59.5 | 64.9 | |||||
Net loans at period end | 430.2 | 500.8 | 27.5 | 32.0 | |||||
Equity at period end | 435.4 | 449.8 | 27.8 | 28.7 | |||||
Average loan term (in years) | 0.8 | 1.2 | 0.8 | 1.2 | |||||
Average interest rate of loans (per year) | 6.4% | 5.9% | 6.4% | 5.9% | |||||
ROIC (rolling, 4 quarters) | 1.8% | neg | 1.8% | neg | |||||
ROE (rolling, 4 quarters) | neg | neg | neg | neg | |||||
Number of staff at period end | 153 | 171 | 153 | 171 | |||||
REVENUE AND PROFIT
EEK | EUR | ||||||||
12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | 12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | ||
In millions | |||||||||
Revenue and other income | |||||||||
Service | 30.0 | 38.0 | 8.3 | 9.3 | 1.9 | 2.4 | 0.5 | 0.6 | |
Development | 196.7 | 218.1 | 82.8 | 49.8 | 12.6 | 13.9 | 5.3 | 3.2 | |
Construction | 139.6 | 277.2 | 39.7 | 75.7 | 8.9 | 17.7 | 2.5 | 4.8 | |
Eliminations | -7.9 | -40.2 | -1.6 | -3.1 | -0.5 | -2.6 | -0.1 | -0.2 | |
Total revenue and other income | 358.4 | 493.1 | 129.2 | 131.7 | 22.9 | 31.5 | 8.3 | 8.4 | |
Operating profit / loss | |||||||||
Service | -2.7 | -16.6 | -1.4 | -7.5 | -0.2 | -1.1 | -0.1 | -0.5 | |
Development | 27.1 | -36.8 | 21.8 | 56.7 | 1.8 | -2.4 | 1.3 | 3.6 | |
Construction | -3.6 | -8.1 | -4.7 | -5.3 | -0.2 | -0.5 | -0.3 | -0.3 | |
Eliminations | 0.0 | 0.0 | -0.6 | -0.2 | 0.0 | 0.0 | 0.0 | 0.0 | |
Unallocated expenses | -22.8 | -30.2 | -6.6 | -6.8 | -1.5 | -1.9 | -0.4 | -0.4 | |
Total operating profit / loss | -2.0 | -91.7 | 8.5 | 36.9 | -0.1 | -5.9 | 0.5 | 2.4 | |
Interest income and expense | -18.2 | -22.6 | -10.6 | -10.7 | -1.2 | -1.4 | -0.7 | -0.7 | |
Other finance income and expense | 15.9 | -249.7 | 17.3 | -22.7 | 1.0 | -16.0 | 1.2 | -1.4 | |
Income tax expense | -0.3 | 0.9 | 0.1 | 2.1 | 0.0 | 0.1 | 0.0 | 0.1 | |
Net profit / loss | -4.6 | -363.1 | 15.3 | 5.6 | -0.3 | -23.2 | 1.0 | 0.4 | |
The Construction division’s fourth quarter results were adversely affected by a write-down of receivables by 4.6 million kroons (0.3 million euros), conducted due to the bankruptcies of a major customer and a consortium partner.
The main cost cuts have been made and managing and reducing expenses has become a daily routine at all units. For the time being, the Group’s main focus is on increasing sales, completing projects in progress and launching new ones, and improving liquidity by selling new projects and inventories.
Finance income and expense for the fourth quarter were influenced the most by the sale of a receivable from Ühendatud Kapital AS. Despite a decrease in revenue and other income across all divisions, thanks to determined cost control the Group’s operating loss has decreased by 98% compared with 2009.
CASH FLOWS
EEK | EUR | ||||||
12M 2010 | 12M 2009 | 12M 2010 | 12M 2009 | ||||
In millions | |||||||
Cash flows from operating activities | 27.4 | -51.1 | 1.8 | -3.3 | |||
Cash flows from investing activities | 95.1 | 104.9 | 6.1 | 6.7 | |||
Cash flows from financing activities | -121.3 | -145.2 | -7.8 | -9.3 | |||
Net cash flow | 1.2 | -91.4 | 0.1 | -5.8 | |||
Cash and cash equivalents at beginning of period | 64.7 | 156.1 | 4.1 | 10.0 | |||
Effect of movements in exchange rates | 0.0 | 0.0 | 0.0 | 0.0 | |||
Cash and cash equivalents at end of period | 65.9 | 64.7 | 4.2 | 4.1 | |||
In May 2010 Arco Vara AS redeemed commercial paper of 18.9 million kroons (1.2 million euros) before maturity.
In December 2010 Arco Vara AS repaid early 4.5 million kroons (0.3 million euros) of the loan received from LHV bank.
There were no other exceptional loan settlements in 2010. Interest payments accounted for 35.1 million kroons (2.2 million euros) of net financing cash flows. Scheduled and inventory sale-related settlements of loan principal totalled 109.3 million kroons (7.0 million euros). The largest proportion of credit limits utilised during the period was related to the completion of the Madrid project and the construction of the last but one phase in the Kodukolde project that accounted for 67.4 million kroons (4.3 million euros) of the total.
The largest current liabilities to be settled in the next 12 months comprise:
· The loan taken for the Boulevard Residence Madrid project in Sofia of 238.1 million kroons (15.2 million euros) in aggregate has been reclassified to current liabilities because due to the write-down of collateral it is temporarily not in full compliance with the covenant for the value of collateral. The loan is to be repaid by 2015. According to the sales forecast and settlement schedule, as at 31 December 2010 the portion to be repaid in the next 12 months would be 72.1 million kroons (4.6 million euros).
· Loans of 102.5 million kroons (6.6 million euros) related to the Tivoli and Laeva2 projects.
· A loan of 25.5 million kroons (1.6 million euros) related to the Bishumuiza project.
· The scheduled current portion of a loan related to the Manastirski project of 31.7 million kroons (2.0 million euros).
During the year the Group made regular repayments of loans taken for the Kodukolde and Merivälja2 projects in Tallinn, the Bishumuiza-1 project in Riga, and the Madrid project in Sofia and also settlements under some cash flow generating projects (including the entire loan of the Enerpoint project). Most of the Group’s liabilities are denominated in euros.
SERVICE DIVISION
We constantly monitor expenses so as to avoid a situation where expenses are growing faster than revenue.
In connection with the revival of the housing market, we are continuing an active marketing campaign in Estonia. In addition, we are continuing partnering negotiations with other major housing and commercial real estate developers. Through effective cooperation, the number of properties brokered has increased.Our goal is to offer the customers both a wide range of services and an extensive selection of properties.
In Sofia, the Service division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. We are also planning to increase the number of brokers in order to be ready for the recovery of the real estate market in Bulgaria.
The Service division ended 2010 with an operating loss of 2.7 million kroons (0.17 million euros) compared with an operating loss of 16.6 million kroons (1.06 million euros) in 2009. The most successful quarter was the third one where the division generated an operating profit of 1.3 million kroons (0.08 million euros). Before that, the division last earned an operating profit in the third quarter of 2006. Compared with 2009, the number of brokerage transactions has grown by 11% and the number of valuation reports issued has increased by 25%.
DEVELOPMENT DIVISION
In 2010, a total of 129 apartments and plots were sold in Arco Vara projects. In Latvia, 26 apartments were sold in the Bishumuiza project and 19 residential plots in a project near Lake Mazais Baltezers. In Estonia, 41 apartments were sold in the Kodukolde project and 32 residential plots in the Merivälja project. In Bulgaria, the Group sold 11 apartments in the Madrid project in Sofia.
For building and financing the next phase in the Kodukolde project (100 apartments), we have signed a contract with ASMerkoEhitus. Construction work has commenced and is on schedule. Two out of the four buildings will be completed in spring 2011.
The Development division has acquired a property for building a nursery school in Harku rural municipality. There is a rental agreement with the local government, a construction contract with YIT Ehitus AS and a financing agreement with DnB NORD bank. Construction work has commenced and the nursery school will be completed in April 2011.
The Boulevard Residence Madrid commercial and residential building in Sofia was granted a use permit in June. Most of the commercial rental premises that were covered with preliminary contracts have been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. In addition, we are negotiating with potential partners and banks for starting the construction and financing of the Tivoli project. Preparatory site work is underway and construction should begin in spring 2011.
The real estate market of the Baltic countries has stabilised. The sharpest price increase has occurred in Latvia. In response, we have increased prices also in our own development projects.
At the end of 2010, the Development division employed 26 people (31 December 2009: 23).
For further information on our projects, please refer to: www.arcorealestate.com/development.
CONSTRUCTION DIVISION
The Construction division is typically actively involved in environmental, infrastructure and civil engineering (mostly educational establishments related) projects.
At the year-end, the largest new construction contracts were the Tallinn-Muuga water and sewerage networks and facilities of 103 million kroons (6.6 million euros) and the new building of the Estonian Aviation Academy of 31 million kroons (2.0 million euros).
In 2010, the division secured new contracts of 347 million kroons (22.2 million euros). At the end of 2010, the order backlog of the Construction division stood at 262 million kroons (16.8 million euros) against 80.0 million kroons (5.1 million euros) at the end of 2009.
At the reporting date, the division employed 49 people (31 December 2009: 59 people).
Condensed consolidated statement of comprehensive incomeFor the period ended 31 December 2010 | Note | 12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | ||
EEK In thousands | |||||||
Revenue from rendering of services | 181,239 | 293,316 | 47,734 | 86,814 | |||
Revenue from sale of goods | 149,423 | 92,274 | 58,586 | 40,908 | |||
Total revenue | 2 | 330,662 | 385,590 | 106,320 | 127,722 | ||
Cost of sales | 3 | -254,049 | -414,186 | -62,978 | -43,642 | ||
Gross profit / loss | 76,613 | -28,596 | 43,342 | 84,080 | |||
Other income | 4 | 27,776 | 107,502 | 22,880 | 3,991 | ||
Distribution expenses | 5 | -4,734 | -4,401 | -1,339 | -1,086 | ||
Administrative expenses | 6 | -63,225 | -85,666 | -20,803 | -30,065 | ||
Other expenses | 4 | -38,453 | -80,496 | -35,586 | -20,024 | ||
Operating profit / loss | -2,023 | -91,657 | 8,494 | 36,896 | |||
Finance income | 7 | 26,448 | 8,152 | 16,541 | -3,446 | ||
Finance expenses | 7 | -28,616 | -280,419 | -9,851 | -29,971 | ||
Profit / loss before tax | -4,191 | -363,924 | 15,184 | 3,479 | |||
Income tax expense | -398 | 868 | 67 | 2,103 | |||
Profit / loss for the period | -4,589 | -363,056 | 15,251 | 5,582 | |||
Profit / loss attributable to owners of the parent | 8 | -4,385 | -361,618 | 15,455 | 6,910 | ||
Loss attributable to non-controlling interests | -204 | -1,438 | -204 | -1,328 | |||
Other comprehensive income / expense | |||||||
Exchange differences on translating foreign operations | 0 | 303 | -178 | 40 | |||
Total other comprehensive income / expense | 0 | 303 | -178 | 40 | |||
Total comprehensive income / expense for the period | -4,589 | -362,753 | 15,073 | 5,622 | |||
Total comprehensive income / expense attributable to owners of the parent | -4,385 | -361,315 | 15,277 | 6,950 | |||
Total comprehensive expense attributable to non-controlling interests | -204 | -1,438 | -204 | -1,328 | |||
Earnings per share (in EEK) | |||||||
- Basic | -0.92 | -76.26 | 3.26 | 1.46 | |||
- Diluted | -0.92 | -76.26 | 3.26 | 1.46 | |||
For the period ended 31 December 2010 | Note | 12M 2010 | 12M 2009 | Q4 2010 | Q4 2009 | ||
EUR In thousands | |||||||
Revenue from rendering of services | 11,583 | 18,746 | 3,051 | 5,548 | |||
Revenue from sale of goods | 9,550 | 5,897 | 3,744 | 2,614 | |||
Total revenue | 2 | 21,133 | 24,643 | 6,795 | 8,162 | ||
Cost of sales | 3 | -16,237 | -26,471 | -4,025 | -2,789 | ||
Gross profit / loss | 4,896 | -1,828 | 2,770 | 5,373 | |||
Other income | 4 | 1,775 | 6,871 | 1,462 | 255 | ||
Distribution expenses | 5 | -302 | -281 | -86 | -69 | ||
Administrative expenses | 6 | -4,041 | -5,475 | -1,330 | -1,922 | ||
Other expenses | 4 | -2,458 | -5,145 | -2,274 | -1,280 | ||
Operating profit / loss | -130 | -5,858 | 542 | 2,357 | |||
Finance income | 7 | 1,690 | 521 | 1,057 | -220 | ||
Finance expenses | 7 | -1,829 | -17,922 | -630 | -1,915 | ||
Profit / loss before tax | -269 | -23,259 | 969 | 222 | |||
Income tax expense | -25 | 55 | 4 | 134 | |||
Profit / loss for the period | -294 | -23,204 | 973 | 356 | |||
Profit / loss attributable to owners of the parent | 8 | -294 | -23,112 | 973 | 441 | ||
Loss attributable to non-controlling interests | 0 | -92 | 0 | -85 | |||
Other comprehensive income / expense | |||||||
Exchange differences on translating foreign operations | 0 | 19 | -11 | 3 | |||
Total other comprehensive income / expense | 0 | 19 | -11 | 3 | |||
Total comprehensive income / expense for the period | -294 | -23,185 | 962 | 359 | |||
Total comprehensive income / expense attributable to owners of the parent | -281 | -23,093 | 975 | 444 | |||
Total comprehensive expense attributable to non-controlling interests | -13 | -92 | -13 | -85 | |||
Earnings per share (in EUR) | |||||||
- Basic | -0.06 | -4.87 | 0.21 | 0.09 | |||
- Diluted | -0.06 | -4.87 | 0.21 | 0.09 | |||
Condensed consolidated statement of financial position
As at 31 December | Note | 2010 | 2009 | 2008 | ||
In EEK thousands | ||||||
Cash and cash equivalents | 65,858 | 64,724 | 156,061 | |||
Investments | 0 | 0 | 40,416 | |||
Receivables | 9 | 90,130 | 150,939 | 276,541 | ||
Prepayments | 3,004 | 2,999 | 6,077 | |||
Inventories | 10 | 559,215 | 754,805 | 827,237 | ||
Biological assets | 0 | 0 | 3,680 | |||
Total current assets | 718,207 | 973,467 | 1,310,012 | |||
Investments | 15,588 | 17,853 | 216,025 | |||
Receivables | 1,189 | 2,635 | 921 | |||
Investment property | 11 | 358,104 | 219,129 | 157,367 | ||
Property, plant and equipment | 10,994 | 10,545 | 41,664 | |||
Intangible assets | 312 | 812 | 12,475 | |||
Total non-current assets | 386,187 | 250,974 | 428,452 | |||
TOTAL ASSETS | 1,104,394 | 1,224,441 | 1,738,464 | |||
Loans and borrowings | 12 | 424,433 | 371,615 | 223,598 | ||
Trade and other payables | 13 | 78,828 | 83,621 | 124,190 | ||
Deferred income | 72,501 | 81,902 | 64,172 | |||
Provisions | 21,555 | 43,571 | 37,999 | |||
Total current liabilities | 597,317 | 580,709 | 449,959 | |||
Loans and borrowings | 12 | 60,316 | 186,578 | 454,048 | ||
Other liabilities | 11,337 | 6,278 | 1,418 | |||
Provisions | 0 | 1,100 | 3,191 | |||
Total non-current liabilities | 71,653 | 193,956 | 458,657 | |||
TOTAL LIABILITIES | 668,970 | 774,665 | 908,616 | |||
Share capital | 47,417 | 952,842 | 952,842 | |||
Share premium | 0 | 0 | 712,514 | |||
Statutory capital reserve | 31,463 | 31,463 | 31,463 | |||
Retained earnings / accumulated losses | 356,544 | -530,537 | -862,979 | |||
Own shares | 0 | -3,992 | -3,992 | |||
Total equity attributable to equity holders of the parent | 435,424 | 449,776 | 829,848 | |||
Non-controlling interests | -1,103 | -1,191 | 3,614 | |||
Total equity | 436,527 | 450,967 | 826,234 | |||
TOTAL LIABILITIES AND EQUITY | 1,104,394 | 1,224,441 | 1,738,464 | |||
As at 31 December | Note | 2010 | 2009 | 2008 | ||
In EUR thousands | ||||||
Cash and cash equivalents | 4,209 | 4,137 | 9,974 | |||
Investments | 0 | 0 | 2,583 | |||
Receivables | 9 | 5,760 | 9,647 | 17,674 | ||
Prepayments | 192 | 192 | 388 | |||
Inventories | 10 | 35,740 | 48,241 | 52,870 | ||
Biological assets | 0 | 0 | 235 | |||
Total current assets | 45,901 | 62,217 | 83,724 | |||
Investments | 996 | 1,141 | 13,806 | |||
Receivables | 9 | 76 | 168 | 59 | ||
Investment property | 11 | 22,887 | 14,005 | 10,058 | ||
Property, plant and equipment | 703 | 674 | 2,663 | |||
Intangible assets | 20 | 52 | 798 | |||
Total non-current assets | 24,682 | 16,040 | 27,384 | |||
TOTAL ASSETS | 70,583 | 78,257 | 111,108 | |||
Loans and borrowings | 12 | 27,126 | 23,750 | 14,290 | ||
Trade and other payables | 13 | 5,038 | 5,344 | 7,937 | ||
Deferred income | 4,634 | 5,234 | 4,101 | |||
Provisions | 1,378 | 2,785 | 2,429 | |||
Total current liabilities | 38,176 | 37,116 | 28,757 | |||
Loans and borrowings | 12 | 3,855 | 11,925 | 29,019 | ||
Other liabilities | 724 | 400 | 91 | |||
Provisions | 0 | 70 | 204 | |||
Total non-current liabilities | 4,579 | 12,395 | 29,314 | |||
TOTAL LIABILITIES | 42,755 | 49,511 | 58,071 | |||
Share capital | 3,030 | 60,897 | 60,897 | |||
Share premium | 0 | 0 | 45,538 | |||
Statutory capital reserve | 2,011 | 2,011 | 2,011 | |||
Retained earnings / accumulated losses | 22,787 | -33,907 | -55,154 | |||
Own shares | 0 | -255 | -255 | |||
Total equity attributable to equity holders of the parent | 27,828 | 28,746 | 53,037 | |||
Non-controlling interests | -70 | -76 | 231 | |||
Total equity | 27,758 | 28,670 | 53,268 | |||
TOTAL LIABILITIES AND EQUITY | 70,583 | 78,257 | 111,108 | |||
EEK | EUR | ||||||
For the period ended 31 December 2010 | Note | 12M 2010 | 12M 2009 | 12M 2010 | 12M 2009 | ||
In thousands | |||||||
Loss for the period | -4,589 | -363,056 | -293 | -23,204 | |||
Interest income and interest expense | 7 | 18,163 | 22,595 | 1,161 | 1,444 | ||
Gain/loss on sale of subsidiaries and interests in jointly controlled entities | 7 | -1,328 | 4,492 | -85 | 287 | ||
Gain/loss on other long-term investments | 7 | -18,246 | -2,001 | -1,166 | -128 | ||
Impairment losses on financial assets | 7 | 1,788 | 18,888 | 114 | 1,207 | ||
Share of profits and losses of equity accounted investees | 2 841 | 225,284 | 182 | 14,398 | |||
Depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets | 3, 6 | 2,115 | 4,975 | 135 | 318 | ||
Gain/loss on the sale of property, plant and equipment and intangible assets | 4 | 15 | 1,550 | 1 | 99 | ||
Gain/loss on the sale of investment property | 4 | -2,887 | -1,088 | -185 | -70 | ||
Change in the fair value of investment property and biological assets | 4, 11 | 30,021 | -24,265 | 1,919 | -1,551 | ||
Gain/loss on inventory write-downs and reversals of inventory write-downs | 3 | -21,868 | 64,905 | -1,398 | 4,148 | ||
Exchange gains and losses | 7 | -1,050 | 2,823 | -67 | 180 | ||
Income tax expense | 398 | -868 | 25 | -55 | |||
Operating cash flow before working capital changes | 5,373 | -45,766 | 343 | -2,927 | |||
Change in receivables and prepayments | -26,119 | 30,546 | -1,669 | 1,952 | |||
Change in inventories | 37,490 | 7,527 | 2,396 | 481 | |||
Change in biological assets | 0 | 3,680 | 0 | 235 | |||
Change in payables and deferred income | 10,653 | -47,037 | 681 | -3,006 | |||
NET CASH FROM / USED IN OPERATING ACTIVITIES | 27,397 | -51,050 | 1,751 | -3,265 | |||
Acquisition of property, plant and equipment and intangible assets | -628 | -1,961 | -40 | -125 | |||
Proceeds from sale of property, plant and equipment and intangible assets | 25 | 5,729 | 2 | 366 | |||
Acquisition of investment property | 11 | -3,725 | -2,776 | -238 | -177 | ||
Proceeds from sale of investment property | 24,530 | 8,581 | 1,568 | 548 | |||
Acquisition of subsidiaries and interests in jointly controlled entities | -500 | -585 | -32 | -37 | |||
Proceeds from sale of investments in subsidiaries and jointly controlled entities | 23,105 | 69,479 | 1,477 | 4,441 | |||
Proceeds from sale of other investments | 0 | 29,383 | 0 | 1,878 | |||
Loans granted | -3,613 | -12,768 | -231 | -816 | |||
Repayment of loans granted | 52,078 | 5,878 | 3,328 | 377 | |||
Interest received | 3,809 | 3,929 | 243 | 251 | |||
NET CASH FROM INVESTING ACTIVITIES | 95,081 | 104,889 | 6,077 | 6,706 | |||
Proceeds from loans received | 65,157 | 115,005 | 4,164 | 7,350 | |||
Settlement of loans and finance lease liabilities | -151,386 | -226,560 | -9,675 | -14,480 | |||
Interest paid | -35,070 | -33,662 | -2,241 | -2,150 | |||
NET CASH USED IN FINANCING ACTIVITIES | -121,299 | -145,217 | -7,752 | -9,280 | |||
NET CASH FLOW | 1,179 | -91,378 | 76 | -5,839 | |||
Cash and cash equivalents at beginning of period | 64,724 | 156,061 | 4,137 | 9,974 | |||
Increase / decrease in cash and cash equivalents | 1,179 | -91,378 | 76 | -5,839 | |||
Effect of exchange rate fluctuations on cash held | -45 | 41 | -4 | 2 | |||
Cash and cash equivalents at end of period | 65,858 | 64,724 | 4,209 | 4,137 | |||
The whole report you can find here .
Arco Vara associate attracts 11,4 MEUR for the development of the Tivoli project and repays SEB loan.
Arco Investeeringud AS, a 100% associate of Arco Vara, transferred its Tivoli development project properties to its subsidiary Tivoli Arendus OÜ. This transaction was followed by the transfer of the 50% holding of Tivoli Arendus OÜ to International Invest Project OÜ. As the property and the holding were sold at their balance cost, they will not have a significant influence to the balance sheet and the income statement of the group. As a result of the transactions, Arco Investeeringute AS redeemed to SEB Pank all the loan in the amount of 5,432,490 EUR that was raised for acquisition of the land for the Tivoli project.
80% of shares in International Invest Project OÜ belong to Natalia Levina, citizen of Russian Federation.
By attracting a partner to the Tivoli Arenduse OÜ, the group will receive additional funds in an amount of 6 million EUR for financing the construction, which makes it possible to proceed with development of the Tivoli project and start with a new residential area construction already in autumn 2011. In an architectural contest held in 2010, Brunow Maunula Architects from Finland became the winner. In the first stage, up to 170 apartments will be built and the first apartments are expected to be finished in Q3 2012.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel.: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com
Wilson Kinnisvara OÜ share sale
Information regarding an alienation of Arco Investeeringute AS (100% Arco Vara AS daughter company) daughter company shares in Wilson Kinnisvara OÜ in November 2010 did not qualify as publishable information according to the Company. Management of the Company has decided to further clarify the transaction as information regarding it circulating in media since 31.03.2011 is misleading.
Total value of the transaction was 23 Million EEK (1,4 Million EUR) consisting of share sale of 3,3 Million EEK (0,2 Million EUR) and alienation of loans of the Company towards Wilson Kinnisvara OÜ to the buyer in amount of 19,7 Million EEK (1,3 Million EUR). The Company loans were alienated against cash payment.
Economic result of the transaction was a profit of 2,7 Million EEK (0,2 Million EUR). The Company earned from realisation of 80 Paldiski Rd., main asset of Wilson Kinnisvara OÜ, through alienation of shares and owner loans a total of 23 Million EEK (1,5 MEUR).
Arco Vara is a leading property development company in the Baltic areas, established in 1992. Main activity of the company is real estate development, supported by brokerage, valuation construction and facility management. Company is represented in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampre
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com