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SAF Tehnika
Annual Report • Aug 13, 2025
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Annual Report
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SAF Tehnika JSC
Consolidated Interim Report for Q4 and 12 months of financial year 2024/2025
July 1, 2024 – June30, 2025
| Table of contents 1 | |
|---|---|
| Key data 2 | |
| Share and Shareholdings 3 | |
| Information on Management and Supervisory Board members 4 | |
| SAF Tehnika Management Board 4 | |
| SAF Tehnika Supervisory Board:4 | |
| Information on professional and educational background of the management board members 5 | |
| Information on professional and educational background of the supervisory council members 6 | |
| Statement of Board's Responsibilities 7 | |
| Management Report 8 | |
| Market Overview9 | |
| Guidelines10 | |
| KEY indicators 11 | |
| Consolidated Statement of Profit or Loss for 12 months of the financial year 2024/2025 14 | |
| Consolidated Statement of Profit or Loss for Q4 of the financial year 2024/2025 15 | |
| Consolidated cash flow statement for 12 months of the financial year 2024/2025 16 | |
| Statement of changes in consolidated equity for the 12 month period ended June 30, 2025 17 | |
| Notes for interim report18 | |
| Note 1: Customer receivables 18 | |
| Note 2: Other current receivables 18 | |
| Note 3: Inventories 18 | |
| Note 4: Non-current, intangible assets 19 | |
| Note 5: Short-term loans from financial institutions 20 | |
| Note 6: Operating lease liabilities 20 | |
| Note 7: Salary-related accrued expenses 20 | |
| Note 8: Segment information 21 | |
| Note 9: Bad receivables 23 | |
| Note 10: Salaries, bonuses and social expenses 23 |
Key data
SAF Tehnika (hereinafter – the Group) is a manufacturer of wireless data transmission equipment. The company's activities can be divided into three categories:
- § Digital microwave radio equipment for voice and data transmission.
- § Microwave spectrum analyzers and signal generators.
- § Wireless sensor network solutions for environmental monitoring.
The company's 20 years of experience and knowledge have enabled it to develop a number of innovations, including the launch of the world's smallest microwave spectrum analyzers to the market – the Spectrum Compact series, as well as the introduction of wireless sensor network solutions – the Aranet brand.
SAF Tehnika products are found in more than 130 countries worldwide. The company has a total of 260 employees, most of them are considered to be leading experts in their field not only locally, but also globally.
The company's products are used by both the public and private sectors in areas such as mobile communications, internet service providing, industrial production, finance, horticulture, media and many others.
The company's activities are based on the concern for the highest quality, customer-focused business philosophy and openness.
Currently, the Group consists of the joint stock company registered in Latvia – AS SAF Tehnika (hereinafter – the Parent company), and subsidiaries "SAF North America" LLC and SAF TEHNIKA ASIA PTE.LTD wholly owned by the Parent company. AS SAF Tehnika is a public joint stock company established under applicable law of the Republic of Latvia. Shares of AS SAF Tehnika are listed on Nasdaq Riga Stock Exchange.
Legal address: Ganību dambis 24a
| Rīga, LV-1005 |
|---|
| Latvija |
| 40003474109 |
| LV40003474109 |
| 01.07.2024 |
| 30.06.2025 |
| +371 67046840 |
| [email protected] |
Share and Shareholdings
SAF Tehnika shareholders (over 5%) as of 30.06.2025.
SAF Tehnika share price and OMX Riga index development for the reporting period
SAF Tehnika (SAF1R) Period: July 1, 2024 – June 30, 2025 Currency: EUR Marketplace: Nasdaq Riga
Information on Management and Supervisory Board members
SAF Tehnika Management Board
| Name | Position | Ownership interest (%) |
|---|---|---|
| Normunds Bergs | Chairman | owns 9.74% of shares |
| Didzis Liepkalns | Member | owns 17.05% of shares |
| Zane Jozepa | Member | owns no shares |
| Janis Bergs | Member | owns 387 shares |
SAF Tehnika Supervisory Board:
| Name | Position | Ownership interest (%) |
|---|---|---|
| Juris Ziema | Chairman | owns 8.71% of shares |
| Andrejs Grišāns | Vice-Chairman | owns 1.95% of shares |
| Ivars Šenbergs | Member | owns 2 shares |
| Aira Loite | Member | owns 8000 shares |
| Sanda Reiharde | Member | owns no shares |
Information on professional and educational background of the management board members
Normunds Bergs, is Chairman of the Board and Chief Executive Ofcer of SAF Tehnika AS. Mr. Bergs is one of the founders of SIA Fortech (co-founding company of SAF Tehnika AS) where during the periods from 1990 to 1992 and 1999 to 2000 he acted as Managing Director and General Director, respectively. Following SIA Fortech's merger with AS Microlink in 2000, Mr. Bergs became Chief Executive Ofcer of SAF Tehnika AS and a member of the Management Board of AS Microlink. From 1992 to 1999, Mr. Bergs worked for World Trade Centre Riga, where he held the position of General Director and became a Member of the Board of Directors in 1998. Mr. Bergs graduated from the Riga Technical University with a degree in radio engineering in 1986.
Didzis Liepkalns, is Member of the Board and Technical Director of SAF Tehnika. Mr.Liepkalns founded a private enterprise SAF in 1995 and co-founded the company SAF Tehnika AS in 1999. From 1985 to 1990 he worked as an engineer at the Institute of Electronic Engineering and Computer Sciences. Mr.Liepkalns has graduated Riga Technical University with a degree in radio engineering in 1985.
Zane Jozepa, is Member of the Board and Chief Financial Ofcer. Prior to her employment with SAF Tehnika, Ms.Jozepa has been working in the leading IT and telecommunication services provider in Latvia – SIA Lattelecom, which is a subsidiary company of SIA Citrus Solutions that provides design, construction and maintenance of the engineering and technical systems and infrastructure. Ms.Jozepa has been working as a Business Controller for the first two years. She became Head of Finance in 2008, and a Board Member in 2012. Ms.Jozepa gained her professional experience in finance while working for SIA Coca Cola HBC Latvia during 2001-2006. She has graduated the BA School of Business and Finance (Banku Augstskola) and has a BA degree in finance management.
Jānis Bergs, is Member of the Board, Vice President of Sales and Marketing, and the President of "SAF North America". From 2000 till 2006 Mr.Bergs was a Member of the Board and later CEO of AS Microlink. When Microlink was sold to the TeliaSonera group in 2006, Jānis became a shareholder and CEO of SIA FMS, where he worked until January 2015. Mr.Bergs was a Member of AS SAF Tehnika Council from November 2006 till August 2010, and for more than 10 years he has been managing the Latvian IT and Telecommunications Association (LIKTA) and the ICT cluster, as well as giving lectures in business studies in Riga Business School. Mr.Bergs has graduated Riga Technical University as radio engineer and has an MBA degree from Riga Business School.
Information on professional and educational background of the supervisory council members
Juris Ziema, co-founder of the Company, is Chairman of the Supervisory Council and Production Department Director. From 1998 to 1999 he worked as an engineer at Mr. Liepkalns private enterprise SAF. From 1987 to 1999 Mr. Ziema worked as an engineer at the Institute of Electronic Engineering and Computer Sciences. Mr. Ziema has graduated Riga Technical University with a degree in radio engineering in 1987.
Andrejs Grišāns, co-founder of the Company, is Vice-Chairman of the Supervisory Council and Production Department Manager. Prior to joining the Company, he owned and managed a private company specializing in electronic equipment engineering, production and distribution. From 1992 to 1999 Mr. Grisans was involved in entrepreneurial activities in the field of radio engineering. He worked as an engineer-constructor at the Institute of Polymer Mechanics from 1984 to 1992 and in the constructing bureau Orbita from 1980 to 1984. Mr. Grisans has graduated Riga Technical University with a degree in radio engineering in 1980.
Ivars Šenbergs, Member of the Supervisory Council, also Chairman of the Board of SIA Juridiskais Audits, SIA Namipasumu parvalde, SIA Synergy Consulting, SIA IŠMU, SIA Dzirnavu centrs and Member of the Supervisory Council of AS MFS bookkeeping. From 1999 until 2000 he worked as Finance and Administrative Director at SIA Fortech. Mr. Šenbergs has graduated Faculty of Law, University of Latvia in 1986.
Aira Loite, Member of the Supervisory Council, has resumed working in SAF Tehnika in a position of a Director of Digital Transformation in September 2021. She has extensive experience in management, finance, administration and IT, gained in companies operating in local and international markets. She worked as an Administrative Director (2019-2020) in a food production company "Forevers" Ltd.), metal processing company group "Torgy Mek" as Finance Director (2016- 2019) and as a Director of Torgy Baltic SIA (2018-2019). Aira Loite has been a member of the Board of SAF Tehnika, Finance and Administrative Director (2007-2011), Managing Director (2011-2015). From 2006 to 2007, she worked as the director of the Business Information and
Control Department of SIA Lattelecom. From 2000 to 2006, she was a member of the Board and Chief Financial Ofcer of SIA Microlink Latvia. A. Loite has graduated the University of Latvia in 1988 and holds Masters degree in Mathematics and MBA from Salford University, GB, obtained in 2009.
Sanda Reiharde, Member of the Supervisory Council, currently leading Microsoft Azure business in Small and Medium segment in CEE (Central and Eastern Europe) 30+ countries. Almost 15 years spent in the information technology industry in various business development and sales leader roles in the Baltic and European markets. Previous experience in banking (Parex Bank, 2006-2008) and sales account management in a Danish and Swedish owned logistics company Baltic Transhipment Center (2000-2006). She graduated from Salford University in 2009 with MBA, as well as Riga Stradins University in 2021, and holds a Master degree in Clinical Psychology.
Statement of Board's Responsibilities
The Board of SAF Tehnika JSC (hereinafter – the Parent) is responsible for preparing the consolidated financial statements of the Parent and its subsidiaries (hereinafter - the Group).
The consolidated financial statements are prepared in accordance with the source documents and present fairly the consolidated financial position of the Group as of 30 June, 2025 and the consolidated results of its financial performance and cash flows for the quarter then ended.
The above mentioned financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the European Union, and are prepared on a going concern basis. Appropriate accounting policies have been applied on a consistent basis. The consolidated interim financial statements have been prepared based on the same accounting principles applied in the Consolidated Financial Statements for the year ended on June 30, 2024.
Prudent and reasonable judgments and estimates have been made by the management in the preparation of the financial statements.
The Board of SAF Tehnika JSC is responsible for the maintenance of proper accounting records, the safeguarding of the Group's assets and the prevention and detection of fraud and other irregularities in the Group. The Board is responsible for compliance with the requirements of normative acts of the countries the Group operates in (Latvia, United States of America and Singapore).
The interim financial statements have been prepared in Euro.
_________________________ Zane Jozepa
CFO, Member of the Management Board
Management Report
The Group's unaudited consolidated net turnover for the fourth quarter (Q4) of the 2024/2025 financial year (FY) was EUR 5.18 million, representing a 13% decrease compared to the same period in FY 2023/2024.
The turnover of the North America and Latin America region amounted to 47% or EUR 2.5 million. Compared to the same quarter of the previous financial year, the turnover has decreased by 40%.
The European region accounted for 36% of turnover, amounting to EUR 1.9 million, an increase of 24% compared with the fourth quarter of the previous financial year. Turnover in the Asia, Africa and Middle East region doubled compared with the corresponding quarter of the previous financial year, representing 16% of the total quarterly turnover (or EUR 846 thousand).
As noted in previous reports, fluctuations in quarterly turnover are influenced by the completion of individual projects. Projects can vary in scope and complexity, and their execution is influenced by both the duration of the production process and the lead times for material procurement. As a result, the dispatch of goods and the recognition of revenue often take place only in subsequent quarters
Comparative charts of Q4 sales volumes by region:
In the reporting quarter, the Group's products were sold in 75 countries.
For the 12 months of the 2024/2025 financial year, the Group's unaudited consolidated turnover was EUR 26.11 million, a 4% decline from the previous financial year's revenue.
Over a 12-month period, revenues in North and Latin Americas represented 55% of the total turnover of the Group and amounted to EUR 14.28 million, thus showing a 14% decrease compared to the result of the twelve months of the previous financial year. 38% of the total turnover comes from revenues generated in European countries, which increased by 17% against 12 months of the previous year, and amount to EUR 10.04 million. Revenue from the Asia, Africa and the Middle East region declined by 5%, accounting for 7% of the Group's total turnover.
Charts comparing the sales volume distribution by region for the 12-month period:
The Group's expenses did not exceed the amounts planned in the budget. The Group continues to invest in new product development and product enhancements, as well as in sales promotion across both existing and new market segments.
The Group closed the fourth quarter of the 2024/2025 financial year with a loss of EUR 913 thousand (unaudited). In Q4 of the previous year, the Group recorded a loss of EUR 498 thousand.
The consolidated unaudited result for the twelve months of the 2024/2025 financial year is a loss of EUR 820 thousand. The Group reported a loss of EUR 2.37 million for the 2023/2024 financial year.
The Group's operations were afected by the global shortage of various electronic components. During the previous period, the company accumulated material reserves to be able to fulfill the majority of orders, ensuring short, or customerexpected, delivery times. Delivery times have continued to improve recently.
The Group's net cash flow for the 12 months of the financial year is EUR 2.6 million. The Group's cash balance in the balance sheet at the end of the period was EUR 4.8 million. Advances received from customers for goods totaled EUR 3.9 million.
To ensure liquidity, the Parent Company has a Credit Line Agreement with Luminor Bank AS for a total amount of EUR 4.95 million, which had not been utilized at the end of the reporting period.
In Q4 of the 2024/2025 financial year, EUR 239 thousand were invested in the purchase of fixed assets – primarily to support production and testing processes, as well as for the acquisition of ofce equipment.
Market Overview
During the quarter, there were no major changes in the microwave radio market. We believe that significant and rapid changes in the microwave radio market are not expected in the near future. SAF Tehnika continues to foster close collaboration with its clients and partners to proactively identify and mitigate potential risks, as well as to assess new opportunities for development. The Group continuously monitors changes in the global trade environment, including potential tarif adjustments in the United States.
The Group has no clients or suppliers in the region afected by armed conflict (Russia, Ukraine, or Belarus); therefore, no impact on order volumes has been observed.
Guidelines
SAF Tehnika is a company with extensive experience and expertise in the development and production of microwave links.
Although the hostilities in Ukraine do not directly impact the Group's operations, overall uncertainty in the business environment persists. The Group continues to monitor potential cost increase forecasts and evaluate associated risks. The company regularly reviews procurement volumes and timelines, ensuring sufcient material reserves to fulfill most orders within standard lead times. This applies to all SAF product families: microwave links, spectrum analyzers, and Internet of Things (IoT).
Even with the modernization of the telecommunications market toward fiber optic communications, there is still a strong demand for radio systems that provide enhanced data rates. Therefore, the Group continues to actively research the market and identify key issues in order to propose necessary product modifications and develop prototypes for nextgeneration technologies. At the same time, the Group develops IoT solutions for both business and consumer segments, diversifying its product line, creating higher added value for SAF Tehnika product oferings, and increasing the Group's revenue.
The company's goal is to stabilize turnover to ensure a positive net result in the long term. The Board of SAF Tehnika remains cautious and refrains from providing specific sales and performance forecasts.
As of June 30, 2025, the Group had 273 employees (265 employees as of June 30, 2024)
KEY indicators
| Q4 2024/25 EUR |
Q4 2023/24 EUR |
Q4 2022/23 EUR |
|
|---|---|---|---|
| Net Sales | 5 184 188 | 5 983 051 | 8 675 305 |
| Earnings before interest, taxes and depreciation (EBITDA) | (459 632) | (96 211) | 1 151 625 |
| (EBITDA %) | (9)% | (2)% | 13.3% |
| Profit/loss before interest and taxes (EBIT) | (863 273) | (495 301) | 828 451 |
| (EBIT %) | (17)% | (8)% | 10% |
| Net Profit | (913 464) | (498 107) | 804 633 |
| Share of the turnover % | (18)% | (8)% | 9% |
| Total assets | 25 916 954 | 22 997 300 | 28 372 380 |
| Total Owners equity | 15 581 325 | 16 414 259 | 18 707 934 |
| Return on assets (ROA) % | (3.59)% | (2.11)% | 2.84% |
| Return on equity (ROE) % | (5.69)% | (2.99)% | 4.40% |
| Liquidity ratio | |||
| Quick ratio % | 57% | 49% | 48% |
| Current ratio % | 78% | 94% | 66% |
| Earnings per share | (0.31) | (0.17) | 0.27 |
| Last share price at the end of period | 5.74 | 4.88 | 11.35 |
| P/E | (20.50) | (6.10) | 9.96 |
| Number of employees at the end of reporting period | 273 | 265 | 271 |
Consolidated Statement of Financial Position
| Note | 30.06.2025 | 30.06.2024 | |
|---|---|---|---|
| CURRENT ASSETS | EUR | EUR | |
| Cash and bank | 4 812 202 | 2 213 197 | |
| Customer receivables | 1 | ||
| Accounts receivable | 1 321 900 | 1 515 769 | |
| Allowance for uncollectible receivables | (20 246) | (15 957) | |
| Total | 1 301 654 | 1 499 812 | |
| Other current receivables | 2 | 447 614 | 541 001 |
| Total | 447 614 | 541 001 | |
| Prepaid expenses | |||
| Prepaid taxes | 172 270 | 167 126 | |
| Other prepaid expenses | 253 972 | 244 110 | |
| Total | 426 242 | 411 236 | |
| Inventories | 3 | ||
| Raw materials | 2 365 783 | 2 949 844 | |
| Work-in-progress | 4 475 348 | 3 180 499 | |
| Finished goods | 7 000 730 | 6 663 062 | |
| Prepayments to suppliers | 97 457 | 67 478 | |
| Total | 13 939 318 | 12 860 883 | |
| TOTAL CURRENT ASSETS | 20 927 030 | 17 526 129 | |
| NON-CURRENT ASSETS | |||
| Long-term financial assets | |||
| Investments in other companies | 209 183 | 209 328 | |
| Defered income tax | 150 545 | 164 819 | |
| Long-term loans | 4 914 | 7 588 | |
| Total | 364 642 | 381 735 | |
| NON-CURRENT physical assets | 4 | ||
| Plant and equipment | 5 912 372 | 5 672 789 | |
| Other equipment and fixtures | 3 949 122 | 3 713 450 | |
| Accumulated depreciation | (7 301 459) | (6 412 487) | |
| Prepayments for noncurrent physical assets | 14 180 | 3 815 | |
| Unfinished renovation works | 43 990 | 20 286 | |
| Long-term investment - lease | 1 472 341 | 1 588 701 | |
| Total | 4 090 546 | 4 586 554 | |
| Intangible assets | 4 | ||
| Purchased licenses, trademarks etc. | 474 286 | 515 475 | |
| Other long-term intangible assets | 60 449 | 14 810 | |
| Total | 534 735 | 530 285 | |
| TOTAL NON-CURRENT ASSETS | 4 989 924 | 5 498 575 | |
| TOTAL ASSETS | 25 916 954 | 23 024 704 |
| LIABILITIES AND OWNERS' EQUITY | Note | 30.06.2025 | 30.06.2024 |
|---|---|---|---|
| CURRENT LIABILITIES | EUR | EUR | |
| Debt obligations | |||
| Short-term loans from financial institutions | 5 | 15 703 | 25 939 |
| Customer prepayments for goods and services | 3 916 211 | 759 290 | |
| Accounts payable | 1 271 155 | 809 171 | |
| Accrued short-term operating lease liabilities | 6 | 381 070 | 375 735 |
| Tax liabilities | 420 634 | 425 312 | |
| Salary-related accrued expenses | 7 | 1 791 579 | 1 589 853 |
| Provisions for guarantees | 55 658 | 55 658 | |
| Deferred income | 536 850 | 467 149 | |
| TOTAL CURRENT LIABILITIES | 8 388 859 | 4 508 107 | |
| NON-CURRENT LIABILITIES | |||
| Long-term liabilities | |||
| Long-term deferred income | 693 099 | 748 524 | |
| Accrue long-term operating lease liabilities | 6 | 1 253 671 | 1 332 122 |
| TOTAL LONG-TERM LIABILITIES | 1 946 770 | 2 080 646 | |
| TOTAL LIABILITIES | 10 335 629 | 6 588 753 | |
| OWNERS' EQUITY | |||
| Share capital | 4 158 252 | 4 158 252 | |
| Paid in capital over par | 2 851 726 | 2 851 726 | |
| Other reserves | 8 530 | 8 530 | |
| Retained earnings | 9 378 876 | 11 748 240 | |
| Net profit for the financial year | (820 219) | (2 369 364) | |
| Currency translation reserve | 4 160 | 38 567 | |
| TOTAL OWNERS' EQUITY | 15 581 325 | 16 435 951 | |
| TOTAL LIABILITIES AND OWNERS' EQUITY | 25 916 954 | 23 024 704 |
Consolidated Statement of Profit or Loss for 12 months of the financial year 2024/2025
| Note | 30.06.2025 | 30.06.2024 | |
|---|---|---|---|
| EUR | EUR | ||
| Net sales | 8 | 26 109 370 | 27 092 552 |
| Other operating income | 700 714 | 919 264 | |
| Total income | 26 810 085 | 28 011 816 | |
| Direct cost of goods sold or services rendered | (9 329 699) | (13 117 489) | |
| Marketing, advertising and public relations expenses | (1 892 892) | (1 899 921) | |
| Bad receivables | 9 | (5 887) | 1 874 |
| Operating expenses | (2 262 594) | (2 097 036) | |
| Salaries and social expenses | 10 | (10 582 406) | (10 538 718) |
| Bonuses and social expenses | 10 | (1 824 652) | (942 815) |
| Depreciation expense | (1 239 141) | (1 153 927) | |
| Amortization of operating lease | (386 730) | (388 855) | |
| Other expenses | (40 271) | (134 206) | |
| Operating expenses | (27 564 272) | (30 271 092) | |
| EBIT | (754 187) | (2 259 275) | |
| Financial income (except ForEx rate diference) | 49 935 | 19 615 | |
| Financial costs (except ForEx rate diference) | (64 866) | (154 964) | |
| Foreign exchange +gain/(loss) | (46 928) | 45 484 | |
| Financial items | (61 858) | (89 864) | |
| EBT | (816 045) | (2 349 140) | |
| Corporate income tax | (4 173) | (20 224) | |
| Profit after taxes | (820 219) | (2 369 364) | |
| Net profit/(loss) | (820 219) | (2 369 364) |
*Earnings per share
EPS 30.06.2025. (0.28) EUR EPS 30.06.2024. (0.80) EUR
Consolidated Statement of Profit or Loss for Q4 of the financial year 2024/2025
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Net sales | 5 184 188 | 5 983 051 |
| Other operating income | 351 448 | 630 706 |
| Total income | 5 535 636 | 6 613 757 |
| Direct cost of goods sold or services rendered | (1 945 940) | (2 827 751) |
| Marketing, advertising and public relations expenses | (539 410) | (511 249) |
| Bad receivables | 2 777 | 60 362 |
| Operating expenses | (586 610) | (518 029) |
| Salaries and social expenses | (2 620 953) | (2 661 652) |
| Bonuses and social expenses | (298 161) | (179 565) |
| Depreciation expense | (308 838) | (301 821) |
| Amortization of operating lease | (94 803) | (97 269) |
| Other expenses | (6 971) | (72 084) |
| Operating expenses | (6 398 909) | (7 109 058) |
| EBIT | (863 273) | (495 301) |
| Financial income (except ForEx rate diference) | 17 565 | 5 025 |
| Financial costs (except ForEx rate diference) | (16 967) | (19 694) |
| Foreign exchange +gain/(loss) | (46 616) | 13 075 |
| Financial items | (46 018) | (1 594) |
| EBT | (909 291) | (496 895) |
| Corporate income tax | (4 173) | (1 212) |
| Profit after taxes | (913 464) | (498 107) |
| Net profit/(loss) | (913 464) | (498 107) |
*Earnings per share
EPS 30.06.2025. (0.31) EUR EPS 30.06.2024. = (0.17) EUR
Consolidated cash flow statement for 12 months of the financial year 2024/2025
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| CASH GENERATED FROM OPERATIONS (of which) | 2 131 529 | 939 013 |
| Cash received from customers | 29 013 737 | 27 696 721 |
| Cash paid to suppliers and employees | (27 267 939) | (27 188 142) |
| Paid/Received VAT | 385 730 | 430 434 |
| NET CASH USED IN INVESTING ACTIVITIES (of which) | (789 687) | (1 212 065) |
| Cash paid for purchasing shares in subsidiary | 145 | 0 |
| Cash paid for purchasing non-current physical assets | (832 140) | (1 230 937) |
| Interest received | 42 308 | 18 872 |
| NET CASH USED IN FINANCING ACTIVITIES (of which) | 848 532 | (915 806) |
| Repayment of short-term loans | 15 703 | (1 182 034) |
| Paid interest | (1 368) | (92 959) |
| Cash received from EU fonds | 834 197 | 359 187 |
| Efects of exchange rate changes | 408 632 | (62 384) |
| TOTAL CASH FLOW: | 2 599 005 | (1 251 242) |
| Cash and cash equivalents as at the beginning of period | 2 213 197 | 3 464 439 |
| Cash and cash equivalents as at the end of period | 4 812 202 | 2 213 197 |
Statement of changes in consolidated equity for the 12 month period ended June 30, 2025
| Share capital EUR |
Share premium EUR |
Other reserves EUR |
Currency translation reserve EUR |
Retained earnings EUR |
Total EUR |
|
|---|---|---|---|---|---|---|
| As at 30 June 2023 | 4 158 252 | 2 851 726 | 8 530 | 76 791 | 11 748 240 | 18 843 539 |
| Currency translation diference Loss for the year |
- - |
- - |
- - |
(38 224) - |
- (2 369 364) |
(38 224) (2 369 364) |
| As at 30 June 2024 | 4 158 252 | 2 851 726 | 8 530 | 38 567 | 9 378 876 | 16 435 951 |
| Currency translation diference Profit for the year |
- - |
- - |
- - |
(34 407) - |
- (820 219) |
(34 407) (820 219) |
| As at 30 June 2025 | 4 158 252 | 2 851 726 | 8 530 | 4 160 | 8 558 657 | 15 581 325 |
Notes for interim report
Note 1: Customer receivables
| 30.06.2025 EUR |
30.06.2024 EUR |
|
|---|---|---|
| Accounts receivable | 1 321 900 | 1 515 769 |
| Provisions for bad and doubtful accounts receivable | (20 246) | (15 957) |
| Total receivables | 1 301 654 | 1 499 812 |
As compared to the same balance sheet date of the previous financial year the total receivables have increased.
Note 2: Other current receivables
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Other current receivables | 447 614 | 541 001 |
Other current receivables include the amounts of calculated co-financing from EU funds for ongoing product development projects. Co-financing is assigned via competence center "LEO pētījumu centrs" (LEO) and will be received when project documentation and results are reviewed and accepted by project sponsor.
Note 3: Inventories
| 30.06.2025 EUR |
30.06.2024 EUR |
|
|---|---|---|
| Raw materials | 6 394 295 | 8 048 157 |
| Allowance for slow-moving items | (4 028 512) | (5 098 313) |
| Work-in-progress | 4 475 348 | 3 180 499 |
| Finished goods | 7 000 730 | 6 663 062 |
| Prepayments to suppliers | 97 457 | 67 478 |
| Total Inventories | 13 939 318 | 12 860 883 |
Compared to June 30, 2024, total inventory volumes increased by 8%.
The Group maintains a certain level of raw materials and consumables in order to be able to deliver all products that are currently included in the Group's product portfolio within competitive deadlines.
The Group's inventory must include components of previously manufactured and sold equipment in order to be able to provide them with repair services.
Following the precautionary principle and the Group's policy on slow-moving stocks – the stocks that over the period of 12, 9 or 6 months, respectively, have moved by less than 30% of their amount at the beginning of the period are recognized as slow-moving inventory.
Note 4: Non-current, intangible assets
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Plant and equipment | 5 912 372 | 5 672 789 |
| Other equipment and fixtures | 3 949 122 | 3 713 450 |
| Accumulated depreciation | (7 301 459) | (6 412 487) |
| Prepayments for noncurrent physical assets | 14 180 | 3 815 |
| Unfinished renovation works | 43 990 | 20 286 |
| Long-term investment lease* | 1 472 341 | 1 588 701 |
| Total | 4 090 546 | 4 586 554 |
| Purchased licenses, trademarks etc. | 474 286 | 515 475 |
| Other long-term intangible assets | 60 449 | 14 810 |
| Total | 534 735 | 530 285 |
| Total non-current, intangible assets | 4 625 282 | 5 116 839 |
*See Note 6 Operating lease liabilities
During Q4, the Group acquired fixed assets and intangible assets in the amount of 239 thousand euros – mainly, in order to ensure production and testing processes, as well as to acquire ofce equipment.
Note 5: Short-term loans from financial institutions
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Short-term loans from financial institutions | 15 703 | 25 939 |
To ensure liquidity, the Parent Company has an active credit line agreement with Luminor Bank AS for the total amount of EUR 4.95 million. At the end of the reporting period, the credit line had not been used.
Note 6: Operating lease liabilities
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Accrued short-term operating lease liabilities | 381 070 | 375 735 |
| Accrued long-term operating lease liabilities | 1 253 671 | 1 332 122 |
| 1 634 740 | 1 707 857 |
As a result of the introduction of IFRS 16 "Leases", the Group has made estimates in respect of concluded operating leases, assuming that over the next 5 (five) years, it will continue to lease premises in accordance with the concluded lease agreements. In addition, the volume of leased premises has also increased.
Note 7: Salary-related accrued expenses
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Salary-related accrued expenses | 1 791 579 | 1 589 853 |
The increase in the balance sheet is due to fluctuations in the amounts of vacation accruals and bonuses between periods.
Note 8: Segment information
- a) The Group's (Parent company's) operations are divided into two major structural units:
- § SAF branded equipment designed and produced in-house as one of the structural units containing CFIP, Integra (Integrated carrier-grade Ethernet microwave radio), Spectrum Compact (measurement tools for radio engineers) and Aranet (environmental monitoring solutions).
- a. CFIP product line is represented by:
- i. Phoenix, a split mount (IDU+ODU) PhoeniX hybrid radio system with Gigabit Ethernet and 20E1 interfaces;
- ii. Lumina high capacity Full Outdoor all-in-one radio with Gigabit Ethernet trafc interface;
- iii. Marathon FIDU low frequency low capacity system for industrial applications, energy companies and rural telecom use.
- iv. All CFIP radios are ofered in most widely used frequency bands from 1.4GHz to 38 GHz, thus enabling the use of CFIP radios all across the globe.
- b. Integra is a next generation radio system employing latest modem technology on the market as well as radio technology in an innovative packaging.
- c. Spectrum Compact is the latest product line in SAF's portfolio, it is a measurement tool for field engineers for telecom, broadcasting and other industries using radio technologies. It comprises of a number of units covering several frequency bands and proving various functionality.
- d. Aranet the latest SAF product line for environmental monitoring, consisting of various wireless sensors, base stations and Aranet cloud solution for data collection, aggregation and analysis.
- a. CFIP product line is represented by:
- § Operations related to sales of products purchased from other suppliers, like antennas, cables, SAF renamed (OEMed) products and diferent accessories - as the second unit.
- § SAF branded equipment designed and produced in-house as one of the structural units containing CFIP, Integra (Integrated carrier-grade Ethernet microwave radio), Spectrum Compact (measurement tools for radio engineers) and Aranet (environmental monitoring solutions).
- b) This note provides information about division of the Group's turnover and balance items by structural units by product type for 12 month of the financial year 2024/25 and financial year 2023/24.
| CFIP, Integra, Spectrum, Compact, Aranet |
Other | Total | ||||
|---|---|---|---|---|---|---|
| 2024/25 EUR |
2023/24 EUR |
2024/25 EUR |
2023/24 EUR |
2024/25 EUR |
2023/24 EUR |
|
| Segment assets | 15 214 899 | 13 445 322 | 1 184 309 | 1 966 406 | 16 399 208 | 15 411 728 |
| Undivided assets | 9 517 746 | 7 612 976 | ||||
| Total assets | 25 916 954 | 23 024 704 | ||||
| Segment liabilities | 5 696 314 | 2 094 293 | 113 941 | 34 500 | 5 810 255 | 2 128 793 |
| Undivided liabilities | 4 525 374 | 4 459 960 | ||||
| Total liabilities | 10 335 629 | 6 588 753 | ||||
| Net sales | 24 309 076 | 25 097 488 | 1 800 294 | 1 995 064 | 26 109 370 | 27 092 552 |
| Segment results | 9 354 652 | 4 681 332 | 2 792 445 | 2 851 324 | 12 147 097 | 7 532 656 |
| Undivided expenses | (13 601 998) | (10 751 643) | ||||
| Profit from operations | (1 454 901) | (3 218 987) | ||||
| Other income | 700 714 | 919 264 | ||||
| Financial income (except ForEx rate diference) |
49 935 | 19 570 | ||||
| Financial costs (except ForEx rate diference) |
(64 866) | (154 964) | ||||
| Foreign exchange +gain/(loss) |
(46 928) | 45 529 | ||||
| Profit before taxes | (816 046) | (2 389 588) | ||||
| Corporate income tax | (4 173) | 20 224 | ||||
| Profit after taxes | (820 219) | (2 369 364) | ||||
| Net profit | (820 219) | (2 369 364) | ||||
| Other information | ||||||
| Additions of property plant and equipment and intangible asets |
226 926 | 268 371 | - | - | 226 926 | 268 371 |
| Undivided additions | 561 210 | 1 016 104 | ||||
| Total additions of property plant and equipment and intangible asets |
788 136 | 1 284 475 | ||||
| Depreciation and amortization |
769 488 | 750 919 | - | - | 769 488 | 750 919 |
| Undivided depreciation | 856 383 | 791 868 | ||||
| Total depreciation and amortization |
1 625 871 | 1 542 787 |
c) This note provides information about division of the Group's turnover and assets by geographical regions (customer location) for 12 month of the financial year 2024/25 compared to the same period of financial year 2023/24.
| Net Sales | Assets | |||
|---|---|---|---|---|
| 2024/2025 EUR |
2023/2024 EUR |
30.06.2025 EUR |
30.06.2024 EUR |
|
| Americas | 14 282 812 | 16 603 697 | 996 258 | 1 045 977 |
| Europe, CIS | 10 043 799 | 8 616 355 | 223 263 | 330 239 |
| Asia, Africa, Middle East | 1 782 759 | 1 872 500 | 82 133 | 123 596 |
| Subtotal | 26 109 370 | 27 092 552 | 1 301 654 | 1 499 812 |
| Unallocatted assets | - | - | 24 615 300 | 21 497 489 |
| Total | 26 109 370 | 27 092 552 | 25 916 954 | 23 024 704 |
Note 9: Bad receivables
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Bad receivables | (5 887) | 1 874 |
Provisions for doubtful and bad accounts receivable were calculated according to Group's provision calculation policy. The Group starts to calculate provisions for customers who delays payment terms more than 3 months. Additional provisions were calculated for debts were probability not to receive payment is high, although agreed payment term has not come yet. Assessing the risks of receivables, additional provision for insecure debts has been made.
Note 10: Salaries, bonuses and social expenses
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| EUR | EUR | |
| Salaries and social expenses | (10 582 406) | (10 538 718) |
| Bonuses and social expenses | (1 824 652) | (942 815) |
| Total | (12 407 058) | (11 481 533) |
Compared to the twelve months of the previous 2023/2024 financial year, the amount of wages and related social costs has increased by 8%.