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City Service SE Interim / Quarterly Report 2012
5564_rns_2012-05-31_950fa6ba-c94b-4fe1-a8c4-402bd6257a6b.pdf
Interim / Quarterly Report
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May 2012
CityService
City Service AB
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited)
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 2
Statements of financial position
| Group | Company | |||
|---|---|---|---|---|
| As of 31 March 2012 | As of 31 December 2011 | As of 31 March 2012 | As of 31 December 2011 | |
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 68,157 | 68,157 | - | - |
| Other intangible assets | 77,903 | 78,692 | 4 | 1,186 |
| Property, plant and equipment | 52,108 | 52,751 | 443 | 4,044 |
| Investment property | 379 | 382 | - | - |
| Investments into subsidiaries | - | - | 155,292 | 127,913 |
| Investments into associates | 578 | 578 | - | - |
| Non-current financial assets receivables and prepayments | 10,980 | 10,960 | 733 | 6,733 |
| Deferred income tax asset | 12,268 | 9,243 | 303 | 736 |
| Total non-current assets | 222,373 | 220,763 | 156,775 | 140,612 |
| Current assets | ||||
| Inventories | 4,365 | 4,040 | 16 | 701 |
| Prepayments | 4,574 | 8,911 | 272 | 252 |
| Trade receivables | 111,473 | 77,376 | 37,027 | 20,558 |
| Receivables from related parties (including loans granted) | 1,243 | 1,309 | 26,114 | 35,284 |
| Other receivables and current assets | 7,944 | 7,116 | 2,301 | 4,196 |
| Cash and cash equivalents | 16,068 | 25,050 | 163 | 216 |
| Total current assets | 145,667 | 123,802 | 65,893 | 61,207 |
| Total assets | 368,040 | 344,565 | 222,668 | 201.819 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 3
Statements of financial position (cont'd)
| Group | Company | |||
|---|---|---|---|---|
| As of 31 March 2012 | As of 31 December 2011 | As of 31 March 2012 | As of 31 December 2011 | |
| Equity and liabilities | ||||
| Equity attributable to equity holders of the Company | ||||
| Share capital | 31,610 | 31,610 | 31,610 | 31,610 |
| Reserves and share premium | 83,002 | 83,002 | 82,991 | 82,991 |
| Foreign currency translation | (1,113) | (1,824) | - | - |
| Retained earnings (deficit) | 71,525 | 63,451 | 38,078 | 33,087 |
| 185,024 | 176,239 | 152,679 | 147,688 | |
| Non-controlling interests | 2,159 | 2,231 | - | - |
| Total equity | 187,183 | 178,470 | 152,679 | 147,688 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Non-current borrowings | 18,497 | 18,497 | 16,638 | 18,417 |
| Financial lease obligations | 6,529 | 6,207 | 267 | 1,596 |
| Deferred income tax liabilities | 15,193 | 15,306 | - | - |
| Non-current payables | 7,434 | 6,651 | 360 | 503 |
| Total non-current liabilities | 47,653 | 46,661 | 17,265 | 20,516 |
| Current liabilities | ||||
| Current portion of non-current borrowings | 6,145 | 8,103 | 7,116 | 7,116 |
| Current portion of financial lease obligations | 2,990 | 3,859 | 38 | 569 |
| Short term loans | 1,197 | 856 | 8,555 | 3,148 |
| Trade payables | 71,299 | 59,035 | 602 | 4,334 |
| Payables to related parties | 28,728 | 13,212 | 32,561 | 13,559 |
| Advances received | 15,833 | 14,047 | 2,135 | 1,490 |
| Other current liabilities | 7,012 | 20,322 | 1,717 | 3,399 |
| Total current liabilities | 133,204 | 119,434 | 52,724 | 33,615 |
| Total equity and liabilities | 368,040 | 344,565 | 222,668 | 201,819 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 4
Statements of comprehensive income (for the period 1 January – 31 March)
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| Sales | 145,606 | 141,922 | 28,539 | 33,693 |
| Cost of sales | (116,883) | (118,656) | (21,763) | (24,731) |
| Gross profit (loss) | 28,723 | 23,266 | 6,776 | 8,962 |
| General and administrative expenses | (20,947) | (18,220) | (1,999) | (4,313) |
| Other operating income (expenses) | 330 | 1,975 | 1,618 | 3 |
| Profit (loss) from operations | 8,106 | 7,021 | 6,395 | 4,652 |
| Income from financial and investment activities, net | 1,885 | (126) | (42) | (14) |
| Profit (loss) before tax | 9,991 | 6,895 | 6,353 | 4,638 |
| Income tax | (1,989) | (885) | (1,362) | (701) |
| Net profit (loss) | 8,002 | 6,010 | 4,991 | 3,937 |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations | 711 | (502) | - | - |
| Total comprehensive income for the year, net of tax | 8,713 | 5,508 | 4,991 | 3,937 |
| Attributable to: | ||||
| The shareholders of the Company | 8,074 | 5,905 | 4,991 | 3,937 |
| Non-controlling interests | (72) | 105 | - | - |
| 8,002 | 6,010 | 4,991 | 3,937 | |
| Total comprehensive income attributable to: | ||||
| The shareholders of the Company | 8,785 | 5,429 | 4,991 | 3,937 |
| Non-controlling interests | (72) | 79 | - | - |
| 8,713 | 5,508 | 4,991 | 3,937 | |
| Basic and diluted earnings per share (LTL) | 0.26 | 0.19 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 5
Statements of changes in equity
| Group | Share capital | Share premium | Legal reserve | Foreign currency translation | Other reserves | Retained earnings (deficit) | Total | Non-controlling interest | Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance as of 1 January 2011 | 31,610 | 73,830 | 2,455 | (1,712) | 6,000 | 43,346 | 155,529 | 1,396 | 156,925 |
| Net profit for the year | - | - | - | - | - | 5,905 | 5,905 | 105 | 6,010 |
| Income (expenses) for the year recognised directly in equity | - | - | - | (476) | - | - | (476) | (26) | (502) |
| Total income and (expense) for the year | - | - | - | (476) | - | 5,905 | 5,429 | 79 | 5,508 |
| Balance as of 31 March 2011 | 31,610 | 73,830 | 2,455 | (2,188) | 6,000 | 49,251 | 160,958 | 1,475 | 162,433 |
| Balance as of 1 January 2012 | 31,610 | 73,830 | 3,172 | (1,824) | 6,000 | 63,451 | 176,239 | 2,231 | 178,470 |
| Net profit for the year | - | - | - | - | - | 8,074 | 8,074 | (72) | 8,002 |
| Income (expenses) for the year recognised directly in equity | - | - | - | 711 | - | - | 711 | - | 711 |
| Total income (expense) for the year | - | - | - | 711 | - | 8,074 | 8,785 | (72) | 8,713 |
| Balance as of 31 March 2012 | 31,610 | 73,830 | 3,172 | (1,113) | 6,000 | 71,525 | 185,024 | 2,159 | 187,183 |
| Company | Share capital | Share premium | Legal reserve | Other reserves | Retained earnings (deficit) | Total | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Balance as of 1 January 2011 | 31,610 | 73,830 | 2,444 | 6,000 | 29,604 | 143,488 | |||
| Net profit for the year | - | - | - | - | 3,937 | 3,937 | |||
| Balance as of 31 March 2011 | 31,610 | 73,830 | 2,444 | 6,000 | 33,541 | 147,425 | |||
| Balance as of 1 January 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 33,087 | 147,688 | |||
| Net profit for the year | - | - | - | - | 4,991 | 4,991 | |||
| Balance as of 31 March 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 38,078 | 152,679 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 6
Statements of cash flows
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| I. Cash flows from (to) operating activities | ||||
| I.1. Net profit | 8,002 | 6,010 | 4,991 | 3,937 |
| Adjustments for non-cash items: | ||||
| I.2. Income tax expenses | 1,989 | 885 | 1,362 | 701 |
| I.3. Depreciation and amortisation | 3,337 | 2,930 | 163 | 343 |
| I.4. Impairment and discounting of accounts receivable | 2,445 | 1,380 | (815) | - |
| I.5. Financial activity, net | (1,049) | 252 | (17,045) | (17) |
| I.6. (Gain) loss on disposal of property, plant and equipment | (1,058) | 29 | (13) | (1) |
| 13,666 | 11,486 | (11,357) | 4,963 | |
| Changes in working capital: | ||||
| I.7. (Increase) decrease in inventories | (325) | (723) | 685 | (333) |
| I.8. (Increase) decrease in receivables and other current assets | (38,294) | (14,690) | 31,463 | (15,560) |
| I.9. (Increase) decrease in prepayments | 4,337 | 5,937 | (20) | (48) |
| I.10. Increase (decrease) in trade payables and payables to related parties | 29,274 | 9,459 | 15,127 | 15,176 |
| I.11. Income tax (paid) | (524) | 836 | (91) | 394 |
| I.12. Increase (decrease) in advances received and other current liabilities | (12,219) | (3,441) | (1,350) | (2,896) |
| Net cash flows from (to) operating activities | (4,085) | 8,864 | 34,457 | 1,696 |
| II. Cash flows (to) investing activities | ||||
| II.1. (Acquisition) of non-current assets (except investments) | (847) | (3,336) | 3,884 | (860) |
| II.2. (Acquisition) of investments in subsidiaries and associates (net of cash acquired in the Group) | - | (5,710) | (27,380) | - |
| II.3. Interest and dividends received | - | 3 | 17,131 | 1 |
| II.4. Loans granted | (40) | - | (30,306) | - |
| Net cash flows from (to) investing activities | (887) | (9,043) | (36,671) | (859) |
| III. Cash flows (to) from financing activities | ||||
| III.1. (Repayment) proceeds from loans | (1,617) | 1,002 | 3,507 | 1,763 |
| III.2. (Repayment) of financial lease liabilities | (2,076) | (2,580) | (1,111) | (1,859) |
| III.3. Interest (paid) | (317) | (412) | (235) | (406) |
| Net cash flows from (to) financial activities | (4,010) | (1,990) | 2,161 | (502) |
| IV. Net increase (decrease) increase in cash and cash equivalents | (8,982) | (2,169) | (53) | 335 |
| V. Cash and cash equivalents at the beginning of the period | 25,050 | 17,435 | 216 | 296 |
| VI. Cash and cash equivalents at the end of the period | 16,068 | 15,266 | 163 | 631 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 7
Notes to the financial statements
1. General Information
AB City Service (hereinafter – “the Company”) is a public limited liability company registered in the Republic of Lithuania on 28 January 1997.
The City Service group is the market leader in facility management and integrated utility services in the Baltic States. It provides services in the following cities and regions: in the municipalities of Vilnius, Kaunas, Klaipėda, Šiauliai, Alytus, Utena, Marijampolė, Palanga, Trakai, Širvintos, Radviliškis, Neringa, Varėna, Kazlų Rūda, Vilkaviškis, Šilutė and Pagėgiai in Lithuania; in Riga and separate regions in Latvia; in St. Petersburg and Stavropol in the Russian Federation.
1.1. Activities
The Company provides facility management; maintenance and repair of engineering systems; management and renovation of energy resources; technical and energy audit of buildings; waste management and eco-business; maintenance of elevators; maintenance and cleaning of territories.
The most important buildings segment administered by the City Service group: are residential apartment buildings; commercial buildings; public buildings; industrial buildings. The total area of buildings under the management of the Group is 19.9 million sq. m. at present.
1.2. Share Capital of the Company
The share capital of the Company is LTL 31,610 thousand as of 31 March 2012. It is divided into 31,610 thousand ordinary shares with the nominal value of LTL 1 each. All shares of the Company are paid up.
The Company does not have any other classes of shares than ordinary shares mentioned above, there are no any restrictions of share rights or special control rights for the shareholders settled in the Articles of Association of the Company. No shares of the Company are held by itself or its subsidiaries. No convertible securities, exchangeable securities or securities with warrants are outstanding; likewise, there are no outstanding acquisition rights or undertakings to increase share capital.
On 31 March 2012 all 31,610 thousand ordinary shares of the Company are included into the Official List of NASDAQ OMX Vilnius Stock Exchange (ISIN Code of the shares is LT0000127375). Trading Code of the shares on NASDAQ OMX Vilnius Stock Exchange is CTS1L.
1.3. Shareholders of the Company
On 31 March 2012 the total number of shareholders of the Company was 1981.
Company's shares distribution among shareholders as of 31 March 2012 was the following:
| Number of shares held | Owned percentage of the share capital and votes, % | |
|---|---|---|
| ICOR UAB | 20,205,595 | 63.92 % |
| “East Capital Asset Management” AB | 3,167,722 | 10.02 % |
| Genesis Asset Managers, LLP | 1,644,183 | 5.20% |
| Other private and institutional shareholders | 6,592,500 | 20.86 % |
| Total | 31,610,000 | 100 % |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 8
1.4. City Service Group
On 31 March 2012 the City Service AB group consists of City Service AB and the following subsidiaries (hereinafter referred to as „the Group“):
| Company | Country | Share of the stock held by the Group as of 31 March 2012 | Share of the stock held by the Group as of 31 Dec 2011 | Main activities |
|---|---|---|---|---|
| UAB Büstö administravimo agentūra | Lithuania | 100 % | 100% | Administration of dwelling-houses |
| UAB Tvar.com | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Žaidas | Lithuania | 99.33% | 99.33% | Administration of dwelling-houses |
| UAB Vingio būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žadrdes būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vėtrungės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Jūros būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Pempininkų būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Danės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Namų priežiūros centras | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Pašilaičių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| OAO Сити Сервис | Russia, St. Petersburg | 100% | 100% | Administration of dwelling-houses |
| 3AO Сити Сервис | Russia, St. Petersburg | 100% | 100% | Administration of dwelling-houses |
| OAO Специализи-рованное ремонтно-наладонное управление | Russia, St. Petersburg | 100% | 100% | Construction and engineering |
| SIA Riga City Service | Latvia | 100% | 100% | Administration of dwelling-houses |
| TOB Київ Сіті Сервіс | Ukraine | 100% | 100% | Administration of dwelling-houses |
| UAB City Service LT | Lithuania | 100% | 100% | Commercial real estate management and building maintenance |
| UAB Saulės valda | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Lazdynų būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vilkpėdės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Šilutės būstas | Lithuania | 99.84% | 99.84% | Administration of dwelling-houses |
| UAB Antakalnio būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Karoliniškių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Naujamiesčio būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Viršuliškių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Radviliškio komunalinės paslaugos | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Justiniškių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Economus | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Ecoservice | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Specialus autotransportas | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Komunalinių įmonių kombinatas | Lithuania | 99.71% | 99.71% | Collection and removal of waste |
| UAB Pagėgių savivaldybės komunalinis ūkis | Lithuania | 66% | 66% | Dormant |
| UAB Šiaulių liftas | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Baltijos liftai | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Baltijos pastatų valdymas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Aukštaitijos būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Baltijos būsto priežiūra | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Skolos LT | Lithuania | 100% | 100% | Debt collection services |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 9
| OOO Жилкомсервис № 3 Фрунзенского района | Russia, St. Petersburg | 80% | 80% | Administration of dwelling-houses |
|---|---|---|---|---|
| OOO Жилкомсервис № 2 Невского района | Russia, St. Petersburg | 80% | 80% | Administration of dwelling-houses |
| OOO «Чистый дом» | Russia, St. Petersburg | 100% | 100% | Maintenance and cleaning of territories |
| OOO «Управляющая компания -1» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «ПРОМИНТЕР - управление проектами» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Управляющая компания -2» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «Управляющая компания -3» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «Управляющая компания -4» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «Управляющая компания -5» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «УК -5» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Управляющая компания -6» (legal entity code 2635085674) | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «Управляющая компания -6» (legal entity code 2635105070) | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Жилищная Управляющая компания № 6» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Объединенная управляющая компания – 7» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Обслуживающая управляющая компания-7» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Управляющая компания – 8» (legal entity code 2635105218) | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| OOO «Управляющая компания – 8» (legal entity code 2635085459) | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| OOO «Управляющая компания – 10» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| INTERBUD MAX SP. Z.O.O | Poland, Krakow | 100% | 100% | Dormant |
| UAB Nemuno büsto priežiūra | Lithuania | 100% | - | Dormant |
| UAB Dainavos būstas (formerly UAB Neries būstas) | Lithuania | 100% | - | Dormant |
| UAB Baltijos NT valdymas | Lithuania | 100% | - | Real estate management |
The Group's and the Company's investment in an associate as of 31 March 2012 included an investment in Marijampolės butų ūkis UAB (34% of the share capital), which was acquired on 16 May 2011.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 10
1.4. City Service Group (cont'd)
During the first three months of the year 2012 several reorganizations (changes in the legal structure of the Group) were performed:
On 31 January 2012 the first stage of implementation of the decision of the Board of the Company, adopted on 29 December 2011, that the Company activity shall be holding enterprise - public company which controls facility management, maintenance, waste management companies in Lithuania and in other countries, was finished. In this stage the commercial real estate management and maintenance activities were transferred to the subsidiary of the Company City Service LT UAB (code 300883806). The first stage ended on 31 January 2012 when the Company and 100 percent controlled subsidiary of the Company City Service LT UAB concluded share subscription agreement and assets, rights and obligations deed, on the basis of the above mentioned the Company's commercial real estate management and maintenance activities (including rights and obligations related to the mentioned activities) as assets complex was transferred to City Service LT UAB. Accordingly under share subscription agreement the Company paid up all new issued City Service LT UAB shares and after the registration of the new emission in the enterprises register the Company obtains and controls 100 percent of City Service LT UAB shares.
During February, 2012 the names of the subsidiaries of the Company which operate in Klaipėda city and Šilutė district have been changed. Ąžuolyno valda UAB, Buitis be rūpesčių UAB, Marių valdos UAB, Mūsų namų valdos UAB, Pempininkų valdos UAB, Vingio valdos UAB and Šilutės būtų ūkis UAB have been renamed respectively into Vėtrungės būstas UAB, Žąrdės būstas UAB, Jūros būstas UAB, Danės būstas, UAB, Pempininkų būstas UAB, Vingio būstas UAB and Šilutės būstas UAB.
On 28 March 2012 the second stage of implementation of the decision of the Board of the Company, adopted on 29 December 2011, was finished. All the subsidiaries of the Company which manage residential facility in Lithuania and perform other activities related with the residential facility management, except for Lazdynų būstas UAB which shares are the object of the litigation were transferred to City Service LT UAB direct control.
1.5. Company's Board
As of 31 March 2012, the Board of the Company comprises of the following persons:
| Name and surname | Position | Start of term | End of term |
|---|---|---|---|
| Andrius Janukonis | Board Chairman | October 6, 2009 | October 6, 2013 |
| Gintautas Jaugielavičius | Board Member | October 6, 2009 | October 6, 2013 |
| Darius Leščinskas | Board Member | October 6, 2009 | October 6, 2013 |
| Žilvinas Lapinskas | Board Member | April 30, 2010 | October 6, 2013 |
They do not control any shares of the Company.
Andrius Janukonis
Andrius Janukonis (born in 1971) is the Chairman of the Board of AB City Service (since 2009). He holds a Master's degree in Law. He works as a consultant for ICOR UAB and is the chairman of the board of the company (since 2004).
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 11
1.5. Company's Board (cont'd)
Gintautas Jaugielavičius
Gintautas Jaugielavičius (born in 1971) is a Member of the Board of AB City Service (since 2005). He holds a Bachelor's degree in Economics. At present, he works as a consultant for ICOR UAB and is a member of the board of the company (since 2004).
Darius Leščinskas
Darius Leščinskas (born in 1968) is a Member of the Board of AB City Service (since 2009). He holds a Master's degree in Law. At present, he works as a consultant for ICOR UAB and is a member of the board of the company (since 2004).
Žilvinas Lapinskas
Refer described below (note 1.6).
1.6. Company's Management
As of 31 March 2012 and as of date of submission of this report, the key managers of the Company and of the Group are as follows:
| Name and surname | Position within the Company | Start of employment |
|---|---|---|
| Žilvinas Lapinskas | General Manager, the Board member | March 1999 |
| Jonas Janukėnas | Financial and Administrative Director | May 2007 |
| Vytautas Turonis | Executive Manager for Lithuania | May 2004 |
| Tomas Augutavičius | Chairman of the Board of City Service group in Russia | June 2006 |
| Edvinas Paulauskas | Commercial Director | February 2005 |
They do not control any shares of the Company.
Žilvinas Lapinskas
Žilvinas Lapinskas (born in 1976) is the General Manager of AB City Service (since 2004). He completed business administration studies. He started working in the Company in 1999 and worked as the Commercial Manager (1999–2002) and the Facilities Management Department Head (2002–2004).
At present, the main task of the General Manager is the management of the expansion of the Group in Lithuania and abroad.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 12
1.6. Company's Management (cont'd)
Jonas Janukėnas
Jonas Janukėnas (born in 1976) is the Financial and Administrative Manager of AB City Service (since 2007). He holds a Master's degree in Business Administration. Prior to coming to work at the Company, he worked as the Senior Auditor and Risk Management Consultant at the Vilnius division of Andersen (1998–2001) and the Financial Manager of UAB Litesko (2001–2007).
The Finance and Administrative Manager Jonas Janukėnas is responsible for the management of financial resources of the Group and for supervision of the administrative staff, IT projects implementation and Lean 6 Sigma project.
Vytautas Turonis
Vytautas Turonis (born in 1972) is the Executive Manager for Lithuania of AB City Service (since 2008). He holds a Bachelor's degree in International Business. Previously he worked as the Marketing Manager of UAB Specialus Autotransportas (2003–2004). He started to work in the Company as the Market Development Department Manager (2004–2008).
Vytautas Turonis is responsible for the Group's activities throughout Lithuania.
Tomas Augutavičius
Tomas Augutavičius (born 1973 m.) is the Chairman of the Board of City Service group in Russia (since 2009). He holds a Bachelor degree in technology. He started working in the Company as Head of Kaunas Department (2006 - 2009).
The Chairman of the Board of City Service group in Russia Tomas Augutavičius is responsible for activities of companies operating in Russia.
Edvinas Paulauskas
Edvinas Paulauskas (born in 1976) is the Commercial Manager of AB City Service (since 2008). He holds a Bachelor's degree in Environment Engineering. Edvinas Paulauskas started working in the Company in 2005 and worked as the Project Manager (2005-2006) and Executive Manager (2006-2008).
At present, the Commercial Manager Edvinas Paulauskas is responsible for the facility management projects of commercial and public establishments.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 13
1.7. Activity and Segment Information
Information on main activity segments:
| 2012 Q1 | 2011 Q1 | |||||
|---|---|---|---|---|---|---|
| Heating infrastructure renovation, extra works | Buildings' administration | Heating infrastructure renovation, extra works | Buildings' administration | |||
| Resale of utility services | Administration services | Resale of utility services | Administration services | |||
| Revenue: Company | - | - | 28,539 | 1,094 | - | 32,599 |
| Revenue: Group | - | 49,021 | 96,585 | 1,094 | 61,630 | 79,198 |
Information on main geographical segments for the Group:
| 2012 Q1 | 2011 Q1 | |||
|---|---|---|---|---|
| Baltic states | CIS States | Baltic states | CIS States | |
| Revenue | 61,126 | 84,480 | 54,097 | 87,825 |
| Net profit (loss) | 6,429 | 1,573 | 5,088 | 922 |
Main activity indicators for the Group:
| 2012 Q1 | 2011 Q1 | Change (%) | |
|---|---|---|---|
| Area of multi-flat apartment buildings under administration (million square meters) | 15.6 | 17.5 | (10.7%) |
| Area of public. commercial building and a typical properties under administration (million square meters) | 3.1 | 2.6 | 21.2% |
| Number of employees | 3,478 | 3,389 | 2.6% |
| Sales for the period* | 145,606 | 141,922 | 2.6% |
| Sales (main activity)* | 96,585 | 80,292 | 20.3% |
| Gross margin* | 29.7% | 29.0% | 2.6% |
| EBITDA margin* | 11.8% | 12.4% | (4.4%) |
| EBIT margin* | 8.4% | 8.7% | (4.0%) |
| Net margin* | 8.3% | 7.5% | 10.7% |
| Number of shares (thousand) | 31,610 | 31,610 | 0% |
| Return on equity | 4.7% | 5.1% | (9.1%) |
| Return on assets | 2.2% | 2.0% | 12.3% |
| Financial Net Debt to equity** | 5% | 11% | (58.2%) |
- Calculated by reducing sales for the resale of utility services.
** Interest bearing debt (net of cash balance) to Shareholders' equity.
2. Accounting Policies
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 14
3. Goodwill
| Group | |
|---|---|
| Cost: | |
| Balance as of 1 January 2011 | 64,474 |
| Additions | 4,076 |
| Exchange differences | (103) |
| Balance as of 31 December 2011 | 68,447 |
| Balance as of 31 March 2012 | 68,447 |
| Impairment: | |
| Balance as of 1 January 2011 | 290 |
| Impairment for the year | - |
| Balance as of 31 December 2011 | 290 |
| Impairment for the year | - |
| Balance as of 31 March 2012 | 290 |
| Net book value as of 31 March 2012 | 68,157 |
| Net book value as of 31 December 2011 | 68,157 |
Investments and other changes during the first three months of the year 2012
On 10-12 January 2012 the Company established three new subsidiaries – Nemuno büsto priežiūra UAB, Baltijos NT valdymas UAB and Neries būstas UAB. Establishment of the companies is related to planned expansion in Lithuania. As a result, no goodwill has been accounted for.
On 27 March 2012 share capital of Saulės valda UAB was increased by LTL 3.1 million by additional ordinary share issue of 3,100 thousand shares. The share capital was increased by netting off with the receivable from the subsidiary. At the date of issue of these financial statements the share capital of Saulės valda UAB amounts to LTL 3,761,214.
4. Investment Property
Movement of the Group's investment property during the three months of 2012 and 2011 is presented below:
| Buildings | |
|---|---|
| Cost: | |
| Balance as of 1 January 2011 | 730 |
| Reclassifications to property, plant and equipment | (254) |
| Balance as of 31 December 2011 | 476 |
| Balance as of 31 March 2012 | 476 |
| Accumulated depreciation: | |
| Balance as of 1 January 2011 | 141 |
| Charge for the year | 12 |
| Reclassifications to property, plant and equipment | (59) |
| Balance as of 31 December 2011 | 94 |
| Charge for the year | 3 |
| Balance as of 31 March 2012 | 97 |
| Net book value as of 31 March 2012 | 379 |
| Net book value as of 31 December 2011 | 382 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 15
4. Investment Property (cont'd)
Investment property includes part of office building in Vilnius and premises in Alytus owned by UAB Pašilaičių būstas leased to other entities. The expenses related to investment property comprising of depreciation charge are included under the cost of sales caption in the statement of comprehensive income. The fair value of investment property as of 31 March 2012 is estimated by the management to approximately LTL 400 thousand.
As of 31 March 2012 investment property of the Group with a net book value of LTL 379 thousand was pledged to banks as collateral for the loans.
5. Borrowings
Borrowings of the Group and the Company as of 31 March 2012 and 31 December 2011 were as follows:
| Creditor | Currency of the loan | Amount of the loan (in currency of the loan) | Final repayment date | Group | Company | ||
|---|---|---|---|---|---|---|---|
| Balance as of 31 March 2012 (in LTL) | Balance as of 31 December 2011 (in LTL) | Balance as of 31 March 2012 (in LTL) | Balance as of 31 December 2011 (in LTL) | ||||
| Current loans | |||||||
| Swedbank, AB (overdraft) | EUR | 1,448 | 17.08.2012 | - | 86 | - | 86 |
| DNB bank, AB (UAB Ecoservice)* | EUR | 435 | 30.11.2012 | 1,197 | 770 | - | - |
| Group Account (eliminated in the consolidated group accounts)** | Unspecified | Unspecified | Unspecified | - | - | 8,555 | 3,062 |
| Current loan balance | 1,197 | 856 | 8,555 | 3,148 | |||
| Non-current loans | |||||||
| Swedbank, AB | EUR | 10,486 | 09.08.2015 | 23,754 | 25,533 | 23,754 | 25,533 |
| AS UniCredit Bank (UAB Tvar.com) | EUR | 309 | 15.01.2013 | 888 | 1,067 | - | - |
| Less: current portion of non-current borrowings | (7,924) | (8,103) | (7,116) | (7,116) | |||
| Non-current loan balance | 16,718 | 18,497 | 16,638 | 18,417 |
- Due to loan agreement conditions, stating that the bank has the right to claim the loan amount at any time, the loan is classified as current loan.
** Based overdraft facility agreement signed on 25 August 2008 with the Company, its subsidiaries operating in Lithuania and with Swedbank, AB, the Group can utilise net cash balances of the Company and its subsidiaries operating in Lithuania as intergroup borrowings.
For the loan and overdraft facility the Company and its subsidiaries have pledged to the bank real estate and bank accounts of the Company and its subsidiaries in Lithuania.
6. Cost of Sales
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| Services of subcontractors and materials used | 95,748 | 99,405 | 19,773 | 19,272 |
| Wages and salaries and social security | 17,983 | 16,831 | 1,988 | 5,332 |
| Cost of goods sold | 533 | 253 | 2 | 127 |
| Depreciation | 1,498 | 1,311 | - | - |
| Other | 1,121 | 856 | - | - |
| Total cost of sales | 116,883 | 118,656 | 21,763 | 24,731 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 16
7. General and Administrative Expenses
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| Wages and salaries and social security | 9,211 | 8,024 | 2,748 | 1,790 |
| Allowance for and write-off of receivables | 2,445 | 1,380 | (815) | - |
| Depreciation and amortisation | 1,839 | 1,619 | 164 | 343 |
| Commissions for collection of payments | 1,237 | 1,075 | 205 | 348 |
| Vacation pay accrual | 955 | 435 | (1,609) | (2) |
| Consulting and similar expenses | 813 | 692 | 392 | 268 |
| Rent of premises and other assets | 738 | 764 | 143 | 260 |
| Utilities | 459 | 402 | 120 | 115 |
| Fuel expenses | 397 | 323 | 24 | 57 |
| Communication expenses | 303 | 261 | 42 | 59 |
| Transportation | 292 | 278 | 12 | 50 |
| Computer software maintenance | 277 | 234 | 19 | 12 |
| Business trips and training | 210 | 204 | 81 | 163 |
| Charity and support | 198 | 41 | 123 | - |
| Advertising | 196 | 488 | 71 | 288 |
| Insurance | 190 | 143 | 25 | 44 |
| Bank payments | 132 | 141 | 3 | 6 |
| Representational costs | 121 | 178 | 64 | 153 |
| Taxes other than income tax | 91 | 98 | 12 | 20 |
| Other | 843 | 1,440 | 175 | 339 |
| Total general and administrative expenses | 20,947 | 18,220 | 1,999 | 4,313 |
8. Other Operating Income (expenses), net
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| Income from rent | 48 | 64 | 3,477 | 35 |
| Gain on disposal of property, plant and equipment | 1,058 | (29) | (1,806) | (17) |
| Fines and penalties, net | 738 | 2,561 | - | 123 |
| Other income (expenses), net | (1,514) | (621) | (53) | (138) |
| Total other operating activity | 330 | 1,975 | 1,618 | 3 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the three months of 2012 (unaudited), thousand Litas
Page 17
9. Finance Income and (expenses), net
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q1 | 2011 Q1 | 2012 Q1 | 2011 Q1 | |
| Interest income | 193 | 171 | 326 | 427 |
| Foreign currency exchange gain | 1,563 | 380 | - | 1 |
| Other financial income | 804 | 5 | - | - |
| Total finance income | 2,560 | 556 | 326 | 428 |
| Interest (expenses) | (317) | (423) | (356) | (410) |
| Foreign currency exchange loss | (148) | (244) | (3) | (24) |
| Other financial (expenses) | (210) | (15) | (9) | (8) |
| Total finance (expenses) | (675) | (682) | (368) | (442) |
| Financial activity, net | 1,885 | (126) | (42) | (14) |
10. Subsequent Events
On 30 April 2012 the Ordinary Meeting of Shareholders has been held. The shareholders have distributed the Company's profit of the year 2011. Considering the amendments of the Heat Sector law of Lithuania and various amendments of Civil code of Lithuania concerned with strict limitations for the persons who perform administration of residential facility which shall have extreme negative impact on the activities and results of subsidiaries of the Company and in the absence of any other alternatives which should be more appropriate to the existing imperative legal regulation the shareholders have decided to sell 100% of shares of subsidiary City Service LT UAB (code 300883806) which at the moment performs commercial real estate management and maintenance activities in Lithuania and directly controls the subsidiaries which are registered in Lithuania and perform the administration of residential facility, maintenance of inside engineering systems and other activities related with the above mentioned activities and to oblige the Board of the Company to take the proactive actions regarding the implementation of the adopted decision.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]