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City Service SE Interim / Quarterly Report 2013
5564_rns_2013-11-29_2560d3ba-fa98-40f1-a485-06f290025d60.pdf
Interim / Quarterly Report
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November 2013
CITYservice
City Service AB
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited)
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 2
Statements of financial position
| Group | Company | |||
|---|---|---|---|---|
| As of 30 September 2013 | As of 31 December 2012 | As of 30 September 2013 | As of 31 December 2012 | |
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 46,536 | 45,121 | - | - |
| Other intangible assets | 73,231 | 76,580 | 23 | 3 |
| Property, plant and equipment | 85,003 | 88,205 | 579 | 419 |
| Investment property | 349 | 370 | - | - |
| Investments into subsidiaries | - | - | 165,893 | 162,045 |
| Investments into associates | 588 | 588 | - | - |
| Non-current financial assets receivables and prepayments | 4,430 | 2,018 | 191 | 395 |
| Deferred income tax asset | 9,607 | 10,149 | 460 | 452 |
| Total non-current assets | 219,744 | 223,031 | 167,146 | 163,314 |
| Current assets | ||||
| Inventories | 5,900 | 5,119 | - | 1 |
| Prepayments | 15,424 | 12,269 | 160 | 174 |
| Trade receivables | 173,851 | 118,015 | 38,032 | 29,158 |
| Receivables from related parties (including loans granted) | 901 | 950 | 60,952 | 55,084 |
| Other receivables and current assets | 9,573 | 10,124 | 1,930 | 2,253 |
| Cash and cash equivalents | 28,168 | 32,914 | 282 | 129 |
| Total current assets | 233,817 | 179,391 | 101,356 | 86,799 |
| Total assets | 453,561 | 402,422 | 268,502 | 250,113 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 3
Statements of financial position (cont'd)
| Group | Company | |||
|---|---|---|---|---|
| As of 30 September 2013 | As of 31 December 2012 | As of 30 September 2013 | As of 31 December 2012 | |
| 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 | (2,979) | (2,179) | - | - |
| Retained earnings (deficit) | 88,648 | 71,259 | 41,779 | 32,949 |
| 200,281 | 183,692 | 156,380 | 147,550 | |
| Non-controlling interests | 3,177 | 2,307 | - | - |
| Total equity | 203,458 | 185,999 | 156,380 | 147,550 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Non-current borrowings | 54,570 | 29,716 | 52,513 | 29,716 |
| Financial lease obligations | 8,314 | 6,255 | 281 | 253 |
| Deferred income tax liabilities | 13,800 | 13,398 | - | - |
| Non-current payables | 2,222 | 4,597 | 390 | 390 |
| Total non-current liabilities | 78,906 | 53,966 | 53,184 | 30,359 |
| Current liabilities | ||||
| Current portion of non-current borrowings | 5,441 | 9,498 | 5,327 | 9,418 |
| Current portion of financial lease obligations | 913 | 2,749 | 18 | 62 |
| Short term loans | 7,176 | 18,913 | 19,045 | 34,950 |
| Trade payables | 71,605 | 73,687 | 8,655 | 13,189 |
| Payables to related parties (including loans received) | 18,123 | 12,473 | 22,439 | 11,928 |
| Advances received | 16,181 | 17,936 | 1,701 | 1,691 |
| Other current liabilities | 51,758 | 27,201 | 1,753 | 966 |
| Total current liabilities | 171,197 | 162,457 | 58,938 | 72,204 |
| Total equity and liabilities | 453,561 | 402,422 | 268,502 | 250,113 |
AB City Service
Company code 123905633,
Adress: Livovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 4
Statements of comprehensive income (for the period 1 January – 30 September)
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Sales | 389,697 | 389,014 | 31,852 | 37,301 |
| Cost of sales | (302,970) | (303,833) | (25,554) | (29,522) |
| Gross profit (loss) | 86,727 | 85,181 | 6,298 | 7,779 |
| General and administrative expenses | (61,252) | (62,553) | (6,298) | (7,815) |
| Other operating income (expenses) | 839 | (738) | 218 | 1,760 |
| Profit (loss) from operations | 26,314 | 21,890 | 218 | 1,724 |
| Income from financial and investment activities, net | (4,628) | (7,726) | 8,604 | (429) |
| Profit (loss) before tax | 21,686 | 14,164 | 8,822 | 1,295 |
| Income tax | (3,427) | (2,248) | 8 | (451) |
| Net profit (loss) | 18,259 | 11,916 | 8,830 | 844 |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations | (800) | 43 | - | - |
| Total comprehensive income for the year, net of tax | 17,459 | 11,959 | 8,830 | 844 |
| Attributable to: | ||||
| The shareholders of the Company | 17,389 | 11,125 | 8,830 | 844 |
| Non-controlling interests | 870 | 791 | - | - |
| 18,259 | 11,916 | 8,830 | 844 | |
| Total comprehensive income attributable to: | ||||
| The shareholders of the Company | 16,589 | 11,168 | 8,830 | 844 |
| Non-controlling interests | 870 | 791 | - | - |
| 17,459 | 11,959 | 8,830 | 844 | |
| Basic and diluted earnings per share (LTL) | 0.55 | 0.35 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 5
Statements of comprehensive income (for the period 1 July – 30 September)
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Sales | 114,302 | 118,294 | 3,356 | 3,138 |
| Cost of sales | (85,728) | (87,951) | (3,956) | (3,668) |
| Gross profit (loss) | 28,574 | 30,343 | (600) | (530) |
| General and administrative expenses | (19,306) | (20,500) | (2,662) | (1,681) |
| Other operating income (expenses) | (427) | (78) | 75 | 70 |
| Profit (loss) from operations | 8,841 | 9,765 | (3,187) | (2,141) |
| Income from financial and investment activities, net | (1,055) | (7,178) | 2,294 | (193) |
| Profit (loss) before tax | 7,786 | 2,587 | (893) | (2,334) |
| Income tax | (1,082) | (686) | 359 | 355 |
| Net profit (loss) | 6,704 | 1,901 | (534) | (1,979) |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 6
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 2012 | 31,610 | 73,830 | 3,172 | (1,824) | 6,000 | 63,451 | 176,239 | 2,231 | 178,470 |
| Net profit for the year | - | - | - | - | - | 11,125 | 11,125 | 791 | 11,916 |
| Income (expenses) for the year recognised directly in equity | - | - | - | 43 | - | - | 43 | - | 43 |
| Total income and (expense) for the year | - | - | - | 43 | - | 11,125 | 11,168 | 791 | 11,959 |
| Disposal of subsidiary | - | - | - | - | - | - | - | (1,251) | (1,251) |
| Dividends declared | - | - | - | - | - | (7,270) | (7,270) | - | (7,270) |
| Balance as of 30 September 2012 | 31,610 | 73,830 | 3,172 | (1,781) | 6,000 | 67,306 | 180,137 | 1,771 | 181,908 |
| Balance as of 1 January 2013 | 31,610 | 73,830 | 3,172 | (2,179) | 6,000 | 71,259 | 183,692 | 2,307 | 185,999 |
| Net profit for the year | - | - | - | - | - | 17,389 | 17,389 | 870 | 18,259 |
| Income (expenses) for the year recognised directly in equity | - | - | - | (800) | - | - | (800) | - | (800) |
| Total income (expense) for the year | - | - | - | (800) | - | 17,389 | 16,589 | 870 | 17,459 |
| Balance as of 30 September 2013 | 31,610 | 73,830 | 3,172 | (2,979) | 6,000 | 88,648 | 200,281 | 3,177 | 203,458 |
| Company | Share capital | Share premium | Legal reserve | Other reserves | Retained earnings (deficit) | Total | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Balance as of 1 January 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 33,087 | 147,688 | |||
| Net profit for the year | - | - | - | - | 844 | 844 | |||
| Dividends declared | - | - | - | - | (7,270) | (7,270) | |||
| Balance as of 30 September 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 26,661 | 141,262 | |||
| Balance as of 1 January 2013 | 31,610 | 73,830 | 3,161 | 6,000 | 32,949 | 147,550 | |||
| Net profit for the year | - | - | - | - | 8,830 | 8,830 | |||
| Balance as of 30 September 2013 | 31,610 | 73,830 | 3,161 | 6,000 | 41,779 | 156,380 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 7
Statements of cash flows
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| I. Cash flows from (to) operating activities | ||||
| I.1. Net profit | 18,259 | 11,916 | 8,830 | 844 |
| Adjustments for non-cash items: | ||||
| I.2. Income tax expenses | 3,427 | 2,248 | - | 451 |
| I.3. Depreciation and amortisation | 13,498 | 9,978 | 114 | 231 |
| I.4. Impairment and discounting of accounts receivable | 3,926 | 6,936 | (4) | (815) |
| I.5. Loss from sale of investments | - | 7,367 | - | - |
| I.6. Financial activity, net | 3,069 | 1,985 | 455 | 451 |
| I.7. (Gain) loss on disposal of property, plant and equipment | (228) | (402) | - | (13) |
| 41,951 | 40,028 | 9,395 | 1,149 | |
| Changes in working capital: | ||||
| I.8. (Increase) decrease in inventories | (550) | (1,334) | 1 | 685 |
| I.9. (Increase) decrease in receivables and other current assets | (10,090) | (27,187) | (22,165) | 3,827 |
| I.10. (Increase) decrease in prepayments | (1,328) | (3,092) | 14 | 145 |
| I.11. Increase (decrease) in trade payables and payables to related parties | (43,632) | (13,434) | 5,977 | (5,156) |
| I.12. Income tax (paid) | (1,191) | (3,524) | - | 433 |
| I.13. Increase (decrease) in advances received and other current liabilities | 5,221 | 13,615 | 794 | 72 |
| Net cash flows from (to) operating activities | (9,619) | 5,072 | (5,984) | 1,155 |
| II. Cash flows (to) investing activities | ||||
| II.1. (Acquisition) of non-current assets (except investments) | (3,051) | (1,785) | (293) | (859) |
| II.2. (Acquisition) of investments in subsidiaries and associates (net of cash acquired in the Group) | 1,531 | (2,342) | (3,848) | (21) |
| II.3. Disposal of investments in subsidiaries, net | - | 3,898 | - | - |
| II.4. Interest received | 55 | 302 | - | 85 |
| II.5. Dividends received | - | - | 9,400 | - |
| II.6. Loans granted | - | - | - | (40) |
| Net cash flows from (to) investing activities | (1,465) | 73 | 5,259 | (835) |
| III. Cash flows (to) from financing activities | ||||
| III.1. Dividends (paid) | - | (7,270) | - | (7,270) |
| III.2. (Repayment) proceeds from loans | 9,004 | 7,564 | 2,056 | 15,523 |
| III.3. (Repayment) of financial lease liabilities | (936) | (10,168) | (16) | (7,812) |
| III.4. Interest (paid) | (1,730) | (922) | (1,162) | (913) |
| Net cash flows from (to) financial activities | 6,338 | (10,796) | 878 | (472) |
| IV. Net (decrease) increase in cash and cash equivalents | (4,746) | (5,651) | 153 | (152) |
| V. Cash and cash equivalents at the beginning of the period | 32,914 | 25,050 | 129 | 216 |
| VI. Cash and cash equivalents at the end of the period | 28,168 | 19,399 | 282 | 64 |
AB City Service
Company code 123905633.
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 8
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 Company controls the largest group of integrated utility service companies in Central and Eastern Europe. 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 Poland; in Spain; in Riga and separate regions in Latvia; in St. Petersburg and Stavropol in the Russian Federation.
1.1. Activities
City Service group 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 29,8 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 30 September 2013. 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 30 September 2013 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 30 September 2013 the total number of shareholders of the Company was 1881.
Company's shares distribution among shareholders as of 30 September 2013 was the following:
| Number of shares held | Owned percentage of the share capital and votes, % | |
|---|---|---|
| ICOR UAB, legal entity code 300021944, address: Konstitucijos av. 7, Vilnius, Lithuania | 20,205,595 | 63.92 % |
| “East Capital Asset Management” AB, registration no. 556546-8435, address: Kungsgatan 33, Stokholm, Sweeden | 3,167,722 | 10.02 % |
| Genesis Asset Managers, LLP, registration no. OC 306866, address: 21 Grosvenor Place, London, United Kingdom | 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: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 9
1.4. City Service Group
On 30 September 2013 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 30 September 2013 | Share of the stock held by the Group as of 31 December 2012 | Main activities |
|---|---|---|---|---|
| UAB Antakalnio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Aukštaitijos büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Baltijos büstis priežiūra | Lithuania | 100% | 100% | Dormant |
| UAB Baltijos liftai | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Baltijos NT valdymas | Lithuania | 100% | 100% | Real estate management |
| UAB Baltijos pastatų valdymas | Lithuania | 100% | 100% | Dormant |
| UAB Dainavos büstas | Lithuania | 100% | 100% | Dormant |
| UAB Danės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Economus | Lithuania | 100% | 100% | Administration of construction-buildings |
| UAB Ecoservice | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Justiniškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Jūros büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Kauno centro büstas | Lithuania | 100% | 100% | Dormant |
| UAB Karoliniškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Karoliniškių turgus | Lithuania | 100% | - | Marketplace administration services |
| UAB Komunalinių įmonių kombinatas | Lithuania | 99.71% | 99.71% | Collection and removal of waste |
| UAB Konarskio turgelis | Lithuania | 100% | - | Marketplace administration services |
| UAB Lazdynų butų ūkis | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Lazdynų büstas | Lithuania | 100% | 100% | Dormant |
| UAB Mano aplinka | Lithuania | 100% | - | Maintenance and cleaning of territories and premises |
| UAB Mano büstas LT | Lithuania | 100% | 100% | Commercial real estate management and building maintenance |
| UAB Mano sauga | Lithuania | 99,27% | 51% | Security services |
| UAB Namų priežiūros centras | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Naujamiesčio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Nemuno büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Nemuno büstis priežiūra | Lithuania | 100% | 100% | Dormant |
| UAB Pagėgių savivaldybės komunalinis ūkis | Lithuania | 66% | 66% | Dormant |
| UAB Pašilaičių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Pempininkų büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Radviliškio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Saulėtos dienos | Lithuania | 100% | - | Administration of dwelling-houses |
| UAB Skolos LT | Lithuania | 100% | 100% | Debt collection services |
| UAB Specialus autotransportas | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Šiaulių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Šiaulių liftas | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Šilutės büstas | Lithuania | 99.84% | 99.84% | Administration of dwelling-houses |
| UAB Vėtrungės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 10
| UAB Vilkpédès büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
|---|---|---|---|---|
| UAB Vilniaus turgus | Lithuania | 100% | - | Dormant |
| UAB Vingio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Viršuliškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žaidas | Lithuania | 99.33% | 99.33% | Administration of dwelling-houses |
| UAB Žardės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žirmūnų büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| Aldesa Servicios y Mantenimiento, S.A. | Spain | |||
| Madrid | 100% | - | Commercial real estate management | |
| and building maintenance | ||||
| SIA Riga City Service | Latvia | 100% | 100% | Commercial real estate management |
| and building maintenance | ||||
| City Service Poland Sp .z.o.o | Poland | |||
| Warsaw | 100% | 100% | Dormant | |
| INTERBUD MAX SP. Z.O.O | Poland | |||
| Warsaw | 100% | 100% | Dormant | |
| Zespół Zarządców Nieruchomości Sp. z o.o. | Poland | |||
| Warsaw | 100% | 100% | Administration of dwelling-houses | |
| ТОВ Київ Сіті Сервіс | Ukraine | 100% | 100% | Administration of dwelling-houses |
| OAO Сити Сервис / OAO City service | Russia, St. | |||
| Petersburg | 100% | 100% | Administration of dwelling-houses | |
| ЗАО Сити Сервис / ZAO City service | Russia, St. | |||
| Petersburg | 100% | 100% | Administration of dwelling-houses | |
| OAO Специализи-рованное ремонтно- | ||||
| наладочное управление | Russia, St. | |||
| Petersburg | 100% | 100% | Construction and engineering | |
| ООО Жилкомсервис № 3 Фрунзенского района | Russia, St. | |||
| Petersburg | 80% | 80% | Administration of dwelling-houses | |
| ООО «Чистый дом» | Russia, St. | |||
| Petersburg | 100% | 100% | Maintenance and cleaning of territories | |
| ООО «Управляющая компания -1» | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «ПРОМИНТЕР - управление проектами» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Управляющая компания -2» | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «Управляющая компания -3» | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «Управляющая компания -4» | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «Управляющая компания -5» | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «УК -5» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Управляющая компания -6» (legal entity | ||||
| code 2635085674) | Russia, | |||
| Stavropol | 76% | 76% | Administration of dwelling-houses | |
| ООО «Управляющая компания -6» (legal entity | ||||
| code 2635105070) | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Жилищная Управляющая компания № 6» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Объединенная управляющая компания – 7» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Обслуживающая управляющая компания-7» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Управляющая компания – 8» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses | |
| ООО «Управляющая компания – 10» | Russia, | |||
| Stavropol | 100% | 100% | Administration of dwelling-houses |
The Group's and the Company's investment in an associate as of 30 September 2013 included an investment in Marijampolės butų ükis UAB (34% of the share capital).
AB City Service
Company code 123905633,
Adress: Livovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 11
1.5. Company's Board
As of 30 September 2013, the Board of the Company comprises of the following persons:
| Name and surname | Position | Start of term | End of term |
|---|---|---|---|
| Andrius Janukonis | Board Chairman | April 30, 2013 | April 30, 2017 |
| Gintautas Jaugielavičius | Board Member | April 30, 2013 | April 30, 2017 |
| Darius Leščinskas | Board Member | April 30, 2013 | April 30, 2017 |
| Žilvinas Lapinskas | Board Member | April 30, 2013 | April 30, 2017* |
- On 7th of October, 2013 Mr Žilvinas Lapinskas resigned from the Board of the Company
The Board members 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).
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).
AB City Service
Company code 123905633,
Adress: Livovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 12
1.6. Company's Management
As of 30 September 2013 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 |
|---|---|---|
| Jonas Janukénas | General Manager | May 2007 |
| Vytautas Turonis | Executive Manager for Lithuania | May 2004 |
| Edvinas Paulauskas | Executive Manager | February 2005 |
| Tomas Augutavičius | Chairman of the Board of City Service group in Russia | June 2006 |
They do not control any shares of the Company.
Jonas Janukénas
Jonas Janukénas (born in 1976) is the General Manager of AB City Service (since September, 2013.). Since 2007 Mr Janukénas was Financial and Administrative Manager of AB City Service. Mr Janukénas is also the Chairman of the Board at Mano büstas LT UAB (since July, 2012). He holds a Master's degree in Business Administration. Prior to coming to work at the Company, he worked as the Financial Manager of UAB Litesko (2001 – 2007) and Senior Auditor and Risk Management Consultant at the Vilnius division of Andersen (1998 – 2001).
At present, the main task of the General Manager is to head the Group and take charge of planning and coordination of important development projects in Russia, Poland, Spain, as well as other markets in Eastern and Western Europe
Vytautas Turonis
Vytautas Turonis (born 1972 m.) is the General Manager at Mano büstas LT UAB and works as the Executive Manager for Lithuania at City Service AB. 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.
Edvinas Paulauskas
Edvinas Paulauskas (born in 1976) is the Executive Manager at City Service AB and Mano büstas LT, UAB. Previously he worked as the Commercial director (since 2008). Edvinas Paulauskas started working in the Company as the Project Manager (2005-2006). He holds a Bachelor's degree in Environment Engineering.
Edvinas Paulauskas is responsible for the Group's activities in the commercial and exploitation departments as well as in the innovation and energy efficiency chapter throughout Lithuania and foreign markets.
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 13
1.6. Company's Management (cont'd)
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.
1.7. Activity and Segment Information
Information on main activity segments:
| 2013 Q3 | 2012 Q3 | |||
|---|---|---|---|---|
| Buildings' administration | Buildings' administration | |||
| Resale of utility services | Administration services | Resale of utility services | Administration services | |
| Revenue: Company | - | 31,852 | - | 37,301 |
| Revenue: Group | 74,874 | 314,823 | 124,455 | 264,559 |
Information on main geographical segments for the Group:
| Poland | 2013 Q3 Baltic states | CIS States | Poland | 2012 Q3 Baltic states | CIS States | |
|---|---|---|---|---|---|---|
| Revenue | 54,863 | 207,965 | 126,869 | - | 179,705 | 209,309 |
| Profit from operations | 2,877 | 19,886 | 3,551 | - | 13,451 | 8,439 |
| Net profit (loss) | 279* | 16,755 | 1,225** | - | 12,017 | (101) |
Includes LTL 1,347 thousand foreign currency exchange loss.
*Includes LTL 827 thousand foreign currency exchange loss.
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 14
Main activity indicators for the Group:
| 2013 Q3 | 2012 Q3 | Change (%) | |
|---|---|---|---|
| Area of multi-flat apartment buildings under administration (million square meters) | 20.2 | 13 | 55.4% |
| Area of public. commercial building and a typical properties under administration (million square meters) | 9.6 | 3.1 | 209.7% |
| Number of employees | 5,707 | 3,028 | 88% |
| Sales for the period* | 389,697 | 389,014 | 0.2% |
| Sales (main activity)* | 314,823 | 264,559 | 19.0% |
| Gross margin* | 27.5% | 32.2% | (14.4%) |
| EBITDA margin* | 12.6% | 12.0% | 5.0% |
| EBIT margin* | 8.4% | 8.3% | 1.0% |
| Net margin* | 5.8% | 4.5% | 28.8% |
| Number of shares (thousand) | 31,610 | 31,610 | 0% |
| Return on equity | 9.4% | 6.6% | 41.8% |
| Return on assets | 4.3% | 3.6% | 19.8% |
| Financial Net Debt to equity** | 19% | 0.63% |
- 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.
3. Goodwill
| Group | |
|---|---|
| Cost: | |
| Balance as of 1 January 2012 | 69,362 |
| Additions | 4,436 |
| Disposals | (9,248) |
| Balance as of 31 December 2012 | 64,550 |
| Additions | 1,415 |
| Balance as of 30 September 2013 | 65,965 |
| Impairment: | |
| Balance as of 1 January 2012 | 290 |
| Impairment for the year | 19,139 |
| Balance as of 31 December 2012 | 19,429 |
| Impairment for the year | - |
| Balance as of 30 September 2013 | 19,429 |
| Net book value as of 30 September 2013 | 46,536 |
| Net book value as of 31 December 2012 | 45,121 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 15
3. Goodwill (cont'd)
Investments and other changes during the first nine months of the year 2013
On 22 February 2013 UAB SKT Environmental Services Klaipėda, code 110734883, after the reorganization was incorporated into UAB Specialus Autotransportas.
On 14 March 2013 the Company through a subsidiary acquired 100% shares of UAB Vilniaus turgus, code 303005920. The value of the acquisition – LTL 68 thousand.
On 10th April the Company concluded the contract with the financial advisor Porta Finance regarding the consultations and search of potential acquirers for 100% of Ecoservice UAB shares. Ecoservice UAB with the subsidiaries supplies waste management and other environmental services in Vilnius, Klaipėda cities and in more than ten other municipalities of Lithuania.
On 30th of April the Ordinary General Meeting of the Shareholders of the Company has been held. The shareholders have distributed the Company's profit of the year 2012 and have elected the Board the Audit Committee of the Company for the new term. Shareholders also approved Ernst & Young Baltic UAB, company code 110878442, for the performance of the audit of the Company's and the Company's set of consolidated financial statements for the year 2013 and for the evaluation of the Company's consolidated annual report. The meeting has also established the payment conditions for the audit services and approved the new redaction of the Articles of Association of the Company.
On 17th of May the share capital of Mano sauga UAB, legal entity code 302628213, was increased by additional contributions from the shareholders. At the date of issue of these financial statements the share capital of Mano sauga UAB amounts to LTL 667,9 thousand and the Group controls 99.27 % shares of the company. Mano sauga UAB provides security services in Lithuania.
On 13th of June UAB Sinsta name has been changed into UAB Mano aplinka. Continuing the process of the unbundling, the activity of maintenance and cleaning of territories from UAB Naujamiesčio būstas has been transferred to UAB Mano aplinka this process is related to the further development of the cleaning services provided by the Group.
On 28th of June UAB Tvar.com, code 300730461, after the process of reorganization has been incorporated to its sole shareholder company.
On 31st July the Company acquired 100% shares of UAB Saulėtos dienos, legal entity code 302473916. The value of the contract is LTL 120 thousand. UAB Saulėtos dienos is engaged in the administration of dwelling houses in Vilnius district, Lithuania.
On 16th of August continuing the process of unbundling the activities, the market activity from UAB Karoliniškių būstas and UAB Naujamiesčio būstas have been transferred to separate newly established legal entities. Market activity from UAB Karoliniškių būstas was transferred to UAB Karoliniškių turgus and from UAB Naujamiesčio būstas to UAB Konarskio turgelis.
On 21st of August Group company ZZN, which in June won a tender to manage municipal apartments, territories and other premises of Poznan's Communal Apartment Office, signed the contract with Zarzad Komunalnych Zasobow Lokalowych. ZZN will manage a total apartment, territories and other premises area of 1.35 million sq. meters. The contract shall be signed for the term of 4 years; value of contract is PLN 24.7 million.
On 25th of September the Company acquired 100% shares of ALDESA SERVICIOS Y MANTENIMIENTO, S.A., legal entity code A-84659614. The value of the contract is EUR 7.345 million. The acquired company provides commercial facility management and related services. The company holds offices throughout Spain, with over 4.8 million sq. meters of facilities under its management, with 1600 employees. At the acquisition of this subsidiary the management estimated provisional goodwill of LTL 1,415 thousand:
| Fair value of acquired assets, liabilities and contingent liabilities attributable to the Group | 2,433 |
|---|---|
| Goodwill | 1,415 |
| Total purchase consideration | 3,848* |
| Cash acquired | 8,965 |
| Total purchase consideration, net of cash acquired | (5,117) |
- The value of the contract is LTL 25,360 thousand: LTL 3,848 thousand for shares of the subsidiary and additionally LTL 21,512 thousand for loans of former shareholders.
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 16
4. Investments to Subsidiaries
The Company's investments to subsidiaries movement from 31 December 2012 to 30 September 2013 is represented below:
| Cost of investments at the beginning of the year | 162,045 |
|---|---|
| ALDESA SERVICIOS Y MANTENIMIENTO, S.A. | 3,848 |
| Cost of investments at the period end | 165,893 |
5. Other Intangible Assets
Movement of other intangible assets in 2013 and 2012 is presented below:
| Group | Company | |
|---|---|---|
| Cost: | ||
| Balance as of 1 January 2012 | 86,810 | 1,671 |
| Additions arising from acquisitions of subsidiaries | 12,562 | - |
| Additions | 311 | 45 |
| Disposals of subsidiaries | (12,472) | - |
| Disposals | (8) | (2) |
| Retirements | (189) | - |
| Reorganisation effect | - | (1,699) |
| Balance as of 31 December 2012 | 87,014 | 15 |
| Additions | 327 | 24 |
| Disposals | (16) | - |
| Exchange differences | (405) | - |
| Retirements | (13) | - |
| Balance as of 30 September 2013 | 86,907 | 39 |
| Accumulated amortisation: | ||
| Balance as of 1 January 2012 | 8,118 | 485 |
| Charge for the year | 3,402 | 18 |
| Disposals | - | (1) |
| Disposals of subsidiaries | (987) | - |
| Retirements | (99) | - |
| Reorganisation effect | - | (490) |
| Balance as of 31 December 2012 | 10,434 | 12 |
| Charge for the year | 3,363 | 4 |
| Disposals | (3) | - |
| Exchange differences | (116) | - |
| Retirements | (2) | - |
| Balance as of 30 September 2013 | 13,676 | 16 |
| Net book value as of 30 September 2013 | 73,231 | 23 |
| Net book value as of 31 December 2012 | 76,580 | 3 |
AB City Service
Company code 123905633,
Adress: Livovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 17
6. Property, Plant and Equipment
Movement of property, plant and equipment in 2013 and 2012 is presented below:
| Group | Buildings | Vehicles | Other property, plant and equipment | Construction in progress | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Balance as of 1 January 2012 | 24,705 | 28,329 | 15,459 | 48 | 68,541 |
| Additions arising from acquisitions of subsidiaries | 15,902 | 1,530 | 20,896 | 280 | 38,607 |
| Additions | 281 | 3,347 | 4,142 | - | 7,770 |
| Disposals | - | (1,944) | (1,069) | - | (3,013) |
| Exchange differences | - | 119 | 34 | 2 | 155 |
| Retirements | - | (1,530) | (3,028) | (1) | (4,559) |
| Balance as of 31 December 2012 | 40,888 | 29,851 | 36,433 | 329 | 107,502 |
| Additions arising from acquisitions of subsidiaries | - | 712 | 1,242 | - | 1,954 |
| Additions | 95 | 4,102 | 2,483 | 201 | 6,881 |
| Disposals | (630) | (927) | - | - | (1,556) |
| Exchange differences | (636) | (41) | (704) | - | (1,381) |
| Retirements | - | (668) | (346) | (33) | (1,046) |
| Balance as of 30 September 2013 | 39,718 | 33,030 | 39,109 | 497 | 112,352 |
| Accumulated depreciation: | |||||
| Balance as of 1 January 2012 | 3,514 | 8,296 | 3,980 | - | 15,790 |
| Charge for the year | 1,120 | 4,249 | 4,338 | - | 9,707 |
| Disposals | - | (1,645) | (890) | - | (2,535) |
| Exchange differences | - | 43 | 17 | - | 60 |
| Retirements | - | (1,124) | (2,602) | - | (3,726) |
| Balance as of 31 December 2012 | 4,634 | 9,819 | 4,843 | - | 19,296 |
| Charge for the year | 1,756 | 3,921 | 4,457 | - | 10,134 |
| Disposals | (248) | (821) | (259) | - | (1,328) |
| Exchange differences | 36 | 17 | 92 | - | 145 |
| Retirements | - | (586) | (310) | - | (896) |
| Balance as of 30 September 2013 | 6,178 | 12,350 | 8,823 | - | 27,351 |
| Net book value as of 30 September 2013 | 33,540 | 20,680 | 30,286 | 497 | 85,003 |
| Net book value as of 31 December 2012 | 36,254 | 20,032 | 31,590 | 329 | 88,205 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 18
7. Borrowings
Borrowings of the Group and the Company as of 30 September 2013 and 31 December 2012 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 30 September 2013 (in LTL) | Balance as of 31 December 2012 (in LTL) | Balance as of 30 September 2013 (in LTL) | Balance as of 31 December 2012 (in LTL) | ||||
| Current loans | |||||||
| Swedbank, AB (overdraft) | EUR | 1,448 | 17.08.2013 | - | 5,000 | - | 5,000 |
| Swedbank, AB (overdraft) | LTL | 5,000 | 17.08.2013 | - | 83 | - | 83 |
| Swedbank, AB | EUR | 3,700 | 10.06.2013 | - | 12,775 | - | 12,775 |
| Nordea Bank (overdraft) | EUR | 3,000 | 09.09.2014 | 4,750 | - | 4,750 | - |
| Nordea Bank (overdraft) | LTL | 2,426 | 09.09.2014 | 2,426 | - | 2,426 | - |
| DNB bank, AB (UAB Ecoservice) | EUR | 435 | 29.11.2013 | - | 928 | - | - |
| AS UniCredit Bank (UAB Tvar.com) | LTL | 350 | 15.02.2013 | - | 127 | - | - |
| Group Account (eliminated in the consolidated group accounts)* | Unspecified | Unspecified | Unspecified | - | - | 11,869 | 17,092 |
| Current loan balance | 7,176 | 18,913 | 19,045 | 34,950 | |||
| Non-current loans | |||||||
| Swedbank, AB | EUR | 10,486 | 09.08.2015 | - | 18,417 | - | 18,417 |
| Swedbank, AB | EUR | 6,000 | 10.12.2017 | - | 20,717 | - | 20,717 |
| Nordea Bank | EUR | 25,000 | 09.09.2018 | 57,840 | - | 57,840 | - |
| AB SEB bankas (UAB Specialus autotransportas) | EUR | 695 | 31.05.2018 | 2,171 | - | - | - |
| AS UniCredit Bank (UAB Tvar.com) | EUR | 309 | 15.01.2013 | - | 80 | - | - |
| Less: current portion of non-current borrowings | (5,441) | (9,498) | (5,327) | (9,418) | |||
| Non-current loan balance | 54,570 | 29,716 | 52,513 | 29,716 |
- Based overdraft facility agreement signed on 9 September 2013 with the Company, its subsidiaries operating in Lithuania and with Nordea Bank, the Group can utilise net cash balances of the Company and its subsidiaries operating in Lithuania as intergroup borrowings.
For the loans 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. Shares of UAB "Mano bustas LT" are pledged to Nordea Bank as well.
8. Cost of Sales
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Services of subcontractors and materials used | 212,248 | 238,200 | 25,215 | 27,181 |
| Wages and salaries and social security | 72,944 | 52,630 | 338 | 2,339 |
| Cost of goods sold | 5,760 | 4,944 | 1 | 2 |
| Depreciation | 7,416 | 4,481 | - | - |
| Other | 4,602 | 3,578 | - | - |
| Total cost of sales | 302,970 | 303,833 | 25,554 | 29,522 |
AB City Service
Company code 123905633.
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 19
9. General and Administrative Expenses
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Wages and salaries and social security | 31,030 | 27,951 | 2,543 | 2,271 |
| Depreciation and amortisation | 6,082 | 5,497 | 114 | 231 |
| Allowance for and write-off of receivables | 3,926 | 6,936 | (4) | (815) |
| Bonuses | - | 2,420 | - | 2,420 |
| Consulting and similar expenses | 2,502 | 2,606 | 1,480 | 1,086 |
| Commissions for collection of payments | 2,131 | 2,506 | 33 | 268 |
| Rent of premises and other assets | 1,930 | 2,008 | 204 | 344 |
| Fuel expenses | 1,368 | 1,137 | 93 | 63 |
| Computer software maintenance | 1,056 | 787 | 21 | 22 |
| Business trips and training | 995 | 613 | 359 | 222 |
| Insurance | 843 | 555 | 36 | 35 |
| Transportation | 820 | 823 | 43 | 31 |
| Communication expenses | 780 | 827 | 70 | 97 |
| Utilities | 776 | 875 | 349 | 241 |
| Advertising | 748 | 783 | 187 | 267 |
| Taxes other than income tax | 468 | 320 | 18 | 11 |
| Bank payments | 427 | 390 | 6 | 6 |
| Representational costs | 419 | 370 | 154 | 173 |
| Charity and support | 48 | 335 | 1 | 233 |
| Other | 4,903 | 4,814 | 591 | 609 |
| Total general and administrative expenses | 61,252 | 62,553 | 6,298 | 7,815 |
10. Other Operating Income (expenses), net
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Income from rent, net | - | 1 | 240 | 252 |
| Gain (loss) on disposal of property, plant and equipment | 228 | 402 | - | 1,551 |
| Other income (expenses), net | 611 | (1,141) | (22) | (43) |
| Total other operating activity | 839 | (738) | 218 | 1,760 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 20
11. Finance Income and (expenses), net
| Group | Company | |||
|---|---|---|---|---|
| 2013 Q3 | 2012 Q3 | 2013 Q3 | 2012 Q3 | |
| Interest income | 503 | 302 | 1,452 | 710 |
| Dividend income | - | - | 9,400 | - |
| Foreign currency exchange gain | 298 | 4,283 | 8 | 52 |
| Other financial income | 191 | 170 | - | 13 |
| Total finance income | 992 | 4,755 | 10,860 | 775 |
| Interest (expenses) | (1,730) | (922) | (1,907) | (1,161) |
| Foreign currency exchange loss | (2,909) | (3,400) | (348) | (19) |
| Loss on sale of investments | - | (7,367) | - | - |
| Other financial (expenses) | (981) | (792) | (1) | (24) |
| Total finance (expenses) | (5,620) | (12,481) | (2,256) | (1,204) |
| Financial activity, net | (4,628) | (7,726) | 8,604 | (429) |
12. Related Party Transactions
The parties are considered related when one party has the possibility to control the other one or have significant influence over the other party in making financial and operating decisions. The related parties of the Group and the Company and considered the following:
- Global energy consulting OU (Estonia)– the ultimate shareholder of the Company since 2013;
- UAB ICOR - the shareholder of the Company;
- Subsidiaries of UAB ICOR (same ultimate controlling shareholder);
- Subsidiaries of AB City Service (for the list of the subsidiaries, see also Note 1);
- Mr J. Janukénas, V. Turonis, E. Paulauskas, T. Augutavičius (Management of the Company);
Transactions with related parties include sales and purchases of goods and services in the ordinary course of business, and acquisitions and disposals of property, plant and equipment. Property, plant and equipment to related parties during the first nine months of 2013 was sold for the net book value.
The sales price for the intercompany subsidiary purchase and sale transactions are established by the management and shareholders of the UAB ICOR and/or Global energy consulting OU and AB City Service considering the results of independent valuations, if any, undertaken for the purposes of the transfer pricing regulations – which may not always be at their fair value.
There are no guarantees or pledges given or received in respect of the related party payables and receivables. Related party receivables and payables are expected to be settled in cash or set-off against payables / receivables to / from a respective related party.
2013 Q3
| Group | Purchases | Sales | Receivables and prepayments | Loans granted | Payables (long and short-term) |
|---|---|---|---|---|---|
| UAB ICOR | 2,119 | 19 | - | - | 15,626 |
| Subsidiaries of UAB ICOR: | |||||
| AB Axis Industries | 1,879 | 1,604 | 118 | - | 1,769 |
| Other subsidiaries of UAB ICOR | 711 | 1,242 | 835 | - | 363 |
| Total | 4,709 | 2,865 | 953 | - | 17,758 |
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the nine months of 2013 (unaudited), thousand Litas
Page 21
13. Subsequent Events
On 7th of October Mr Žilvinas Lapinskas resigned from the Board of the Company. At the date of submission of these financial statements the Board of the Company consists of three members: Mr Andrius Janukonis (the chairman of the Board), Mr Gintautas Jaugielavičius and Mr Darius Leščinskas.
On 31st of October the Company acquired 100% shares of City Service Polska Sp. z.o.o, legal entity code KRS 483372. The value of the contract is PLN 5 thousand. At the moment City Service Polska Sp. z.o.o. is dormant. The acquisition is related with possible expansion of the Group in Poland.
On 15th of November the Group company in Spain, has signed agreements on municipal housing management with Malaga and Asturia municipalities. „ALDESA SERVICIOS Y MANTENIMIENTO“, S.A. will provide technical maintenance and management services for approximately 7000 apartments (more than 300 thousand sq. m.), value of the signed agreements is EUR 700 thousand.
AB City Service
Company code 123905633,
Adress: Lvovo st. 25, Vilnius, Lithuania
www.cityservice.lt
[email protected]