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City Service SE Interim / Quarterly Report 2014
5564_rns_2014-05-30_3d61e988-4efc-4516-a1d4-08551b8a1434.pdf
Interim / Quarterly Report
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CITYSERVICE
In service of your property
AB „CITY SERVICE“
Consolidated interim financial statements for the three months period ended 31 March, 2014 (unaudited)
CITYSERVICE
In service of your property
STATEMENTS OF FINANCIAL POSITION
| GROUP | COMPANY | |||
|---|---|---|---|---|
| As of 31 March 2014 | As of 31 December 2013 | As of 31 March 2014 | As of 31 December 2013 | |
| Assets | ||||
| NON-CURRENT ASSETS | ||||
| Goodwill | 32,987 | 33,306 | - | - |
| Other intangible assets | 53,871 | 54,456 | 465 | 490 |
| Property, plant and equipment | 64,615 | 63,163 | 814 | 812 |
| Investment property | 280 | 280 | - | - |
| Investments into subsidiaries | - | - | 121,754 | 121,754 |
| Investments into associates | 5,762 | 652 | 5,110 | - |
| Non-current financial assets receivables and prepayments | 7,364 | 7,267 | 19,919 | 50,731 |
| Deferred income tax asset | 16,686 | 15,702 | 433 | 421 |
| Total non-current assets | 181,565 | 174,826 | 148,495 | 174,208 |
| CURRENT ASSETS | ||||
| Inventories | 7,129 | 5,692 | - | - |
| Prepayments | 4,848 | 10,034 | 171 | 183 |
| Trade receivables | 168,134 | 180,147 | 31,760 | 47,278 |
| Receivables from related parties (including loans granted) | 373 | 152 | 32,671 | 6,037 |
| Other receivables and current assets | 19,855 | 9,787 | 9,690 | 1,618 |
| Cash and cash equivalents | 70,309 | 38,528 | 43,423 | 936 |
| Total current assets | 270,648 | 244,340 | 117,715 | 56,052 |
| Assets held for sale (Ecoservice UAB waste management and eco-business) | - | 63,256 | - | 55,091 |
| Total assets | 452,213 | 482,422 | 266,210 | 285,351 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
STATEMENTS OF FINANCIAL POSITION (cont'd)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| As of 31 March 2014 | As of 31 December 2013 | As of 31 March 2014 | As of 31 December 2013 | |
| 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 | (2,729) | (2,188) | - | - |
| Retained earnings (deficit) | 105,543 | 105,100 | 51,923 | 53,285 |
| Reserves of a disposal group classified as held for sale (Ecoservice UAB waste management and eco-business) | - | (8,763) | - | - |
| 217,426 | 208,761 | 166,524 | 167,886 | |
| Non-controlling interests | 2,305 | 2,488 | - | - |
| TOTAL EQUITY | 219,731 | 211,249 | 166,524 | 167,886 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Non-current borrowings | 49,371 | 51,179 | 48,897 | 50,705 |
| Financial lease obligations | 4,529 | 4,127 | 337 | 337 |
| Deferred income tax liabilities | 8,702 | 8,129 | - | - |
| Non-current payables | 3,037 | 3,160 | 405 | 405 |
| TOTAL NON-CURRENT LIABILITIES | 65,639 | 66,595 | 49,639 | 51,447 |
| Current liabilities | ||||
| Current portion of non-current borrowings | 6,918 | 6,258 | 6,755 | 6,041 |
| Current portion of financial lease obligations | 1,581 | 1,623 | 70 | 93 |
| Short term loans | 9,770 | 10,147 | 13,064 | 19,747 |
| Trade payables | 72,789 | 95,300 | 3,259 | 16,782 |
| Payables to related parties (including loans received) | 14,652 | 12,882 | 23,387 | 20,290 |
| Advances received | 15,865 | 15,713 | 1,975 | 1,917 |
| Other current liabilities | 45,268 | 45,727 | 1,537 | 1,148 |
| TOTAL CURRENT LIABILITIES | 166,843 | 187,650 | 50,047 | 66,018 |
| Liabilities associated with assets held for sale (Ecoservice UAB waste management and eco-business) | - | 16,928 | - | - |
| Total equity and liabilities | 452,213 | 482,422 | 266,210 | 285,351 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
STATEMENTS OF COMPREHENSIVE INCOME (for the period 1 January - 31 March)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1 | 2014 Q1 | 2013 Q1 | |
| Continued operations | ||||
| Sales | 180,272 | 150,770 | 17,727 | 22,079 |
| Cost of sales | (147,032) | (123,261) | (13,484) | (16,394) |
| Gross profit (loss) | 33,240 | 27,509 | 4,243 | 5,685 |
| General and administrative expenses | (21,668) | (18,497) | (2,012) | (1,645) |
| Other operating income (expenses) | 109 | 448 | 77 | 70 |
| Profit (loss) from operations | 11,681 | 9,460 | 2,308 | 4,110 |
| Income from financial and investment activities, net | (2,510) | (1,415) | (3,682) | (251) |
| Profit (loss) before tax | 9,171 | 8,045 | (1,374) | 3,859 |
| Income tax | (1,313) | (1,493) | 12 | (581) |
| Net profit (loss) from continued operations | 7,858 | 6,552 | (1,362) | 3,278 |
| Discontinued operations | ||||
| Net profit (loss) from discontinued operations (Ecoservice UAB waste management and eco-business) | 1,165 | 764 | - | - |
| Net profit (loss) | 9,023 | 7,316 | (1,362) | 3,278 |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations | (541) | (646) | - | - |
| Total comprehensive income | 8,482 | 6,670 | (1,362) | 3,278 |
| Attributable to: | ||||
| The shareholders of the Company | 9,206 | 6,696 | (1,362) | 3,278 |
| Non-controlling interests | (183) | 620 | - | - |
| 9,023 | 7,316 | (1,362) | 3,278 | |
| Total comprehensive income attributable to: | ||||
| The shareholders of the Company | 8,665 | 6,050 | (1,362) | 3,278 |
| Non-controlling interests | (183) | 620 | - | - |
| 8,482 | 6,670 | (1,362) | 3,278 | |
| Basic and diluted earnings per share (LTL) | 0.29 | 0.21 | ||
| From continued operations | 0.25 | 0.19 | ||
| From discontinued operations | 0.04 | 0.02 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
STATEMENTS OF SHANGES IN EQUITY
| GROUP | Share capital | Share premium | Foreign currency translation reserve | Other reserves | Retained earnings | Discontinued operations | Total | Non-controlling interest | Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance as of 1 January 2013 | 31,610 | 73,830 | (2,179) | 9,172 | 70,304 | - | 182,737 | 2,307 | 185,044 |
| Net profit | - | - | - | - | 6,696 | - | 6,696 | 620 | 7,316 |
| Income (expenses) recognised directly in equity | - | - | (646) | - | - | - | (646) | - | (646) |
| Total income (expense) for the period | - | - | (646) | - | 6,696 | - | 6,050 | 620 | 6,670 |
| Balance as of 31 March 2013 | 31,610 | 73,830 | (2,825) | 9,172 | 77,000 | - | 188,787 | 2,927 | 191,714 |
| Balance as of 1 January 2014 | 31,610 | 73,830 | (2,188) | 9,172 | 105,100 | (8,763) | 208,761 | 2,488 | 211,249 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net profit | - | - | - | - | 9,206 | - | 9,206 | (183) | 9,023 |
| Income (expenses) recognised directly in equity | - | - | (541) | - | - | - | (541) | - | (541) |
| Total income (expense) for the period | - | - | (541) | - | 9,206 | - | 8,665 | (183) | 8,482 |
| Reserves of disposed group | - | - | - | - | (8,763) | 8,763 | - | - | - |
| Balance as of 31 March 2014 | 31,610 | 73,830 | (2,729) | 9,172 | 105,543 | - | 217,426 | 2,305 | 219,731 |
| COMPANY | Share capital | Share premium | Legal reserve | Other reserves | Retained earnings | Total | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Balance as of 1 January 2013 | 31,610 | 73,830 | 3,161 | 6,000 | 32,949 | 147,550 | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Net profit | - | - | - | - | 3,278 | 3,278 | |||
| Balance as of 31 March 2013 | 31,610 | 73,830 | 3,161 | 6,000 | 36,227 | 150,828 | |||
| Balance as of 1 January 2014 | 31,610 | 73,830 | 3,161 | 6,000 | 53,285 | 167,886 | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Net (loss) | - | - | - | - | (1,362) | (1,362) | |||
| Balance as of 31 March 2014 | 31,610 | 73,830 | 3,161 | 6,000 | 51,923 | 166,524 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
STATEMENTS OF CASH FLOWS
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1* | 2014 Q1 | 2013 Q1 | |
| Cash flows from (to) operating activities | ||||
| Net profit (loss) from continued operations | 7,858 | 6,552 | (1,362) | 3,278 |
| Net profit from discontinued operations | 1,165 | 764 | - | - |
| Adjustments for non-cash items: | ||||
| Income tax expenses (gain) | 1,313 | 1,590 | (12) | 581 |
| Depreciation and amortisation | 2,709 | 4,403 | 78 | 32 |
| Impairment and discounting of accounts receivable | 2,920 | 2,176 | 80 | - |
| Loss (gain) on disposal of property, plant and equipment | 203 | (21) | - | - |
| Dividend (income) | - | - | (5,179) | - |
| Loss from sale of investments | 344 | - | 4,127 | - |
| Other financial activity, net | 1,803 | 354 | 4,734 | 164 |
| 18,315 | 15,818 | 2,466 | 4,055 | |
| Changes in working capital: | ||||
| (Increase) in inventories | (1,435) | (1,169) | - | - |
| (Increase) decrease in receivables and other current assets | (5,447) | (8,442) | 6,676 | (359) |
| Decrease in prepayments | 1,026 | 2,585 | 12 | 65 |
| (Decrease) in trade payables and payables to related parties | (22,147) | (7,642) | (9,970) | (3,883) |
| Income tax (paid) | (1,478) | (1,371) | - | - |
| Increase (decrease) in advances received and other current liabilities | 152 | (1,159) | 58 | (150) |
| Net cash flows from (to) operating activities | (11,014) | (1,380) | (758) | (272) |
| Cash flows from (to) investing activities | ||||
| (Acquisition) of non-current assets (except investments) | (993) | (1,881) | (55) | (260) |
| Proceeds from sale of non-current assets | 416 | - | - | - |
| Disposal of investments in subsidiaries and associates | 46,337 | - | 46,337 | - |
| Dividends and interest received | 38 | 55 | 5,179 | - |
| Net cash flows from (to) investing activities | 45,798 | (1,826) | 51,461 | (260) |
| Cash flows from (to) financing activities | ||||
| (Repayment) proceeds from loans | (1,524) | 1,247 | (7,777) | 888 |
| (Repayment) proceeds of financial lease liabilities | (804) | 77 | (23) | 19 |
| Interest (paid) | (675) | (511) | (416) | (417) |
| Net cash flows from (to) financial activities | (3,003) | 813 | (8,216) | 490 |
| Net increase (decrease) in cash and cash equivalents | 31,781 | (2,393) | 42,487 | (42) |
| Cash and cash equivalents at the beginning of the period | 38,528 | 32,914 | 936 | 129 |
| Cash and cash equivalents at the end of the period | 70,309 | 30,521 | 43,423 | 87 |
- Group cash flows for 2013 Q1 comprise total consolidated Group, including discontinued operations.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
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 corporate group, engaged in provision of facility management and integrated utility services in Western, 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 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; maintenance of elevators; maintenance and cleaning of territories and premises.
The most important buildings segments, 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 31.9 million sq. m. at present.
City Service group carried on implementing confirmed strategy and was further looking for organic growth opportunities in Central and Western Europe and Latvia as well in the first quarter of this year. Extensive negotiations with potential foreign companies regarding their acquisition, reorganization and implementation according to the Group's business model and standards were carried out.
1.2. SHARE CAPITAL OF THE COMPANY
The share capital of the Company is LTL 31,610 thousand as of 31 March 2014. 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 2014 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.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
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1.3. SHAREHOLDERS OF THE COMPANY
On 31 March 2014 the total number of shareholders of the Company was 1871.
Company's shares distribution among shareholders who have more than 5 % shares of the Company as of 31 March 2014 was the following:
| Number of shares held | Owned percentage of the share capital and votes, % | |
|---|---|---|
| ICOR UAB, legal entity code 300021944, address: Konstituccijos av. 7, Vilnius, Lithuania | 20,205,595 | 63.92 % |
| East Capital (Lux) Funds, legal entity code LUESSE22 | 3,334,788 | 10.55 % |
| Genesis Emerging Markets OPP FD LTD, legal entity code OC 306866, address Cricket Square, Hutchins Drive KY 1-1111, Cayman Islands | 1,605,183 | 5.08% |
| Other private and institutional shareholders | 6,464,434 | 20.45 % |
| TOTAL | 31,610,000 | 100 % |
1.4. SHARE PRICE DEVELOPMENT FOR THE REPORTING PERIOD
Source: NASDAQ OMX Vilnius
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
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1.5. CITY SERVICE GROUP
On 31 March 2014 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 2014 | Share of the stock held by the Group as of 31 March 2013 | 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 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 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 |
| 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 Pašilaičių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Pempininkų büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
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| UAB Radviliškio būstas | 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 Šiaulių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Šiaulių liftas | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Šilutės būstas | Lithuania | 99.84% | 99.84% | Administration of dwelling-houses |
| UAB Vėtrungės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vilkpėdės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vilniaus turgus | Lithuania | 100% | 100% | Dormant |
| UAB Vingio būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Viršuliškių būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žaidas | Lithuania | 99.33% | 99.33% | Administration of dwelling-houses |
| UAB Žardės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žirmūnų būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| Concentra Servicios y Mantenimiento, S.A. | Spain, Madrid | 100% | - | Commercial real estate management and building |
| SIA Riga City Service | Latvia, Riga | 100% | 100% | Commercial real estate management and building |
| City Service Poland Sp. z.o.o | Poland, Warsaw | 100% | 100% | Dormant |
| City Service Polska Sp. z.o.o | Poland, Warsaw | 100% | - | Dormant |
| City Service Grupa Techniczna Sp. z.o.o. | Poland, Warsaw | 100% | - | Building maintenance |
| Cleaning Partner Sp. z.o.o | Poland, Warsaw | 100% | - | Cleaning services |
| 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 Ciri Cepnic | Ukraine, Kiev | 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 "Подъемные механизмы" | Russia, St. Petersburg | 99% | 99% | Elevator installing & tech. support |
| ООО «Управляющая компания -1» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
10
CITYSERVICE
In service of your property
| 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 «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 31 March 2014 included an investment in Marijampolés butų ūkis UAB (34% of the share capital) and in AWT Holding UAB (25% of the share capital).
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
1.6. COMPANY'S BOARD
As of 31 March 2014, 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 |
| Jonas Janukėnas * | Board Member | April 30, 2014 | April 30, 2017 |
*Appointed after reporting period.
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).
Jonas Janukėnas
Refer described below (note 1.7).
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
1.7. COMPANY'S MANAGEMENT
As of 31 March 2014 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 Janukėnas | General Manager | 2007 |
| Vytautas Turonis | Executive Manager for Lithuania | 2004 |
| Edvinas Paulauskas | Executive Manager | 2005 |
| Tomas Augutavičius | Chairman of the Board of City Service group in Russia | 2006 |
| Jonas Šimkevičius | Member of the Board of Group company, operating in Latvia | 2005 |
| Vytautas Jastremskas | Member of the Supervisory board of the Group company, operating in Poland | 2013 |
| Anna Górecka - Kolasa | Head of the Group company, operating in Poland | 2004 |
| Fernando López Abril | General Manager of the Group company, operating in Spain | 2010 |
They do not control any shares of the Company.
Jonas Janukėnas
Jonas Janukėnas (born in 1976) is the General Manager of AB City Service (since September, 2013). Since 2007 Mr Janukėnas was Financial and Administrative Manager of AB City Service. Mr Janukėnas is also the Chairman of the Board at Mano būstas 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 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 būstas 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 būstas 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“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
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.
Jonas Šimkevičius
Jonas Šimkevičius (b. 1980) is a member of the Board of the company Riga City Service, operating in Latvia. Previously J. Šimkevičius worked for the company as a project manager. (2005-2007) and before that he held different positions in the companies Limatika (2004-2005) and Ranga IV (2002-2004). J. Šimkevičius has the Bachelor's degree in constructions engineering.
J. Šimkevičius is responsible for the Group's activities in Latvia.
Vytautas Jastremskas
Vytautas Jastremskas (b. 1970) is a member of the Supervisory Council of the company ZZN, operating in Poland. In addition, he holds position of the Head of City Service Polska and works as a project manager of City Service AB in Poland. V. Jastremskas has been working for the company since January 2013, prior to that he provided services as an external consultant. V. Jastremskas holds the Master of Sciences degree in law and has experience in legal and organizational activities, as well as in business development on foreign markets.
At present V. Jastremskas is responsible for development projects and control of activities of the Group companies in Poland.
Anna Górecka - Kolasa
Anna Górecka - Kolasa (b. 1975) is the head of the company ZZN, operating in Poland. A. Górecka - Kolasa has been working for the company since 2004, prior to that she holds positions of Management and Control Director, Chief Analysis Specialist and Deputy Accountant General (2004-2013). A. Górecka-Kolasa has higher education in the area of management and marketing.
A. Górecka-Kolasa is responsible for the activities of ZZN throughout Poland.
Fernando López Abril
Fernando López Abril (b. 1969) is Director General of the company Concentra Servicios y Mantenimiento. Previously (in 2010-2012) he held the position of the company's Business Development Director. Before joining the Group company, F. López Abril was employed as Commercial Director of the company AMS-ALDESA (2007-2010), worked as a regional manager for the company CESPA-FERROVIAL (2004-2007) and held position of Director of Technological Systems and Nuclear Services Department at the company BORG Service (1999-2004). F. López Abril holds the Master of Sciences degree in agricultural engineering.
F. López Abril is responsible for the Group's activities in Spain.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
1.8. ACTIVITY AND SEGMENT INFORMATION
Information on main activity segments*:
| | 2014 Q1
Buildings’ administration | | 2013 Q1
Buildings’ administration | | 2012 Q1
Buildings’ administration | |
| --- | --- | --- | --- | --- | --- | --- |
| | Resale of utility services | Administration services | Resale of utility services | Administration services | Resale of utility services | Administration services |
| Revenue: | - | 17,727 | - | 22,079 | - | 28,539 |
| Company | | | | | | |
| Revenue: | 34,164 | 156,668 | 42,684 | 116,505 | 49,021 | 96,585 |
| Group | | | | | | |
Information on main geographical segments for the Group*:
| 2014 Q1 | 2013 Q1 | 2012 Q1 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Spain | Poland | Baltic states | CIS States | Spain | Poland | Baltic states | CIS States | Spain | Poland | Baltic states | CIS States | |
| Revenue | 40,461 | 22,979 | 73,979 | 53,413 | - | 24,410 | 71,721 | 63,058 | - | - | 61,126 | 84,480 |
| Net profit (loss) | (113) | 1,692 | 7,682 | (238) | - | 783** | 6,349 | 184 | - | - | 6,429 | 1,573 |
- For comparison purpose, information about total consolidated Group is presented, including discontinued operations.
** Includes LTL 1,044 thousand foreign currency exchange loss.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
Main activity indicators for the Group (continued operations):
| 2014 Q1 | 2013 Q1 | Change (%) | |
|---|---|---|---|
| Area of multi-flat apartment buildings under administration (million square meters) | 21.6 | 20.5 | 5.4% |
| Area of public. commercial building and a typical properties under administration (million square meters) | 10.3 | 3.3 | 212.1% |
| Number of employees | 5,411 | 3,481 | 55.4% |
| Sales for the period* | 180,272 | 150,770 | 19.6% |
| Sales (main activity)* | 146,108 | 108,086 | 35.2% |
| Gross margin* | 22.8% | 25.5% | (10.6%) |
| EBITDA margin* | 9.8% | 11.6% | (15.0%) |
| EBIT margin* | 8.0% | 8.8% | (8.7)% |
| Net margin* | 5.4% | 6.1% | (11.3%) |
| Number of shares (thousand) | 31,610 | 31,610 | 0.0% |
| Return on equity | 3.6% | 3.5% | 5.1% |
| Return on assets | 1.8% | 1.6% | 10.8% |
| Financial Net Debt to equity** | (1.9%) | 15.1% | (112.8%) |
- 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“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
3. GOODWILL
| GROUP | |
|---|---|
| COST: | |
| Balance as of 1 January 2013 | 64,711 |
| Additions | 154 |
| Disposals | (871) |
| Exchange differences | (716) |
| Discontinued operations | (27,144) |
| Balance as of 31 December 2013 | 36,134 |
| Exchange differences | (319) |
| Balance as of 31 March 2014 | 35,815 |
| IMPAIRMENT | |
| Balance as of 1 January 2013 | 19,429 |
| Impairment for the year | 2,538 |
| Discontinued operations | (19,139) |
| Balance as of 31 December 2013 | 2,828 |
| Impairment for the year | - |
| Balance as of 31 March 2014 | 2,828 |
| Net book value as of 31 March 2014 | 32,987 |
| Net book value as of 31 December 2013 | 33,306 |
Investments and other changes during the three months of the year 2014
On 3 January 2014, the Company acquired 100% shares of Cleaning Partner Sp. z.o.o. The value of the contract is PLN 5 million.
On 16 January 2014, the Company through a subsidiary acquired 100% shares of City Service Grupa Techniczna Sp. z.o.o. The value of the contract is PLN 5 thousand. At the moment City Service Grupa Techniczna Sp. z.o.o renders technical maintenance services in Poland.
On 21 February 2014, the Company signed an agreement on sale of UAB Ecoservice shares. On 31 March 2014, share transfer transaction was closed, after Competition Council authorized the transaction and other conditions of the transaction were fulfilled. Value of the transaction is LTL 56.6 million (EUR 16.4 million), including dividends amounting to LTL 5.2 million (EUR 1.5 million) paid to the Company. Shares of UAB Ecoservice are transferred to UAB AWT Holding. Control and controlling interest of the later shall belong to 75% share owner BaltCap Private Equity Fund II, with remaining 25% shares in Company's possession which were accounted as investment in associated company.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
4. OTHER INTANGIBLE ASSETS
Movement of other intangible assets in 2014 Q1 and 2013 is presented below:
| GROUP | COMPANY | |
|---|---|---|
| COST: | ||
| Balance as of 1 January 2013 | 87,014 | 15 |
| Additions arising from acquisitions of subsidiaries | 17 | - |
| Additions | 919 | 493 |
| Disposals | (419) | - |
| Discontinued operations | (22,280) | (1) |
| Exchange differences | (192) | - |
| Retirements | (237) | - |
| Reclassifications | 55 | - |
| Balance as of 31 December 2013 | 64,877 | 507 |
| Additions | 181 | 1 |
| Exchange differences | (61) | - |
| Retirements | (7) | - |
| Reclassifications | 18 | - |
| Balance as of 31 March 2014 | 65,008 | 508 |
| ACCUMULATED AMORTISATION: | ||
| Balance as of 1 January 2013 | 10,434 | 12 |
| Charge for the year | 4,464 | 6 |
| Disposals | (31) | (1) |
| Impairment | 2,262 | - |
| Discontinued operations | (6,484) | - |
| Exchange differences | (4) | - |
| Retirements | (220) | - |
| Balance as of 31 December 2013 | 10,421 | 17 |
| Charge for the period | 733 | 26 |
| Exchange differences | (14) | - |
| Retirements | (3) | - |
| Balance as of 31 March 2014 | 11,137 | 43 |
| Net book value as of 31 March 2014 | 53,871 | 465 |
| Net book value as of 31 December 2013 | 54,456 | 490 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
5. PROPERTY, PLAND AND EQUIPMENT
Group
| Buildings | Vehicles | Other property, plant and equipment | Construction in progress | Total | |
|---|---|---|---|---|---|
| COST: | |||||
| Balance as of 1 January 2013 | 39,935 | 29,851 | 36,434 | 145 | 106,365 |
| Additions arising from acquisitions of subsidiaries | - | 712 | 1,146 | - | 1,858 |
| Additions | 917 | 5,032 | 3,503 | 834 | 10,286 |
| Disposals | (4,124) | (519) | (233) | (24) | (4,900) |
| Discontinued operations | (2,338) | (17,082) | (8,103) | - | (27,523) |
| Exchange differences | (267) | (391) | (720) | (1) | (1,379) |
| Retirements | (129) | (998) | (3,961) | (54) | (5,142) |
| Reclassifications | 368 | - | 57 | (480) | (55) |
| Balance as of 31 December 2013 | 34,362 | 16,605 | 28,123 | 420 | 79,510 |
| Additions | 3,262 | 1,130 | 495 | 101 | 4,988 |
| Disposals | (1,252) | (216) | (149) | - | (1,617) |
| Exchange differences | (48) | (281) | (369) | (3) | (701) |
| Retirements | (1,075) | (47) | (101) | - | (1,223) |
| Reclassifications | (2) | 179 | 164 | (359) | (18) |
| Balance as of 31 March 2014 | 35,247 | 17,370 | 28,163 | 159 | 80,939 |
| ACCUMULATED DEPRECIATION: | |||||
| Balance as of 1 January 2013 | 4,634 | 9,819 | 4,843 | - | 19,296 |
| Charge for the year | 1,442 | 5,491 | 6,132 | - | 13,065 |
| Disposals | (361) | (448) | (169) | - | (978) |
| Discontinued operations | (375) | (7,073) | (2,575) | - | (10,023) |
| Exchange differences | (9) | (173) | (116) | - | (298) |
| Retirements | (56) | (799) | (3,860) | - | (4,715) |
| Balance as of 31 December 2013 | 5,275 | 6,817 | 4,255 | - | 16,347 |
| Charge for the period | 312 | 756 | 908 | - | 1,976 |
| Disposals | (1,106) | (131) | (12) | - | (1,249) |
| Exchange differences | (2) | (141) | (116) | - | (259) |
| Retirements | (382) | (10) | (99) | - | (491) |
| Balance as of 31 March 2014 | 4,097 | 7,291 | 4,936 | - | 16,324 |
| Net book value as of 31 March 2014 | 31,150 | 10,079 | 23,227 | 159 | 64,615 |
| Net book value as of 31 December 2013 | 29,087 | 9,788 | 23,868 | 420 | 63,163 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
6. BORROWINGS
Borrowings of the Group and the Company as of 31 March 2014 and 31 December 2013 were as follows:
| GROUP | COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| Creditor | Currency of the loan | Amount of the loan (in currency of the loan) | Final repayment date | Balance as of 31 March 2014 (in LTL) | Balance as of 31 December 2013 (in LTL) | Balance as of 31 March 2014 (in LTL) | Balance as of 31 December 2013 (in LTL) |
| CURRENT LOANS | |||||||
| Nordea Bank (overdraft) | EUR | 3,000 | 09.09.2014 | - | 1,649 | - | 1,649 |
| Nordea Bank (overdraft) | LTL | 10,358 | 09.09.2014 | 4,362 | 3,672 | 4,362 | 3,672 |
| Banco Bilbao Vizcaya | EUR | 462 | - | - | 1,588 | - | - |
| Argentina, S.A. (factoring) | EUR | 1,500 | - | 2,789 | 2,190 | - | - |
| Banco Popular Español S.A. | EUR | 300 | 10.11.2014 | 1,036 | 1,036 | - | - |
| Bankia S.A. (credit line) | EUR | 500 | 28.02.2014 | - | 12 | - | - |
| Banco Popular Español S.A. | EUR | 200 | 29.01.2015 | 874 | - | - | - |
| Bank Zachodni WBK S.A. | PLN | 1,000 | 14.11.2014 | 709 | - | - | - |
| Group Account (eliminated in the consolidated group accounts)* | Unspecified | Unspecified | Unspecified | - | - | 8,702 | 14,426 |
| CURRENT LOAN BALANCE | 9,770 | 10,147 | 13,064 | 19,747 | |||
| NON-CURRENT LOANS | |||||||
| Nordea Bank | EUR | 6,611 | 09.09.2018 | 22,825 | 22,825 | 22,825 | 22,825 |
| Nordea Bank | EUR | 10,141 | 09.09.2018 | 32,827 | 33,921 | 32,827 | 33,921 |
| Banco Popular Español S.A. | EUR | 200 | 10.12.2016 | 637 | 691 | - | - |
| Less: current portion of noncurrent borrowings | (6,918) | (6,258) | (6,755) | (6,041) | |||
| NON-CURRENT LOANS BALANCE | 49,371 | 51,179 | 48,897 | 50,705 |
- Based on overdraft agreement signed on 9 September 2013 with the Company, its subsidiaries operating in Lithuania and with Nordea Bank, the Group can use net cash balances of the Company and its subsidiaries operating in Lithuania as inter-group borrowings.
For the loans and overdraft 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 büstas LT" are pledged to Nordea Bank as well.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
- COST OF SALES (continued operations)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1 | 2014 Q1 | 2013 Q1 | |
| Services of subcontractors and materials used | 94,714 | 99,546 | 13,363 | 16,284 |
| Wages and salaries and social security | 51,534 | 22,291 | 122 | 109 |
| Depreciation | 781 | 1,243 | - | - |
| Cost of goods sold | 1 | 171 | - | - |
| Other | 2 | 10 | (1) | 1 |
| Total cost of sales | 147,032 | 123,261 | 13,484 | 16,394 |
- GENERAL AND ADMINISTRATIVE EXPENSES (continued operations)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1 | 2014 Q1 | 2013 Q1 | |
| Wages and salaries and social security | 10,773 | 8,740 | 1,010 | 718 |
| Allowance for and write-off of receivables | 2,758 | 2,094 | 80 | - |
| Depreciation and amortisation | 1,928 | 1,824 | 78 | 32 |
| Consulting and similar expenses | 921 | 447 | 388 | 304 |
| Commissions for collection of payments | 713 | 657 | 13 | 10 |
| Rent of premises and other assets | 589 | 531 | 59 | 72 |
| Fuel expenses | 445 | 363 | 31 | 27 |
| Advertising | 379 | 269 | 58 | 63 |
| Computer software maintenance | 375 | 364 | 3 | 4 |
| Business trips and training | 362 | 200 | 133 | 107 |
| Insurance | 325 | 250 | 13 | 16 |
| Transportation | 322 | 250 | 31 | 16 |
| Communication expenses | 242 | 229 | 29 | 24 |
| Utilities | 204 | 385 | 18 | 174 |
| Representational costs | 184 | 113 | 20 | 34 |
| Taxes other than income tax | 138 | 137 | 2 | 5 |
| Bank payments | 127 | 117 | 2 | 2 |
| Charity and support | 16 | 13 | - | - |
| Other | 867 | 1,514 | 44 | 37 |
| Total general and administrative expenses | 21,668 | 18,497 | 2,012 | 1,645 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
- OTHER OPERATING INCOME (EXPENSES), NET (continued operations)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1 | 2014 Q1 | 2013 Q1 | |
| Income from rent, net | 196 | 56 | 226 | 120 |
| (Loss) gain on disposal of property, plant and equipment | (203) | 13 | - | - |
| Fines and penalties, net | 336 | 466 | - | - |
| Other income (expenses), net | (220) | (87) | (149) | (50) |
| Total other operating activity | 109 | 448 | 77 | 70 |
- FINANCE INCOME AND (EXPENSES), NET (continued operations)
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2014 Q1 | 2013 Q1 | 2014 Q1 | 2013 Q1 | |
| Interest income | 84 | 148 | 575 | 483 |
| Dividend income | - | - | 5,179 | - |
| Foreign currency exchange gain | 186 | 221 | - | 2 |
| Other financial income | 57 | 30 | - | - |
| Total finance income | 327 | 399 | 5,754 | 485 |
| Interest (expenses) | (772) | (442) | (704) | (647) |
| Foreign currency exchange loss | (1,281) | (1,192) | (127) | (89) |
| Loss on sale of investments | (344) | - | (4,127) | - |
| Discounting effect | (162) | - | - | - |
| Other financial (expenses) | (278) | (180) | (4,478) | - |
| Total finance (expenses) | (2,837) | (1,814) | (9,436) | (736) |
| Financial activity, net | (2,510) | (1,415) | (3,682) | (251) |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
22
CITYSERVICE
In service of your property
11. 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. Augutavícius, J. Šimkevičius, V. Jastremskas, A. Górecka - Kolasa, F. López Abril (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 three months of 2014 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.
| 2014 Q1 | Receivables and prepayments | Loans granted | Payables (long and short-term) | ||
|---|---|---|---|---|---|
| GROUP | Purchases | Sales | |||
| UAB ICOR | 573 | 7 | 1 | - | 10,350 |
| Subsidiaries of UAB ICOR: | |||||
| AB Axis Industries | 428 | 199 | 2 | - | 2,581 |
| Other subsidiaries of UAB ICOR | 1,855 | 547 | 199 | - | 4 |
| Associates and other related parties | - | - | 171 | - | 1,717 |
| Total | 2,856 | 753 | 373 | - | 14,652 |
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
CITYSERVICE
In service of your property
12. SUBSEQUENT EVENTS
On 10 April 2014, considering the structural changes in Poland operating market subsidiaries, as well as the fact that the subsidiary Cleaning Partner Sp. z.o.o. had significant undisclosed financial obligations to employees, 100 percent of Cleaning Partner Sp. z.o.o shares have been sold.
On 25 April 2014, continuing the process of unbundling the activities, the cleaning activities from UAB "Naujamiesčio būstas" have been transferred to separate newly established legal entity. Cleaning activities from UAB "Naujamiesčio būstas" were transferred to UAB "Miesto valymas" (the Group owns 100% of shares), legal entity code is 303297727.
On 30 April 2014, the Ordinary General Meeting of the Shareholders of the Company has been held. The shareholders approved the audited financial statement for the year 2013, distributed the Company's profit for the year 2013, a new member of the Board was elected. Shareholders also approved Ernst & Young Baltic UAB, company code 110878442, as an audit company for the performance of the audit of the Company's consolidated financial statements for the year 2014 and for the evaluation of the Company's consolidated annual report. The meeting has also established the payment conditions for audit services. During the meeting the Company decided to purchase its own shares and to withdraw from activities in St. Petersburg and Stavropol.
On 14 May 2014, Company through a subsidiary has acquired Administraciones Santa Pola S.L., that manages 211 thousand sq. m. of residential facilities in Alicante province, in Spain. Revenues of acquired company were EUR 115 thousand in 2013, and subcontracted turnover reached EUR 1.4 million. The company was acquired for EUR 90 thousand.
AB „City Service“, Smolensko str. 12, LT-03201 Vilnius. Company number 123905633, VAT number LT239056314.
„Nordea Bank AB“ Lithuania Branch, Bank code: 21400, Bank account No.: LT222140030003129829 (LTL), LT382140030003129832 (EUR)
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