AS “TALSU MEŽRŪPNIECĪBA” (REGISTRATION NUMBER 40003113243)
FINANCIAL REPORT OF 9 MONTH OF THE YEAR 2015 (NON-AUDITED)
WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON - AUDITED )
Content
Page
General Information 3
Management Report 4
Profit and Loss statement 5
Balance Sheet 6
Equity and L ia bilities 7
Equity Statement 8
Cash Flow Statement 9
Notes 10-18
WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON - AUDITED )
General information
Company name A/s „Talsu Mežrūpniecība”
Legal Status Joint stock company
Registration numb er, time and place 40003113243, Riga January 29, 1993
Legal address Eksporta Street 26, Tukums, LV - 3104
Address of the executive bodies Dumpīšu Street 3, Stende, LV – 3257
Shareholders All Company shares are book -entry shares. Public placement at LCD – 230,000 shares are bearer shares Closed issue - 265,699 shares are registered shares Board Gatis Štāks ,chairman of the Board from Roja district., Parish Roja, “Birzītes” Pēteris Klava , member of the Board Talsi district., Parish Libagi, “Veikals” Andis Gribusts , member of the Board Talsi district, Parish Lauciene, „Dzelzkalēji”.
Supervisory Board Oskars Derings , Chairman of the Supervisory Board, Talsi, Riga Street 3-13 Eva Emerberga , member of the Supervisory Board Talsi, Riga Street 3-13 Alda Kiore , member of the Supervisory Board Talsi district, Stende, Robezu Street 4. Asmeralda Kļava , member of the Supervisory Board Talsi district, Parish Abava, „Vītiņi”. Gita Emerberga , member of the Supervisory Board Roja district, Kaltene, “Foreles-3”.
Period 01.01.2015.-30.09.2015. Audithor Daiga Baraua ,sworn audithor, No. Sertificate 89, Talsi district, Parish Valdgale, “Lejaskalēji”, LV-3253, Latvia
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON - AUDITED )
MANAGEMENT REPORT
The main activities of the Company in 2015 were logging and production of timber products: peeled and turn poles production in timber processing unit.
The result for 9 month of the year 2015 is profits EUR -101200 which corresponds to EUR 0.204 profits per share. During 9 month of the year 16 910 m3 poles were produced in the timber processing unit and woodchips of 43 686 m3 were sold.
Total revenues for the Company during 9 month of year 2015 were EUR 2 916 310.-. This compared to 2014 is about 33.4% higher. The demand for products to England is positive The company’s profit at the 9 month, year 2015 are EUR 52 605.-, which corresponds to EUR 0.106 profit per share.
In the future the Company plans to continue the production of peeled and turn poles, increasing the proportion of timber purchased from small logging companies and private loggers, whose price offering is lower than that of VAS Latvijas valsts meži. It is also planned to sell the produced goods to a wider network of clients, achieving the most beneficial sales price.
Suggestions for distribution of profit and covering of losses
Profits will be used for new production equipment and machine purchase.
Board:
Gatis Štāks Pēteris Kļava Andis Gribusts Ch ai rman of the Board Member of the Board Member of the Board
15 th October, 2015. .
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON - AUDITED )
Profit and Loss Statement
2015 2014 Note EUR EUR Revenues 2 2 916 310 1 930 456 Cost of goods sold 3 (2 747 853) (1 737 288) Gross result 119 862 193 168 Administration expenses 4 (56 977) (43 328) Other operating income 5 4 18 579 Other operating expenses 6 (8 572) (8 817) Fiancial income 7 2 059 516 Financial expenses 8 (2 528) (3 280) Profit (loss) before taxes 53 848 156 838 Deferred corporate income tax 9; 18 Other taxes 17 (1 243) (1 243) Net profit (loss) 52 605 155 595
Notes on pages 10 to 18 are integral part of the financial statements
Board:
Gatis Štāks Pēteris Kļava Andis Gribusts Chairman of the Board Member of the Board Member of the Board
15 th October, 2015
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON - AUDITED )
Balance Sheet ASSETS 30.09.2015. 30.09.2014. LONG TERM ASSETS Note EUR EUR Fixed assets Land, buildings and constructions 118 079 122 759 Machinery and equipments 278 033 238 883 Other fixed assets 53 215 61 405
Lizings 124 366 180 579 Total 10 609 503 603 626 TOTAL LONG TERM ASSETS 609 503 603 626
CURRENT ASSETS Inventories Materials 12 944 10 641 Production in progress 59 566 19 713 Goods for sale 55 242 48 033 Advances for goods 6 403 6 403 TOTAL 134 155 84 790
Debtors Trade receivables, net 11 277 146 154 355 Other debtors 12 9 090 11 415 Prepaid expenses 5 163 4 710 TOTAL 291 399 170 480 Cash and cash equivalenets 112 556 163 870 TOTAL CURRENT ASSETS 558 110 419 140
TOTAL ASSETS 1 167 613 1 022 766
Notes on pages 10 to 18 are integral part of the financial statements
Board:
Gatis Štāks Pēteris Kļava Andis Gribusts
Chairman of the Board Member of the Board Member of the Board
15 th October, 2015
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE 2015 ( NOT – AUDITED )
EQUITY AND LIABILITIES 30.09.2015. 30.09.2014. EQUITY Piezīme EUR EUR Share capital Treasury shares 13 693 979 705 316 Reserv 11 337 - - Prior year loss (13 584) (165 432) Current year profit (loss) 101 200 155 595 Total equity 792 932 695 479 Provisions Uzkrājumi paredzamajiem nodokļiem 14 28 187 18 792 TOTAL PROVISIONS 28 187 18 792 LIABILITIES Long term liabilities
Loans several 16 67 681 93 179 Loans from credit institutions 16 11 739 Deferred tax liabilities 18 38 024 25 339 Short term liabilities TOTAL 117 444 118 518
Other loans 16 7 095 7 960 Loans from credit institutions 16 3 201 27 746 Trade creditors 167 011 121 941 Taxes payable 17 19 575 11 998 Other liabilities 26 690 17 706 Acured liabilities 15 5 478 2 626 TOTAL 229 050 189 977 TOTAL LIABILITIES 346 494 308 495 TOTAL EQUITY AND LIABILITIES 1 167 613 1 022 766
Notes on pages 10 to 18 are integral part of the financial statements
Board:
Gatis Štāks Pēteris Kļava Andis Gribusts Chairman of the Board Membe r of the Board Member of the Board
15 th October, 2015
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
Equity Statement
Prior period Current period EUR Share capital loss profit (loss) Total
January 1, 2014 705 316 (197 950) 32 518 539 884
Transferred to prior period losses - 25 132 (25 132) - Current period loss - - 155 595 155 595
September 30, 2014 705 316 (172 818) 162 981 695 479 (11 337) (11 337) Transferred to prior period losses - (13 584) 9 837 (3 747) Current period profit - - 52 605 52 605 11 337 11 337 September 30, 2015 705 316 (186 402) 225 423 744 337
Notes on pages 10 to 18 are integral part of the financial statements. Board:
Gatis Štāks Pēteris Kļava Andis Gribusts
Chairman of the Board Member of the Board Member of the Board
15 th October, 2015
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
Cash Flow Statement 2015. (based on indirect method)
2015 2014
Operating cash flow EUR EUR Profit (loss) before taxes 53 848 156 838 Adjustments: Depreciation 61 361 44 488 Interest (income)/expenses 8 572 2 764 Increas/(decrease) in provisions 9 395 9 457 Asset writte offs - - (Profit)/loss from sale of fixed assets Revaluation of biological assets - - (profit)/loss from currency fluctuations - - Operating cash flow before changes in current assets 133 176 213 547 Decrease/(increase) of inventories (19 362) 97 491 Decrease/(increase) of debtors (120 919) (47 620) Increas/(decrease) in creditors 34 162 133 729 Operating cash flow 27 054 397 147 Interest paid (2 528) Corporate income tax paid (14 757) Real estate tax paid (1 243) (1 243) Net operating cash flow 8 526 395 904
Cash flow from investing activities Acquisition of long term assets (29 161) (228 260) Income from sale of fixed assets 18 000 Net cash flow from investing activities (29 161) (210 260)
Cash flow from financing activities - - Loand received/(paid), net (30 679) (32 993) Net financing cash flow (30 679) (32 993) Cash increse/(decrease) (51 314) 152 651
Cash at the beginning of the year 163 870 11 219
Cash at the end of the year 112 556 163 870
Notes on pages 10 to 18 are integral part of the financial statements. Board:
Gatis Štāks Pēteris Kļava Andis Gribusts Chairman of the Board Member of the Board Member of the Board
15 th October, 2015.
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
Notes
1. Significant accounting policies
Annual report preparation principles
The annual report is prepared in accordance with the Law on Accounting, Law of Annual Accounts and Latvian accounting standards applicable as of December 31, 2014. Profit and loss statement was prepared based on turnover method. Cash flow statement is prepared by indirect method. The same accounting policies and valuation methods were applied in current and prior reporting year. Annual report is prepared based on the going concern principle. Taking into account requirements of the stock exchange, the amounts in the financial statements are disclosed also in EUR. All amounts are translated to EUR based on official Bank of Latvia fixed EUR rate.
Foreign currency translation
The accounting records are prepared in EUR. All transaction in foreign currencies translated to EUR in according the European Central Bank rate as at date of the transaction. Monetary assets and liabilities denominated in foreign currencies are stated at the official currency exchange rate set by the European Central Bank at year end. Any gain or loss resulting from a change in the currency rates of exchange is included in the profit and loss statement at net value.
30.09 .201 5. 30.09 .201 4. EUR LVL
1 G BP 0.7 385 0. 7807 Fixed assets
All fixed assets are initially recorded at purchase price. Land is regularly revaluated and accounted for at market value. Increase of the value resulting from revaluation is accounted as long term revaluation reserve and included in the equity of the Company. The decrease of the value is first deducted from previously recognised revaluation reserve for the same asset and any uncovered loss recognised as expense in profit and loss account. Fixed assets are stated at historical value less accumulated depreciation. The assets are depreciated over their estimated useful lives using the straight-line method. Following depreciation rates are applied for fixed assets: % Buildings and constructions 4% - 5% Machinery and equipment 10% - 20% Other fixed assets 20% - 35%
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
1. Significant accounting policies (continued)
Inventories
Inventories are accounted in lower of cost and net realisable value. For raw materials the cost is calculated based on purchase cost accounting to FIFO method, but for work in progress and goods for sale the cost is calculated based their purchase price or production costs according to weighted average principle. Net realisable value is selling price in the ordinary course of business, less the costs of completion, marketing and distribution. Net value is disclosed as cast of production, less provision established. Advances for inventories include also cash paid for cutting rights on those cutting that were not yet processed at the end of the reporting period.
Receivables
Trade receivables are recorded and disclosed in the balance sheet in accordance with initial amount of the invoices, less provision established for doubtful accounts. Provisions for doubtful accounts are estimated when full recoverability of the amount is not likely. Provisions for doubtful accounts are estimated by individual assessment of each debtor.
Corporate income tax
Corporate income tax is calculated for the reporting year is calculated in accordance with regulatory requirements of the Republic of Latvia. Deferred taxation arising from temporary differences in the timing of the recognition of items in the tax returns and these financial statements is calculated using the liability method. The deferred taxation liability is determined based on the current tax rates. The principal temporary timing differences arise from differing rates and methods of accounting and tax depreciation on tangible fixed assets, provision for vacation and accumulated tax losses.
Provisions
Provisions are recognised, when the Company has commitments (legal or supported) due to past events where the likelihood of outflow of economical benefits for Company is estimated and the amount of the liabilities can be reasonably estimated.
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
2. Revenues
201 5 201 4 EUR EUR Timber product related 2 697 431 1 776 843 revenues Other revenues 218 879 153 613 Total: 2 916 310 1 930 456
Revenues according to geographical markets:
20 15 20 14 EUR EUR Latvia 1 157 171 1 102 661
Estonia United Kingdom 1 759 139 827 795 Total: 2 916 310 1 930 456
3. Cost of goods sold
20 15 20 14 EUR EUR Cost of materials 1 985 586 1 160 826 Cost of external services 197 635 104 362 Depreciation 61 361 44 487 Salaries 277 639 205 733 Social contributions 76 005 56 558 Other costs of goods sold 198 222 165 322 Total: 2 796 448 1 737 288
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
4. Administration expenses
20 15 20 14 EUR EUR Personnel costs 52 323 38 905 Other administration expenses 4 654 4 423 Total: 56 977 43 328
The Board does not receive remuneration
5. Other operating incomes
20 15 20 14 EUR EUR Income from assets 18 000 Losses from assets Resu lt from closing assets ot her incomes 4 579 Summa kopā: 4 18 579
6. Other operating expenses
20 15 20 14 EUR EUR Stock exchange related 7 224 7 618 expenses Other asset write offs Provisions for doubtful accounts Other expenses 1 348 1 199
Total: 8 572 8 817
7. Financial income
20 15 20 14 EUR EUR Income from currency fluctuations 2 059 516 Other income Total: 2 059 516
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
8. Financial expenses
20 15 20 14 EUR EUR Interest expenses persent 2 528 3 126 Loss from currency - Loss from currency exchange - Netto result from losses - 154 Total: 2 528 3 280
9. Corporate income tax
20 15 20 14 EUR EUR Deferred corporate income tax income/ (expenses)
Corporate income tax income
Total:
10. Fixed assets
Land, buildings Advances and Machinery and Other fixed for fixed EUR constructions equipment assets assets TOTAL Historical cost 31.12.2014 224 796 845 192 112 991 204 033 1 387 012 Acquisitions 1 573 23 491 4 095 29 159 2015 Writte offs (1 277) - (1 277) Historical cost 30.09.2015 226 369 868 683 115 809 204 033 1 414 894 Accumulated depreciation 31.12.2014 103 261 559 895 48 845 28 554 740 555 Depreciation 5 029 30 755 14 813 15 303 65 900 2015 Depreciation of assets written off (1 064) - (1 064) Accumulated depreciation 30.09.2015 108 290 590 650 62 594 43 857 805 391 Net book value 31.12.2014 121 535 285 297 64 146 175 479 646 457 Net book value 30.09.2015 118 079 278 033 53 215 160 176 609 503
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
Cadastral value of assets of the Company:
20 15 20 14 EUR EUR Land 29 127 29 127 Buildings and constructions 85 812 85 812 Total: 114 939 114 939
Fixed assets of the Company are pledged as security for credit line issued by SC „SEB bank” (see Note 20).
11. Trade receivables, net
20 15 20 14 EUR EUR Gross trade 277 146 154 355 receivables Provisions for doubtful accounts Total: 277 146 154 355
12. Other debtors
20 15 20 14 EUR EUR VAT receivable 4 001 Other debtors 4 022 Payment 9 090 3 392 Total: 9 090 11 415
13. Share capital Share capital of the Company consists of 495,699 shares with nominal value Ls 1 per share.
Shares Value of Total value Number shares(EUR (EUR)
Close issue shares 265 699 1,4 0 37 1 979 Public placement 230 000 1,4 0 322 000
Total: 495 699 693 979
Reserv 11 337
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
14. Other provisions
20 15 20 14 EUR EUR Provisions for 28 187 18 792 vacations Other provisions Total: 28 187 18 792
15. Accured liability
20 15 20 14 EUR EUR Accruals for prospective 5 478 2 626 payment
Total: 5 478 2 626
16. Loans from credit institutions
20 15 20 14 EUR EUR Long term Loan for BMW 6 172 15 404 Loan for VOLVO tractor 61 509 77 775 Loan from SC SEB bank 11 739
Short term Loan for BMW 2 595 3 460 Loan for VOLVO tractor 4 500 4 500 Loan from SC SEB bank 3 201 27 746
Total: 89 716 128 885
In accordance with provisions of the agreement, the loan repayment shall be done in monthly principal repayments with final term on November 24, 2016. The interest rate for the loan is 3 month EURIBOR + 3.41%.
In order to secure potential claims, the Company has issued commercial pledge and has pledged its fixed assets, inventories and debtors in favour to the credit institution. In accordance with provisions for the credit line, the limit is EUR 100 000 and the term 22.09.2016.. Interest rate of 3.55% + 3M Rigibor. Secured by a mortgage on real estate Dumpisu Street 3, Stende, Talsi district.
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
17. Taxes payable
(Liabilities)/ 2015 (Liabilities)/ assets Calculated Tranferred to Paid/(claimed assets EUR 31.12.2014 other taxes back) 30.09.2015 Value added tax (VAT) 1 206 6 982 (13 140) 3 786 (1 166) Social contributions (17 448) (109 878) 13 140 101 813 (12 373) Personnel income tax (9 673) (54 307) - 57 956 (6 024) Real estate tax (1 243) - 1 243 - Nature resources tax (186) (278) - 472 8 Corporate income tax (11 121) 11 121 - Risk duty (16) (167) - 163 (20) Total (37 238) (158 891) - 176 554 (19 575) Liabilities Prepayments (38 444) (19 583) 1 206 8
Tax receivables are included in other debtors, see Note 12.
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c AS „T ALSU MEŽR ŪPNIEC ĪBA ” FINANCIAL REPORT FOR 9 MONTH OF THE YEAR 2015 (NON – AUDITED )
19. Other loans
In accordance with provisions for the credit line, the limit is EUR 100 000 and the term 22.09.2016. Interest rate of interest 3.0% + 3M Rigibor. . Credit line’s balance on 30.09.2015.are EUR 00.0. Secured by a mortgage on real estate Dumpisu Street 3, Stende, Talsi district.
20. Number of employees
20 15 20 14
Average number of employees for the reporting year 52 46
21. Financial risk management The most significant financial instruments for the Company are loans from credit institutions, related entities and cash and cash equivalents. The main purpose of those financial instruments is to ensure operating activities of the Company. The Company is also exposed to other financial investments that are directly related to operating activities of the Company, such as, trade receivables and other receivables, trade payables and other payables. Board:
Gatis Štāks Pēteris Kļava Andis Gribusts Ch ai rman of the Board Member of the Board Member of the Board
15 th October, 2015.
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WorldReginfo - f2a67133-a959-4cab-bfc4-d17cdd01ea0c