Published: 2021-08-02 12:58:49 CEST
UPP & CO Kauno 53
Interim information

UPP & CO Kauno 53 OÜ consolidated unaudited financial results for Q2 and 6 months of 2021

Important events

Amendments to Final Terms of the Note Issue

On May 25th, 2021 UPP & CO Kauno 53 OÜ (the Issuer) asked for the consent of the Majority Investors of the ISIN EE3300111152 note issue (the Note Issue) to change the following final terms of the Note Issue:

  • Interest Rate as set out in Section 2 Subsection 7.12 of the Final Terms to be changed to 6% starting from 18th July 2021 (included);
  • Maturity Date as set out in Section 2 Subsection 7.14 of the Final Terms to be changed to 17th July 2024.

As of June 17th, 2021 the Issuer had received the necessary consents from the Majority Investors and the Collateral Agent to change the final terms accordingly. With the Issuer’s June 17th, 2021 announcement to the First North, the amended final terms came into force. The amended final terms will results in annual decrease in financial costs and improved liquidity by a minimum of 94,000 euros.

With the amendments in force, the Issuer had to buy back some of the notes from the investors who did not wish to continue in the Note Issue under the amended terms. Due to that the Issuer asked it’s subsidiary, Promalita UAB to repay 450,000 euros of the shareholder’s loan issued by the Issuer to Promalita UAB for the acquisition of Vievis Logistics Centre.

Comment on 2Q and 6 months of 2021 economic performance

Net rental income was 327,504 euros in 2Q 2021 (326,520 euros in 2Q 2020) and 657,303 euros for the six months of 2021 (654,089 euros for 6 months of 2020). Operating profit was 256,608 euros in 2Q 2021 (249,744 euros in 2Q 2020) and 499,048 euros for the six months of 2021 (503,046 euros for 6 months of 2020). Net income was 98,309 euros in 2Q 2021 (110,421 euros in 2Q 2020) and 183,975 euros for the six months of 2021 (193,467 euros for 6 months 2020).

The economic performance is in line with management’s expectations. The slight decrease in net income for 2Q 2021 and 6 months of 2021 is due to the abnormally low income tax in the previous reporting period.

The company’s sole business activity is to collect rental revenue, manage the Vievis Logistics Centre and service its liabilities to lenders and investors. Liabilities include the subordinated bonds with a fixed interest rate and the investment loan which’ rate is also fixed with an interest rate swap agreement. On the revenue side the company earns stable triple-net rental income from reputable tenants, which is fixed with medium-term agreements but is subject to indexation. Due to the economically fixed nature of the company, there needs to be major event in the overall economy or in the company's business activities for them to have significant effect on the company’s financial results.

Financial ratios of the Group   2021
6 months
2020
 6 months
Debt to equity ratio   7.34 9.45
Debt ratio 0.90 0.94
Long-term debt ratio   0.89 0.90
Return on equity %   11.83% 13.94%
Equity ratio   0.10 0.08
Return on assets %   1.09% 1.14%

Management board and Supervisory board

The management board of UPP & CO Kauno 53 OÜ consists of one member: Marko Tali, Chairman of the Management Board.

The supervisory board of UPP & CO Kauno 53 OÜ consists of three members: Mart Tooming, Tarmo Rooteman, Hallar Loogma.

No remuneration or other benefits are provided to the members of the management board and the supervisory board.

Other than the management board and the supervisory board, the Company has no employees.

UPP & CO Kauno 53 OÜ is a going concern.

Member of Management Board

Marko Tali

 

CONSOLIDATED INTERIM ANNUAL ACCOUNTS

CONSOLIDATED BALANCE SHEET

(EUR)

  30.06.2021   30.06.2020   Note
           
Cash 510,426   302,999   2
Receivables and prepayments 10,232   149,321    
Total current assets 520,658   452,320    
           
Investment properties 15,750,000   15,750,000   4
Tangible fixed assets 5,345   10,371    
Goodwill 533,678   747,146   5
Total fixed assets 16,289,023   16,507,517    
           
TOTAL ASSETS 16,809,681   16,959,837    
           
Short-term loans payable 460,000   460,000   6
Payables and prepayments 148,564   157,211   7
Total current liabilities 608,564   617,211    
           
Long-term loans payable 12,195,184   12,655,184   6
Long-term provisions 2,282,822   2,300,058   8
Total non-current liabilities 14,478,006   14,955,242    
           
TOTAL LIABILITIES 15,086,570   15,572,453    
           
Share capital 2,500   2,500   9
Retained earnings 1,720,611   1,384,884    
TOTAL EQUITY 1,723,111   1,387,384    
           
TOTAL LIABILITIES AND EQUITY 16,809,681   16,959,837    

 

CONSOLIDATED INCOME STATEMENT

(EUR), per year                                                                                   

    2021
Q2
  2021
6 months
  2020
Q2
  2020
6 months
  Note
                     
Sales revenue   327,504   657,303   326,520   654,089   10
                     
Other operating expenses   -16,301   -48,759   -21,490   -40,471   11
Staff costs   -96   -193   -80   -160    
Depreciation of fixed assets   -54,499   -109,096   -55,206   -110,412   5
                     
Operating profit   256,608   499,048   249,744   503,046    
                     
Financial income (expenses)   -139,991   -280,123   -138,666   -277,843   12
                     
Profit before income tax   116,617   219,132   111,078   225,203    
Income tax   -18,308   -35,157   -657   -31,736   13
Net profit for financial year   98,309   183,975   110,421   193,467    
                     
including the share of the owners of the parent company in net profit    98,309   183,975     110,421   193,467    

 

         UNITED PARTNERS
         Siim Sild
         Managing Director
         +372 5626 0107
         siim.sild@unitedpartners.ee


K53_2Q6-mo2021_ENG.pdf