AS SAKRET HOLDINGS consolidated and parent company audited Financial statements for financial year 2019
Performance of the Group
In 2019, the construction volumes continued to grow, as a result of which the Group's net turnover in 2019 increased by EUR 0.6 million or 3% compared to 2018, reaching EUR 21.9 million.
The Group's target market since the beginning of Sakret is the Baltic countries where 98% of the revenue was derived in 2019; no structural changes were observed compared to 2018.
In 2019, the Group’s gross profit grew by EUR 643 thousand due to both the sales growth by 4% and the changes in the product range; however, a negative impact was produced by the increased staff costs driven by the average salary growth tendency in the Baltic countries.
In 2019, the Group’s staff costs grew by EUR 109 thousand or 5% against the year 2018.
In 2019, the Group successfully completed the refinancing of its credit liabilities to Luminor Bank AS. As a result, by partial payment and full cancellation of all the credit liabilities to Luminor Bank AS, the Group’s profit for the reporting year grew by EUR 8.5 million.
On 11 October 2019, the credit liabilities of the Sakret group companies to AS Luminor Bank were refinanced, thus settling all liabilities with AS Luminor Bank. To this end, the Group attracted funds from AS BlueOrange Banka amounting to EUR 6 000 000 (a non-current loan of EUR 4 000 000, an overdraft of EUR 2 000 000) as well as EUR 3 000 000 of the proceeds form the bond issue. Moreover, AS BlueOrange Banka provided a credit line with a limit of EUR 1 700 000 for financing current assets. The refinancing plan executed by Sakret and AS BlueOrange Banka is expected to form a basis for a long-lasting cooperation.
Other income of the Group included income of EUR 8 493 675 derived from the cancellation of the liabilities to AS Luminor Bank; the equity was increased by the respective amount. On 10 September 2019, within the framework of the refinancing process, the share capital of AS SAKRET HOLDINGS was increased from EUR 35 000 up to EUR 1 050 000. As at 31 December 2019 - the share capital consists of 750 000 shares with a par value of EUR 1.40 each. The execution of the transaction led to an additional expense of EUR 683 959.
In 2019 the Group has attracted financing from AS BlueOrange Banka and issued bonds. In accordance with the credit agreement and terms of bond issue, the Group is obliged to comply with certain financial covenants specified in the agreement. Group’s management has performed an examination of the fulfillment of these financial covenants and concluded that based on the Consolidated financial statements of AS SAKRET HOLDING, these covenants have been met :
• Ratio Net DEBT / EBITDA does not exceed 5.0,
• Ratio DSCR is above 1.1,
• Ratio Net DEBT / Equity does not exceed 5.0.
It is expected that the profit for the reporting period will be used for covering the prior period losses.
AS SAKRET HOLDINGS
Chairman oft he Council