CORRECTION: Audited financial report of year 2022 of AS “Rīgas kuģu būvētava”
An independent auditor has completed the audit of financial report of year 2022 of AS “Rīgas kuģu būvētava”
Correction: The Company has published the audited Financial Report of year 2022 and auditor’s report in English.
AS “Rīgas kuģu būvētava” (Company) closed 2022 with a positive operating result or profit of EUR 1 006 722, unlike in 2021, which the Company closed with losses.
As the market contouring is changing in 2022, demand for the use of assets owned and leased by the Company has increased significantly, so the Company has therefore focused its activities on the management and rental of its own and leased real estate. Net turnover from operations in 2022 was EUR 1 674 927, which decreased by 20% compared to 2021. One of the factors influencing the decrease is that in 2022 the Company was basically focused on managing and leasing out its and leased real estate, terminating ship repair services.
Total assets of the Company at the end of 2022 decreased to EUR 7 712 263 compared to the beginning of the year. In 2022, the Company’s total liabilities decreased by 26%, while the successful operation resulted in an increase in equity and at the end of the reporting period amounted to EUR 1 934 34.
The profit generated during the reporting period and the decrease in assets are mainly due to the transaction carried out in 2022, where a few assets owned by the Company were sold which were necessary not only for the increase in current assets, but also for the successful implementation of the plan of measures of the legal protection proceedings.
The amount of the Company’s equity as of December 31st, 2022, is positive in the amount of EUR 1 934 347. The Company’s operating result for 2022 was a net profit of EUR 1 006 722 (comparing to loss of EUR 237 862 in 2021) and as of December 31st, 2022, short–term liabilities were below current assets.
Given that the unjustified and unprovoked Russian war against Ukraine in 2022 has had a significant impact on the energy and food market, it is a major drag on economic development in the country and the world, so there is still uncertainty about economic development, which has also had a significant and unfavourable impact on Company’s economic activities.
Since the approval of the plan of measures of the legal protection proceedings until the preparation of the annual report, there have been several amendments to the plan of measures of legal protection proceedings, the latter of which was approved on November 01, 2022, which allows, without changing the total amount of liabilities to be covered, to adjust the planned revenue and expenses of the Company, as well as the schedule for covering creditors’ claims.
The Company confirms that the amendments to the plan of measures of the legal protection proceedings prepared by it and approved by the court will make it possible for it to maintain its current business profile and declares that the financial obligations towards both secured creditors and unsecured creditors will be fulfilled within sixty months from the approval of the plan of measures of the legal protection proceedings, namely, by 2024.
In 2022 and until the preparation of the annual report, the Company has been able to fulfil its obligations in accordance with the plan of measures of the legal protection proceedings. The future operation of the Company depends on the Company’s ability to implement the plan of measures of the legal protection proceedings, as well as to settle the liabilities to its creditors within the set term, observing all conditions of the plan. The Company continues to take measures in the field of process efficiency and cost optimisation, at the same time looking for solutions to expand the Company’s operations, because of which the Company’s forecasts and operating financial results are planned with a profit.
Although the Company has clear prospects for continuing its operations, it is already known that it will take time to optimise personnel composition, restore the flow of current assets, diversify production, and attract investment.
This conclusion is based on the information available at the moment of signing this financial statement and the impact of further events on future operations of the Company may differ from the management’s evaluation.
The Company has not performed any activities in the field of research and development in the reporting year.
In the reporting year the Company has neither redeemed, nor sold its shares.
The Company does not have representation offices or branches abroad.
The Board of Directors of the Company proposes not to distribute the profit made in the reporting year, but direct it to cover the losses of previous years.
Find hereby enclosed the audited Financial Report of year 2022 and auditor’s report.
The Board of Directors of AS „Rīgas kuģu būvētava”