CONSOLIDATED
ANNUAL
REPORT
Beginning of the reporting period 1 January 2022
End of the reporting period 31 December 2022
Business name City Service SE
Registration number 12827710
Legal address Narva mnt. 5, 10117 Tallinn ,
the Republic of Estonia
Telephone +370 5 239 49 00
Fax +370 5 239 48 48
E-mail info@cityservice.eu
Website http://www.cityservice.eu
Auditor Ernst & Young Baltic AS
CONSOLIDATED
ANNUAL REPORT
FOR 2022
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CONTENTS
1. Corporate profile
1.1. City Service Group
1.2. Strategy and objectives
1.3. Mission and vision
1.4. Structure of the Group
1.5. Employees
2. Management and Corporate
Governance report
2.1. Main areas of activity
2.1.1. Administration of apartment buildings
2.1.2. Management of commercial building facilities
2.1.3. Maintenance and cleaning of territories
2.1.4. Other activities
2.2. Performance improvement
2.3. The most significant investments and events
2.4. Key risk activity types and uncertainties
2.5. The main financial ratios concerning the financial year
2.6. The structure of the Company’s share capital
2.7. The shareholders of the Company
2.8. Restrictions on the transfer of securities and restrictions on voting rights
2.9. Company’s supervisory board and management board
2.9.1. Company’s supervisory board
2.9.2. Company’s management board
2.10. Dividend policy
2.11. Procedure of amendment of the Statutes of the Company
2.12. Material agreements concluded by the Company which may be important
after change of control of the Company
2.13. Auditing system and description of the main features of internal audit
and risk management systems in connection with the process of the preparation
of the annual accounts
2.14. Information on compliance with the corporate governance code
2.15. Remuneration report
3. Social responsibility report
3.1. Overview
3.2. Market
3.3. Relations with employees
3.4. Social initiatives for communities
3.5. Environmental issues / Energy saving
3.6. Taxonomy overview
4. Consolidated financial statements
Consolidated statement of financial position
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Note 1 General information
Note 2 Accounting policies
Note 3 Use of judgements and estimates in preparation of financial statements
Note 4 Segment information
Note 5 Goodwill
Note 6 Other intangible assets
Note 7 Property, plant and equipment
Note 8 Discontinued operations and assets held for sale
Note 9 Material partly-owned subsidiaries
Note 10 Inventories
Note 11 Prepayments
Note 12 Non-current receivables
Note 13 Trade receivables
Note 14 Cash and cash equivalents
Note 15 Reserves and share premium
Note 16 Borrowings
Note 17 Provisions
Note 18 Lease
Note 19 Provision for employee benefits
Note 20 Trade payables and payables to related parties
Note 21 Contract liabilities - advances received
Note 22 Other current liabilities
Note 23 Cost of sales
Note 24 General and administrative expenses
Note 25 Other operating income and expenses
Note 26 Other finance income and (expenses)
Note 27 Income tax
Note 28 Basic and diluted earnings per share (EUR)
Note 29 Dividends per share
Note 30 Financial assets and liabilities and risk management
Note 31 Commitments and contingencies
Note 32 Related party transactions
Note 33 Capital management
Note 34 Subsequent events
Note 35 Parent company’s unconsolidated financial statements
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According to Management Board Regulations of City Service SE, Chairman of the Management
Board hereby declares and confirms that according to his best knowledge, the financial state-
ments, prepared according to the accounting standards in force, present a correct and fair view
of the assets, liabilities, financial situation and loss or profit of the issuer and the undertakings
involved in the consolidation as a whole, and the management report gives a correct and fair view
of the development and results of the business activities and financial status of the issuer and the
undertakings involved in the consolidation as a whole and contains a description of the main risks
and doubts.
Chairman of the Management Board
Artūras Gudelis
DECLARATION
OF THE MANAGEMENT
2 May 2023
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
1.1. CITY SERVICE GROUP
City Service SE is a holding company managing a group of facility maintenance and integrated
service companies in Europe .
The Group’s companies are involved in the administration of the building management process, maintenance, and
repair of engineering systems, energy management, and renovation, technical and energy audits of buildings, site
management and cleaning of premises, petrol station maintenance, and debt management.
The Group’s companies operate in an environmentally sustainable manner.
Administration of
apartment buildings
Commercial
facility
management
Teritory
cleaning and
maintenance
Other
activities
Main business areas of the Group:
CORPORATE
PROFILE
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
1.3. MISSION AND VISION
1.2. STRATEGY AND OBJECTIVES
By combining City Service global expertise with a deep understanding of local specifics, we
provide our customers with modern and convenient services.
Our long-term objective is very linked with our mission – growth of commercial, public and private property man-
agement, development of integrated utility services.
16.6 millions m
2
Today, the Group’s companies operate
in Lithuania, Poland, Latvia, Spain, Czech
Respublic, Portugal.
The total area of buildings managed
in these regions amounts to
OUR VISION
is to be a leader in
creating value for residential
property.
OUR MISSION
is to represent our client’s interests
by increasing the value of their
property and improving their living
environment.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
LITHUANIA LATVIA POLAND SPAIN
76%
UAB Alytaus namų
valda
100%
UAB Energijos
taupymo paslaugos
100%
UAB Mano Būstas
Kaunas
100%
UAB Pastatų
valdymas
100%
SIA BILANCE
100%
Atrium 21 sp. z o.o.
100%
Progresline sp. z o.o.
100%
Aresi administracion de
fincas S. L.
100%
UAB Apex
Intelligence
100%
UAB Energetinių
projektų valdymas
100%
UAB Mano Būstas
Klaipėda
100%
UAB PortalPRO
100%
SIA BonoDomo
100%
Deleterma sp. z o.o.
100%
Santer Zarządzanie
Nieruchomościami
sp. z o.o.
100%
Concentra Servicios y
Mantenimiento, S.A.*
100%
UAB Baltijos būsto
priežiūra
100%
UAB EPC projektai
100%
UAB Mano Būstas
Radviliškis
100%
UAB Rinkų vystymas
100%
SIA City Service
100%
Certus-Serwis Sp.
z o. o.
100%
Skydas - Przeglądy
Budowlane sp. z o.o.
100%
Eurobroker Advisors
Sorreduria de Seguros,
S.L.
100%
UAB Baltijos NT
valdymas
100%
UAB Getfiks
100%
UAB Mano Būstas
Sostinė
100%
UAB Skolos LT
100%
SIA City Service
Engineering
100%
Concierge -
Zarządzanie
Nieruchomościami
sp. z o.o.
100%
TED sp. z o.o.
100%
Euronamas Gestion de
Fincas Centro, S.L.
100%
UAB Baltijos
transporto valdymas
100%
UAB Neries būstas
100%
UAB Mano Būstas
Šiauliai
100%
UAB Šiaulių NT
valdymas
100%
SIA Ēku
pārvaldīšanas serviss
100%
Dom Best sp. z o.o.
100%
Tumieszkamy sp.
z o. o.
100%
Grupo Aresi de
Inversiones, S.L.
57.71%
UAB Biržų butų ūkis
100%
UAB Mano aplinka
100%
UAB Mano Būstas
Ukmergė
100%
UAB Unitechna
100%
SIA PortalPRO
100%
EnergiaOK sp. z o.o.
100%
Wolska Aparthotel
sp. z o. o.**
100%
PORTALPRO, S.L.
100%
UAB BonoDomo
100%
UAB Mano
bendrabutis
99.97%
UAB Mano Būstas
Vakarai
100%
SIA Latvijas Nam-
saimnieks
100%
Famix sp. z o.o.
100%
Zespół Zarządców
Nieruchomości sp.
z o.o.
100%
Vetell dos iberica, S.L.*
100%
UAB BonoDomo
Pay
100%
UAB Mano Būstas
100%
UAB Mano Būstas
Vilnius
100%
SIA Livonijas Nami
100%
Grupa Techniczna
24 sp. z o.o.
100%
ZZN Inwestycje sp.
z o.o.
Czech Republic
100%
UAB Butų ūkio
valdos
100%
UAB Mano Būstas
Alytus
100%
UAB Mano Būsto
priežiūra
100%
SIA Namu serviss
APSE
100%
Parama Blue sp.
z o.o.
100%
PortalPRO s.r.o.
100%
UAB Būsto aplinka
100%
UAB Mano Būstas
Aukštaitija
100%
UAB Medžiagų
tiekimo centras
100%
SIA Manas MĀJAS
100%
Parama Group sp.
z o.o.
PORTUGAL
100%
UAB City Service
100%
UAB Mano Būstas
Baltija
100%
UAB Merlangas
100%
SIA Manas MĀJAS 2
100%
Parama Yellow sp.
z o.o.
100%
PORTALPRO,
UNIPESSOAL LDA
100%
UAB City Service
Cleaning
100%
UAB Mano Būstas
Dainava
100%
UAB Nacionalinis
renovacijos fondas
100%
SIA NIRA Fonds
apsaimniekosana-
Salnas 21
100%
Parama Red sp.
z o.o.
100%
UAB City Service
Engineering
100%
UAB Mano Būstas
Neris
100%
UAB Pastatų
priežiūra
100%
SIA Manas MĀJAS 3
100%
Parama White sp.
z o.o.
100%
UAB CSG IT
100%
UAB Mano Būstas
NPC
100%
UAB Pastatų
priežiūros tarnyba
100%
SIA Ventspils nami
100%
PORTALPRO sp.
z o.o.
1.4. STRUCTURE OF THE GROUP
*
The Group ceased to consolidate Concentra Servicios y Mantenimiento, S.A. (including sub-consolidated subsidiary Vetell dos iberica, S.L.) in its Financial statements after bankruptcy
administrator was appointed on 10 May 2017, as from that date the Group has lost its control.
**
The Group ceased to consolidate Wolska Aparthotel sp. z o. o. in its Financial statements after bankruptcy administrator was appointed on 3 June 2020, as from that date the
Group has lost its control.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
1.5. EMPLOYEES
In 2022, the Group’s companies actively involved employees at all levels in the company’s activities,
resulting in periodic live or remote meetings with country managers in all countries to present the
company’s strategy, objectives, and performance.
LITHUANIA LATVIA
POLAND
OTHER
In 2022, the company’s values were updated, values be-
haviours were defined, an employee engagement survey
was carried out, the results were presented to employ-
ees, and actions to improve employee engagement were
planned.
Traditional fringe benefits such as birthday and Christmas
gifts, honouring long-serving staff, flu vaccinations, addi-
tional allowances for teleworkers, and access to psycho-
logical counselling for all staff were provided.
All Group companies continued to invest in staff devel-
opment and foreign language training, organising internal
and external training, both in person and remotely. Par-
ticular attention was paid to the training and integration
of new employees.
The company periodically participates in salary surveys
and adapts the salary systems in each country to market
trends and changes.
The Group currently employs a total of 1,594 people.
There are 1,290 employees in Lithuania, 144 employees
in Latvia, 151 employees in Poland, 7 employees in Spain,
1 in Czech Republic and 1 in Portugal. At the end of 2021
the Group employed 2,520 people: In Lithuania – 1,581
employees, in Latvia – 134 employees, in Poland – 233
employees, in Spain – 16 employees, in St. Petersburg –
547 employees, in the Czech Republic – 9 employees.
Number of employees by country:
employees
employees
employees
employees
1,290
151
144
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The total number
of employees
of the Group is
1,594
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.1. MAIN AREAS OF ACTIVITY
2.1.1. Administration of apartment buildings
The Group’s companies provide administration services for multi-apartment buildings, including
all the actions necessary to preserve and ensure the intended use of common-use facilities and
regular maintenance.
The companies take care of maintaining the mechanical durability of the main structures of the building, removing
minor defects, preventing, adjusting, and ensuring the safe use of common utility equipment, eliminating emergencies,
and preventing, adjusting, and preparing heating and hot water supply systems for the heating season.
The group provides administration, maintenance, and repair services for apartment buildings in Lithuania, Poland and
Latvia.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
During the year, new comprehensive housing
maintenance services were additionally launched
for apartment buildings with a total area of more
than 200,000 square metres. The company in-
creased its focus on service quality, customer ser-
vice, and sustainable solutions.
Group companies continued to focus on the development
of digitised services. In March 2022, a new self-service plat
-
form, BonoDomo, was launched for customers. It currently
has 130,000 active accounts and 460,000 bills were paid
through the platform during the year.
The work-sharing platform PortalPRO is further strength
-
ened. Only certified craftsmen with certificates of individual
activity are working there. In March, PortalPRO merged
with the start-up GetFIX, increasing the number of clients
and craftsmen working on the platform.
Currently, 7,746 craftsmen are registered with PortalPRO,
1,738 have become partners and 558 are accepting work
orders. Since the launch of the platform, more than 91,000
work orders have been placed for private and corporate
clients.
The Group companies operating in Latvia pro-
vides services in the towns of Riga, Liepaja, Vent-
spils and Ogre. In 2022, the modern billing and
customer presentation system was upgraded.
At the beginning of the year, the Group acquired modern
software for companies providing maintenance services for
apartment buildings. IT systems were upgraded and struc-
tural, procedural, and personnel changes were made, result-
ing in increased efficiency and quality of services provided to
customers. The Group companies will continue to increase
the area of serviced houses organically and through new
acquisitions and expand its geography in other cities of the
country.
Area of currently
maintained buildings in
Lithuania amounts to
10.1
million m
2
The newly launched
self-service platform
BonoDomo has
130,000
active accounts.
Masters of the
PortalPRO platform
have already completed
more than
91,000
orders in Lithuania.
Area of currently maintained
buildings in Latvia amounts to
0.8
million m
2
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
In Poland, cooperation with other building man-
agement companies has continued to be actively
pursued, offering a full package of more than 360
know-how services: data management, account-
ing, insurance, handyman, and other services.
Participation in conferences that allow networking with the
Building Management Association.
The number of customers and partners of PortalPro, a
work-sharing platform operating in the Polish market, has
been successfully expanding. Over 1,500 contractors have
already signed up for the platform and nearly 4,500 orders
have been received from property managers, communities,
and housing associations. The introduction of the Property
Manager Efficiency Module (B2B segment) has resulted in
almost 150 registered property management companies.
Currently, PortalPRO services are available in more than 20
Polish cities.
In Spain, the Group continued to actively develop
its customer and partner service product Portal-
PRO, a digital work order platform. This is a trans-
parent platform based on the principles of the sharing econ-
omy and aimed at the B2B service segment, through which
service providers can offer their services related to housing
maintenance and repair.
In 2022, active work was carried out on both partner and
client acquisition, with a particular focus on small building
management companies/freelancers, insurance companies,
and property management companies.
At the end of the year, the PortalPRO platform served 41
businesses and other customers in Madrid and Alicante,
with 111 multi-service partners registered.
Area of currently
maintained buildings in
Poland amounts to
1.0
million m
2
Over
1,500
contractors have
already signed up for
the PortalPRO
platform in Poland
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
Changes in the area of managed apartment buildings
in the Group companies, million m
2
23.3
16.3
11.9
2020 2021 2022
Group managed area of apartment buildings decreased mainly due to sale of subsidiaries operating in St. Petersburg during
2022 (3.6 million m
2
), sale of business in Spain during 2021 (4 million m
2
) and decrease Poland due to loss of clients during
2021 and 2022 (3.4 million m
2
).
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.1.2. Management of commercial building facilities
Group companies provide commercial building management services that ensure the reliable
operation of building systems and lower maintenance costs. The companies take care of building
maintenance ranging from engineering equipment, energy management, and conservation to
interior cleaning.
The Group’s companies provide commercial building
management services in Lithuania and Latvia.
In Lithuania, the client base was expanded, with 36 contracts
signed: 28 with new clients and 8 with existing clients.
In 2022
, integrated building management services were
launched for one of the largest real estate development and
management companies in the Baltics, UAB Eastnine Lithuania,
to manage new managed business centres in Lithuania - Uniq
and Uptown Park. Two new shopping centres in Vilnius -
PC Mandarinas and Klaipėda - V 31 have also been added
to the existing portfolio. New contracts have been signed
with a new large logistics centre A1+ in Kaunas and new car
showrooms Tokvila and Sostena in Vilnius. At the end of the
year, the list of new customers was completed by contracts
with SKUBA-managed facilities in Lithuania. Contracts with
existing clients were also extended, adding new services and
buildings to the existing scope.
In Latvia
, new comprehensive building management
maintenance contracts have been signed with Raita
Elektronika shopping centres. Ventilation and air-conditioning
systems have been installed at the Origo&LDz central railway
station in Riga and all Latvian railway facilities. Maintenance
services have started at municipal facilities in Cesija, Rezeknes,
and Cernikavas. The contract with Riga Technical University
has been extended and a new contract for maintenance and
cleaning services has been signed with Girteka.
36
contracts with
customers were
signed
in Lithuania.
Multiple
contracts with
customers were
signed
in Latvia.
28
contracts with
new customer
were signed in
Lithuania.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
Changes in the areas of commercial, public
and industrial buildings in the Group companies, m
2
2021 20222017 2018
4.2
4.2
4.5
4.0
4.2
4.7
2019 2020
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.1.3. Maintenance and cleaning of territories
The group’s companies provide a full range of grounds maintenance and cleaning services: interior
and exterior cleaning, maintenance of private grounds and the environment around apartment
buildings, snow, sand, and leaf removal, grass cutting, special cleaning, and supply of hygiene
materials. Cleaning and grounds maintenance services are available in Lithuania and Latvia.
In Lithuania
, the Group’s companies provide staircase and
territory maintenance services in Vilnius, Kaunas, Klaipėda,
Šiauliai, Alytus, Šilutė, Radviliškis, Panevėžys, Palanga, and
Tauragė. For commercial facilities - shopping centres, sports
clubs, exhibition halls, production, and energy facilities, etc.
- the Group provides cleaning services in Vilnius, Kaunas,
Klaipėda, Šiauliai, Panevėžys, and Alytus.
Companies are constantly expanding their range of services
and investing in new equipment.
In Latvia
, the Group’s companies take care of the
cleanliness of apartment buildings and commercial premises.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.1.4. Other activities
In addition to its core activities, the Group’s companies in Lithuania, Poland, and Latvia also
provide other services.
In Lithuania
, the Group’s
companies carried out building
renovation projects in 306 houses,
provided maintenance services to 196
petrol stations, and recovered debts
of approximately EUR 2.63 million
in court and pre-trial proceedings on
behalf of customers.
the Group companies
provided maintenance
services to
196
petrol stations.
Renovation organisation
works were carried out in
16
houses.
Companys activity in the
production and supply of
thermal energy
In Latvia
, Group’s companies
continued the renovation of
apartment buildings under a new
programme. Renovation organisation
works were carried out in 16 houses.
The Group’s companies
in Poland
are active in the production and
supply of thermal energy, electricity
retailing, and plant maintenance.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.2. PERFORMANCE IMPROVEMENT
The group continued to use business process management methods, strategy planning, and
cascading tools in line with LEAN methodology and adapted best practices for managing project
activities. At the end of 2022, we started to develop a sustainability strategy, which we plan to
integrate into the overall business strategy.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
In Lithuania, the Group’s companies are focused
on customer satisfaction, employee engagement, and
increasing corporate value. During 2022, the Group’s
companies carried out 46 benchmarking exercises,
introduced 19 new processes, adjusted and updated
126 processes, and automated deed validation solutions,
saving 375 working hours per month. New information
systems are being implemented to provide more efficient
and better services to customers. Particular attention is
paid to the involvement of staff in improving performance.
15 training sessions were held to improve staff knowledge
in LEAN methodology, problem-solving, sustainability,
and business processes. Business process consultancy
was provided to staff. In 2022, 87 ideas were submitted
by Group employees through the collaborative initiative
“Idea Bank”, of which 5 have already been implemented
in Group operations.
In Latvia, processes are continuously reviewed and
streamlined. The service model is being improved, resulting
in faster and better service delivery to customers. The
focus continued to be on developing the competencies
of managers and staff, with an increase in the number of
different training courses and the number of managers
and staff attending them.
In Poland, LEAN has led to optimisation processes,
with all top managers.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.3. THE MOST SIGNIFICANT
INVESTMENTS AND EVENTS
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On 24 January 2022 UAB City Service Digital title was
changed into UAB InHouse Digital. Other contact details
did not change.
On 17 February 2022 Court of Appeal of Lithuania
announced its decision in a case where Vilnius City
municipality administration and General Prosecutors
office initially claimed the Company regarding recovery of
EUR 20,6 million losses. The Court of Appeal of Lithuania
adjudged EUR 4,6 million from the Company to Vilnius
City municipality. The Court also stated that Vilnius City
municipality is also liable for the part of the losses. On 22
March 2022, the Company and Vilnius City Municipality
Administration signed an agreement regarding the
payment of the amount of EUR 4,6 million according to
the instalment plan up to 31 December 2023.
On 24 February 2022 the Company received
notifications, prepared pursuant to the Article 69 of the
Act of July 29th, 2005 on public offering and the conditions
for introducing financial instruments to the organized
trading system and on public companies Journal of Laws
2005 No. 184 item 1539, regarding changes in the total
number of votes at the Company’s General Meeting due
to reorganization of UAB Lag&d from UAB Lag&d to UAB
Unit Invest of 26,813,293 shares in the Company, giving
the right to exercise 26,813,293 of votes constituting
84,83% of the total number of votes at the City Service
SE’s General Meeting since 09 February 2022 when the
reorganization of the UAB Lag&d was completed.
On 24 February 2022, the Russian Federation
has launched an invasion of the Republic of Ukraine.
Shortly after the invasion, the EU and rest of the world,
including global bodies, imposed wide-ranging set of
restrictive measures against Russia, which is updated
and expanded on a regular basis. Until the disposal of
subsidiaries operating in Russia, the restrictive measures
imposed had no significant impact on the Group’s
performance in the Russian Federation, no operations
had been suspended and no significant direct losses
related to the restrictive measures had been incurred at
the date of the financial statements.
On 01 March, 2022, the Group, through its
Lithuanian subsidiary acquired 99.99% of the shares
of IMPROXY - TECNOLOGIAS DE INFORMAÇÃO
LDA (acquisition price EUR 3 million) which is
based in Portugal. IMPROXY - TECNOLOGIAS DE
INFORMAÇÃO LDA is engaged in the production
and development of IT products for apartment
building managers, administrators, communities, etc.
On 02 March 2022, the Group, through its
Lithuanian subsidiary acquired 90% of the shares
of Homefile S.R.L. and Homefile Support S.R.L.
(acquisition price EUR 620 thousand and EUR 286
thousand respectively) which are based in Romania.
Homefile S.R.L. and Homefile Support S.R.L. are engaged
in the production and development of IT products
for apartment building managers, administrators,
communities, etc.
On 03 March 2022, the Group, through its Lithuanian
subsidiary established a new company InHouse Finance
KFT (share capital HUF 3 million (EUR 8 thousand)).
On 04 March 2022, the Group, through its Lithuanian
subsidiary acquired 100% of the shares of UAB Getfiks
(acquisition price EUR 213 thousand) which is based
in Lithuania. UAB Getfiks is engaged in supply chain
management services.
On 11 March 2022 the Group, through its Spanish
subsidiary, initiated voluntary liquidation of three dormant
subsidiaries Inmonamas S.L, Urban Hub S.L.U, Eurohub
S.LU.
On 18 March 2022 the Group, through its
Lithuanian subsidiary, acquired 100% stake in INTEGRI
s.r.o (acquisition price CZK 34.7 million (EUR 1,394
thousand)) which is based on Czech Republic. INTEGRI
s.r.o are engaged in the production and development
of IT products for apartment building managers,
administrators, communities, etc.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
On 18 March 2022 SIA Connecto Pay title was
changed into SIA BonoDomo. Other contact details did
not change.
On 05 April 2022 the Group, through its Lithuanian
subsidiary, acquired 100% stake in Invert KFT
(acquisition price EUR 417 thousand) which is based
on Hungary. Invert KFT are engaged in the production
and development of IT products for apartment building
managers, administrators, communities, etc.
On 03 May 2022 the Group, through its Lithuanian
subsidiary, established a new company BonoDomo Pay,
UAB (share capital EUR 2,5 thousand).
On 05 May 2022 the Group established a new company
Bono Domo Pay, UAB (share capital of company is EUR
2.5 thousand).
On 11 May 2022 City Service Polska sp. z o.o. title was
changed into Deleterma sp. z o.o. Other contact details
did not change.
On 13 May 2022 the Group, through its Czech
subsidiary, acquired 100% stake in SWAN Liberec,
s.r.o. (acquisition price CZK 4,394 thousand (EUR
178 thousand)) which is based on Czech Republic.
SWAN Liberec, s.r.o are engaged in the production
and development of IT products for apartment building
managers, administrators, communities, etc.
On 18 May 2022 the Group, through its Czech
subsidiary, acquired 100% stake in O.K.-Soft Sokolov
s.r.o. (acquisition price CZK 16,100 thousand (EUR 563
thousand)) which is based on Czech Republic. O.K.-
Soft Sokolov s.r.o. are engaged in the production and
development of IT products for apartment building
managers, administrators, communities, etc.
On 20 May 2022, liquidation process of Inmonamas
SL, Urban HUB SL and EURO HUB SL was completed.
On 18 May 2022, the Group sold 100% stake in UAB
Baltijos turto valdymas, which was a 100% shareholder
of companies based in St. Petersburg, Russian Federation.
Value of the share sale – purchase agreement is EUR
1,472 thousand. The carrying value of the net asset of
the subsidiary disposed at the date of disposal amounted
to EUR 1,537 thousand. The transaction was concluded
in pursuance of the Company’s decision to terminate
business activities in the Russian Federation. Following
this sale, City Service SE no longer has any business in the
Russian Federation.
On 28 June 2022 UAB Enter Tech title was changed
into UAB Energetinių projektų valdymas. Other contact
details did not change.
On 28 June 2022 City Service SE signed the
ammendment to the bank agreement to change existing
financing contract conditions regarding the breach of
keeping minimum capital requirements. Maximum
borrowing facility decreased from EUR 34 million to
EUR 28 million. Moreover, payments of EUR 5,100
thousand are obliged to be made during financial year
2022 and additional payments of EUR 5,400 thousand
will be made during the financial period 2023 - 2025.
Remaining obligation to settle at the end of the contract
at 1 September, 2025 will be EUR 17,500 thousand.
Moreover, subsidiaries of the Group will be obliged to
dispose companies operating in digital business area to
City Service SE direct shareholder UAB Unit Invest which
were acquired during the period including December
2021 – April 2022. Group management evaluated the
possible outcome of the matters described above to
Group‘s consolidated working capital and concluded that
there is no material uncertainty in regard to Group‘s
ability to continue as a going concern due respective
explained measures taken, and therefore, Group
management believes that these consolidated financial
statements are presented fairly in accordance with going
concern accounting principle.
On 29 June 2022 the Annual General Meeting of
Shareholders of the Company has been held. The
shareholders approved the set of consolidated annual
financial statements of the Company for 2021 and
distributed the Company’s profit for the year 2021.
On 31 August 2022 the Group, through its Lithuanian
subsidiary, sold 100% stake in UAB Mano aplinka plius,
which provided cleaning of territories and premises
services. Value of the share sale-purchase agreement is
EUR 810 thousand. Net assets of disposed subsidiary at
the date of issuing these financial statements amounted
to EUR 136 thousand.
On 09 September 2022 the Company established a
new subsidiary in Portugal PORTALPRO, UNIPESSOAL
LDA (share capital of company is EUR 0.1 thousand).
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
On 19 September 2022 the Company has signed
the share purchase - sale agreement for the sale of UAB
InHouse Digital and all of its subsidiaries, which were
acquired in Portugal, the Czech Republic, Romania and
Hungary from the end of 2021 until the transaction.
Value of the share sale – purchase agreement is EUR
7,928 thousand (of which EUR 2.5 thousand are shares
controlled by the seller and EUR 7,925 thousand are the
seller’s claim rights to receivables from UAB InHouse
Digital). The carrying value of the net asset of the
subsidiaries disposed at the date of disposal amounted
to EUR (1,300) thousand. UAB InHouse Digital and
its subsidiaries were engaged in the production and
development of IT products for apartment building
managers, administrators, communities, etc.
On 10 November 2022 the Group, through its Polish
subsidiary, sold all of the shares in Home Rent Sp. z o.
o., which provided administration services. Value of the
share sale-purchase agreement is PLN 38 thousand (EUR
8 thousand). Net assets of disposed subsidiary at the
date of disposal amounted to EUR 8 thousand.
As from 25 November 2022, City Service SE
(hereinafter – the Company) Management Board shall
consist of 3 (three) out of 7 (seven) members (Artūras
Gudelis, Vytautas Turonis and Dalius Šimaitis). Each
member shall act and represent the Company individually
within the competence prescribed to him under the
regulations of the management board.
On 14 December 2022, UAB City Service increased
its share part of the company UAB Mano būstas Vakarai.
After the transaction, UAB City Service owns 438,142
units of shares out of 438,285 units (99,97%). The
amount paid is EUR 500.
On 27 December 2022 SIA Nira Fonds apsaimnie-
košana title was changed into SIA Manas MĀJAS. Other
contact details did not change.
On 27 December 2022 SIA Nira Fonds
apsaimniekošana 2 title was changed into SIA Manas
MĀJAS 2. Other contact details did not change.
On 27 December 2022 SIA Nira Fonds
apsaimniekošana 3 title was changed into SIA Manas
MĀJAS 3. Other contact details did not change.
On 29 December 2022 the Company established a
new subsidiary in Czech Republic PortalPRO s.r.o. (share
capital of company is CZK 50 thousand).
LATEST EVENTS
On 10 January 2023 SIA Nira Fonds apsaimniekošana
21 title was changed into SIA Manas MĀJAS 21. Other
contact details did not change.
On 25 January 2023 UAB Apex Intelligence title was
changed into UAB Exergio. Other contact details did not
change.
On 06 February 2023 reorganization on the
companies UAB Pastatų priežiūros tarnyba and UAB
Mano būsto priežiūra was completed. After the process
of reorganization UAB Pastatų priežiūros tarnyba was
incorporated into UAB Mano būsto priežiūra with all
the assets, rights and obligations. UAB Pastatų priežiūros
tarnyba ceased operations and were deregistered. After
reorganization UAB Mano būsto priežiūra management
and other contact details did not change.
On 27 March 2023
the Group sold all of the share
of PortalPRO s.r.o., which provided supply chain
management services. Value of the share - purchase
agreement is CZK 50 thousand (EUR 2 thousand).
Net assets of disposed subsidiary at the date of
issuing these financial statements amounted to EUR
2 thousand.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
The risks remain similar to last year‘s: inflation, customers’
ability to pay, competition-influenced stricter demands
from commercial and residential clients, supply of qualified
personnel in the market.
The scope of residential apartment building administration
and maintenance services, the essential requirements for
service providers, and the tariff calculation procedure are set
and regulated in detail by the national and local authorities.
Local authorities are empowered to set maximum tariffs
for such services, together with the relevant inspectorates
control the proper implementation by service providers of
the administration and maintenance requirements set out
in legislation, and to impose sanctions for failure to comply
with the set requirements.
Any claims concerning the services provided may be
presented to the authorities or service providers by
individual owners as well. Taking into account the
aforementioned, additional risk factors in the field of
apartment building administration and maintenance include
any possible amendments to the enforced legislation, the
frequency of adoption of such amendments, resolutions
passed by central or local authorities which provide for
additional obligations of service providers, and the results
of controls carried out by various inspectorates and local
authorities. Timely and correct indexation of the set
maximum tariffs is also a risk factor which has an impact on
the Group’s activities in the field of residential apartment
building administration and maintenance.
There were no other material changes in the legal
regulation of the area of administration and maintenance
of apartment buildings in 2022, and neither were there any
decisions providing for significant additional obligations for
service providers; supervising institutions did not identify
any major deficiencies in the provision of the services or
inconsistencies with the legislative requirements.
CREDIT RISK
The Group’s procedures are in force to ensure on a
permanent basis that sales are made to customers with
an appropriate credit history and do not exceed an
acceptable credit exposure limit. There are no individual
customers exceeding 10% of segment sales.
The maximum exposure to credit risk is represented by
the carrying amount of each financial asset. Therefore,
the management considers that its maximum exposure is
reflected by the amount of trade and other receivables,
net of allowance for doubtful accounts recognised at the
date of the statement of financial position.
INTEREST RATE RISK
The major part of the Group’s borrowings (loans and
financial lease obligations) are subject to variable rates,
related to EURIBOR and €STR which create an interest
rate risk (Notes 16 and 18). There are no financial
instruments designated in the financial statements to
manage the exposure to the interest rate risk outstanding
as of 31 December 2022 and 2021.
2.4. KEY RISK ACTIVITY TYPES AND UNCERTAINTIES
In 2022 the market was stable, prices and purchasing power did not decline, in comparison with
2021. Due to heavy competition in facility management market the Group had to concentrate
on further efficiency of activities. Building administration tariff have not changed significant in a
course of the year. Improving customer climate and active sales led to rapid increase in additional
services sales volume.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.5. THE MAIN FINANCIAL RATIOS CONCERNING
THE FINANCIAL YEAR
KEY FINANCIAL INDICATORS*
2018 2019 2020 2021 2022
Revenue from contracts with customers
162,316 178,020 154,507 (135,475) 115,353
Revenue from contracts with customers in
Lithuania market
85,341 95,478 83,837 (74,878) 78,467
Revenue from contracts with customers in foreign markets
(Poland, other Baltic States, St. Petersburg
***
and Spain)
76,975 82,542 70,670 (60,597) 36,886
Area under management in Lithuania
(thousand sq. m)
14,074 14,420 13,634 (13,658) 13,803
Area under management in foreign markets
(Poland, other Baltic States)
21,748 20,811 13,681 (6,867) 2,766
GROSS PROFIT
EBITDA
10,428 12,562
**
13,201 (7,348) 664
EBITDA margin
6.42% 7.06% 8.54% (5.42%) 0.58%
Operating profit (loss) (EBIT)
5,437 3,560 6,471 (13,455) (3,177)
EBIT margin
3.35% 2.00% 4.19% (9.93%) (2.75%)
Earnings (loss) before tax (EBT)
4,578 2,467 7,390 (13,316) (4,400)
EBT margin
2.82% 1.39% 4.78% (9.83%) (3.81%)
Net profit (loss)
3,841 1,455 5,114 (14,978) (5,176)
Net profit (loss) in foreign markets (Poland, Latvia,
St. Petersburg
***
, Spain, Czech and Portugal)
309 (613) (4,817) (13,400) (10,752)
Net profit (loss) margin
2.37% 0.82% 3.31% (11.06%) (4.49%)
Profit (loss) per share (EUR)
0.12 0.05 0.16 (0.47) (0.15)
Return on equity (ROE)
8% 3% 11% (75%) (29%)
Return on assets (ROA)
3% 1% 4% (16%) (7%)
* Key financial data and ratios in 2019-2022
is represented including subsidiaries that were
disposed in 2020-2022 (futher disclosed in Note
8 Discontinued operations). All amounts in key
financial indicators are in EUR thousand unless
otherwise stated.
** There was a positive effect to EBITDA result
for the 2019 from adoption of IFRS 16 which
resulted in EBITDA increase by EUR 2,745
thousand comparing with the result for the 2018.
*** Group companies operating in St. Petersburg
were disposed during 2022 (further disclosed in
2.3 The most significant investments and events).
EBITDA = Net profit - Income Tax - Depreciation and Amortization -
finance income (expenses)
EBITDA margin = EBITDA / Revenue from contracts with customers * 100 %
Operating profit (loss) (EBIT) = Net profit - Income Tax - finance income (expenses)
EBIT margin = EBIT / Revenue from contracts with customers * 100 %
Earnings (loss) before tax (EBT) = Net profit - Income Tax
EBT margin = EBT / Revenue from contracts with customers * 100 %
Net profit (loss) = Revenue from contracts with customers - COS - OPEX -
Other activity - Financial activity - Income Tax
Net profit (loss) margin = Net profit / Revenue from contracts with customers
Profit (loss) per share (EUR) = Net profit / Amount of shares
Return on equity (ROE) = Net profit / Equity * 100 %
Return on assets (ROA) =Net profit / Assets * 100%
24
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
Area under
management,
thousand m
2
NET profit (loss),
thousand Eur.
NET profit (loss),
margin %
Sales,
thousand Eur.
154,507
78,467
135,475
13,634
2,766
13,658
83,837
36,886
74,878
Area under management in foreign markets
(Poland, Baltic States, St. Petersburg* and Spain**)
Area under management in Lithuania
Sales in foreign markets
(Poland, Baltic States, St. Petersburg* and Spain**)
Sales in Lithuania market
13,681
13,803
6,867
5,114
-14,978
-5,176
3.31
-11.06
-4.49
2020 20222021
2020
2020 20222021
2020
2021 20222021 2022
HIGHLIGHTS
* Group companies operating in St. Petersburg were disposed during 2022 (further disclosed in 2.3 The most significant investments and events).
** In 2021 the Company through its Spanish subsidiaries has signed business transfer agreement on sale of apartment building administration business.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.6. THE STRUCTURE OF THE
COMPANY’S SHARE CAPITAL
The share capital of the Company is EUR 9,483 thousand as of 31 December 2022. It is divided
into 31,610 thousand ordinary shares with the nominal value of EUR 0.30 each. All shares of the
Company are paid up.
As of 31 December 2022 all 31,610 thousand ordinary
shares of the Company are included into the Parallel
Market of Warsaw Stock Exchange and Baltic First North
Foreign Shares trading list of NASDAQ Baltic Market (ISIN
Code of the shares is EE3100126368). Trading Code of the
shares on Warsaw Stock Exchange is CTS, on NASDAQ
Baltic Market - CTS1L.
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 Statutes 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. There are no shareholders with
special control rights in the Company; the ordinary
book-entry restarted shares grant equal rights to all the
shareholders of the Company.
THE RIGHTS CONFERRED BY THE SHARES ARE AS FOLLOWS:
● to receive a portion of the Company’s profit
(dividends);
● to receive the Company’s funds when the capital of
the Company is reduced with a view to paying out
the Company’s funds to the shareholders;
● to receive shares without payment if the capital
is increased from the shareholders’ equity (bonus
issue);
● to have a pre-emption right in acquiring the shares
or convertible debentures issued by the Company,
except in the case when the General Meeting
decides to withdraw the pre-emption right for all the
shareholders;
● to receive a part of the assets of the Company in
liquidation;
● to attend General Meetings;
● to vote at General Meetings according to voting
rights carried by their shares;
● to receive information on the activities of the
Company from the Management Board at the
General Meeting, unless this may cause significant
damage to the interests of the Company;
● to demand the calling of a General Meeting, if this is
demanded by shareholders whose shares represent
at least one-twentieth of the share capital of the
Company;
● to call a General Meeting, if the Management Board
does not call a General Meeting within one month
after receipt of such a demand by shareholders
whose shares represent at least one-twentieth of the
share capital of the Company;
● to demand at the General Meeting a resolution on
conduct of a special audit on matters regarding the
management or financial situation of the Company,
if this is demanded by shareholders whose shares
rep-resent at least one-tenth of the share capital of
the Company;
● other property and non-property rights set out in
the Commercial Code.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.7. THE SHAREHOLDERS OF THE COMPANY
On 31 December 2022 the total number of shareholders of the Company was 64*.
2.8. RESTRICTIONS ON THE TRANSFER OF SECURITIES
AND RESTRICTIONS ON VOTING RIGHTS
To the best knowledge of the Company and its management, the transfer of the shares was free
from any restrictions on the transfer of the Company’s shares in 2022.
Company’s shares distribution among shareholders who have more than 5 % shares of the Company as of 31 Decem-
ber 2022 was the following:
To the best knowledge of the Company and its management, the voting rights were free from any other restrictions on
the shares issued by the Company. To the best knowledge of the Company, all shareholders of the Company have the
voting right in the General Meeting.
* Number of the shareholders includes shareholders who hold more than 0.5 per cent of the votes trhough a nominee
accounts (according to amendments that entered ino force in 10 September 2020 in the Securities Register Maintenance
Act (§ 6 Nominee account (subsection 9.2)) and the shareholders who hold their shares directly (not through nominee
accounts).
NUMBER OF
SHARES HELD
OWNED PERCENTAGE
OF THE SHARE
CAPITAL AND VOTES, %
UAB Unit Invest, legal entity
code 305873584, address:
Ozo str. 12A-1, Vilnius,
Lithuania
26,813,293 84.83 %
Other private and institutional
shareholders
4,796,707 15.17 %
TOTAL
31,610,000 100 %
Other private and institutional shareholders
UAB Unit Invest
84.83%
15.17%
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.9. COMPANY’S SUPERVISORY BOARD
AND MANAGEMENT BOARD
2.9.1. Company’s supervisory board
The Supervisory Board is a collegial management body of the Company. The Supervisory Board
shall consist of one (1) to seven (7) members elected for a term of 4 (four) years by the General
meeting in accordance with the procedure provided for by the Law on Companies of the Republic
of Estonia.
Only a natural person may be elected to serve on the Supervisory Board. There is no limitation on the number of
terms of offices a member of the Supervisory Board may serve. The Supervisory Board shall elect its chairman from
among its members. The General Meeting may remove from office the entire Supervisory Board or its individual mem-
bers before the expiry of their term of office.
A member of the Supervisory Board may resign from office prior to the expiry of his term of office by giving a written
notice thereof to the Company. The powers of the Supervisory Board shall cover consideration of the following issues
and taking of the following decisions:
● to elect and remove from the office the members of
the Management Board, set their remuneration, other
terms of office (employment), approve Management
Board regulations;
● to appoint and remove procurators;
● for the Company to become a founder or a member
of other legal entities, to acquire, transfer or dissolve
(liquidate) any such entities, as well as decisions to
transfer or encumber any shares (parts, shares of
stock) or rights assigned thereto held by the Company
to other persons;
● to establish or terminate activities of affiliates or
representative offices of the Company, approve their
regulations;
● to transfer, lease or encumber immovables or
registered movables of the balance value exceeding
1/20 (one-twentieth) of the Company’s share capital
(per each type of transaction);
● to make investments exceeding approved budget for
the current financial year;
● to assume loans or debt obligations exceeding
approved budget for the current financial year;
● to offer surety or guarantee of obligations of third
parties for an amount in excess of 1/20 (one-
twentieth) of the share capital of the Company;
● to acquire long-term assets at a price exceeding 1/20
(one-twentieth) of the Company’s share capital;
● to engage the Company into new business activities
or to discontinue any specific activity currently
performed;
● to approve participation and (or) conclusion of
peaceful settlement agreements in legal proceedings
where the amount of claims made to or by the
Company exceeds 1/5 (one fifth) of the share capital
of the Company;
● to issue debentures of the Company or other forms
of borrowing from any natural or legal persons
(regardless of the amount);
● to conclude transactions between the Company and
the management board members which are beyond
the scope of everyday economic activities of the
Company or exceed the market price;
● to determine which information will be considered
the Company’s commercial (industrial) secret and
confidential information;
● to approve operating strategy, annual report, interim
report, management structure of the Company, as
well as positions of employees, positions to which
employees are recruited by holding competitions;
● to determine the methods used by the Company to
calculate the depreciation of tangible assets and the
amortization of intangible assets;
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
● to approve merger, acquisition, reorganization,
separation, foundation of new legal entities or similar
corporate legal actions;
● to approve acquisition of all long-term assets (including
but not limited companies, real estate, cars, tools,
equipment, computers, software, telephones etc.).
● to determine which information will be considered
the Company’s commercial (industrial) secret and
confiinformation;
● to approve operating strategy, annual report, interim
report, management structure of the Company, as
well as positions of employees, positions to which
employees are recruited by holding competitions;
● to determine the methods used by the Company to
calculate the depreciation of tangible assets and the
amortization of intangible assets;
● to approve merger, acquisition, reorganization,
separation, foundation of new legal entities or similar
corporate legal actions;
● to approve acquisition of all long-term assets
(including but not limited companies, real estate, cars,
tools, equipment, computers, software, telephones
etc.).
The Supervisory Board shall plan the activities of the
Company, organize the Management of the Company
and supervise the activities of the Management Board.
The Supervisory Board also has the right to decide on
other issues which are not assigned to the competence
● the implementation of the operating strategy of
the Company;
● the organization of the activities of the
Company;
● the financial status of the Company;
of the Management Board or the General Meeting of
shareholders pursuant to law or the Statutes. The Su-
pervisory Board analyses and assesses the Company’s
draft of its annual set of financial statements and draft
of profit/loss appropriation and along with annual report
shall submit them to the General Meeting.
● the results of business activities, income and
expenditure estimated, stocktaking;
● data, and other accounting date of changes in
the assets;
● quarterly investment plans.
The Supervisory Board shall analyze and evaluate
documents submitted by the Management Board of the
company on:
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
NAME AND SURNAME POSITION START OF TERM END OF TERM
Andrius Janukonis Chairman of the Supervisory Board June 19, 2019 June 19, 2023
Gintautas Jaugielavičius Member of the Supervisory Board June 19, 2019 June 19, 2023
As of 31 December 2022, the Supervisory Board of
the Company comprises of the following persons:
Andrius Janukonis (born in 1971) is the Chairman of
the Supervisory Board of City Service SE (since 2009 un-
til 2015 the Chairman of the Board). He holds a Master’s
degree in Law. He is a member of the board of UAB Unit
Invest (since 2021).
Gintautas Jaugielavičius (born in 1971) is a Member
of the Supervisory Board of City Service SE (since 2005
until 2015 a Member of the Board). He holds a Bachelor’s
degree in Economics. At present, he works as a consult-
ant for UAB Unit Invest and is a member of the board of
UAB Unit Invest (since 2021).
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
The Management Board of the Company comprises of three (3) members who are representing
and directing the Company. The members of the Management Board are elected by Supervisory
Board for a term of four (4) years. Supervisory Board has right to elect and remove from the
office the members of the Management Board, set their remuneration, other terms of office
(employment), approve Management Board regulations. A member of the Management Board
may resign from office prior to the expiry of his term of office by giving a written notice.
Management Board members are authorized to represent the Company in all legal acts which do not fall within
competence of other Management bodies. The individual members of the Management Board have competence, be
accountable and responsible within the following jurisdictions and areas of activity of the Company and its directly
controlled subsidiaries under Management Board regulations. Management Board member isn’t authorized to issue or
repurchase shares of the Company. Also there is no agreements between the Company and its Management Board
or employees.
2.9.2. Company’s management board
As of 31 December 2022 and as of the date of the
submission of this report, the Management Board
of the Company comprises of the following persons:
NAME AND SURNAME
POSITION WITHIN
THE GROUP
START OF TERM END OF TERM
Artūras Gudelis Chairman of the Management Board June 26, 2021 June 26, 2025
Vytautas Turonis Member of the Management Board June 26, 2021 June 26, 2025
Dalius Šimaitis Member of the Management Board June 26, 2021 June 26, 2025
They do not own any shares of the Company.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
Artūras Gudelis (born in 1977) is a Chairman of the
Management Board of City Service SE (since 2017). Artūras
Gudelis was a Member of the Supervisory Board of City
Service SE (2015 – 2017). He holds Bachelor‘s degree in
Economics and Master‘s degree in Business Management.
Artūras Gudelis is responsible for carrying the formal func-
tions of the chairman of the Management Board as well as
for signing of the consolidated financial statements, rep-
resenting the Company in the stock exchanges, securities
depositories and in relations with the investors, as well as
in all other general matters related to the Company.
Vytautas Turonis (born in 1972) is a Member of the
Management Board of City Service SE (since 2017). Vy-
tautas Turonis works as the General Manager at UAB
Mano Būstas. He holds a Bachelor‘s degree in Interna-
tional 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 and accountable for the
organization and supervision of Group activities (includ-
ing the financial matters) in Lithuania, Latvia and Estonia.
Dalius Šimaitis (born in 1977) is a Member of the
Management Board of City Service SE (since 2019). Pre-
viously he worked as the maintenance department di-
rector at UAB Mano būstas (2016 - 2019). Mr. Šimaitis
works in City Service SE since year 2016. He holds a
Bachelor‘s degree in Thermal Engineering and a Master‘s
degree in Energy Engineering.
Dalius Šimaitis is responsible and accountable for Group
activities in Poland and Spain, also for technical opera-
tions and supply chain management, standardization pol-
icy within the Group in all jurisdictions.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.10. DIVIDEND POLICY
The Company does not have an approved policy on dividend distributions and any restrictions
thereon. Decision on distribution of dividends to shareholders is adopted by the General
Meeting.
2.11. PROCEDURE OF AMENDMENT OF THE
STATUTES OF THE COMPANY
The Statutes of the Company shall be amended in accordance with the procedure provided for by
the Law on Companies of the Republic of Estonia and the Statutes of the Company. The Statutes of
the Company may be amended only by the decision of the General Meeting, exceptions may occur
under the Law on Companies of the Republic of Estonia.
The resolution regarding amendment of the Statutes of the Company shall be taken in the General Meeting by at least
2/3 of all votes conferred by the shares of the shareholders present at the General Meeting. Following the decision
taken by the General Meeting to amend the Statutes of the Company, the full text of the amended Statutes shall be
drawn up and signed by the person authorized by the General Meeting. The amended Statutes shall become effec-
tive and may be used as the basis following registration of the amended Statutes with the Commercial register of the
Republic of Estonia.
In the period since the 1st of January 2022 by the 31st of December 2022 and the day of Annual Report is released
Company‘s Statutes are valid in wording registered in Estonian Commercial register on Register of Legal Entities. The
relevant Statutes of the Company is available on its website at
www.cityservice.eu.
2.12. MATERIAL AGREEMENTS CONCLUDED BY THE
COMPANY WHICH MAY BE IMPORTANT AFTER
CHANGE OF CONTROL OF THE COMPANY
There were no material agreements concluded by the Company which came into effect, were
amended or terminated following a change of control of the Company during the reporting period.
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2.13. AUDITING SYSTEM AND DESCRIPTION OF THE
MAIN FEATURES OF INTERNAL AUDIT AND RISK
MANAGEMENT SYSTEMS IN CONNECTION WITH
THE PROCESS OF THE PREPARATION OF THE
ANNUAL ACCOUNTS
The Company has the Audit Committee in place. The Regulations of the activity of the Audit
Committee were approved by the Supervisory Board. According to the Regulations of the activity
of the Audit Committee the main functions of this committee are as follows:
● to monitor and analyse processing of financial
information, including to observe the process of the
preparation of financial reports of the Company;
● to provide the Supervisory Board with
recommendations regarding the selection and/or
removal of an external audit company;
● to provide the Supervisory Board with
recommendations regarding the selection and/or
removal of the internal auditor;
● to observe the efficiency of the internal control
systems, risk management and internal audit systems;
● to observe the process of carrying out an external
audit;
● to observe how the external auditor or audit
company follow the principles of independence and
objectivity;
● to fulfil other functions specified in the legal acts of
the Republic of Estonia, including to:
● monitor and analyse efficiency of risk
management and internal control;
● monitor and analyse the process of auditing of
annual accounts and consolidated accounts;
● monitor and analyse independence of an audit
firm and a sworn auditor representing an audit
firm on the basis of law and compliance of the
activities thereof with other requirements of
the Auditors Activities Act of the Republic of
Estonia (in Estonian: audiitortegevuse seadus);
● make recommendations or proposals to the
Supervisory Board regarding prevention or
elimination of problems and inefficiencies in
an organisation and compliance with laws and
the good practice of professional activities;
● to immediately inform the Supervisory Board about
the information presented to the Audit Committee
by the audit company regarding any problem issues
arisen during the audit especially in the event of the
establishing of significant shortcomings of internal
control related to financial reports.
Members of the Audit Committee shall be appointed by
the Supervisory Board.
The Audit Committee consists of 3 members, one of
whom shall be independent and the other two members
shall be appointed out of the non-overhead staff of the
Administration of the Company or Subsidiaries of the
Company. The internal auditor, a member of the Man-
agement Board of the Company or a procurator or a
person performing an audit of the Company shall not be
a member of the Audit Committee.
At least two of the members of the Audit Committee
shall be experts in accounting, finance or law. The cri-
teria of independency and eligibility requirements to be
appointed a member of the Audit Committee are de-
termined in the Regulations of the activity of the Audit
Committee.
The term of office of the Audit Committee shall be 4
(four) years. An uninterrupted term of office of a mem-
ber of the Audit Committee shall be no longer than 12
years. A member of the Audit Committee shall have the
right to resign upon submitting before 10 days written
notice to the Supervisory Board. The Supervisory Board
shall have the right to recall one or all the members of
the Audit Committee should they fail to perform their
functions and/or should they no longer conform to the
requirements specified in the applicable legal acts or the
Regulations of the activity of the Audit Committee.
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The principal objective of the Audit Committee is to
generate higher added value to the Company. With a
view to achieving the set objective, the Audit Commit-
tee operates in accordance with the Regulations ap-
proved by the General Meeting of Shareholders of the
Company. The Audit Committee follows in its activities
the requirements of effective legal acts and seeks overall
implementation of the recommendations of Corporate
Governance Code, for the Companies Listed on War-
saw Stock Exchange.
MRS. ILONA MATUSEVIČIENĖ – a chairman
of the Audit committee, independent member,
does not work at the Company.
MRS. AUŠRA ANIULYTĖ – independent
member, does not work at the Company
The Audit Committee monitors the external audit firm
of the Company at the performance of Company’s An-
nual Report and the Annual set of the Financial State-
ments audit.
The conclusions of the Audit Committee are presented
to the Supervisory Board of the Company in accord-
ance with the requirements of the Regulations of the
Audit Committee.
The Group does not have internal audit department.
MR. ROBERTAS RATKEVIČIUS – financial
controller of the Company.
Audit Committee members do not own shares of
the Company.
Members of the audit committee of the company:
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2.14. INFORMATION ON COMPLIANCE WITH THE
CORPORATE GOVERNANCE CODE
The Company observes applicable legislation, the rules of the Warsaw Stock Exchange, and
the Best Practice for GPW Listed Companies 2022 (hereinafter also referred to as the “WSE
Corporate Governance Code”).
Especially, the Company intends to be as transparent as it is legally and practically possible using multilingual Company’s
website. However, due to, inter alia, differences between Polish and Estonian corporate law the Company does not com-
ply with the following rules of the WSE Corporate Governance Code:
1.3.1. environmental factors, including measures and risks
relating to climate change and sustainable development. The
Company does not have a formalized business strategy that
takes into account ESG topics, including measures and risks
related to climate change and sustainable development issues.
However, it does not rule out applying thereof in the future;
1.3.2.
social and employee factors, including among others ac-
tions taken and planned to ensure equal treatment of women
and men, decent working conditions, respect for employees’
rights, dialogue with local communities, customer relations.
The Company does not have a formalized business strategy
that takes into account the ESG subject matter, taking into ac
-
count the issues described in rule 1.3.2. However, it does not
rule out applying thereof in the future
1.4. To ensure quality communications with stakeholders, as
a part of the business strategy, companies publish on their
website information concerning the framework of the strat-
egy, measurable goals, including in particular long-term goals,
planned activities and their status, defined by measures, both
financial and non-financial. ESG information concerning the
strategy should among others. The Company does not have
a formalized business strategy that takes into account the
ESG subject matter in the described scope. Currently, the
Management Board of the Company presents information
on the assumptions of its business strategy in the submitted
periodic reports.
1.4.1. explain how the decision-making processes of the
company and its group members integrate climate change,
including the resulting risks. The Company does not have a
formalized business strategy that takes into account the ESG
subject matter, taking into account the issues described in
rule 1.4.1.
1.4.2. present the equal pay index for employees, defined as
the percentage difference between the average monthly pay
(including bonuses, awards and other benefits) of women and
men in the last year, and present information about actions
taken to eliminate any pay gaps, including a presentation of
related risks and the time horizon of the equality target. The
Company has not formally adopted a strategy that would
contain information in the ESG area described in rule 1.4. -
such statistics are not kept. However, the Company ensures
equal remuneration paid to its employees through equal rates
of basic remuneration for the same / similar positions and in
the same departments.
1.5. Companies disclose at least on an annual basis the
amounts expensed by the company and its group in support
of culture, sports, charities, the media, social organisations,
trade unions, etc. If the company or its group pay such ex-
penses in the reporting year, the disclosure presents a list of
such expenses. Company does not publish the information
about the amounts expensed in support of culture, sports,
charities, the media, social organisations, trade unions, etc.
2.1.
Companies should have in place a diversity policy appli-
cable to the management board and the supervisory board,
approved by the supervisory board and the general meeting,
respectively. The diversity policy defines diversity goals and
criteria, among others including gender, education, expertise,
age, professional experience, and specifies the target dates and
the monitoring systems for such goals. With regard to gender
diversity of corporate bodies, the participation of the minor
-
ity group in each body should be at least 30%. The Company
does not have a formal diversity policy, it does not apply any
limitations to the diversity of its bodies and makes every ef
-
fort to ensure diversity in bodies in all areas, also in terms of
gender. The selection criteria for performing functions in the
Company’s bodies are the competences, experience, educa
-
tion as well as time and organizational capacity of the candi-
date for a given function.
2.2. Decisions to elect members of the management board
or the supervisory board of companies should ensure that
the composition of those bodies is diverse by appointing
persons ensuring diversity, among others in order to achieve
the target minimum participation of the minority group of at
least 30% according to the goals of the established diversity
policy referred to in principle 2.1.As explained in rule 2.1.
As at the date of this report, the Company does not have
a diversity policy with regard to the Management Board and
Supervisory Board of the Company. The most important se-
lection criteria are the competences of the members of the
Management Board and the Supervisory Board. The Compa-
ny is not able to appoint candidates for positions in governing
bodies and to influence the decisions of the Shareholders and
the Supervisory Board of the Company.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
2.3. At least two members of the supervisory board meet
the criteria of being independent referred to in the Act of 11
May 2017 on Auditors, Audit Firms and Public Supervision,
and have no actual and material relations with any sharehold-
er who holds at least 5% of the total vote in the company.
However, taking into consideration that following the Stat-
utes of the Company the Supervisory Board is comprised
of three to five members, depending on circumstances, the
Company does not rule out proposing to the general meet-
ing to elect two independent members to the Supervisory
Board in the future.
2.11.5. assessment of the rationality of expenses referred to
in principle 1.5.
2.11.6.
information regarding the degree of implementation
of the diversity policy applicable to the management board
and the supervisory board, including the achievement of goals
referred to in principle 2.1. The Company does not have a
formal diversity policy with respect to the Management Board
and Supervisory Board of the Company.
3.4. The remuneration of persons responsible for risk and
compliance management and of the head of internal audit
should depend on the performance of delegated tasks rather
than short-term results of the company. The Company does
not have separate units responsible for this scope of tasks
that would be remunerated on this account.
3.5. Persons responsible for risk and compliance manage-
ment report directly to the president or other member of
the management board. The Company has no separate and
no separate units responsible for the scope of tasks described
in principle 3.5.
3.6. The head of internal audit reports organisationally to the
president of the management board and functionally to the
chair of the audit committee or the chair of the supervisory
board if the supervisory board performs the functions of
the audit committee. The Company has no separate and no
separate units responsible for the scope of tasks described in
principle 3.6.
3.7. Principles 3.4 to 3.6 apply also to members of the com-
pany’s group which are material to its activity if they appoint
persons to perform such tasks. Among the entities from the
Company’s group, no persons were appointed to perform
the tasks referred to in principles 3.4. - 3.6.
4.1. Companies should enable their shareholders to partici-
pate in a general meeting by means of electronic communica-
tion (e-meeting) if justified by the expectations of sharehold-
ers notified to the company, provided that the company is in
a position to provide the technical infrastructure necessary
for such general meeting to proceed. Company does not rule
out applying thereof in the future whenever the shareholders
submit such a request, provided that it has sufficient technical
conditions, in particular ensuring technical and legal security.
4.3. Companies provide a public real-life broadcast of the
general meeting. The Company will consider the possibility of
broadcasting the general meeting, provided that it has suffi-
cient technical conditions, in particular ensuring technical and
legal security.
4.9.1. candidates for members of the supervisory board
should be nominated with a notice necessary for sharehold-
ers present at the general meeting to make an informed de-
cision and in any case no later than three days before the
general meeting; the names of candidates and all related doc-
uments should be immediately published on the company’s
website; Candidates for members of the Supervisory Board
may be put forward by shareholders during a general meeting
containing an item on the agenda regarding the appointment
of supervisory board members
4.9.2. candidates for members of the supervisory board
make a declaration concerning fulfilment of the requirements
for members of the audit committee referred to in the Act of
11 May 2017 on Auditors, Audit Firms and Public Supervision
and having actual and material relations with any shareholder
who holds at least 5% of the total vote in the company.
The Company is established in Estonia and it follows Esto-
nian law when concerning fulfilment of the requirements for
members of the Supervisory Board.
4.11. Members of the management board and members of
the supervisory board participate in a general meeting, at the
location of the meeting or via means of bilateral real-time
electronic communication, as necessary to speak on mat-
ters discussed by the general meeting and answer questions
asked at the general meeting. The management board pre-
sents to participants of an annual general meeting the finan-
cial results of the company and other relevant information,
including non-financial information, contained in the financial
statements to be approved by the general meeting. The man-
agement board presents key events of the last financial year,
compares presented data with previous years, and presents
the degree of implementation of the plans for the last year.
Only members of the Management Board participate in the
general meeting.
2.14. INFORMATION ON COMPLIANCE WITH THE
CORPORATE GOVERNANCE CODE
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2.15. REMUNERATION REPORT
The management remuneration is set based on the long-term objectives of the Group, considering
the financial results of the Group and the legitimate interests of investors and creditors.
The remuneration of the management in respect of the financial year 2022 was granted without derogation. The Group‘s
management remuneration amounted to EUR 915 thousand in 2022 (EUR 1,197 thousand in 2021). The fixed remunera-
tion part was 89% and variable remuneration – 11% (76% and 24% respectively in 2021).
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
3.1. OVERVIEW
The Group, which operates in Lithuania, Latvia, Poland, Czech Respublic, Portugal and Spain, has
contributed to various social projects and initiatives in 2022, which have helped to improve the
lives of both the residents and the employees. Depending on the nature of their activities, each
Group company applied appropriate sustainable business solutions and focused on the well-being
of the environment, customers, and employees.
SOCIAL RESPONSIBILITY REPORT
Although the Group is considered one of the market
leaders, it continues to strive to improve the quality of
its services and to set an example for its competitors.
The Group’s constant aim is to build a trustworthy rela-
tionship with its customers, to promote their satisfaction
with the quality of its services, to improve the quality
of its customers’ working and living environment, and to
provide them with comprehensive information. Custom-
er experiences and evaluations are regularly published in
the Group’s internal communication channels and the lo-
cal media, and targeted strategies are developed to ana-
lyse customer needs and set objectives.
In the area of community relations, the Group makes
every effort to strengthen cooperation and partnerships
with various communities, educational institutions, law
enforcement, and non-governmental organisations. The
initiatives implemented improve the daily life of apart-
ment dwellers, support and promote neighbourhood
and community, as well as a responsible attitude towards
the jointly owned assets and the creation of traditions.
In the environmental field, all of the Group’s compa-
nies are implementing various solutions to help conserve
natural resources and reduce CO2 emissions. Group com-
panies encourage their customers and employees to fol-
low this path by sorting waste, contributing to projects
aimed at reducing environmental pollution, and participat-
ing in public awareness initiatives, training, and seminars.
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3.2. MARKET
In 2022, the Group’s companies have focused on strategies related to customer growth rates, and
improving the quality of services and the Group’s image.
CUSTOMER RELATIONS
The Group’s companies continued to make every effort
to meet customer expectations. New processes were
developed and existing processes were improved, result-
ing in a higher level of professionalism, better customer
service, and increased trust. Customer feedback tracked
in all countries helped to generate key performance in-
dicators and the successful use of LEAN management
processes helped to improve customer experience.
Communication with the Group’s customers and part-
ners continues to be maintained through different and
preferred channels: telephone, e-mail, newsletters, bulle-
tin boards, self-service portals, social networks, individual
meetings, and special applications.
The Group continues to pursue the path of sustainability
and encourages its customers to follow it. It implements
and develops digital solutions that help save natural re-
sources and reduce pollution. It was the first in its sector
to offer customers a digital alternative to paper bills.
The Group is delighted that today, together with its cus-
tomers, it has brought together a community of 100,000
people who have moved away from paper bills and
are now dealing with their housing maintenance issues
smartly - through the self-service platform “BonoDomo”.
Launched in April 2022, the platform is visited by more
than 70,000 unique users every month. They can conven-
iently manage all household services in one place, receive
special offers and find out the latest news from major
Lithuanian cities.
For business customers, the Group continued to offer
the use of eCSE, a commercial building management
platform on your phone or any smart device. Together
with our partners, it has significantly reduced paper, time,
and vehicle emissions. With eCSE, many building mainte-
nance tasks can be carried out sustainably, quickly, and
reliably - remotely.
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3.3. RELATIONS WITH EMPLOYEES
As in previous years, the Group’s companies were interested in the personal growth of their
employees and promoted cooperation between them. For their part, employees proposed and
put into practice various solutions to improve the Group’s efficiency and participated in various
training sessions and seminars.
The Group continuously encourages staff involvement
and open discussions. A strong emphasis is placed on
employee motivation and participation in the various
processes, and health and safety issues are not forgot-
ten. The Group is tolerant concerning age, gender, race,
religion, origin, and beliefs and strives to ensure equal
opportunities and rights for all employees.
The closed Facebook group allows staff to interact and
share their achievements and relevant information. Each
month, the Group’s most important news was pub-
lished in the unique publication “BŪSTINĖ”. This was
later replaced by the even more user-friendly, innova-
tive, and tailored to today’s people “eBŪSTINĖ”, where
employees read and comment on posts about their
achievements, hobbies, or important company news in
the Facebook group.
On International Children’s Day, staff was encouraged
to bring their children to work and to introduce their
workplace and job description.
The Group organised a winter party for administrative
staff, during which it rewarded long-serving employees
and employees who have demonstrated outstanding
performance in line with the company’s values.
After the pandemic, the Group offered employees the
opportunity to continue working remotely and provid-
ed all the possibilities to do so.
Understanding that the times bring all kinds of feelings
and challenges in both our working and personal lives,
and being a socially responsible Group, we took care
of the emotional well-being of our employees and co-
operated with the platform of emotional health pro-
fessionals “visipsichologai.lt”. This platform brings to-
gether over 40 psychologists of various specialisations,
diplomas, and practices, working under a confidentiality
agreement. We have made it possible for our employ-
ees to contact a visipsichologai.lt professional in com-
plete confidence. All consultations were paid for by the
group company.
It is also important to note that all staff continued to be
covered by accident insurance.
Periodic live video and live executive conferences con-
tinued to be held, with the participating executives
presenting the Group’s developments and answering
anonymous questions from employees.
Collective agreements have been extended in some
companies, and some new ones signed, providing addi-
tional leave for all employees depending on their length
of service, an extra day’s holiday for trade union mem-
bers, additional payments for anniversaries, marriage,
and births of children, and a 20% increase in redun-
dancy payments.
Annual Employee Development Conversations have
been held with employees in all countries where the
Group operates, to set goals and discuss challenges, and
develop employees’ competencies and career planning
within the Group. These are open and respectful con-
versations between the employee and his/her line man-
ager about the results achieved, an opportunity for the
employee to receive feedback on how his/her perfor-
mance is meeting the expectations of his/her manager
or the company, and to set new annual objectives. For
the manager, it is an opportunity to receive feedback
from the employee on his/her performance as a manag-
er and to strengthen his/her managerial competencies.
In 2022, the Group conducted an anonymous employee
engagement survey, which allowed employees to openly
answer questions and express their views on how the
Group could improve. After the survey, the aggregated
results were presented to all employees in live meet-
ings with managers. Managers discussed what changes
were needed in the organisation to improve employee
engagement and, during the strategic sessions, improve-
ment initiatives were included in the annual action plans.
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TRAINING AND SEMINARS
In 2022, a wide range of development opportunities con-
tinued to be created for staff. Internal and external train-
ing and foreign language courses were available to all, and
the eCITY e-learning platform allowed staff to self-study
and find relevant information for their work.
The e-learning platform identifies mandatory courses
for all Group employees: customer service, teleworking,
LEAN introduction, document management system, oc-
cupational and fire safety for newcomers, and company
process procedures. Employees check the clarity and un-
derstanding of the information provided through specific
knowledge tests.
Last year, most of the Group’s employees had to work
remotely, so change, time, stress management and effec-
tive communication were the topics chosen for the vari-
ous training courses and seminars. Language classes and
specialised training for employees from different depart-
ments were also conducted.
New employees who joined the Group were given a New
Employee Orientation Training, during which they were
introduced to the Group’s vision, mission, values, activi-
ties, and LEAN methodology. They also received specific
knowledge on information systems, procurement, and
employee safety.
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3.4. SOCIAL INITIATIVES FOR COMMUNITIES
In 2022, “Kalba kaimynai” remained one of the most important and largest social projects in
Lithuania. The information published regularly on online portals and Facebook pages cover seven
Lithuanian cities. In five of them, 70% of the content consists of news from the respective city and
30% of the content from the other city. News from the Group’s companies accounts for 30 percent
of the content. The project has grown over eight years and today has more than 113 000 followers
on Facebook.
During the year, the overall engagement rate of Kalba
Kaimynai readers increased to 3.35%. These results show
very good prospects for the future, as the average en-
gagement rate of the Lithuanian market is just over 2%. It
is, therefore, encouraging that Kalba Kaimynai has main-
tained an average engagement rate above the national
average throughout the year.
The group company continued its successful cooperation
with Ataka Football Club. Thanks to the cooperation, the
club was able to continue football training for children
from disadvantaged families.
The Group donated a large number of felt-tip pen sets,
sports bags, and reflectors to Ukrainian children study-
ing at the private school “Varnu sala”. The children were
happy and thankful, and the Group’s staff were happy to
brighten up their day.
Last year, the Group continued to develop the “Senior
Citizens’ Hive” project and the initiative “Let’s meet, dear
seniors”. The Group contributed to computer literacy
training for the elderly and various daily activities.
PortalPRO, a modern platform created by the commu-
nity of masters to connect professionals in different fields
with those seeking their services, continued to promote
transparency and to bring out those working in the shad-
ows last year.
Every year, on the occasion of European Neighbours’
Day, “Mano BŪSTAS” sent greetings and warm wishes
to everyone. Through a video, the company promoted
community spirit in the neighbourhood and reminded
people of the importance of living in harmony close.
A festive competition organised by the Group’s com-
pany in Lithuania, “Christmas Holiday House Election”,
helped to strengthen the community. Customers were
encouraged to take photos of their balconies, staircases,
courtyards, or other common areas, to get together and,
together with their neighbours, to decorate the common
areas of their apartment building in a way that is not only
Christmassy but also sustainable. This initiative encour-
aged residents to become more community-minded and
to create a sense of togetherness in their neighbourhood.
The project Kalba Kaimynai
has grown over eight years
and today has more than
113 000
followers on Facebook.
During the year, the overall
engagement rate of Kalba
Kaimynai readers increased to
3.35%.
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CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2022 Management report
3.5. ENVIRONMENTAL ISSUES / ENERGY SAVING
To set an example for others and to make the environment cleaner, the Group continued to
avoid the use of plastic water bottles and disposable water products in its offices, collected and
recycled coffee grounds, and collected and recycled used galvanic cells. The Group also continued
to train its employees to use digital rather than paper-based internal documentation. It is
worth noting that the Group’s central corporate office is located in an energy-sustainable office
building.
In 2022, the renovation of old and polluting blocks of flats
was a major focus. Renovating an old block of flats saves
around 50-70% of the pre-renovation heat consump-
tion. On average, 10,750 tonnes of CO2 emissions are
reduced in one year. These are the results calculated by
the Group’s company, which has already helped clients to
implement 172 renovation projects in multi-apartment
buildings.
In non-renovated buildings, the Group actively encour-
aged and assisted residents to implement other energy-
saving solutions, such as upgrading or modernising heat
points, insulating energy-inefficient building structures,
and replacing old common-use windows and doors. They
also helped to educate customers on simple ways to save
heat in both apartments and common areas.
USING ARTIFICIAL INTELLIGENCE
Smart building management is a key factor in CO2 emis-
sions. Even a slight malfunction of the automation can
lead to significant energy waste, regardless of the build-
ing’s design efficiency. Artificial intelligence systems en-
sure the sustainable use of energy resources in commer-
cial buildings.
The APEX Intelligence platform, developed by experts
in the field and continuously improved, has been pro-
viding future sustainability requirements for buildings
and expanding on the Polish market for three years.
“APEX Intelligence is the targeted collection, systemati-
sation, analysis, and remote management of building data
streams using time-tested algorithms: scanning data from
the smallest sensors to the largest data streams.
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3.6.TAXONOMY OVERVIEW
In recent years, the European Commission has collaborated with experts in various fields to
establish a universal language and clear definitions for sustainability, known as the “EU taxonomy.”
The EU taxonomy regulation describes a framework to
classify “green” or “sustainable” economic activities exe-
cuted in the EU. This is a crucial step in achieving the EU’s
climate and energy objectives and increasing sustainable
investments. On 6 July 2021, the European Commission
adopted the Delegated Act supplementing Article 8 of
the Taxonomy Regulation (“the Disclosures Delegated
Act”), which requires large financial and non-financial
companies to provide information to investors about the
environmental performance of their assets and economic
activities. Starting from 2021, companies were required
to report the eligibility of economic activities identified
by the Commission in the act for climate mitigation and
adaptation. In 2022 there was an additional requirement
to disclose information about taxonomy economic activi-
ties that meet the criteria (for financial year ended 2022),
so this information is presented further.
Starting from 1 January 2023, for the 2022 fiscal year, the
Group discloses the KPIs of Taxonomy-aligned economic
activities.
Taxonomy-eligible activities examined as taxonomy-align
activities in the Group:
• 6.5. Transport by motorbikes, passenger cars and
light commercial vehicles
• 7.3. Installation, maintenance and repair of energy
efficiency equipment
We continue to carry out the following clear step-based
processes in which we analyze the compliance of our
activities with the Taxonomy Regulation:
1. Identifying Taxonomy-eligible economic activities of
the Group
2. Examining substantial contribution criteria
3. Examining the principle of doing no significant harm
to other environmental objectives (DNSH)
4. Verifying the compliance with minimum social safe-
guards
5. Calculating financial KPIs
• 7.5. Installation, maintenance and repair of instru-
ments and devices for measuring, regulation and con-
trolling energy performance of buildings
• 10.1. Non-life insurance: underwriting of climate-
related perils
As of 31 December 2022 none of the above described
eligible activities meets the applicable Taxonomy require-
ments.
2021
Taxonomy-eligible Taxonomy-non-eligible
Revenue,% 1.76% 98.24%
Taxonomy CAPEX, % 41.84% 58.16%
Taxonomy OPEX, % 5.48% 94.52%
2022
Taxonomy-eligible Taxonomy-non-eligible
Revenue,% 1.41% 98.59%
Taxonomy CAPEX, % 88.66% 11.34%
Taxonomy OPEX, % 5.86% 94.14%
31 December, 2022, thousand euros
CONSOLIDATED
FINANCIAL
STATEMENTS
for the twelve months period ended
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
46
| Consolidated statement of financial position | |||
As of 31 | As of 31 | ||
Notes | December 2022 | December 2021 | |
ASSETS | |||
Non-current assets | |||
Goodwill | 5 | ||
Other intangible assets | 6 | ||
Property, plant and equipment | 7 | ||
Right of use assets | 18 | ||
Non-current receivables | 12, 14 | ||
Deferred income tax asset | 27 | ||
Total non-current assets | |||
Current assets | |||
Inventories | 10 | ||
Prepayments | 11 | ||
Trade receivables | 13 | ||
Receivables from related parties (including loans granted) | 32 | ||
Other receivables | 14 | ||
Prepaid income tax | |||
Contract assets | 2.19 | ||
Cash and cash equivalents | 14 | ||
Total current assets | |||
Assets held for sale | 8 | ||
Total assets |
(cont’d on the next page)
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
47
Consolidated statement of financial position (cont’d)
As of 31 | As of 31 | ||
Notes | December 2022 | December 2021 | |
EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | 1 | ||
Share premium | 15 | ||
Reserves | 15, 2.2 | ( | |
Retained earnings | ( | ( | |
Reserves of a disposal group classified as held for sale | 8 | ( | |
Equity attributable to equity holders of the parent | |||
Non-controlling interests | 9 | ||
Total equity | |||
Liabilities | |||
Non-current liabilities | |||
Non-current borrowings | 16 | ||
Lease liabilities | 18 | ||
Deferred income tax liability | 27 | ||
Provisions for employee benefits | 19 | ||
Other provisions | 17 | ||
Other liabilities | 21, 22 | ||
Total non-current liabilities | |||
Current liabilities | |||
Current loans | 16 | ||
Current portion of non-current borrowings | 16 | ||
Current portion of lease liabilities | 18 | ||
Trade payables and payables to related parties | 20, 32 | ||
Contract liabilities | 21 | ||
Income tax payable | 27 | ||
Provisions for employee benefits | 19 | ||
Other current provisions | 17 | ||
Other current liabilities | 22 | ||
Total current liabilities | |||
Liabilities associated with assets held for sale | 8 | ||
Total liabilities | |||
Total equity and liabilities |
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
48
| Consolidated statement of comprehensive income | |||
2021 | |||
(restated, | |||
Notes | 2022 | Note 8) | |
Continuing operations | |||
Revenue from contracts with customers | 4 | ||
Cost of sales | 23 | ( | ( |
Gross profit | |||
General and administrative expenses | 24 | ( | ( |
Impairment of goodwill, other intangible and other non-current | ( | ( | |
assets | |||
Expected credit losses on financial assets | 13, 14 | ( | ( |
Other operating income | 25 | ||
Other operating expenses | 25 | ( | ( |
Profit (loss) from operations | ( | ||
Interest income | |||
Interest expenses | ( | ( | |
Gain (loss) on sale of investments | 1 | ||
Other finance expenses | 26 | ( | ( |
Share of profit of associates | 1 | ||
Profit (loss) before tax from continuing operations | ( | ||
( | ( | ||
Income tax | 27 | ||
Net profit (loss) from continuing operations | ( | ||
Discontinued operations | |||
Net (loss) from discontinued operations | 8 | ( | ( |
Net (loss) | ( | ( | |
Other comprehensive income that will be reclassified | |||
subsequently to profit or loss | |||
Exchange differences on translation of foreign operations | |||
Total other comprehensive income for the year | |||
Total comprehensive income for the year, net of tax | ( | ( | |
Net (loss) attributable to: | |||
The shareholders of the Company | ( | ( | |
Non-controlling interests | ( | ||
( | ( | ||
Total comprehensive income attributable to: | |||
The shareholders of the Company | ( | ( | |
Non-controlling interests | ( | ||
( | ( | ||
Basic and diluted earnings per share (EUR) | 28 | ( | ( |
From continuing operations | 28 | ( | |
From discontinued operations | 28 | ( | ( |
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
49
Consolidated statement of changes in equity
Attributable to equity holders of the parent
Reserve | ||||||||||
of | ||||||||||
Foreign | disposal | |||||||||
currency | group | Non- | ||||||||
Share | Share | translation | Other | Retained | held for | controlling | ||||
Group | Notes | capital | premium | reserve | reserves | earnings | sale | Subtotal | interest | Total |
Balance as of 1 January 2021 | ( | - | ||||||||
Net profit (loss) for the year | - | - | - | - | ( | - | ( | ( | ||
Other comprehensive income | - | - | - | - | - | |||||
Total comprehensive | - | - | - | ( | - | ( | ( | |||
income | - | - | - | - | ( | - | ( | - | ( | |
Dividends declared | 29 | |||||||||
Balance as of 31 | ( | ( | - | |||||||
December 2021 | ||||||||||
Net profit (loss) for the year | - | - | - | - | ( | - | ( | ( | ( | |
Other comprehensive income | 1 | - | - | - | - | - | ||||
Total comprehensive income | - | - | - | ( | - | ( | ( | ( | ||
Reserves of a disposal | ||||||||||
group classified as held for sale | - | - | - | - | ( | - | - | - | ||
Balance as of 31 | - | ( | ( | |||||||
December 2022 |
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
50
| Consolidated statement of cash flows | |||
Notes | 2022* | 2021* | |
Cash flows from (to) operating activities | |||
Net profit (loss) from continuing operations | ( | ||
Net (loss) from discontinued operations | ( | ( | |
Adjusting items: | |||
Income tax expenses | 27 | ||
Depreciation and amortization | 6, 7, 8, 18 | ||
Expected credit loss | |||
Impairment and write-off of inventory and prepayments | |||
(Gain) on disposal of property, plant and equipment | 25 | ( | ( |
(Gain) from sale of investments | 1 | ( | ( |
Impairment of goodwill and other intangible assets | 5, 6, 18 | ||
Interest (income) | 26 | ( | ( |
Interest expenses | 26 | ||
Changes in provisions | 17, 19, 31 | ( | |
Fair value less costs to sell adjustment for assets held for sale | 8 | ||
Other financial activity result, net | |||
Share of net (profit) of associate | ( | ||
( | |||
Changes in working capital: | |||
(Increase) in inventories | ( | ( | |
Decrease in trade receivables, receivables from related parties, contract assets, non-current receivables, other receivables | |||
and other current assets | ( | ( | |
(Increase) in prepayments | |||
Increase in trade payables and payables to related parties | |||
Increase in advances received, contract liabilities and other current liabilities | |||
Income tax (paid) | ( | ( | |
Net cash flows from operating activities |
(cont’d on the next page)
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
51
Consolidated statement of cash flows (cont‘d)
Notes | 2022* | 2021* | |
Cash flows (to) investing activities | |||
(Acquisition) of non-current assets | 6, 7, 8 | ( | ( |
Proceeds from sale of non-current assets | |||
(Acquisition) of investments in subsidiaries (net of cash | 1, 5 | ( | ( |
acquired in the Group) | |||
Disposal of investments in subsidiaries (net of cash disposed) | |||
and associates | 1 | ||
Interest received | |||
Receivable loans repaid | |||
Net cash flows (to) from investing activities | ( | ||
Cash flows (to) financing activities | |||
Dividends (paid) | ( | ||
Proceeds from loans payable | 16 | ||
Loans payable (repaid) | 16 | ( | ( |
Lease (payments) | 16 | ( | ( |
Interest (paid) | 16 | ( | ( |
Net cash flows (to) financing activities | ( | ( | |
Net (decrease) increase in cash and cash equivalents | ( | ( | |
Foreign exchange difference | |||
Cash and cash equivalents at the beginning of the year | |||
Cash and cash equivalents at the end of the year |
*Group cash flows for 2022 and 2021 comprise total consolidated Group, including discontinued operations. Grouped
discontinued operations cash flows are disclosed in Note 8.
The accompanying notes are an integral part of these financial statements.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
52
Notes to the financial statements
2022 | 2021 | |||
Owned | Owned | |||
percentage of | percentage of | |||
the share | the share | |||
Number of | capital and | Number of | capital and | |
shares held | votes, % | shares held | votes, % | |
UAB Unit Invest* | 26,813,293 | 84.83% | 26,813,293 | 84.83% |
Other private and institutional shareholders | 4,796,707 | 15.17% | 4,796,707 | 15.17% |
Total | 31,610,000 | 100 % | 31,610,000 | 100 % |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
53
1 General information (cont’d)
Share of the | Share of the | |||
stock held by | stock held by | |||
Company | Country | the Group as of | the Group as of | Main activities |
31 December | 31 December | |||
2022 | 2021 | |||
UAB Alytaus namų valda | Lithuania | 76% | 76% | Dormant |
UAB Apex intelligence | Lithuania | 100% | 100% | IT energy saving solutions for |
buildings | ||||
UAB Baltijos būsto priežiūra | Lithuania | 100% | 100% | Dormant |
UAB Baltijos NT valdymas | Lithuania | 100% | 100% | Real estate management |
UAB Baltijos transporto valdymas | Lithuania | 100% | 100% | Asset management |
UAB Baltijos turto valdymas | Lithuania | - | 100% | Holding company |
UAB Biržų butų ūkis | Lithuania | 57.71% | 57.71% | Administration of dwelling-houses |
UAB BonoDomo | Lithuania | 100% | 100% | IT services |
UAB BonoDomo Pay | Lithuania | 100% | - | Intermediary activities of an electronic |
money institution | ||||
UAB Butų ūkio valdos | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Būsto aplinka | Lithuania | 100% | 100% | Maintenance and cleaning of dwelling- |
houses territories and premises | ||||
UAB City Service | Lithuania | 100% | 100% | Holding company |
Maintenance and cleaning of | ||||
UAB City Service Cleaning | Lithuania | 100% | 100% | commercial real estate, territories and |
premises | ||||
UAB City Service Engineering | Lithuania | 100% | 100% | Commercial real estate management |
and building maintenance | ||||
UAB CSG IT | Lithuania | 100% | 100% | IT services |
UAB Energijos taupymo paslaugos | Lithuania | 100% | 100% | Energy saving solution services |
UAB Energetinių projektų valdymas | Lithuania | 100% | 100% | PPP project company |
UAB EPC projektai | Lithuania | 100% | 100% | Dormant |
UAB InHouse Digital | Lithuania | - | 100% | Holding company |
UAB Getfiks | Lithuania | 100% | - | Supply chain management |
UAB Neries būstas | Lithuania | 100% | 100% | Dormant |
Maintenance and cleaning of public | ||||
UAB Mano aplinka | Lithuania | 100% | 100% | territories and premises |
UAB Mano aplinka plius | Lithuania | - | 100% | Cleaning of territories and premises |
UAB Mano bendrabutis | Lithuania | 100% | 100% | Administration of buildings |
UAB Mano Būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Alytus | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Aukštaitija | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Baltija | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Dainava | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Neris | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas NPC | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Kaunas | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Klaipėda | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Radviliškis | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Sostinė | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Šiauliai | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Ukmergė | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būstas Vakarai | Lithuania | 99.97% | 99.84% | Administration of dwelling-houses |
UAB Mano Būstas Vilnius | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Mano Būsto priežiūra | Lithuania | 100% | 100% | Building maintenance |
UAB Medžiagų tiekimo centras | Lithuania | 100% | 100% | Supply of materials |
UAB Merlangas | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB Nacionalinis renovacijos fondas | Lithuania | 100% | 100% | Administration of dwelling-houses |
renovation projects | ||||
UAB Pastatų priežiūra | Lithuania | 100% | 100% | Building maintenance |
UAB Pastatų priežiūros tarnyba | Lithuania | 100% | 100% | Technical maintenance of heating |
systems | ||||
UAB Pastatų valdymas | Lithuania | 100% | 100% | Administration of dwelling-houses |
UAB PortalPRO | Lithuania | 100% | 100% | Supply chain management |
UAB Rinkų vystymas | Lithuania | 100% | 100% | Dormant |
UAB Skolos LT | Lithuania | 100% | 100% | Debt collection services |
UAB Šiaulių NT valdymas | Lithuania | 100% | 100% | Dormant |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
54
UAB Unitechna | Lithuania | 100% | 100% | Maintenance and construction of gas |
stations | ||||
STARLIT s.r.o. | Czech | - | 100% | IT services |
PortalPRO s.r.o. | Czech | 100% | - | IT services |
Aresi administracion de fincas S. L. | Spain | 100% | 100% | Administration of dwelling-houses |
Concentra Servicios y Mantenimiento, | Spain | 100% | 100% | Commercial real estate management |
S.A.* | and building maintenance | |||
Eurobroker Advisors Sorreduria de | Spain | 100% | 100% | Insurance services |
Seguros, S.L. | ||||
Euronamas Gestion de Fincas Centro, S.L. | Spain | 100% | 100% | Administration of dwelling-houses |
EUROHUB, S.L. | Spain | - | 100% | Dormant |
Grupo Aresi de Inversiones, S.L. | Spain | 100% | 100% | Holding company |
Inmonamas, S.L. | Spain | - | 100% | Dormant |
PORTALPRO, S.L. | Spain | 100% | 100% | Supply chain management |
URBAN HUB, S.L. | Spain | - | 100% | Supply chain management |
Vetell dos iberica, S.L.* | Spain | 100% | 100% | Administration of dwelling-houses |
SIA BILANCE | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA BonoDomo | Latvia | 100% | 100% | Dormant |
SIA City Service | Latvia | 100% | 100% | Holding company |
SIA City Service Engineering | Latvia | 100% | 100% | Commercial real estate management |
and building maintenance | ||||
SIA Ēku p rvaldīšanas serviss | Latvia | 100% | 100% | Building maintenance |
SIA PortalPRO | Latvia | 100% | 100% | Dormant |
SIA Latvijas Namsaimnieks | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Livonijas Nami | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Namu serviss APSE | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA NIRA Fonds apsaimniekošana | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA NIRA Fonds apsaimniekošana 2 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA NIRA Fonds apsaimniekosana- Salnas 21 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA NIRA Fonds apsaimniekošana 3 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Ventspils nami | Latvia | 100% | 100% | Administration of dwelling-houses |
Atrium 21 sp. z o.o. | Poland | 100% | 100% | Administration of dwelling-houses |
Deleterma sp. z o.o. | Poland | 100% | 100% | Country holding company |
Certus-Serwis Sp. z o. o. | Poland | 100% | 100% | Administration of dwelling-houses |
Concierge - Zarządzanie | Poland | 100% | 100% | Administration of dwelling-houses |
Nieruchomościami sp. z o.o. | ||||
Dom Best sp. z o.o. | Poland | 100% | 100% | Administration of dwelling-houses |
EnergiaOK sp. z o.o. | Poland | 100% | 100% | Sale of electricity |
Famix sp. z o.o. | Poland | 100% | 100% | Administration of dwelling-houses |
Grupa Techniczna 24 sp. z o.o. | Poland | 100% | 100% | Building maintenance |
Home Rent sp. z o.o. | Poland | - | 50% | Administration of dwelling-houses |
Parama Blue sp. z o.o. | Poland | 100% | 100% | Dormant |
Parama Group sp. z o.o. | Poland | 100% | 100% | Holding company |
Parama Yellow sp. z o.o. | Poland | 100% | 100% | Dormant |
Parama Red sp. z o.o. | Poland | 100% | 100% | Dormant |
Parama White sp. z o.o. | Poland | 100% | 100% | Dormant |
PORTALPRO sp. z o.o. | Poland | 100% | 100% | Supply chain management |
Progresline sp. z o.o. | Poland | 100% | 100% | Administration of dwelling-houses |
Santer Zarządzanie Nieruchomościami | Poland | 100% | 100% | Administration of dwelling-houses |
sp. z o.o. | ||||
Skydas - Przeglądy Budowlane sp. z | Poland | 100% | 100% | Dormant |
o.o. | ||||
TED sp. z o.o. | Poland | 100% | 100% | Real estate management |
Tumieszkamy sp. z o. o. | Poland | 100% | 100% | Dormant |
Wolska Aparthotel sp. z o. o.** | Poland | 100% | 100% | Accommodation services |
Zespół Zarządców Nieruchomości sp. | Poland | 100% | 100% | Administration of dwelling-houses |
z o.o. | ||||
ZZN Inwestycje sp. z o.o. | Poland | 100% | 100% | Dormant |
PORTALPRO, UNIPESSOAL LDA | Portugal | 100% | - | Dormant |
OAO Siti Servis | St. Petersburg | - | 100% | Administration of dwelling-houses |
ZAO Siti Servis | St. Petersburg | - | 100% | Administration of dwelling-houses |
OOO Specializirovannoe remontno- | St. Petersburg | - | 100% | Construction and engineering |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
55
naladochnoe upravlenie | ||||
OOO MN Grupp | St. Petersburg | - | 100% | Country holding company |
OOO Zhilkomservis No 3 | St. Petersburg | - | 80% | Administration of dwelling-houses |
Frunzenskogo rajona | ||||
OOO Chistij dom | St. Petersburg | - | 100% | Maintenance and cleaning of territories |
OOO Podjemnie mechanizmy | St. Petersburg | - | 100% | Elevator installing & tech. support |
OOO PortalPRO | St. Petersburg | - | 100% | Dormant |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
56
1 General information (cont‘d)
OOO Podjemnie mechanizmy | ||||||||
18 May, 2022 | 18 May, 2022 | 18 May, 2022 | 18 May, 2022 | |||||
Goodwill | - | - | 154 | - | ||||
Non-current assets other than goodwill | 3 | 407 | 285 | 29 | ||||
Current assets other than cash and cash | - | 3,492 | 2,007 | 21 | ||||
equivalents | ||||||||
Cash and cash equivalents | 10 | 239 | 521 | 10 | ||||
Non-current and current liabilities | (2,697) | (3,772) | (1,433) | (164) | ||||
Total net assets disposed of attributable to parent | equity | holders | of | the | (2,684) | 366 | 1,534 | (104) |
attributable to non-controlling interests | - | - | - | - | ||||
Total | consideration | received, | all |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
57
1 General information (cont‘d)
OOO | |||||||||
OOO Chistij dom | PortalPRO | ||||||||
18 May, 2022 | 18 May, 2022 | 18 May, 2022 | 18 May, 2022 | 18 May, 2022 | |||||
Goodwill | 35 | 272 | - | 1 | - | ||||
Non-current | assets | other | than | 182 | 1,521 | 1,837 | 25 | 29 | |
goodwill | |||||||||
Current assets other than cash and cash equivalents | 586 | 3,632 | 116 | 18 | 20 | ||||
Cash and cash equivalents | 24 | 310 | 2 | 130 | 1 | ||||
Non-current and current liabilities | (803) | (3,498) | (1,763) | (234) | (8) | ||||
Total net assets disposed of attributable to equity holders of the parent | 24 | 2,127 | 192 | (60) | 42 | ||||
attributable to interests | non-controlling | - | 110 | - | - | - | |||
Total | consideration | received, | all | ||||||
consisting | of | cash | and | cash | - | - | - | - | - |
equivalents |
19 | |||||||||
September, | |||||||||
19 September, 2022 | 2022 | ||||||||
Goodwill | - | 1,300 | 1,158 | 152 | 582 | ||||
Non-current | assets | other | than | 186 | 734 | - | 1 | 19 | |
goodwill | |||||||||
Current assets other than cash and cash equivalents | 12 | 42 | 22 | 11 | 10 | ||||
Cash and cash equivalents | 17 | 68 | 68 | 25 | 80 | ||||
Non-current and current liabilities | (9,865) | (217) | (56) | (1) | (17) | ||||
Total net assets disposed of attributable to equity holders of the parent | (9,650) | 1,927 | 1,192 | 188 | 674 | ||||
attributable to interests | non-controlling | - | - | - | - | - | |||
Total | consideration | received, | all | ||||||
consisting | of | cash | and | cash | 3 | - | - | - | - |
equivalents |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
58
1 General information (cont‘d)
Improxy - | |||||||||
Technologias | Homefile | Homefile | InHouse | ||||||
de | S.R.L | Support | Finance KFT | Invert KFT | |||||
informacao | S.R.L | ||||||||
LDA | |||||||||
19 | 19 | 19 | 19 | 19 | |||||
September, | September, | September, | September, | September, | |||||
Date of disposal | 2022 | 2022 | 2022 | 2022 | 2022 | ||||
Goodwill | 2,811 | 604 | 278 | - | 315 | ||||
Non-current | assets | other | than | 275 | 5 | - | 121 | 4 | |
goodwill | |||||||||
Current assets other than cash and cash equivalents | 8 | 40 | 5 | 15 | 23 | ||||
Cash and cash equivalents | 27 | 39 | 18 | 22 | 20 | ||||
Non-current and current liabilities | (220) | (15) | (10) | (7) | (6) | ||||
Total net assets disposed of attributable to equity holders of the parent | 2,901 | 673 | 291 | 151 | 356 | ||||
attributable to interests | non-controlling | - | - | - | - | - | |||
Total | consideration | received, | all | ||||||
consisting | of | cash | and | cash | - | - | - | - | - |
equivalents |
UAB Mano aplinka plius | |
Date of disposal | 31 August, 2022 |
Non-current assets other than goodwill | 69 |
Current assets other than cash and cash equivalents | 68 |
Cash and cash equivalents | 42 |
Non-current and current liabilities | (70) |
Total net assets disposed of attributable to equity holders of the parent | 109 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 810 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
59
1 General information (cont‘d)
Home Rent sp. z o.o. | |
Date of disposal | 10 November, 2022 |
Non-current assets other than goodwill | 1 |
Current assets other than cash and cash equivalents | 5 |
Cash and cash equivalents | 81 |
Non-current and current liabilities | (82) |
Total net assets disposed of attributable to equity holders of the parent | 2.5 |
attributable to non-controlling interests | 2.5 |
Total consideration received, all consisting of cash and cash equivalents | 8 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
60
1 General information (cont‘d)
UAB Valymo projektai | |
Vilnius 4 | |
Date of disposal | 5 January, 2021 |
Non-current assets other than goodwill | 4 |
Current assets other than cash and cash equivalents | 52 |
Cash and cash equivalents | 34 |
Non-current and current liabilities | (77) |
Total net assets disposed of attributable to equity holders of the parent | 13 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 24 |
UAB Valymo projektai | |
Vilnius 2 | |
Date of disposal | 29 January, 2021 |
Non-current assets other than goodwill | 18 |
Current assets other than cash and cash equivalents | 57 |
Cash and cash equivalents | 53 |
Non-current and current liabilities | (97) |
Total net assets disposed of attributable to equity holders of the parent | 31 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 50 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
61
1 General information (cont‘d)
UAB Valymo projektai | |
Vilnius 3 | |
Date of disposal | 29 January, 2021 |
Non-current assets other than goodwill | 9 |
Current assets other than cash and cash equivalents | 74 |
Cash and cash equivalents | 58 |
Non-current and current liabilities | (124) |
Total net assets disposed of attributable to equity holders of the parent | 17 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 37 |
UAB Valymo projektai | |
Kaunas | |
Date of disposal | 29 January, 2021 |
Non-current assets other than goodwill | 40 |
Current assets other than cash and cash equivalents | 56 |
Cash and cash equivalents | 92 |
Non-current and current liabilities | (172) |
Total net assets disposed of attributable to equity holders of the parent | 16 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 12 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
62
1 General information (cont‘d)
UAB Valymo projektai 1 | |
Date of disposal | 26 February, 2021 |
Non-current assets other than goodwill | 10 |
Current assets other than cash and cash equivalents | 92 |
Cash and cash equivalents | 68 |
Non-current and current liabilities | (155) |
Total net assets disposed of attributable to equity holders of the parent | 15 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 30 |
UAB Konarskio turgelis | |
Date of disposal | 5 March, 2021 |
Goodwill | 201 |
Non-current assets other than goodwill | 150 |
Current assets other than cash and cash equivalents | 11 |
Cash and cash equivalents | 37 |
Non-current and current liabilities | (16) |
Total net assets disposed of attributable to equity holders of the parent | 383 |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 902 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
63
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
64
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
65
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
66
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
67
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
68
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
69
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
70
2. Accounting policies (cont’d)
2.8. Financial assets (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
71
2 Accounting policies (cont’d)
2.8. Financial assets (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
72
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
73
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
74
2 Accounting policies (cont’d)
2.14. Right of use assets and lease liabilities (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
75
2 Accounting policies (cont’d)
2.14. Right of use assets and lease liabilities (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
76
2 Accounting policies (cont’d)
2.15. Provision for employee benefits (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
77
2 Accounting policies (cont’d)
2.18. Income tax (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
78
2 Accounting policies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
79
2 Accounting policies (cont’d)
2.19. Revenue recognition (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
80
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
81
3 Use of judgements and estimates in preparation of financial statements (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
82
3 Use of judgements and estimates in preparation of financial statements (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
| Year ended | Buildings’ administration | All other | ||
| 31 December 2022 | segments | Total | ||
Lithuania | Latvia | |||
Revenue from contracts with customers | 78,468 | 5,678 | 239 | 84,385 |
Total revenue from contracts with customers | 84,385 | |||
2,923 | 7 | 722 | 3,652 | |
Segment results | ||||
Unallocated expenses | (692) | |||
Profit from operations | 2,960 | |||
Net financial income | (698) | |||
Profit / (loss) before income tax | 2,262 | |||
Income tax expenses | (877) | |||
Net profit (loss) for the year | 1,385 | |||
Other segment information | ||||
Capital expenditure | 2,891 | 19 | 247 | 3,157 |
83
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
84
4 Segment information (cont’d)
Year ended | Buildings’ administration | All other | ||
31 December 2021 | segments | Total | ||
Lithuania | Latvia | |||
Revenue from contracts with customers | 74,871 | 4,619 | 185 | 79,675 |
Total revenue from contracts with customers | 79,675 | |||
113 | (227) | 9 | (105) | |
Segment results | ||||
Unallocated expenses | (512) 1 | |||
Profit from operations | (617) | |||
Net financial income | 329 2 | |||
Profit / (loss) before income tax | (288) | |||
Income tax expenses | (1,545) 2 | |||
Net profit (loss) for the year | (1,833) | |||
Other segment information | ||||
Capital expenditure | 70 | 3,996 | 40 | 4,106 |
All other | ||||
Lithuania | Latvia | segments | Total | |
Revenue | ||||
Sales to external customers | 78,468 | 5,678 | 239 | 84,385 |
Segment revenue | 78,468 | 5,678 | 239 | 84,385 |
All other | ||||
2021 | Lithuania | Latvia | segments | Total |
Revenue | ||||
Sales to external customers | 74,871 | 4,619 | 185 | 79,675 |
Segment revenue | 74,871 | 4,619 | 185 | 79,675 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
85
4 Segment information (cont’d)
All other | ||||
As of 31 December 2022 | Lithuania | Latvia | segments | Total |
Non-current assets | 33,853 | 5,172 | 99 | 39,124 |
Segment assets | 33,853 | 5,172 | 99 | 39,124 |
Total non-current assets |
St. | All other | |||||
As of 31 December 2021 | Poland | Lithuania | Latvia | Petersburg | segments | Total |
Non-current assets | ||||||
Segment assets | 1,532 | 35,138 | 5,820 | 3,195 | 4,849 | 50,534 |
Total non-current assets | 1,532 | 35,138 | 5,820 | 3,195 | 4,849 | 50,534 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
86
Note | Group | |
Cost: | ||
Balance as of 1 January 2021 | 10,575 | |
Additions | 1,542 | |
Exchange differences | 27 | |
Balance as of 31 December 2021 | 12,144 | |
Additions | 6,142 | |
Exchange differences | 69 | |
Discontinued operations and assets held for sale | 8 | (7,880) |
Balance as of 31 December 2022 | 10,475 | |
Impairment: | ||
Balance as of 1 January 2021 | 1,322 | |
Exchange differences | (8) | |
Impairment recognized | 250 | |
Balance as of 31 December 2021 | 1,564 | |
Exchange differences | (20) | |
Impairment recognized | 130 | |
Discontinued operations | 8 | 2 |
Balance as of 31 December 2022 | 1,676 | |
Net book value as of 31 December 2022 | 8,799 | |
Net book value as of 31 December 2021 | 10,580 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
87
5 Goodwill (cont’d)
Improxy - | ||||
Fair value of assets, | Technologias | Homefile S.R.L | Homefile Support | UAB Getfiks |
liabilities and contingent | de informacao | S.R.L | ||
liabilities | LDA | |||
Date of acquisition | 01 March | 02 March | 02 March | 04 March |
Goodwill | 2,811 | 604 | 279 | 207 |
Other intangible assets | 180 | - | - | - |
Property, plant and equipment | 104 | - | - | 1 |
Trade receivables | 7 | 15 | 8 | 5 |
Other current assets | 77 | 19 | - | 1 |
Total assets | 3,179 | 638 | 287 | 214 |
Long-term liabilities | 50 | - | - | - |
Trade payables | 10 | - | - | 1 |
Other current liabilities | 119 | 18 | 1 | - |
Total liabilities | 179 | 18 | 1 | 1 |
Fair value of | ||||
assets, liabilities | Invert KFT | SWAN Liberec s.r.o. | INTEGRI s.r.o. | O.K.-Soft |
and contingent | Sokolov s.r.o. | |||
liabilities | ||||
Date of acquisition | 05 April | 13 May | 18 March | 18 May |
Goodwill | 358 | 151 | 1,143 | 589 |
Other intangible assets | - | - | - | - |
Property, plant and equipment | 3 | 2 | - | 19 |
Trade receivables | 15 | 5 | 3 | 4 |
Other current assets | 49 | 23 | 1,129 | 43 |
Total assets | 425 | 181 | 2,275 | 655 |
Long-term liabilities | - | - | 24 | - |
Trade payables | - | - | 4 | 5 |
Other current | 8 | 3 | 853 | 7 |
liabilities | ||||
Total liabilities | 8 | 3 | 881 | 12 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
88
5 Goodwill (cont’d)
Improxy – | ||||
Technologias | Homefile | Homefile Support | UAB Getfiks | |
de informacao | S.R.L | S.R.L | ||
Book value | LDA | |||
Date of acquisition | 01 March | 02 March | 02 March | 04 March |
Intangible assets | 180 | - | - | - |
Property, plant and equipment | 104 | - | - | 1 |
Trade receivables | 7 | 15 | 8 | 6 |
Other current assets | 77 | 19 | - | 1 |
Total assets | 368 | 34 | 8 | 8 |
Long-term liabilities | 50 | - | - | - |
Trade payables | 10 | - | - | 1 |
Other current liabilities | 119 | 18 | 1 | - |
Total liabilities | 179 | 18 | 1 | 1 |
Total identifiable net | 189 | 16 | 7 | 7 |
assets at book value | ||||
attributable to equity holders | 189 | 16 | 7 | 7 |
of the parent | ||||
attributable to non- controlling interests | - | - | - | - |
INTEGRI s.r.o. | Invert KFT | O.K.-Soft Sokolov | SWAN Liberec | |
Book value | s.r.o. | s.r.o. | ||
Date of acquisition | 18 March | 05 April | 18 May | 13 May |
Intangible assets | - | - | - | - |
Property, plant and equipment | - | 3 | 19 | 2 |
Trade receivables | 3 | 15 | 4 | 5 |
Other current assets | 1,129 | 49 | 29 | 23 |
Total assets | 1,132 | 67 | 52 | 30 |
Long-term liabilities | 24 | - | - | - |
Trade payables | 4 | - | 5 | - |
Other current | 853 | 8 | - | 3 |
liabilities | ||||
Total liabilities | 881 | 8 | 5 | 3 |
Total identifiable | 251 | 59 | 47 | 27 |
net assets at book | ||||
value | ||||
attributable to equity | 251 | 59 | 47 | 27 |
holders of the parent | ||||
attributable to non- controlling interests | - | - | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
89
5 Goodwill (cont’d)
Improxy – | ||||
Technologias | Homefile | Homefile S.R.L | UAB Getfiks | |
de informacao | Support S.R.L | |||
LDA | ||||
Date of acquisition | 01 March | 02 March | 02 March | 04 March |
Fair value of acquired | ||||
assets, liabilities and contingent liabilities | 189 | 7 | 16 | 6 |
attributable to the Group | ||||
Goodwill | 2,811 | 279 | 604 | 207 |
Total purchase | 3,000 | 286 | 620 | 213 |
consideration | ||||
Fair value of non- controlling interest | - | - | - | - |
acquired | ||||
Cash acquired | 61 | - | 19 | 1 |
Total purchase | ||||
consideration, net of cash | 2,939 | 286 | 601 | 212 |
acquired |
INTEGRI s.r.o. | Invert KFT | O.K.-Soft Sokolov | SWAN Liberec | |
s.r.o. | s.r.o. | |||
Date of acquisition | 18 March | 05 April | 18 May | 13 May |
Fair value of acquired | ||||
assets, liabilities and contingent liabilities | 251 | 59 | 54 | 27 |
attributable to the Group | ||||
Goodwill | 1,143 | 358 | 589 | 151 |
Total purchase | 1,394 | 417 | 643 | 178 |
consideration | ||||
Fair value of non- controlling interest | - | - | - | - |
acquired | ||||
Cash acquired | 295 | 48 | 30 | 23 |
Total purchase | ||||
consideration, net of cash | 1,099 | 369 | 613 | 155 |
acquired |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
90
5 Goodwill (cont’d)
Improxy – | ||||
Technologias | Homefile S.R.L | Homefile Support | UAB Getfiks | |
de informacao | S.R.L | |||
LDA | ||||
Date of acquisition | 01 March | 02 March | 02 March | 04 March |
Profit (loss) incurred | ||||
since acquisition date | (99) | 52 | 5 | 1 |
to 31 December 2022 | ||||
Total revenue since | ||||
acquisition date to 31 | 573 | 68 | 26 | 27 |
December 2022 | ||||
Total revenue for the year 2022 (unaudited) | 746 | 83 | 36 | 37 |
Total net result for the year 2022 (unaudited) | (66) | 68 | 13 | (10) |
INTEGRI s.r.o. | Invert KFT | O.K.-Soft | SWAN Liberec | |
Sokolov s.r.o. | s.r.o. | |||
Date of acquisition | 18 March | 05 April | 18 May | 13 May |
Profit (loss) incurred since | ||||
acquisition date to 31 | (37) | (12) | 36 | 9 |
December 2022 | ||||
Total revenue since | ||||
acquisition date to 31 | 175 | 29 | 49 | 31 |
December 2022 | ||||
Total revenue for the year | 330 | 70 | 125 | 84 |
2022 (unaudited) | ||||
Total net result for the year 2022 (unaudited) | 68 | (5) | 63 | 33 |
Name of entity acquired | Acquisition cost | Notes | |
UAB Butų ūkio valdos | EUR 200 thousand | All paid in cash | |
UAB Pastatų priežiūros tarnyba | EUR 40 thousand | All paid in cash | |
SIA NIRA Fonds apsaimniekošana | EUR 96 thousand | All paid in cash | |
SIA NIRA Fonds apsaimniekošana 2 | EUR 44 thousand | All paid in cash | |
SIA NIRA Fonds apsaimniekosana-Salnas 21 | EUR 21 thousand | All paid in cash | |
SIA NIRA Fonds apsaimniekošana 3 | EUR 136 thousand | All paid in cash | |
SIA Livonijas Nami | EUR 470 thousand | All paid in cash | |
SIA Bilance | EUR 125 thousand | All paid in cash | |
Starlit s.r.o. | CZK 54,625 | thousand | All paid in cash |
(EUR 2,165 thousand) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
91
5 Goodwill (cont’d)
Fair value of assets, | Pastatų | |||
liabilities and contingent | Butų ūkio | priežiūros | SIA NIRA Fonds | SIA NIRA Fonds |
liabilities | valdos | tarnyba | apsaimniekošana | apsaimniekošana 2 |
Date of acquisition | 25 March | 17 June | 02 September | 02 September |
Goodwill | - | - | - | - |
Other intangible assets | 190 | 84 | 108 | 41 |
Property, plant and equipment | 8 | - | - | - |
Trade receivables | 33 | 117 | 35 | 7 |
Other current assets | 17 | 107 | 201 | 2 |
Total assets | 248 | 308 | 344 | 50 |
Deferred tax liability | 29 | 13 | - | - |
Trade payables | 5 | 243 | 24 | 2 |
Other current liabilities | 14 | 12 | 224 | 4 |
Total liabilities | 48 | 268 | 248 | 6 |
Fair value of | |||||
assets, | SIA NIRA Fonds | SIA NIRA Fonds | SIA Livonijas | ||
liabilities and | apsaimniekosana- | apsaimniekošana 3 | Nami | Starlit s.r.o. | SIA Bilance |
contingent | Salnas 21 | ||||
liabilities | |||||
Date of acquisition | 02 September | 02 September | 14 December | 23 December | 25 December |
Goodwill | - | - | 276 | 1,266 | - |
Other intangible assets | 18 | 136 | 167 | 703 | 124 |
Property, plant | - | - | 38 | 108 | - |
and equipment | |||||
Trade | 6 | - | 26 | 20 | - |
receivables | |||||
Other current | 36 | 34 | 183 | 367 | 4 |
assets | |||||
Total assets | 60 | 170 | 690 | 2,464 | 128 |
Deferred tax | - | - | - | 134 | - |
liability | |||||
Trade payables | 27 | 7 | 107 | - | - |
Other current | 12 | 27 | 113 | 165 | 3 |
liabilities | |||||
Total liabilities | 39 | 34 | 220 | 299 | 3 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
92
5 Goodwill (cont’d)
Pastatų | ||||
UAB Butų | priežiūros | SIA NIRA Fonds | SIA NIRA Fonds | |
Book value | ūkio valdos | tarnyba | apsaimniekošana | apsaimniekošana 2 |
Date of acquisition | 25 March | 17 June | 02 September | 02 September |
Property, plant and equipment | 8 | - | - | - |
Trade receivables | 33 | 117 | 35 | 7 |
Other current assets | 17 | 107 | 201 | 2 |
Total assets | 58 | 224 | 236 | 9 |
Trade payables | 5 | 243 | 24 | 2 |
Other current liabilities | 14 | 12 | 220 | 3 |
Total liabilities | 19 | 255 | 244 | 5 |
Total identifiable net | 39 | (31) | (8) | 4 |
assets at book value | ||||
attributable to equity holders | 39 | (31) | (8) | 4 |
of the parent | ||||
attributable to non- controlling interests | - | - | - | - |
SIA NIRA Fonds | SIA NIRA Fonds | SIA Livonijas | |||
apsaimniekosana- | apsaimniekošana | Nami | Starlit s.r.o. | SIA Bilance | |
Book value | Salnas 21 | 3 | |||
Date of acquisition | 02 September | 02 September | 14 December | 23 December | 25 December |
Property, plant | - | - | 38 | 108 | - |
and equipment | |||||
Trade receivables | 6 | - | 26 | 20 | - |
Other current | 36 | 34 | 183 | 367 | 4 |
assets | |||||
Total assets | 42 | 34 | 247 | 495 | 4 |
Trade payables | 27 | 7 | 107 | - | - |
Other current | 13 | 27 | 113 | 166 | 3 |
liabilities | |||||
Total liabilities | 40 | 34 | 220 | 166 | 3 |
Total identifiable | 2 | - | 27 | 329 | 1 |
net assets at book value | |||||
attributable to equity holders of the parent | 2 | - | 27 | 329 | 1 |
attributable to non-controlling interests | - | - | - | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
93
5 Goodwill (cont’d)
Pastatų | ||||
UAB Butų | priežiūros | SIA NIRA Fonds | SIA NIRA Fonds | |
ūkio valdos | tarnyba | apsaimniekošana | apsaimniekošana 2 | |
Date of acquisition | 25 March | 17 June | 02 September | 02 September |
Fair value of acquired | ||||
assets, liabilities and contingent liabilities | 200 | 40 | 96 | 44 |
attributable to the Group | ||||
Goodwill | - | - | - | - |
Total purchase | 200 | 40 | 96 | 44 |
consideration | ||||
Fair value of non- controlling interest | - | - | - | - |
acquired | ||||
Cash acquired | 16 | 38 | 174 | 2 |
Total purchase | ||||
consideration, net of cash | 184 | 2 | (78) | 42 |
acquired |
SIA NIRA Fonds | SIA NIRA Fonds | SIA Livonijas | SIA | ||
apsaimniekosana- | apsaimniekošana | Nami | Starlit s.r.o. | Bilance | |
Salnas 21 | 3 | ||||
Date of | 02 September | 02 September | 14 December | 23 December | 25 |
acquisition | December | ||||
Fair value of acquired assets, liabilities and contingent liabilities | 21 | 136 | 194 | 899 | 125 |
attributable to the Group | |||||
Goodwill | - | - | 276 | 1,266 | - |
Total purchase | 21 | 136 | 470 | 2,165 | 125 |
consideration | |||||
Fair value of non- controlling | - | - | - | - | - |
interest acquired | |||||
Cash acquired | 16 | 9 | 97 | 362 | 4 |
Total purchase | |||||
consideration, net | 5 | 127 | 373 | 1,803 | 121 |
of cash | |||||
acquired | |||||
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
94
5 Goodwill (cont’d)
Pastatų | ||||
UAB Butų ūkio | priežiūros | SIA NIRA Fonds | SIA NIRA Fonds | |
valdos | tarnyba | apsaimniekošana | apsaimniekošana 2 | |
Date of acquisition | 25 March | 17 June | 02 September | 02 September |
Profit (loss) incurred | ||||
since acquisition date | (65) | (2) | (1) | 1 |
to 31 December 2021 | ||||
Total revenue since | ||||
acquisition date to 31 | 173 | 129 | 59 | 13 |
December 2021 | ||||
Total revenue for the year 2021 (unaudited) | 222 | 369 | 176 | 39 |
Total net result for the year 2021 (unaudited) | (63) | 17 | (7) | 2 |
SIA NIRA Fonds | SIA NIRA Fonds | SIA Livonijas | |||
apsaimniekosana- | apsaimniekošana 3 | Nami | Starlit s.r.o. | SIA Bilance | |
Salnas 21 | |||||
Date of acquisition | 02 September | 02 September | 14 December | 23 December | 25 December |
Profit (loss) incurred | |||||
since acquisition date | 11 | 1 | 11 | - | - |
to 31 December 2021 | |||||
Total revenue since | 2 | ||||
acquisition date to 31 | 50 | 10 | 11 | - | |
December 2021 | |||||
Total revenue for the year 2021 (unaudited) | 151 | 30 | 166 | 388 | 23 |
Total net result for the year 2021 (unaudited) | 12 | 3 | 13 | 73 | (1) |
Carrying value | Carrying value | |
of allocated | of allocated | |
goodwill as of | goodwill as of | |
31 December | 31 December | |
Cash generating unit | 2022 | 2021 |
Subsidiaries operating in Lithuania | 8,011 | 8,012 |
Subsidiaries operating in Latvia | 788 | 918 |
Subsidiaries operating in St. Petersburg, Russia | - | 367 |
Subsidiary operating in Czech Republic | - | 1,283 |
8,799 | 10,580 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
95
5 Goodwill (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
96
Notes | Other intangible assets | |
Cost: | ||
Balance as of 1 January 2021 | 41,010 | |
Additions arising from acquisitions of subsidiaries | 5 | 1,571 |
Additions | 3,872 | |
Disposals | (4,768) | |
Disposals related to discontinued operations | 8 | (4,011) |
Exchange differences | 38 | |
Balance as of 31 December 2021 | 37,712 | |
Additions arising from acquisitions of subsidiaries | 5 | 180 |
Additions | 2,886 | |
Disposals of subsidiaries | (3,239) | |
Disposals and retirements | (210) | |
Reclassification to assets held for sale | 8 | (11,468) |
Exchange differences | 322 | |
Balance as of 31 December 2022 | 26,183 | |
Accumulated amortisation and impairment: | ||
Balance as of 1 January 2021 | 16,261 | |
Charge for the year | 2,381 | |
Impairment recognized | 5,062 | |
Disposals | (4,735) | |
Disposals related to discontinued operations | 8 | (2,306) |
Exchange differences | (40) | |
Balance as of 31 December 2021 | 16,623 | |
Charge for the year | 1,180 | |
Disposals and retirements | (212) | |
Disposals of subsidiaries | (777) | |
Reclassification to assets held for sale | 8 | (9,598) |
Exchange differences | (11) | |
Balance as of 31 December 2022 | 7,205 | |
Net book value as of 31 December 2022 | 18,978 | |
Net book value as of 31 December 2021 | 21,089 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
97
6 Other intangible assets (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
98
Cost: | |||||
Balance as of 1 January 2021 | 1,616 | 4,340 | 11,953 | 25 | 17,934 |
Additions arising from acquisitions of subsidiaries | 107 | 8 | 39 | - | 154 |
Additions | - | 32 | 346 | - | 378 |
Disposals of subsidiaries | - | (22) | (34) | - | (56) |
Disposals and retirements | (645) | (1,241) | (2,097) | - | (3,983) |
Exchange differences | 8 | 45 | (34) | (4) | 15 |
Balance as of 31 December 2021 | 1,086 | 3,162 | 10,173 | 21 | 14,442 |
Additions arising from acquisitions of subsidiaries | 97 | 21 | 11 | - | 129 |
Additions | - | 45 | 352 | 442 | 839 |
Disposals and Retirements | (560) | (859) | (709) | - | (2,128) |
Disposals related to discontinued operations | (96) | (923) | (614) | - | (1,633) |
Reclassification to asset held for sale | (45) | (315) | (7,991) | - | (8,351) |
Exchange differences | - | 206 | 1 | - | 207 |
Reclassifications | - | - | 463 | (463) | - |
Balance as of 31 December 2022 | 482 | 1,337 | 1,686 | - | 3,505 |
Accumulated depreciation and impairment: | |||||
Balance as of 1 January 2021 | 852 | 3,908 | 6,590 | - | 11,350 |
Charge for the year | 230 | 151 | 1,418 | - | 1,799 |
Disposals and retirement | (641) | (1,119) | (1,633) | - | (3,393) |
Impairment | 11 | 26 | 112 | - | 149 |
Disposals of subsidiaries | - | - | (4) | - | (4) |
Exchange differences | - | 19 | 2 | - | 21 |
Balance as of 31 December 2021 | 452 | 2,985 | 6,485 | - | 9,922 |
Charge for the year | 17 | 50 | 1,090 | - | 1,157 |
Disposals and retirements | (276) | (845) | (561) | - | (1,682) |
Disposals related to discontinued operations | - | (760) | (422) | - | (1,182) |
Reclassification to asset held for sale | (45) | (304) | (5,558) | - | (5,907) |
Exchange differences | (1) | 191 | 13 | - | 203 |
Balance as of 31 December 2022 | 147 | 1,317 | 1,047 | - | 2,511 |
Net book value as of 31 December 2022 | 335 | 20 | 639 | - | 994 |
Net book value as of 31 December 2021 | 634 | 177 | 3,688 | 21 | 4,520 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
99
7 Property, plant and equipment (cont‘d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
100
2022 | 2021 | |
Sales | 30,968 | 53,446 |
Cost of sales | (24,228) | (46,203) |
Gross profit | 6,740 | 7,243 |
General and administrative expenses | (7,085) | (10,087) |
Impairment of goodwill, other intangibles and other non-current assets | (3,989) | (4,694) |
and fair value adjustment for assets held for sale | ||
Credit loss expenses on financial assets | (253) | (227) |
Other operating income | 1,300 | 2,140 |
Other operating expense | (2,850) | (2,276) |
Profit from operations | (6,137) | (7,901) |
Interest income | 84 | 35 |
Other finance income | 19 | 4 |
Interest expenses | (142) | (112) |
Other finance expense | (488) | (119) |
(Gain) on sale of investments | 2 | - |
Profit before taxes | (6,662) | (8,093) |
Income tax | 101 | 134 |
Net profit (loss) | (6,561) | (7,959) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
101
8 Discontinued operations and assets held for sale (cont’d)
2022 | 2021 | |
Net cash flows (to) from operating activities | (4,216) | 2,830 |
Net cash flows from (to) investing activities | (5,904) | (2,188) |
Net cash flows (to) from financing activities | 922 | (900) |
Net (decrease) increase in cash flows | (9,198) | (258) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
102
8 Discontinued operations and assets held for sale (cont’d)
As of 31 December 2022 | |
ASSETS | |
Non-current assets | |
Goodwill | 207 |
Other intangible assets | 1,872 |
Property, plant and equipment | 2,445 |
Right of use assets | 578 |
Non-current receivables | 94 |
Deferred income tax asset | 688 |
Total non-current assets | 5,884 |
Current assets | |
Inventories | 1,150 |
Prepayments | 380 |
Trade receivables | 1,701 |
Other receivables | 2,026 |
Prepaid income tax | 32 |
Accrued income and other current assets | 1 |
Cash and cash equivalents | 232 |
Total current assets | 5,522 |
Fair value less costs to sell measurement | (5,374) |
Total assets | 6,032 |
EQUITY AND LIABILITIES | |
EQUITY | |
Equity | 2,110 |
Reserves of a disposal group classified as held for sale | (92) |
Total Reserves of a disposal group classified as held for sale | 2,018 |
As of 31 December 2022 | |
| LIABILITIES | |
Non-current liabilities | |
Lease liabilities | 381 |
Provisions for employee benefits | 18 |
Non-current payables | 37 |
Total non-current liabilities | 436 |
Current liabilities | |
Current portion of lease liabilities | 209 |
Trade payables and payables to related parties | 1,508 |
Contract assets | 138 |
Income tax payable | 4 |
Provisions for employee benefits | 11 |
Curent provisions | 481 |
Other current liabilities | 1,227 |
Total current liabilities | 3,578 |
Total equity and liabilities | 6,032 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
103
8 Discontinued operations and assets held for sale (cont’d)
2021 | |
Sales | 2,354 |
Cost of sales | (99) |
Gross profit | 2,255 |
General and administrative expenses | (5,331) |
Impairment of goodwill, other intangibles and other non-current assets | (857) |
Credit loss expenses on financial assets | (529) |
Other operating income | 471 |
Other operating expense | (946) |
Profit from operations | (4,937) |
Interest income | 4 |
Loss on sale of investments | (3) |
Finance expenses | 2 |
Profit before taxes | (4,934) |
Income tax | (251) |
Net profit (loss) | (5,185) |
2021 | |
Net cash flows (to) operating activities | (1,647) |
Net cash flows from investing activities | 1,558 |
Net cash flows (to) financing activities | (22) |
Net (decrease) increase in cash flows | (111) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
104
Region of incorporation and | |||||
Name | operation | 2022 | 2021 | ||
OOO Zhilkomservis No 3 | - | 80% | |||
Frunzenskogo rajona* | St. Petersburg | ||||
As of 31 December | ||
As of 31 December 2022 | 2021 | |
Summarised statement of financial position | ||
Inventories, trade receivables and cash | - | 3,265 |
Property, plant and equipment and other non-current assets | - | 2,201 |
Deferred income tax, net | - | (282) |
Liabilities | - | (3,143) |
Total equity | - | 2,041 |
Attributable to: | ||
Equity holders of parent | - | 1,633 |
Non-controlling interest | - | 408 |
2022 | 2021 | |
Summarised statement of profit or loss | ||
Sales | 7,691 | 17,428 |
Cost of sales | (7,204) | (16,415) |
General and administrative expenses | (561) | (1,345) |
Other activity (net) | (42) | 308 |
Financial activity (net) | 1 | 1 |
Profit (loss) before tax | (115) | (23) |
Income tax | 30 | 5 |
Profit (loss) for the year | (85) | (18) |
Attributable to non-controlling interests | (17) | (4) |
| Summarised cash flow information | ||
2022 | 2021 | |
Net cash flows (to) from operating activities | (5) | (451) |
Net cash flows (to) investing activities | (2) | (1) |
Net cash flows from financing activities | - | - |
Net (decrease) increase in cash flows | (7) | (452) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
105
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Raw and auxiliary materials | 508 | 956 |
Goods for resale | 540 | 66 |
Other | 2 | 519 |
1,050 | 1,541 | |
Less: net realizable value allowance | (3) | (111) |
1,047 | 1,430 | |
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Trade receivables, gross | 27,814 | 43,571 |
Less: allowance for expected credit losses | (7,331) | (14,849) |
20,483 | 28,722 | |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
106
13 Trade receivables (cont’d)
Individually | Collectively | ||
assessed | assessed | Total | |
Balance as of 1 January 2021 | 947 | 12,007 | 12,954 |
Charge for the year | 69 | 553 | 622 |
Exchange differences | 21 | 383 | 404 |
Reversed during the year | (48) | (751) | (799) |
Written-off during the year | 7 | 1,015 | 1,022 |
Disposals related to discontinued operations | - | 646 | 646 |
Balance as of 31 December 2021 | 996 | 13,853 | 14,849 |
Charge for the year | 130 | 541 | 671 |
Disposals related to discontinued operations | - | (8,075) | (8,075) |
Exchange differences | (9) | 1,832 | 1,823 |
Reversed during the year | (14) | (436) | (450) |
Written-off during the year | - | 255 | 255 |
Transfer to assets held for sale | (982) | (760) | (1,742) |
Balance as of 31 December 2022 | 121 | 7,210 | 7,331 |
Trade receivables past due but not impaired | |||||||
Trade receivables | Less | More | |||||
neither past due nor | than 30 | 30 – 60 | 60 – 90 | 90 – 360 | than 360 | ||
impaired | days | days | days | days | days | Total | |
2021 | 19,334 | 1,800 | 962 | 956 | 2,343 | 3,327 | 28,722 |
2022 | 15,789 | 1,576 | 543 | 359 | 1,071 | 1,145 | 20,483 |
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Cash at bank | 3,430 | 5,721 |
Cash on hand | 4 | 6 |
Short-term deposits | - | 445 |
3,434 | 6,172 | |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
107
14 Cash and cash equivalents (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
108
Group | |||
As of 31 | As of 31 | ||
Currency of the loan | December 2022 | December 2021 | |
Current loans | |||
Bank loans | EUR | 1,829 | 5,901 |
Current loan balance | 1,829 | 5,901 | |
Non-current loans | |||
Bank loans | EUR | 13,497 | 18,947 |
Less: current portion of long term loans | (3,038) | (16,232)* | |
Non-current loan balance | 10,459 | 2,715 |
Group | ||
As of 31 | As of 31 | |
Term | December 2022 | December 2021 |
Within one year | 3,038 | 16,232 |
From one to five years | 8,852 | 912 |
More than five years | 1,607 | 1,803 |
13,497 | 18,947 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
109
16 Borrowings (cont’d)
Deconsolid | Reclassifica | |||||||
Cash flows | Cash flows | ation of | tion to | Foreign | 31 | |||
1 January | from | to loans | New leases | subsidiaries | assets held | exchange | December | |
2022 | proceeds | and leases | for sale | effect | 2022 | |||
from loans | repaid | |||||||
Current | ||||||||
interest-bearing | ||||||||
loans and borrowing | 5,901 | - | (4,072) | - | - | - | - | 1,829 |
(excluding | ||||||||
items listed | ||||||||
below) | ||||||||
Non-current | ||||||||
interest-bearing | ||||||||
loans and borrowings | 18,947 | 1,552 | (5,511) | - | (1,491) | - | - | 13,497 |
(excluding | ||||||||
items listed | ||||||||
below) | ||||||||
Obligations | ||||||||
under lease | 6,205 | - | (1,986) | 1,382 | (1,231) | (590) | 272 | 4,052 |
contracts (Note | ||||||||
18) | ||||||||
Total liabilities | ||||||||
from financing | 31,053 | 1,552 | (11,569) | 1,382 | (2,722) | (590) | 272 | 19,378 |
activities | ||||||||
1 January | Cash flows | Cash flows to | Non cash | Foreign | 31 December | |
2021 | from proceeds | loans and | movement | exchange effect | 2021 | |
from loans | leases repaid | |||||
Current interest-bearing loans | 113 | 5,902 | (114) | - | - | 5,901 |
and borrowing (excluding items | ||||||
listed below) | ||||||
Non-current interest-bearing | 20,724 | 730 | (2,005) | (500) | (2) | 18,947 |
loans and borrowings | ||||||
(excluding items listed below) | ||||||
Obligations under lease | 9,261 | - | (3,119) | - | 63 | 6,205 |
contracts | ||||||
Total liabilities from financing | ||||||
activities | 30,098 | 6,632 | (5,238) | (500) | 61 | 31,053 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
110
Buildings | Vehicles | Total | |
Acquisition cost | |||
Balance as of 1 January 2021 | 8,505 | 4,649 | 13,154 |
Decrease | (1,383) | (707) | (2,090) |
Exchange differences | 63 | - | 63 |
Balance as of 31 December 2021 | 7,185 | 3,942 | 11,127 |
Additions | 1,357 | - | 1,357 |
Decrease | (1,464) | (1,461) | (2,925) |
Exchange differences | 307 | - | 307 |
Recalssification to assets held for sale and discontinued operations | (2,485) | - | (2,485) |
Balance as of 31 December 2022 | 4,900 | 2,481 | 7,381 |
Accumulated depreciation and impairment | |||
Balance as of 1 January 2021 | 1,590 | 2,883 | 4,473 |
Charge for the year | 1,379 | 537 | 1,916 |
Decrease | (536) | (551) | (1,087) |
Balance as of 31 December 2021 | 2,433 | 2,869 | 5,302 |
Charge for the year | 1,083 | 421 | 1,504 |
Decrease | (1,307) | (1,351) | (2,658) |
Exchange differences | 57 | - | 57 |
Reclassification to assets held for sale and discontinued operations | (726) | - | (726) |
Balance as of 31 December 2022 | 1,540 | 1,939 | 3,479 |
Right of use assets as of 31 December 2021 | 4,752 | 1,073 | 5,825 |
Right of use assets as of 31 December 2022 | 3,360 | 542 | 3,902 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
111
18 Lease (cont’d)
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Within one year | 1,382 | 1,981 |
From one to five years | 2,588 | 4,101 |
More than five years | 240 | 148 |
Total lease obligations | 4,210 | 6,230 |
Interest | (158) | (25) |
Present value of lease obligations | 4,052 | 6,205 |
Lease obligations are accounted as: | ||
- current | 1,313 | 1,963 |
- non-current | 2,739 | 4,242 |
| Set out below are IFRS 16 impact to profit (loss) statement | 2022 | 2021 |
Depreciation expense of right-of-use assets | 1,504 | 1,916 |
Interest expense on lease liabilities | 77 | 116 |
Expense relating to leases of low-value assets (included in administrative expenses) | 321 | 149 |
Profit from operations | 1,902 | 2,181 |
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
As of 31 December of the previous year | 230 | 301 |
Additions arising from new subsidiaries | 86 | - |
Change during the year | (102) | (38) |
As of 31 December of the financial year | 214 | 263 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
112
19 Provision for employee benefits (cont’d)
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Discount rate | 4.4% | 0.6% |
Anticipated annual salary increase | 3.0% | 3.0% |
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Trade payables | 8,611 | 12,050 |
Payables to related parties (Note 33) | 3,475 | 979 |
12,086 | 13,029 | |
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Salaries and social security | 2,645 | 3,232 |
Vacation pay accrual | 2,270 | 2,551 |
Accrued expenses | 236 | 2,336 |
Other current liabilities | 4,943 | 9,156 |
10,094 | 17,275 | |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
113
Group | ||
2022 | 2021 | |
Services of subcontractors and materials used | 31,137 | 30,825 |
Wages and salaries and social security | 20,974 | 21,561 |
Cost of goods sold | 1,750 | 2,017 |
Depreciation | 10 | 15 |
Other | 6,314 | 3,161 |
Total cost of sales | 60,185 | 57,579 |
Group | ||
2022 | 2021 | |
Wages and salaries and social security | 9,929 | 8,832 |
Depreciation and amortisation | 2,726 | 2,844 |
Consulting and similar expenses* | 1,486 | 1,107 |
Advertising | 554 | 415 |
Computer software maintenance | 489 | 549 |
Transportation and fuel expenses | 458 | 289 |
Commissions for collection of payments | 344 | 356 |
Rent of premises and other assets | 321 | 149 |
Representational costs | 251 | 231 |
Insurance | 221 | 187 |
Communication expenses | 198 | 199 |
Taxes other than income tax | 120 | 251 |
Business trips and training | 118 | 111 |
Bank payments | 103 | 102 |
Utilities | 69 | 55 |
Charity and support | 36 | 148 |
Other | 2,248 | 6,480 |
Total general and administrative expenses | 19,671 | 22,305 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
114
Group | |||
2022 | 2021 | ||
Gain on disposal of property, plant and equipment | 390 | 385 | |
Fines and penalties | 161 | 153 | |
Other income | 157 | 111 | |
Total other operating income | 708 | 649 | |
Loss on disposal of property, plant and equipment | 151 | 26 | |
Fines and penalties | 11 | 2 | |
Other expenses | 36 | 35 | |
Total other operating expenses | 198 | 63 |
Group | |||
2022 | 2021 | ||
Foreign currency exchange (loss), net | (47) | (46) | |
Total finance (expenses) | (47) | (46) | |
Financial activity, net | (47) | (46) |
Group | ||
2022 | 2021 | |
Components of the income tax expenses | ||
Current income tax | 1,267 | 1,373 |
Deferred income tax (income) | (390) | 172 |
Income tax expenses recorded in the statement of comprehensive income | 877 | 1,545 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
115
27 Income tax (cont’d)
Group | ||
As of 31 | As of 31 | |
December 2022 | December 2021 | |
Deferred income tax asset | ||
Expected credit losses of accounts receivable | 671 | 1,562 |
Accruals and similar temporary differences | 366 | 960 |
Tax loss carried forward | 297 | 1,074 |
Tax goodwill | 164 | 88 |
Allowance for inventories | 3 | 94 |
Deferred income | - | 5 |
Deferred income tax asset before valuation allowance | 1,501 | 3,783 |
Less: valuation allowance | - | (1,319) |
Deferred income tax asset, net of valuation allowance | 1,501 | 2,464 |
Deferred income tax liability | ||
Property, plant and equipment and intangible assets | (1,335) | (1,736) |
Accrued income | - | (12) |
Deferred income tax liability | (1,335) | (1,748) |
Deferred income tax, net | 166 | 716 |
Presented in the statement of financial position as follows: | ||
Deferred income tax asset | ||
Continuing operations | 1,501 | 2,464 |
Assets held for sale (Note 8) | 685 | - |
Deferred income tax liability | ||
Continuing operations | (1,335) | (1,748) |
Liabilities held for sale (Note 8) | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
116
27 Income tax (cont’d)
Balance as | Transfer | Balance as | ||||
of 31 | Recognise | to assets | of 31 | |||
December | d in profit | Exchange | held for | Disposed | December | |
2021 | or loss | differences | sale | subsidiaries | 2022 | |
Allowance for accounts | ||||||
receivable | 9,240 | (2,743) | (269) | (1,726) | (31) | 4,471 |
Allowance for inventories | 472 | (421) | (34) | - | - | 17 |
Accruals and similar | ||||||
temporary differences | 5,857 | 774 | (130) | (2,548) | (1,463) | 2,490 |
Deferred income | 24 | (23) | (1) | - | - | - |
Tax loss carried forward | 6,880 | 2,419 | (80) | (6,058) | (1,182) | 1,979 |
Tax goodwill | 587 | 508 | - | - | - | 1,095 |
Property, plant and equipment and intangible assets | (10,358) | 455 | 67 | - | 933 | (8,903) |
Accrued income | (81) | 81 | - | - | - | - |
Total temporary | ||||||
differences before valuation allowance | 12,621 | 1,050 | (447) | (10,332) | (1,743) | 1,149 |
Valuation allowance | (8,240) | 1,396 | 276 | 6,568 | - | - |
Total temporary | ||||||
differences | 4,381 | 2,446 | (171) | (3,764) | (1,743) | 1,149 |
Deferred income tax, net | 716 | 678* | 114 | (688) | (654) | 166 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
117
27 Income tax (cont’d)
Balance | Balance as | |||||
as of 31 | Recognised | of 31 | ||||
December | in profit or | Exchange | Disposed | Acquired | December | |
2020 | loss | differences | subsidiaries | subsidiaries | 2021 | |
Allowance for accounts receivable | 10,006 | (1,056) | 222 | - | 68 | 9,240 |
Allowance for inventories | 323 | 123 | 26 | - | - | 472 |
Accruals and similar | ||||||
temporary differences | 5,146 | 856 | 69 | (221) | 7 | 5,857 |
Deferred income | 24 | - | - | 24 | ||
Tax loss carried | ||||||
forward | 11,257 | (4,343) | (34) | - | - | 6,880 |
Tax goodwill | 2,531 | (1,944) | - | - | - | 587 |
Property, plant and equipment and intangible assets | (16,820) | 7,620 | (58) | - | (1,100) | (10,358) |
Accrued income | 6 | (87) | - | - | - | (81) |
Total temporary | ||||||
differences before valuation allowance | 12,449 | 1,193 | 225 | (221) | (1,025) | 12,621 |
Valuation allowance | (6,775) | (1,346) | (119) | - | - | (8,240) |
Total temporary | ||||||
differences | 5,674 | (153) | 106 | (221) | (1,025) | 4,381 |
Deferred income tax, net | 910 | (21)* | 23 | (33) | (163) | 716 |
Group | ||
2022 | 2021 | |
Income tax expenses computed at 15% in 2022 and 2021 | (614) | 1,257 |
Effect of different tax rates applicable to foreign subsidiaries | - | (448) |
Change in deferred tax asset valuation allowance and write-off of deferred tax asset | - | 46 |
Current year’s temporary differences related to intangible assets | ||
impairment and provisions which are not expected to be utilized in the future and from which deferred tax asset has not been recognized | (2,073) | |
Permanent differences | (263) | (193) |
Income tax expenses reported in the statement of comprehensive income | (877) | (1,411) |
Income tax attributable to a discontinued operations | (103) | (134) |
(980) | (1,545) | |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
118
Group | ||
2022 | 2021 | |
Net profit (loss) attributable to the shareholders of the Parent | 1,901 | (1,901) |
Net (loss) from discontinued operations attributable to the | (6,561) | (13,144) |
shareholders | (4,660) | (15,045) |
Net profit (loss) attributable to the shareholders of the Parent | ||
Number of shares (thousand), opening balance | 31,610 | 31,610 |
Number of shares (thousand), closing balance | 31,610 | 31,610 |
Weighted average number of shares (thousand) | 31,610 | 31,610 |
Basic and diluted earnings per share (EUR) | (0.15) | (0.48) |
From continuing operations | 0.06 | (0.06) |
From discontinued operations | (0.21) | (0.42) |
2022 | 2021 | |
Approved dividends* | - | 13,656 |
Number of shares (in thousand)** | 31,610 | 31,610 |
Approved dividends per share (EUR) | - | 0.43 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
119
30 Financial assets and liabilities and risk management (cont’d)
(163) | |||
PLN | +100 | - | |
2021 | |||
EUR | +100 | (120) | |
PLN | +100 | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
120
30 Financial assets and liabilities and risk management (cont’d)
More than 5 | |||||
Less than 1 year | 1 to 5 years | years | Total | ||
Non-current interest-bearing | |||||
borrowings | - | - | 9,295 | 1,609 | 10,904 |
Current portion of non-current | |||||
interest-bearing borrowings | - | 5,108 | - | - | 5,108 |
Current loans | - | 1,829 | - | - | 1,829 |
Lease liabilities | - | 1,382 | 2,588 | 240 | 4,210 |
Trade payables and payables | |||||
to related parties | - | 12,086 | - | - | 12,086 |
Other current liabilities | - | 4,698 | - | - | 4,698 |
Balance as of 31 December | |||||
2022 | - | 25,103 | 11,883 | 1,849 | 38,835 |
Non-current interest-bearing | |||||
borrowings | - | - | 1,297 | 1,803 | 3,100 |
Current portion of non-current | |||||
interest-bearing borrowings | 15,952 | 579 | - | - | 16,531 |
Current loans | 5,901 | - | - | - | 5,901 |
Lease liabilities | - | 1,981 | 4,101 | 148 | 6,230 |
Trade payables and payables | |||||
to related parties | - | 13,029 | - | - | 13,029 |
Other current liabilities | - | 11,492 | - | - | 11,492 |
Balance as of 31 December | |||||
2021 | 21,853 | 27,081 | 5,398 | 1,951 | 56,283 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
121
30 Financial assets and liabilities and risk management (cont’d)
2022 | 2021 | |||
Assets | Liabilities | Assets | Liabilities | |
RUB | - | - | 9,345 | 9,230 |
PLN | 4,325 | 3,527 | 3,620 | 4,439 |
CZK | 2 | - | 377 | 181 |
EUR | 36,783 | 48,078 | 38,055 | 57,311 |
41,110 | 51,605 | 51,397 | 71,161 | |
Increase/ | Effect on the | |
decrease in | profit before the | |
exchange rate | income tax | |
2022 | ||
EUR | + 15.00 % | 719 |
EUR | - 15.00 % | (719) |
2021 | ||
EUR | + 15.00 % | 788 |
EUR | - 15.00 % | (788) |
Increase/ | Effect on the | |
decrease in | profit before the | |
exchange rate | income tax | |
2022 | ||
EUR | + 15.00 % | (2,290) |
EUR | - 15.00 % | 2,290 |
2021 | ||
EUR | + 15.00 % | (1,706) |
EUR | - 15.00 % | 1,706 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
122
30 Financial assets and liabilities and risk management (cont’d)
Increase/ | Effect on the | |
decrease in | assets and | |
exchange rate | liabilities | |
2021 | ||
Assets | + 15.00 % | (1,654) |
Liabilities | + 15.00 % | (1,228) |
Assets | - 15.00 % | 2,238 |
Liabilities | - 15.00 % | 1,661 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
123
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
124
31 Commitments and contingencies (cont’d)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
125
32 Related party transactions (cont‘d)
2022 | ||||
Payables and | ||||
Receivables and | advances | |||
Group | Purchases | Sales | prepayments | received |
UAB ICOR | 395 | 136 | 33 | 34 |
UAB InHouse Digital | - | - | 2 | 1,089 |
UAB Verslo finansavimo sprendimai | - | 4 | 58 | 2,231 |
Subsidiaries of UAB Unit invest | 316 | 656 | 124 | 121 |
711 | 796 | 217 | 3,475 |
2021 | ||||
Payables and | ||||
Receivables and | advances | |||
Group | Purchases | Sales | prepayments | received |
UAB ICOR | 404 | 96 | 13 | 40 |
Subsidiaries of UAB ICOR | - | - | - | - |
AB Axis Industries | - | 6 | 1 | - |
Other subsidiaries of UAB Lag&d | 252 | 528 | 531 | 939 |
656 | 630 | 545 | 979 |
Trade receivables past due but not impaired | |||||||
Trade receivables | Less | More | |||||
neither past due nor | than 30 | 30 – 60 | 60 – 90 | 90 – 360 | than 360 | ||
impaired | days | days | days | days | days | Total | |
2021 | 155 | 70 | 63 | 23 | 157 | 77 | 545 |
2022 | 160 | 29 | 14 | 1 | 8 | 5 | 217 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
126
32 Related party transactions (cont‘d)
Group | ||
2022 | 2021 | |
Non-current liabilities (including deferred tax) | 19,086 | 15,209 |
Current liabilities | 40,598 | 61,488 |
Liabilities | 59,684 | 76,697 |
Equity | 18,019 | 19,876 |
Debt to equity ratio | 331% | 386% |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
127
As of 31 | As of 31 | |
December 2022 | December 2021 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 3 | 3 |
Investments into subsidiaries | 64,338 | 58,718 |
Non-current receivables | 6,845 | 12,132 |
Deferred income tax asset | 158 | 203 |
Total non-current assets | 71,344 | 71,056 |
Current assets | ||
Prepayments | 86 | 19 |
Trade receivables | 3,067 | 1,439 |
Receivables from related parties (including loans granted) | 1 | 1 |
Other receivables | 202 | 597 |
Cash and cash equivalents | 8 | 84 |
Total current assets | 3,364 | 2,140 |
Total assets | 74,708 | 73,196 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
128
35 Parent company’s unconsolidated financial statements (cont’d)
As of 31 December As of 31 December | |||
2022 | 2021 | ||
EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | 9,483 | 9,483 | |
Share premium | 21,067 | 21,067 | |
Reserves | 948 | 948 | |
Retained earnings | 9,251 | 4,602 | |
Total equity | 40,749 | 36,100 | |
Liabilities | |||
Non-current liabilities | |||
Non-current borrowings | 8,090 | -* | |
Provisions for employee benefits, Non current | - | 1 | |
Total non-current liabilities | 8,090 | 1 | |
Current liabilities | |||
Current loans | 1,829 | 5,901 | |
Current portion of non-current borrowings* | 2,775 | 15,952 | |
Trade payables and payables to related parties | 18,000 | 10,324 | |
Contract liabilities | 971 | 95 | |
Income Tax | 71 | 61 | |
Other current liabilities | 2,223 | 4,762 | |
Total current liabilities | 25,869 | 37,095 | |
Total liabilities | 33,959 | 37,096 | |
Total equity and liabilities | 74,708 | 73,196 | |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
129
35 Parent company’s unconsolidated financial statements (cont’d)
Statement of comprehensive income | 2022 | 2021 |
Revenue from contracts with customers | 173 | 204 |
Cost of sales | - | - |
Gross profit | 173 | 204 |
General and administrative expenses | (977) | (5,561) |
Expected credit losses on financial assets | (9,288) | (17,858) |
Other operating income | 104 | - |
Profit from operations | (9,988) | (23,215) |
Interest income | 1,981 | 1,605 |
Other finance income | 10,296 | 2,400 |
Interest expenses | (845) | (725) |
Gain on sale of investments | 3,302 | - |
Other finance expenses | (33) | (42) |
Profit (loss) before tax | 4,713 | (19,977) |
Income tax (expense) benefit | (64) | (33) |
Net profit (loss) | 4,649 | (20,010) |
Other comprehensive income | - | - |
Total comprehensive income (loss) for the year, net of tax | 4,649 | (20,010) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
130
35 Parent company’s unconsolidated financial statements (cont’d)
Statement of | Share | Share | Legal | Other | Retained | |
changes in equity | capital | premium | reserve | reserves | earnings | Total |
Balance as of 1 | ||||||
January 2022 | 9,483 | 21,067 | 948 | - | 4,602 | 36,100 |
Net profit for the year | - | - | - | - | 4,649 | 4,649 |
Other comprehensive income | - | - | - | - | - | - |
Total | ||||||
comprehensive income | - | - | - | - | 4,649 | 4,649 |
Balance as of 31 | ||||||
December 2022 | 9,483 | 21,067 | 948 | - | 9,251 | 40,749 |
Book value of holdings under control or significant | ||||||
influence | (64,338) | |||||
Value of holdings | ||||||
under control of significant | ||||||
influence, calculated under equity method | 78,457 | |||||
Adjusted | ||||||
unconsolidated | ||||||
equity as of 31 | ||||||
December 2022 | 54,868 | |||||
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
131
35 Parent company’s unconsolidated financial statements (cont’d)
Statement of | Share | Share | Legal | Other | Retained | |
changes in equity | capital | premium | reserve | reserves | earnings | Total |
Balance as of 1 | ||||||
January 2021 | 9,483 | 21,067 | 948 | - | 38,268 | 69,766 |
Net profit for the year | - | - | - | - | (20,010) | (20,010) |
Other comprehensive income | - | - | - | - | - | - |
Total | ||||||
comprehensive income | - | - | - | - | (20,010) | (20,010) |
Dividends declared | - | - | - | - | (13,656) | (13,656) |
Balance as of 31 | ||||||
December 2021 | 9,483 | 21,067 | 948 | - | 4,602 | 36,100 |
Book value of holdings under control or significant | ||||||
influence | (58,718) | |||||
Value of holdings | ||||||
under control of significant | ||||||
influence, calculated under equity method | 68,122 | |||||
Adjusted | ||||||
unconsolidated | ||||||
equity as of 31 | ||||||
December 2021 | 45,504 | |||||
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2022
(all amounts are in EUR thousand unless otherwise stated)
132
35 Parent company’s unconsolidated financial statements (cont’d)
Statement of cash flows | 2022 | 2021 |
Cash flows from (to) operating activities | ||
Net profit | 4,649 | (20,010) |
Adjusting items: | ||
Income tax expenses | 64 | 33 |
Depreciation and amortization | 2 | 17 |
Impairment and write-off of accounts receivable | 9,192 | 17,257 |
(Gain) from sale of investments | (3,301) | - |
Dividend (income) | (10,296) | (2,400) |
Impairment of investments and contributions granted | 96 | 601 |
Interest (income) | (1,981) | (1,605) |
Interest expenses | 845 | 725 |
Changes in provisions | (1) | (60) |
Other financial activity result, net | 33 | 42 |
(Gain) from sale of investments | (698) | (5,400) |
Changes in working capital: | ||
Decrease in trade receivables, receivables from related parties, non- current receivables, other receivables and other current assets | (9,852) | 21,389 |
(Increase) in prepayments | (67) | (10) |
(Decrease) increase in trade payables and payables to related parties | 16,043 | (11,056) |
Income tax paid | (9) | - |
Increase (decrease) in advances received and other current liabilities | (1,697) | 4,525 |
Net cash flows from operating activities | 3,720 | 9,448 |
Cash flows from (to) investing activities | ||
(Acquisition) of non-current assets | (2) | (5) |
Proceeds from sale of non-current assets | 1 | 1 |
(Acquisition) of investments in subsidiaries | (5,721) | (4) |
Disposal of investments in subsidiaries | 3,306 | - |
Dividends and interest received | 12,277 | 4,005 |
Loans (granted) | (15,253) | (7,553) |
Loans repaid | 12,227 | 1,647 |
Net cash flows (to) from investing activities | 6,835 | (1,909) |
Cash flows (to) financing activities | ||
Dividends (paid) | - | (13,653) |
Proceeds from loans | 1,121 | 9,147 |
Loans (repaid) | (10,907) | (2,283) |
Interest (paid) | (845) | (725) |
Net cash flows (to) financing activities | (10,631) | (7,514) |
Net increase in cash and cash equivalents | (76) | 25 |
Cash and cash equivalents at the beginning of the year | 84 | 59 |
Cash and cash equivalents at the end of the year | 8 | 84 |