23
20
CONSOLIDATED
ANNUAL REPORT
Beginning of the reporting period
End of the reporting period
Business name
Registration number
Legal address
Telephone
Fax
E-mail
Website
Auditor
CONSOLIDATED
ANNUAL REPORT
FOR 2023
1 January 2023
31 December 2023
City Service SE
12827710
+370 5 239 49 00
+370 5 239 48 48
info@cityservice.eu
http://www.cityservice.eu
Ernst & Young Baltic AS
6
6
7
7
8
9
10
10
10
14
16
17
18
19
22
23
25
26
26
27
27
30
32
32
32
33
35
37
38
38
39
40
42
43
44
CONTENT
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. Significant 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 Material 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 Inventories
Note 10 Prepayments
Note 11 Other receivables
Note 12 Trade receivables
Note 13 Cash
Note 14 Reserves and share premium
Note 15 Borrowings
Note 16 Provisions
Note 17 Lease
Note 18 Provision for employee benefits
Note 19 Trade payables and payables to related parties
Note 20 Contract liabilities - advances received
Note 21 Other liabilities
Note 22 Cost of sales
Note 23 General and administrative expenses
Note 24 Income tax
Note 25 Basic and diluted earnings per share (EUR)
Note 26 Dividends per share
Note 27 Financial assets and liabilities and risk management
Note 28 Commitments and contingencies
Note 29 Related party transactions
Note 30 Capital management
Note 31 Subsequent events
Note 32 Parent company’s unconsolidated financial statements
46
48
49
50
52
52
64
76
78
80
88
89
91
94
94
94
95
96
96
97
98
99
100
100
101
101
101
102
103
106
106
107
110
111
113
114
115
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
30 April 2024
6
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 Baltics.
The Group’s companies are involved in the administration of the building management process, maintenance, and re-
pair of engineering systems, energy management, 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
7
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
1.3. MISSION AND VISION
1.2. STRATEGY AND OBJECTIVES
By combining City Service 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 manage-
ment, development of integrated utility services.
15.8 millions m
2
Today, the Group’s companies operate
in Lithuania and Latvia.
The total area of buildings managed
in these regions amounts to
OUR VISION
is to be a leader in value creation of
residential property.
OUR MISSION
is to represent the interests of
customers by increasing the value of
their property and improving their
living environment.
8
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
LITHUANIA LATVIA
76%
UAB Alytaus namų
valda
100%
UAB City Service
Engineering
100%
UAB Mano Būstas
Alytus
100%
UAB Mano Būstas
Sostinė
100%
UAB Pastatų priežiūra
100%
SIA BILANCE
100%
SIA Manas MĀJAS
100%
UAB Baltijos NT
valdymas
100%
UAB CSG IT
100%
UAB Mano Būstas
Aukštaitija
100%
UAB Mano Būstas
Šiauliai
100%
UAB Pastatų valdymas
100%
SIA BonoDomo
100%
SIA Manas MĀJAS 2
100%
UAB Baltijos transporto
valdymas
100%
UAB Energijos taupymo
paslaugos
100%
UAB Mano Būstas
Baltija
100%
UAB Mano Būstas
Ukmergė
100%
UAB Rinkų vystymas
100%
SIA City Service
100%
SIA Manas Majas
Salnas 21
57.71%
UAB Biržų butų ūkis
100%
UAB Energetinių
projektų valdymas
100%
UAB Mano Būstas
Dainava
99.97%
UAB Mano Būstas
Vakarai
100%
UAB Skolos LT
100%
SIA City Service
Engineering
100%
SIA Manas MĀJAS 3
100%
UAB BonoDomo
100%
UAB EPC projektai
100%
UAB Mano Būstas
Neris
100%
UAB Mano Būstas
Vilnius
100%
UAB Šiaulių NT
valdymas
100%
SIA Ēku pārvaldīšanas
serviss
100%
SIA Ventspils nami
100%
UAB BonoDomo Pay
100%
UAB Exergio
100%
UAB Mano Būstas NPC
100%
UAB Mano Būsto
klientų patirčių centras
100%
UAB Unitechna
100%
SIA MultiHouse
SPAIN
100%
UAB Butų ūkio valdos
100%
UAB Mano aplinka
100%
UAB Mano Būstas
Kaunas
100%
UAB Mano Būsto
priežiūra
100%
SIA Latvijas Namsaim
-
nieks
100%
Concentra Servicios y
Mantenimiento, S.A.*
100%
UAB Būsto aplinka
100%
UAB Mano bendrabutis
100%
UAB Mano Būstas
Klaipėda
100%
UAB Merlangas
100%
SIA Livonijas Nami
100%
Vetell dos iberica, S.L.*
100%
UAB City Service
Cleaning
100%
UAB Mano Būstas
100%
UAB Mano Būstas
Radviliškis
100%
UAB Nacionalinis
renovacijos fondas
100%
SIA Namu serviss APSE
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.
9
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
1.5. EMPLOYEES
The employees of all levels working for the Group’s companies were actively involved in the
Company’s operations in 2023, therefore, in-person or remote meetings of employees with the
state officials were organised periodically in order to present the Company’s strategy, goals, and
performance results.
The employees were involved in decision-making pro-
cesses through team tasks, thus encouraging their ini-
tiative and creativity. Such model of communication and
cooperation not only facilitated better understanding of
the Company’s aspirations, but it also strengthened the
relationship between employees, which are an integral
part to achieving long-term and sustainable business re-
sults. In addition, it established conditions for creating
innovative ideas and solutions directly contributing to the
Company’s growth and competitiveness on the market.
The purpose and values of the Company continued to be
actively communicated in 2023. The annual performance
improvement interviews enabled to not only set the
goals for the employees, but also to provide feedback on
value-based conduct. Traditionally, an employee engage-
ment survey was carried out, its results were presented
to employees, and actions aimed at improving employee
engagement were planned.
The well-being of employees is our priority. We organ-
ised a traditional summer celebration, provided addi-
tional benefits: birthday and Christmas presents, recog-
nized the contribution of long-term employees, offered
flu shots, and provided additional benefits to employees
working remotely. Furthermore, we provided all employ-
ees with the opportunity to receive professional psycho-
logical counseling.
All Group’s companies continued to invest in upgrading
the qualifications of their employees, organising internal
and external trainings both in-person and remotely. Spe-
cial attention was paid to the training and integration of
new employees.
The Company periodically participates in salary surveys
and adapts salary systems in each country to market
trends and changes.
Currently, there are a total of 1485 employees working
for the Group’s companies. There are 1341 employees in
Lithuania and 144 employees in Latvia.
Number of employees
by country:
LITHUANIA LATVIA
employees
employees
1,341
144
The total number
of employees of the
Group is
1,485
10
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.1. MAIN AREAS OF ACTIVITY
2.1.1. Administration of apartment buildings
The Group’s companies provide apartment building administration services: take all actions
necessary to preserve common-use objects and ensure their proper function as well as carry out
ongoing technical maintenance. The Companies take care of maintaining the mechanical durability
of the main structures of the buildings, repairing minor defects, caring out preventive maintenance,
tuning, ensuring safe operation of engineering equipment designed for general use, liquidation of
accidents, handling and preparing heat and hot water supply systems.
The Group’s companies provide administration, technical maintenance and repair services of apartment buildings in
Lithuania and Latvia.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
11
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
The Group’s companies increased the area of
supervised apartment buildings by signing new
contracts with owners of apartment buildings in
Lithuania. During the year, new comprehensive
housing maintenance services were additionally
provided to 103 apartment buildings, the total
area of which is almost 225,000 square meters.
The Company focused more on the quality of ser-
vices provided, customer service, and sustainable
business solutions.
The Group’s companies continued to measure the cus-
tomer satisfaction index (NPS) on a daily basis and ap-
plied relevant operational processes based on its results
in order to improve the quality of services and meet cus-
tomers’ expectations. Compared to the previous year,
customers’ satisfaction with the Company and the ser-
vices provided by it increased by 24 percent.
At the beginning of the summer, the Company started
buying green electricity produced by wind farms for most
of its customers’ common use premises. Such solution en-
abled the Company’s customers to use sustainable energy,
contributed to cost reduction, and decrease in carbon di-
oxide emissions into environment. The Group’s companies
saved 2,241 tons of CO2 by the end of the year.
A new product, “Smart Home” was introduced to cus-
tomers in 2023. It enables a smart remote control of
the heating station of an apartment building with the
use of artificial intelligence algorithms. The system
regulates heating flows throughout the building, adapts
to external and internal temperature changes and se-
lects the most suitable heating method for each room.
This solution enables saving up to 15 percent of heat
throughout the building.
The Group’s companies continued focusing on the devel-
opment of digitised services. “BonoDomo”, a new self-
service platform launched in March 2022, had 150,000
active accounts at the end of the year. Customers han-
dled almost 0.5 million invoices via this platform and the
total number of user logins exceeded 3.5 million.
Area of currently
maintained buildings in
Lithuania amounts to
10
million m
2
The newly launched
self-service platform
BonoDomo has
150,000
active accounts.
12
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
Area of currently maintained
buildings in Latvia amounts to
0.7
million m
2
The Company within the Group operating in Lat-
via provides services in Riga, Liepaja, Ventspils,
and Ogre Town. Customer request management,
invoicing, and new customer management sys-
tems were upgraded in 2023. As a result, opera-
tion of the Company has become more efficient,
and led to increased quality of services provided
to customers.
In the middle of the year, the Company within the Group
acquired a small Company SIA “Multihouse”, which pro-
vides residential building administration services for ten
apartment buildings in Liepaja.
The Company within the Group will continue to increase
the area of serviced buildings organically through new
acquisitions and geographical expansion in other cities of
the country.
13
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
Changes in the area of managed apartment buildings
in the Group companies, million m
2
23.3
16.3
11.9
10.6
2020 2021 2022
2023
Area of apartment buildings managed by the Group decreased mainly due to sale of subsidiaries operating in St. Pe-
tersburg during 2022 (3.6 million m
2
), sale of business in Spain during 2021 (4 million m
2
) and sale of business in Poland
in 2023 (1.08 million m
2
).
14
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.1.2. Management of commercial building facilities
The Group’s companies provide commercial building management services that ensure reliable
functioning of the building systems and lower maintenance costs. The Companies provide a wide
range of services for building maintenance: from engineering equipment, management and saving
of energy resources to interior cleaning.
The Group’s companies provide facilities management
services for commercial buildings in Lithuania and Latvia.
In Lithuania, “City Service Engineering” expanded its
clientele in 2023 with 29 newly signed contracts.
Company has started to provide comprehensive facilities
management services to “Vlantana”, one of the largest-
transport and logistics companies in Europe. The parties
agreed on the maintenance services of the company’s
headquarters of 52,000 square meters, which include a
modern complex of buildings, warehouses, training cent-
er, gas station, and workshops. Furthermore, “City Ser-
vice Engineering” expanded its client base by adding new
Business Centers in Vilnius: “S28”, “Park Town”, “Meraki”
as well as the Shopping Center “Nordika” and others.
New services and products were introduced to Lithu-
anian market, with special attention given to the new
priority area - electric car charging solutions for private
and business customers. The range of services includes
sales, installation, and maintenance of charging stations.
Contracts for the maintenance of charging stations were
signed with such companies as “Enefit”, “Elektrum”, and
the Lithuanian Road Administration over the past year.
In 2023, “Apex Intelligence”, a company developing in-
telligent solutions for building energy system optimisa-
tion based on artificial intelligence algorithms, changed
its name to “Exergio”. “Exergio” ensures efficient remote
collection and use of building data and predictive mainte-
nance “Technopolis”, “Eastnine”, “Palink”, “Mano Būstas”,
“Quadrum”, “Swedbank” and others use this innovative
service in their buildings managed by “Exergio” in Lithu-
ania. A cooperation agreement concluded with “City
Service Engineering” enables this Company to provide
its customers with smart building maintenance services
using the “Exergio” platform. Last year, contracts were
signed with “Turto bankas”, “Sanitex”, “Newsec” for the
provision of services to 53 real estate objects. The to-
tal area of buildings where “Exergio” service is used has
reached 2 million sq. m.
29
contracts with
new customers
were signed in
Lithuania.
Major focus was placed on the development of the prod-
uct and expansion in foreign markets, 12 contracts were
concluded with sale and installation partners in Poland,
Hungary, Oman, Ireland, United Kingdom, Czech Repub-
lic, and Latvia. Introduction of “Exergio” service has been
made to a new 28,500 sq. m. “Nowy Rynek” Business
Center in Poznań, Poland.
In Latvia, new comprehensive building management
maintenance contracts have been signed or extended
with “Rīgas meži” (recycled paper products), Riga Technical
University, “Lumi Capital”, the Information Center of the
Ministry of the Interior, etc.
15
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
Changes in the areas of commercial, public
and industrial buildings in managed by the Group
companies, m
2
2021 2022
2023
2017 2018
4.2
4.2
4.5
4.0
4.2
4.7
5.1
2019 2020
16
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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
, Group’s companies provide staircase, terri-
tory and premises cleaning and maintenance services in Vil-
nius, Kaunas, Klaipėda, Šiauliai, Alytus, Šilutė, Šilalė, Telšiai,
Radviliškis, Panevėžys, Palanga and Tauragė.
“City Service Cleaning” provides cleaning services in com
-
mercial facilities: shopping centers, sports clubs, exhibition
halls, production and energy facilities, etc. in Vilnius, Kaunas,
Klaipėda, Šiauliai, Panevėžys and Alytus.
As of the 1st of May, “City Service Cleaning” stopped us
-
ing conventional chemical cleaning products and chooses
only environmentally friendly cleaning products without any
harmful effect on the environment and human health.
The Company was motivated to take such step to con
-
tribute to the preservation of the environment, ensure
the cleanliness of the premises and to take more responsi-
ble care of the health of customers and employees of the
Company.
The Companies are constantly expanding the range of ser
-
vices and investing in the purchase of new equipment.
In Latvia
, the Group’s companies take care of the cleanli-
ness of apartment buildings.
17
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.1.4. Other activities
The Group’s companies in Lithuania and Latvia provide other services in addition to their main
activities.
In Lithuania
, the Group’s companies carried out
building renovation projects in 353 buildings, provided
maintenance services to 198 gas stations, and recovered
debts of approximately 3.67 million euros in court and
through pre-trial proceedings on behalf of customers.
the Group companies
provided maintenance
services to
198
petrol stations.
Renovation was carried out in
12
houses.
The Company operating
in Latvia
continued the renova-
tion of apartment buildings under a new governance initia-
tive. Renovation was carried out in 12 buildings.
18
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.2. PERFORMANCE IMPROVEMENT
The Group continued using business process management methods, strategy planning, and
cascading tools according to the LEAN methodology and adapted best practices for managing
project activities. The development of a sustainability strategy began at the end of 2022 and Group
intends to integrate it into the overall business strategy.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
In Lithuania, the Group’s companies focused on cus-
tomer satisfaction, employee engagement, and increasing
the Company’s value. 40 gemba walks were carried out
in the Group’s companies, 205 of them were adjusted
and updated and 8 new processes were created during
the year 2023. Automated data processing solutions al-
lowed to save 278 working hours per month. New in-
formation systems are being implemented to provide
services to customers in a more efficient and high quality
manner. Special focus is on the involvement of employ-
ees in the improvement of operations. 23 trainings were
held during which employees deepened their knowledge
in the areas of project management, LEAN methodol-
ogy, sustainability, and operational processes. Consulta-
tions on business processes were provided to employees.
The employees of the Group submitted 106 ideas via the
“Idea Bank” initiative in 2023.
In Latvia, processes are constantly reviewed and im-
proved. The service model is being improved and is re-
sulting in faster and higher quality services provided to
customers. Increasing involvement of managers and em-
ployees as well as developing competencies remained a
major focus point.
19
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
On 10 January 2023 SIA Nira Fonds apsaimniekošana
Salnas 21 title was changed into SIA Manas Mājas Salnas
21. Other contact details did not change.
On 25 January 2023 the title of UAB Apex Intelligence
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 10 March 2023, an increase of the share capital
of PortalPRO S. L. was registered. The share capital of
PortalPRO S. L. increased to EUR 435,972. Share capital
of the company is divided into 1,000 ordinary shares, the
nominal value of which remained at EUR 3.
On 21 March 2023 the Group, through its Polish
subsidiary, initiated voluntary liquidation of Parama Blue
Sp. z o.o.
On 27 March 2023 the Group sold 100% stake
in PortalPRO s.r.o., which provided supply chain
management services. Value of the share sale-purchase
agreement is CZK 50 thousand (EUR 2,1 thousand).
Net assets of disposed subsidiary at the date of disposal
amounted to EUR (20) thousand (CZK (475) thousand).
On 13 April 2023 the Group, through its Polish
subsidiary, initiated voluntary liquidation of Parama White
Sp. z o.o.
On 18 April 2023, an increase of the share capital of
LDA PortalPRO was registered. The share capital of LDA
PortalPRO increased to EUR 46,900. Share capital of
the company is divided into 46,900 ordinary shares, the
nominal value of which remained at EUR 1.
On 28 April 2023, an increase of the share capital of
PortalPRO Sp. z. o. o. was registered. The share capital
of UAB PortalPRO Sp. z. o. o. increased to PLN 960,600
(EUR 216,410). Share capital of the company is divided
into 960,600 ordinary shares, the nominal value of which
remained at PLN 1.
On 03 May 2023, an increase of the share capital of
UAB PortalPRO was registered. The share capital of UAB
PortalPRO increased to EUR 2,338,557. Share capital of
the company is divided into 2,338,557 ordinary shares,
the nominal value of which remained at EUR 1.
On 03 May 2023 the Group sold 100% stake in
UAB PortalPRO and its subsidiary UAB Getfiks, which
provided supply chain management services. Value of
the share sale-purchase agreement is EUR 393 thousand.
The carrying value of the net asset of the subsidiaries
disposed at the date of issuing these financial statements
amounted to EUR 606 thousand.
On 03 May 2023 the Group sold 100% stake in
UAB Medžiagų tiekimo centras, which provided supply
of materials services. Value of the share sale-purchase
agreement is EUR 629 thousand. The carrying value of
the net asset of the subsidiary disposed at the date of
issuing these financial statements amounted to EUR 290
thousand.
On 08 May 2023 the Group, through its Polish
subsidiary, initiated voluntary liquidation of Parama Red
Sp. z o.o.
On 09 May 2023 the Group, through its Polish
subsidiary, initiated voluntary liquidation of Parama
Yellow Sp. z o.o.
On 11 May 2023 the title of UAB Mano Būstas was
changed into Mano Būsto klientų patirčių centras, UAB.
Other contact details did not change.
On 12 May 2023 the title of UAB City Service was
changed into Mano Būstas, UAB. Other contact details
did not change.
On 12 May 2023 the Group sold 100% stake in SIA
PortalPRO. Value of the share sale-purchase agreement
is EUR 32 thousand. The carrying value of the net asset
of the subsidiary disposed at the date of issuing these
financial statements amounted to EUR 32 thousand.
2.3. SIGNIFICANT EVENTS
20
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
On 16 May 2023 the Company signed the share
purchase-sale agreement for the sale of UAB Baltijos
būsto priežiūra and all of its subsidiaries operating in
Poland. Value of the share sale-purchase agreement is
EUR 956 thousand. The carrying value of the net asset
of the subsidiaries disposed at the date of issuing these
financial statements amounted to EUR (6,624) thousand.
UAB Baltijos būsto priežiūra and its subsidiaries were
operating in the field of utilities and apartment building
administration in Poland.
On 18 May 2023 the Company signed the share
purchase-sale agreement for the sale of Deleterma
Sp. z o.o. and all of its subsidiaries operating in Poland.
Value of the share sale-purchase agreement is EUR 1.
The carrying value of the net asset of the subsidiaries
disposed at the date of issuing these financial statements
amounted to EUR (1,094) thousand. Deleterma Sp. z
o.o. and its subsidiaries were engaged in administration
of dwelling-houses services provided in Poland.
On 22 May 2023 the Group sold 100% stake in
PortalPRO LDA. Value of the share sale-purchase
agreement is EUR 100. The carrying value of the net asset
of the subsidiary disposed at the date of issuing these
financial statements amounted to EUR (28) thousand.
On 30 May 2023 the Group, through its Latvian
subsidiary acquired 100% of the shares of SIA MultiHouse
(acquisition price EUR 32 thousand) which is based in
Latvia. SIA MultiHouse is engaged in administration of
dwelling-houses.
On 21 June 2023 the Supervisory Board of the
Company was re-elected. The supervisory board will
continue to consist of Andrius Janukonis and Gintautas
Jaugielavičius.
On 29 June 2023 the Group sold 100% stake in
PortalPRO Sp. Z o.o., which provided supply chain
management services. Value of the share sale-purchase
agreement is PLN 49 thousand (EUR 11 thousand).
Net assets of disposed subsidiary at the date of disposal
amounted to EUR (85) thousand (PLN (377) thousand).
On 28 July 2023 the Group sold 100% stake in
PortalPRO, S.L., which provided supply chain management
services. Value of the share sale-purchase agreement is
EUR 26 thousand. The carrying value of the net asset
of the subsidiary disposed at the date of issuing these
financial statements amounted to EUR (13) thousand.
On 7 August 2023 reduced share capital of UAB
Pastatų valdymas was registered. The share capital of
UAB Pastatų valdymas after the reduction amounts
to EUR 3 486. Share capital of the company is divided
into 1 202 ordinary shares, the nominal value of which
remained at EUR 2,9.
On 31 August 2023 reduced share capital of UAB
Mano Būstas NPC was registered. The share capital of
UAB Mano Būstas NPC after the reduction is EUR 1674
902. Share capital of the company is divided into 57 835
ordinary shares, the nominal value of which remained at
EUR 28,96.
On 1 September 2023 reduced share capital of UAB
Mano Būstas Vilnius was registered. The share capital
of UAB Mano Būstas Vilnius after the reduction is EUR
1572 222. Share capital of the company is divided into
5421 454 ordinary shares, the nominal value of which
remained at EUR 0,29.
On 6 September 2023 the Group sold 100% stake
in Eurobroker advisors correduria de seguros, S.L. which
provided insurance brokerage services. Value of the share
sale-purchase agreement was EUR 1000. The carrying
value of the net asset of the subsidiary disposed at the
date of issuing these financial statements amounted to
EUR (113) thousand.
On 20 September 2023 the Group sold 100% stake
in Grupo Aresi de inversiones (Spain), S.L. which was
the holding company of Company‘s activities in Spain.
Value of the share sale-purchase agreement was EUR 1
(one euro). The carrying value of the net asset of the
subsidiary disposed at the date of issuing these financial
statements amounted to EUR (714) thousand.
On 23 October 2023 reduced share capital of UAB
Būsto aplinka was registered. The share capital of UAB
Būsto aplinka after the reduction is EUR 358 125. Share
capital of the company is divided into 1234 914 ordinary
shares, the nominal value of which remained at EUR 0,29.
On 25 October 2023 reduced share capital of UAB
Mano Būstas Kaunas was registered. The share capital of
UAB Mano Būstas Kaunas after the reduction is EUR 323
889. Share capital of the company is divided into 11 184
ordinary shares, the nominal value of which remained at
EUR 28,96.
21
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
On 25 October 2023 reduced share capital of UAB
Mano Būstas Šiauliai was registered. The share capital
of UAB Mano Būstas Šiauliai after the reduction is EUR
939 463. Share capital of the company is divided into
3239 528 ordinary shares, the nominal value of which
remained at EUR 0,29.
On 26 October 2023 reduced share capital of UAB
City Service Cleaning was registered. The share capital
of UAB City Service Cleaning after the reduction is EUR
203 891. Share capital of the company is divided into
703 072 ordinary shares, the nominal value of which
remained at EUR 0,29.
On 26 October 2023 reduced share capital of UAB
Mano Būstas Sostinė was registered. The share capital of
UAB Mano Būstas Sostinė after the reduction is EUR 74
369. Share capital of the company is divided into 2 568
ordinary shares, the nominal value of which remained at
EUR 28,96.
On 6 November 2023 reduced share capital of UAB
Mano Būstas Baltija was registered. The share capital
of UAB Mano Būstas Baltija after the reduction is EUR
99 548. Share capital of the company is divided into
103 293 ordinary shares, the nominal value of which
remained at EUR 2,90.
On 30 November 2023, City Service SE (hereinafter
- the Company) signed a financing agreement with
„Swedbank“, AB (enterprise code 112029651), which
allows the Company to borrow up to EUR 18,9 million.
The loan shall be used to finance working capital and to
refinance existing loans.
On 20 December 2023, an Extraordinary General
Meeting of Shareholders of City Service SE (hereinafter
- EGM) was convened. During an EGM the decision was
made to set off the losses recorded in the balance sheet
of City Service SE. The losses were set off using the legal
reserve and share premium.
22
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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. Regarding inflation and
customers‘ ability to pay Group doesn‘t see significant risk
as the prices are stabilized and salary growth is stable.
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. Local authorities 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
additional obligations for 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 2023, and neither were there
any decisions providing significant additional obligations
for service providers. Supervising institutions did not
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 EURIBOR which
create an interest rate risk (Notes 15 and 17). There
are no financial instruments designated in the financial
statements to manage the exposure to the interest rate
risk outstanding as of 31 December 2023 and 2022.
The sensitivity of the Group’s profit before tax to a
reasonably possible change in interest rates would have
a negative effect on the profit before the income tax in
amount of EUR (210) thousand if the interest rates would
increase by 1 basis point (EUR (163) thousand in the year
2022). The Group doesn‘t see significant interest rates
risk as the loan from the bank was refinanced with more
convenient terms – longer maturity period, interest rates
margin is lower.
SEASONALITY
The Group doesn’t have observable seasonality as usually
revenues from facility management and residential building
administration are based on contractual flat terms and
services and works are provided continuously. However,
the most profitable is Q3 as the major part of additional
works are completed during this season due to favorable
weather conditions.
2.4. KEY RISK ACTIVITY TYPES AND UNCERTAINTIES
In 2023 the market was stable, prices and purchasing power did not decline in comparison with
2022. Due to heavy competition in facility management market the Group had to concentrate on
further efficiency of activities. Building administration tariff has not changed significantly in a year.
Improved customers experience and active sales led to rapid increase in additional services sales
volume.
23
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.5. THE MAIN FINANCIAL RATIOS CONCERNING
THE FINANCIAL YEAR
KEY FINANCIAL INDICATORS*
2019 2020 2021 2022 2023
Revenue from contracts with customers
178,020 154,507 135,475 115,353 109,480
Revenue from contracts with customers in
Lithuania market
95,478 83,837 74,878 78,467 95,124
Revenue from contracts with customers in foreign
markets (Poland, Baltic States, CIS and Spain)
82,542 70,670 60,597 36,886 14,356
Area under management in Lithuania
(thousand sq. m)
14,420 13,634 13,658 13,803 14,076
Area under management in foreign markets
(Poland, other Baltic States)
20,811 13,681 6,867 2,766 1,698
EBITDA
12,562 13,201 (7,348) 664 10,377
EBITDA margin
7% 9% -5% 1% 9%
Operating profit (loss) (EBIT)
3,560 6,471 (13,455) (3,177) 6,577
EBIT margin
2% 4% -10% -3% 6%
Earnings (loss) before tax (EBT)
2,467 7,390 (13,316) (4,400) 7,461
EBT margin
1% 5% -10% -4% 7%
Net profit (loss)
1,455 5,114 (14,978) (5,176) 5,912
Net profit (loss) in foreign markets (Poland, Latvia,
St. Petersburg, Spain, Czech and Portugal)**
(613) (4,817) (13,400) (10,752) (2,522)
Net profit (loss) margin
1% 3% -11% -4% 5%
Profit (loss) per share (EUR)
0.05 0.16 (0.47) (0.15) 0.19
Return on equity (ROE)
3% 11% -75% -29% 25%
Return on assets (ROA)
1% 4% -16% -7% 7%
* Key financial data and ratios in 2019-2023 are represented
including subsidiaries that were disposed in 2020-2023 (further
disclosed in Note 8 Discontinued operations). All amounts in key
financial indicators are in EUR thousand unless otherwise stated.
** Group companies operating in St. Petersburg were disposed
during 2022, Poland, Spain, Czech and Portugal disposed during
2023 (further disclosed in 2.3. Significant events).
EBITDA = Net profit + Income Tax + Depreciation and Amortization + Other finance
income (expenses) + Interest income (expenses) + Loss (gain) on sale of investments
EBITDA margin = EBITDA / Revenue from contracts with customers * 100 %
Profit (loss) from operations (EBIT) = Net profit + Income Tax + Other finance income
(expenses) + Interest income (expenses) + Loss (gain) on sale of investments
EBIT margin = EBIT / Revenue from contracts with customers * 100 %
Profit (loss) before tax (EBT) = Net profit (loss) - Income Tax
EBT margin = EBT / Revenue from contracts with customers * 100 %
Net profit (loss) = EBT + 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 2023 Management report
Area under
management,
thousand m
2
NET profit (loss),
thousand Eur
NET profit (loss),
margin %
Sales,
thousand Eur
154,507
78,467
95,124
135,475
13,634
2,766
1,698
13,658
83,837
36,886
14,356
74,878
Sales 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
14,076
6,867
5,114
-14,978
-5,176
5,912
3.31
5.40
-11.06
-4.49
2020 2022 20232021
2020 2023
2020 2022 20232021
2020 2023
2021 2022
2021 2022
HIGHLIGHTS
* Group companies operating in St. Petersburg were disposed during 2022.
** In 2021 the Company through its Spanish subsidiaries has signed business transfer agreement on sale of apartment building administration business.
*** In 2023 foreign markets consist only from Latvia, as business in Poland was sold.
25
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 2023. 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 2023 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 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 intend to pay 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 to
conduct a special audit on matters regarding the
management or financial situation of the Company,
if this is demanded by shareholders whose shares
represent at least one-tenth of the share capital of
the Company;
● other property and non-property rights set out in
the Commercial Code.
26
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
2.7. THE SHAREHOLDERS OF THE COMPANY
On 31 December 2023 the total number of shareholders of the Company was 70*.
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 2023.
Company’s shares distribution among shareholders who have more than 5 % shares of the Company as of 31 Decem-
ber 2023 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 through a nominee
accounts (according to amendments that entered into 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%
27
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 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 the methods used by the Company to
calculate the depreciation of tangible assets and the
amortization of intangible assets.
28
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
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 data 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:
29
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
NAME AND SURNAME POSITION START OF TERM END OF TERM
Andrius Janukonis Chairman of the Supervisory Board June 21, 2023 June 21, 2027
Gintautas Jaugielavičius Member of the Supervisory Board June 21, 2023 June 21, 2027
As of 31 December 2023, 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).
30
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 com-
petence are of other Management bodies. The individual members of the Management Board have competence, are
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 2023 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.
31
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 for the
Baltics at CS SE. He holds a Bachelor‘s degree in Inter-
national Business. Previously he worked as the Market-
ing 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 techni-
cal operations and supply chain management, standardi-
zation policy within the Group in all jurisdictions.
32
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 2023 by the 31st of December 2023 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.
33
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
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 infor-
mation, including observing the process of the prepa-
ration of financial reports of the Company;
• to provide the Supervisory Board with recommen-
dations regarding the selection and/or removal of an
external audit company;
• to provide the Supervisory Board with recommen-
dations regarding the selection and/or removal of the
internal auditor;
• to observe the efficiency of the internal control sys-
tems, risk management and internal audit systems;
• to observe the process of carrying out an external
audit;
• to observe how the external auditor or audit com-
pany follow the principles of independence and ob-
jectivity;
• 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 Ac-
tivities Act of the Republic of Estonia (in Estonian:
audiitortegevuse seadus);
• make recommendations or proposals to the Super-
visory Board regarding prevention or elimination of
problems and inefficiencies in an organisation and
compliance with laws and the good practice of pro-
fessional activities;
• to immediately inform the Supervisory Board about
the information presented to the Audit Committee
by the audit company regarding any issues arisen dur-
ing the audit especially in case of significant short-
comings of internal control related to financial re-
ports.
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.
34
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
The principal objective of the Audit Committee is to
generate higher added value to the Company. Audit
Committee operates in accordance with the Regula-
tions approved by the General Meeting of Sharehold-
ers 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 Warsaw 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.
MRS. VASILINA VALATKAITĖ-JAKŠTIENĖ
- consolidation manager of the Company.
Audit Committee members do not own shares of
the Company.
Members of the audit committee of the company:
35
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
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 2023 (hereinafter also referred to as the “WSE
Corporate Governance Code”).
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 comply 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 will be applied 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
account the issues described in rule 1.3.2. However, it will be
applied 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 be 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 pe-
riodic 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 have 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 diver-
sity policy referred to in principle 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 selection criteria are the
competences of the members of the Management Board and
the Supervisory Board. The Company 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.
36
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 units
responsible for the scope of tasks described in principle 3.5.
3.6. The head of internal audit reports organizationally to
the president of the management board and functionally to
the chair of the audit committee or the chair of the supervi-
sory board if the supervisory board performs the functions
of the audit committee. The Company has 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 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
37
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
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 2023 was granted without derogation. The-
Group‘s management remuneration amounted to EUR 447 thousand in 2023 (EUR 915 thousand in 2022).
38
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
3.1. OVERVIEW
Just like every year, in 2023, the Group engaging in operations in Lithuania and in Latvia and,
while holding one of the leading positions on the market, applied sustainable business solutions,
contributed to a large number of social projects and initiatives that helped improve the lives of
both residents and the Company’s employees.
SOCIAL RESPONSIBILITY REPORT
It is important to emphasize that the Group’s companies
constantly strive to create and nurture a reliable rela-
tionship with customers, ensure a better quality of their
living environment. Customer experiences and feedback
are constantly communicated via the Group’s internal
communication channels and the local media, targeted
strategies are prepared to analyse customer needs in the
process of setting new goals.
In the field of community relations, the Group
makes great effort to strengthen cooperation and part-
nership with various communities, educational institu-
tions, law enforcement and non-governmental organiza-
tions. The implemented initiatives encourage cooperation
between residents in apartment buildings and Group’s
companies, a responsible approach to jointly managed
property and creation of traditions.
In the field of environmental protection, all
Group’s companies implemented various solutions aimed
at contributing to conservation of natural resources, re-
duction of CO2 emissions, and presented the achieved
indicators publicly in the Group’s Sustainability Report.
The Group’s companies encourage both their custom-
ers and their employees to follow this way by organizing
trainings, seminars, and general initiatives aimed at reduc-
ing environmental pollution and restoring the environ-
ment. One of such initiatives is the national forest plant-
ing event, where employees of the Group’s companies
planted 2,500 trees in Radviliškis District.
39
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
3.2. MARKET
The Group’s companies focused on increasing customer ssatisfaction index, improving the quality
of services and the Group’s image in 2023.
CUSTOMER RELATIONS
The Group’s companies continued to make effort to
meet the expectations of their customers. New pro-
cesses were created and the existing ones were im-
proved, leading to better customer service and in-
creased trust.
Communication with the customers and partners con-
tinued to be maintained through different and most ac-
ceptable channels: telephone, e-mail and newsletters,
news boards, self-service portals, social networks, indi-
vidual meetings, special applications.
Today the Group has a community of 100 thousand
customers who have stopped using paper invoices and
resolves apartment maintenance matters via self-service
platform “BonoDomo”, a convenient way to manage all
facilities services, receive special offers, and find relevant
news from major Lithuanian cities.
To business customers the Group has offered “eCSE”, a
commercial building management platform designed for
telephones or any smart devices. By using this platform
our partners can save time, reduce paper and vehicle costs.
40
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
3.3. RELATIONS WITH EMPLOYEES
Just like every year, the Group’s companies were focused on the personal growth of employees
and encouraged cooperation.
Employee engagement, open discussions, and health
and safety discussions were constantly encouraged top-
ics in the Group. The Group is tolerant concerning age,
sex, race, religion, background and beliefs and strives to
ensure equal opportunities and rights for all employees.
The closed Facebook group allows employees to com-
municate and share their achievements and relevant in-
formation. Unique electronic publication “eBŪSTINĖ” is
used for sharing the most relevant news, acknowledg-
ments from customers, and daily moments of employees.
All employees of the Group were welcome to enjoy
summer celebration, which served as an opportunity to
hand out awards to long-term employees and employ-
ees with excellent performance.
The contract with the platform of emotional health
professionals “visipsichologai.lt” was extended, thus en-
suring the opportunity for our employees to use their
services completely confidential any time. All consul-
tations provided by these professionals were financed
by the Group in order to support and strengthen the
emotional well-being of employees.
It is also important to mention that all employees con-
tinued to be covered by accident insurance.
Managers of the Group’s companies held periodic vid-
eo and live conferences and presented changes in the
Group, answered relevant questions and tackled going
concerns.
The collective labour agreement was extended in some
companies while a new one was signed in others, which
provided additional holidays to employees, depend-
ing on their length of service, members of union were
provided with one additional day of holidays, additional
benefits in case of anniversaries, marriages, births of
children, 20 % higher severance pay in case of dismissal.
Annual employee performance improvement interviews
were held with employees to set the goals and discuss
the encountered problems aiming for developing em-
ployee competences and planning careers in the Group.
In 2023, just like in 2022, the Group conducted an
anonymous employee engagement survey, thus giving
the opportunity to the employees to openly answer the
questions and express their opinion on improvements
needed. The summarized results were presented to all
employees of the Companies during a remote confer-
ence.
In order to ensure good working atmosphere, Group
encouraged colleagues to appreciate the efforts made
by their colleagues. Nominations of colleagues from all
departments, including the administration and technical
staff, were encouraged.
41
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
TRAININGS AND SEMINARS
Various development opportunities continued to be cre-
ated for employees in 2023. Anyone wishing to join the
organized internal and external trainings was welcome
to do so, while e-training platform “eCITY” enabled em-
ployees to study independently and find relevant infor-
mation needed for work.
The electronic training platform was used to offer cours-
es to employees enabling them to familiarize with Cus-
tomer Service, Remote Work, Introduction to LEAN,
Document Management System, Occupational Safety
and Fire Safety for Newcomers, Company Process Pro-
cedures, etc. Knowledge tests were provided for self as-
sessment.
New employee training is provided for newcomers,
during which new employees could familiarize with the
Group’s vision, mission, values, activities, and the LEAN
methodology.
The Group cooperate with educational institutions by giv-
ing the opportunity for their students and pupils with the
necessary education to take part in internships or start
working in the Group’s companies. During the meet-
ings with educational institutions the Group presented
practical professional information about Group’s specific
activities and career opportunities, held discussions with
teachers and students, in order to build a warm and close
relationship.
The Group is grateful to the representatives of educa-
tional institutions for their warm reception and mean-
ingful discussions during internship arrangement. After
presentation of the Group’s sustainability initiatives the
Group was granted the role of “SUSTAINABILITY” am-
bassador.
By actively participating in the “Career Day” the Group
continues to offer wide range of available activities and
strengthens attractiveness of the Group’s companies for
educational community. Group’s commitment to sustain-
ability and close collaboration with educational institu-
tions is an important basis for Group’s success and re-
sponsible business practices.
42
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
3.4. SOCIAL INITIATIVES FOR COMMUNITIES
“Kalba Kaimynai” [Neighbours Speak] remained as one of the most important and largest social
projects in Lithuania in 2023. Regularly published information in social network Facebook covers
seven Lithuanian cities. In five of them, 50 % of the content consists of local news and 50 % of
the news from the Group’s companies. This project has grown over the course of eight years and
today unites more than 113 thousand followers, moreover the total number of followers of “Kalba
Kaimynai” on “Facebook” has increased by 3 % over the past year.
The Group continued its successful cooperation with
Football Club “Ataka”, which gave the Club the oppor-
tunity to continue football training for children from so-
cially disadvantaged families.
In 2023 the Group continued the cooperation with the
Lithuanian Pensioners Union “Bočiai”.
The Group donated to the “Stiprūs kartu” [Strong To-
gether] civil initiative “Keliu vėliavą už Ukrainą NATO”
[Raising the Flag for Ukraine in NATO]. The team of
“Mano BŪSTAS” raised 350 Ukrainian flags on nearly 250
apartment buildings in the capital Vilnius to show sup-
port for Ukraine.
The dreams of almost 100 children growing up in diffi-
cult social conditions were fulfilled together with “Fondas
Janukonis” [Janukonis’ Fund] before Christmas. The em-
ployees packed the gifts themselves, and some of them
were delivered in person. The children under the care of
Šilutė “Vaiko gerovės ir globos centras” [Child Welfare
and Care Center] were also visited before the holidays
leaving them with gifts and sweet surprises.
The Group gave Christmas trees to residents during the
Christmas period and invited them to decorate them to-
gether. This initiative helped bolster the community spirit
and encouraged them to decorate both their homes as
well as the courtyards of apartment buildings.
Two competitions were held for residents last year. Peo-
ple were invited to share communal stories from the lives
of their neighbours and the winners were given barbecue
parties organised in the courtyards of their apartment
buildings to celebrate the European Neighbours’ Day. The
Christmas decoration competition, which has become a
tradition, also contributed to a strengthened community
as people were encouraged to decorate common spaces,
upload photographs to the space created by News Portal
“DELFI” and win shopping center gift vouchers.
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%.
43
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 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 2023, 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.
“Exergio” platform, developed by experts in the field
and continuously improved, has been providing future
sustainability requirements for buildings and expanding
on the Polish market for three years. “Exergio” is the
targeted collection, systematisation, analysis, and remote
management of building data streams using time-tested
algorithms: scanning data from the smallest sensors to
the largest data streams.
44
CITY SERVICE SE CONSOLIDATED ANNUAL REPORT 2023 Management report
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.
Taxonomy-eligible activities examined as taxonomy-aligned activities in the Group:
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
• 6.5. Transport by motorbikes, passenger cars and
light commercial vehicles
• 7.3. Installation, maintenance and repair of energy ef-
ficiency equipment
2022
Taxonomy-eligible Taxonomy-non-eligible
Revenue,% 1.76% 98.24%
Taxonomy CAPEX, % 41.84% 58.16%
Taxonomy OPEX, % 5.48% 94.52%
2023
Taxonomy-eligible Taxonomy-non-eligible
Revenue,% 2.19% 97.81%
Taxonomy CAPEX, % 68.01% 31.99%
Taxonomy OPEX, % 17.15% 82.85%
• 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
23
20
CONSOLIDATED
FINANCIAL
STATEMENTS
For the twelve
months period ended
31 December 2023,
thousand euros
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
46
Consolidated statement of financial position
As of 31 | As of 31 | ||
Notes | December 2023 | December 2022 | |
ASSETS | |||
Non-current assets | |||
Goodwill | 5 | ||
Other intangible assets | 6 | ||
Property, plant and equipment | 7 | ||
Right of use assets | 17 | ||
Non-current receivables | 11 | ||
Deferred income tax asset | 24 | ||
Total non-current assets | |||
Current assets | |||
Inventories | 9 | ||
Prepayments | 10 | ||
Trade receivables | 12 | ||
Receivables from related parties (including loans granted) | 29 | ||
Other receivables | 11 | ||
Prepaid income tax | |||
Contract assets | 2.16 | ||
Cash and cash equivalents | 13 | ||
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 2023
(all amounts are in EUR thousand unless otherwise stated)
47
Consolidated statement of financial position (cont’d)
As of 31 | As of 31 | ||
EQUITY AND LIABILITIES | Notes | December 2023 | December 2022 |
Equity | |||
Share capital | 1 | ||
Share premium | 14 | ||
Reserves | 14 | ||
Retained earnings | ( | ||
Reserves of a disposal group classified as held for sale | 8 | ( | |
Equity attributable to equity holders of the parent | |||
Non-controlling interests | |||
Total equity | |||
Liabilities | |||
Non-current liabilities | |||
Non-current borrowings | 15 | ||
Lease liabilities | 17 | ||
Deferred income tax liability | 24 | ||
Provisions for employee benefits, non-current | 18 | ||
Other provisions | |||
Other liabilities | 20, 21 | ||
Total non-current liabilities | |||
Current liabilities | |||
Current loans | 15 | ||
Current portion of non-current borrowings | 15 | ||
Current portion of lease liabilities | 17 | ||
Trade payables and payables to related parties | 19, 29 | ||
Contract liabilities | 20 | ||
Income tax payable | 24 | ||
Provisions for employee benefits, current | 18 | ||
Other current liabilities | 21 | ||
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 2023
(all amounts are in EUR thousand unless otherwise stated)
48
Consolidated statement of comprehensive income
Notes | 2023 | 2022 | |
Continuing operations | |||
Revenue from contracts with customers | 4 | ||
Cost of sales | 22 | ( | ( |
Gross profit | |||
General and administrative expenses | 23 | ( | ( |
Impairment of goodwill, other intangible and other non-current | ( | ||
assets | - | ||
Expected credit losses on financial assets | 12 | ( | ( |
Other operating income | |||
Other operating expenses | ( | ( | |
Profit from operations | |||
Interest income | |||
Other finance income | |||
Gain on sale of investments | 1 | ||
Interest expenses | ( | ( | |
Other finance expenses | ( | ( | |
(Loss) on sale of investments | 1 | ( | ( |
Profit before tax from continuing operations | |||
Income tax | 24 | ( | ( |
Net profit from continuing operations | |||
Discontinued operations | |||
Net (loss) from discontinued operations | 8 | ( | ( |
Net profit (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 | |||
Net profit (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) | 25 | ( | |
From continuing operations | 25 | ||
From discontinued operations | 25 | ( |
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 2023
(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 31 December 2021 | ( | ( | ||||||||
Net profit (loss) for the year | ( | ( | ( | ( | ||||||
Other comprehensive income | ||||||||||
Total comprehensive income | ( | ( | ( | ( | ||||||
Reserves of a disposal | ||||||||||
group classified as held for sale | ( | |||||||||
Balance as of 31 | ( | ( | ||||||||
December 2022 | ||||||||||
Net profit (loss) for the year | ||||||||||
Other comprehensive income | ||||||||||
Total comprehensive income | ||||||||||
Transfers to (from) | ( | ( | ||||||||
reserves | 14 | |||||||||
Disposal of subsidiaries | ||||||||||
Dividends declared | ||||||||||
Balance as of 31 | ||||||||||
December 2023 |
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 2023
(all amounts are in EUR thousand unless otherwise stated)
50
Consolidated statement of cash flows
Notes | 2023* | 2022* | |
Cash flows from (to) operating activities | |||
Net profit (loss) from continuing operations | |||
Net profit (loss) from discontinued operations | ( | ( | |
Adjusting items: | |||
Income tax expenses | 24 | ||
Depreciation and amortization | 6, 7, 8, 17 | ||
Impairment and write-off of accounts receivable | |||
Impairment and write-off of inventory and prepayments | |||
(Gain) loss on disposal of property, plant and equipment | ( | ||
(Gain) loss from sale of investments | 1 | ( | ( |
Impairment of goodwill and other intangible assets | 5, 6 | ||
Interest (income) | ( | ( | |
Interest expenses | |||
Fair value less costs to sell adjustment for assets held for sale | 8 | ||
Other financial activity result, net | ( | ||
Changes in working capital: | |||
(Increase) decrease in inventories | ( | ||
(Increase) decrease in trade receivables, receivables from related parties, contract assets, non-current receivables, other receivables and other current assets | ( | ||
(Increase) decrease in prepayments | ( | ( | |
(Increase) decrease in trade payables and payables to related | |||
parties | |||
Income tax (paid) | ( | ||
(Increase) decrease in advances received, contract liabilities | ( | ( | |
and other current liabilities | |||
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 2023
(all amounts are in EUR thousand unless otherwise stated)
51
Consolidated statement of cash flows (cont‘d)
Notes | 2023* | 2022* | |
Cash flows from (to) investing activities | |||
(Acquisition) of non-current assets | 6, 7, 8 | ( | ( |
Proceeds from sale of non-current assets | 6, 7, 8 | ||
(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 | |||
Loans (granted) | 29 | ( | |
Receivable loans repaid | 29 | ||
Net cash flows from (to) investing activities | ( | ( | |
Cash flows from (to) financing activities | |||
Proceeds from loans | 15 | ||
(Repayment) of financial lease liabilities | 17 | ( | ( |
Loans (repaid) | 15 | ( | ( |
Interest (paid) | 15 | ( | ( |
Net cash flows from (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 2023 and 2022 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 2023
(all amounts are in EUR thousand unless otherwise stated)
52
Notes to the financial statements
2023 | 2022 | |||
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 2023
(all amounts are in EUR thousand unless otherwise stated)
53
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 | |||
2023 | 2022 | |||
UAB Alytaus namų valda | Lithuania | 76% | 76% | Dormant |
UAB Baltijos būsto priežiūra | Lithuania | - | 100% | Dormant |
UAB Baltijos NT valdymas | Lithuania | 100% | 100% | Real estate management |
UAB Baltijos transporto valdymas | Lithuania | 100% | 100% | Asset management |
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% | 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 Mano būstas | Lithuania | 100% | 100% | Holding company |
UAB City Service Cleaning | Lithuania | 100% | 100% | Maintenance and cleaning of 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 Exergio | Lithuania | 100% | 100% | IT energy saving solutions for buildings |
UAB Getfiks | Lithuania | - | 100% | Supply chain management |
UAB Neries būstas | Lithuania | - | 100% | Dormant |
UAB Mano aplinka | Lithuania | 100% | 100% | Maintenance and cleaning of public |
territories and premises | ||||
UAB Mano bendrabutis | Lithuania | 100% | 100% | Administration of buildings |
UAB Mano Būsto klientų patirčių centras | Lithuania | 100% | 100% | Client service center services |
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% | 99.97% | 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% | 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% | Technical maintenance of heating systems |
UAB Pastatų valdymas | Lithuania | 100% | 100% | Administration of dwelling-houses |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
54
UAB PortalPRO | Lithuania | - | 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 |
UAB Unitechna | Lithuania | 100% | 100% | Maintenance and construction of gas |
stations | ||||
PortalPRO s.r.o. | Czech | - | 100% | IT services |
Aresi administracion de fincas S. L. | Spain | - | 100% | Administration of dwelling-houses |
Concentra Servicios y Mantenimiento, S.A.* | Spain | 100% | 100% | Commercial real estate management and |
building maintenance | ||||
Eurobroker Advisors Sorreduria de Seguros, S.L. | Spain | - | 100% | Insurance services |
Euronamas Gestion de Fincas Centro, S.L. | Spain | - | 100% | Administration of dwelling-houses |
Grupo Aresi de Inversiones, S.L. | Spain | - | 100% | Holding company |
PORTALPRO, 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 pārvaldīšanas serviss | Latvia | 100% | 100% | Building maintenance |
SIA PortalPRO | Latvia | - | 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 Manas MĀJAS | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Manas MĀJAS 2 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Manas Mājas Salnas 21 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Manas MĀJAS 3 | Latvia | 100% | 100% | Administration of dwelling-houses |
SIA Multihouse | Latvia | 100% | - | Administration of dwelling-houses |
SIA Ventspils nami | Latvia | 100% | 100% | Administration of dwelling-houses |
Atrium 21 sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
Deleterma sp. z o.o. | Poland | - | 100% | Country holding company |
Certus-Serwis Sp. z o. o. | Poland | - | 100% | Administration of dwelling-houses |
Concierge - Zarządzanie Nieruchomościami sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
Dom Best sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
EnergiaOK sp. z o.o. | Poland | - | 100% | Sale of electricity |
Famix sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
Grupa Techniczna 24 sp. z o.o. | Poland | - | 100% | Building maintenance |
Parama Blue sp. z o.o. | Poland | - | 100% | Dormant |
Parama Group sp. z o.o. | Poland | - | 100% | Holding company |
Parama Yellow sp. z o.o. | Poland | - | 100% | Dormant |
Parama Red sp. z o.o. | Poland | - | 100% | Dormant |
Parama White sp. z o.o. | Poland | - | 100% | Dormant |
PORTALPRO sp. z o.o. | Poland | - | 100% | Supply chain management |
Progresline sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
Santer Zarządzanie Nieruchomościami sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
Skydas - Przeglądy Budowlane sp. z o.o. | Poland | - | 100% | Dormant |
TED sp. z o.o. | Poland | - | 100% | Real estate management |
Tumieszkamy sp. z o. o. | Poland | - | 100% | Dormant |
Wolska Aparthotel sp. z o. o. | Poland | - | 100%** | Accommodation services |
Zespół Zarządców Nieruchomości sp. z o.o. | Poland | - | 100% | Administration of dwelling-houses |
ZZN Inwestycje sp. z o.o. | Poland | - | 100% | Dormant |
PORTALPRO, UNIPESSOAL LDA | Portugal | - | 100% | Dormant |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
55
UAB Baltijos | EnergiaOK | Grupa | UAB Neries | |
Techniczna 24 | ||||
būsto priežiūra | Sp.z.o.o | Sp.z.o.o | būstas | |
Date of disposal | 16 May, 2023 | 16 May, 2023 | 16 May, 2023 | 16 May, 2023 |
Goodwill | - | - | - | - |
Non-current assets other than goodwill | 6 | 1 | 11 | 3 |
Current assets other than cash and cash | - | 67 | 100 | 5 |
equivalents | ||||
Cash and cash equivalents | 4 | 744 | 1,022 | 8 |
Non-current and current liabilities | (9,084) | (8) | (46) | (133) |
Total net assets disposed of attributable to equity holders of the parent | (9,074) | 804 | 1,087 | (117) |
attributable to non-controlling interests | - | - | - | - |
Allowance on previously eliminated | 8,102 | - | - | - |
intercompany receivables | ||||
Total consideration received, all consisting | 3 | - | - | - |
of cash and cash equivalents |
- | - | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
56
1 General information (cont‘d)
Santer | Certus | ||
Zarzadcow | Ted Sp.z.o.o | Serwis | |
Nieruchomosci | Sp.z.o.o | ||
Date of disposal | Sp.z.o.o | ||
16 May, 2023 | 16 May, 2023 | 16 May, | |
2023 | |||
Goodwill | - | - | - |
Non-current assets other than goodwill | 2 | - | - |
Current assets other than cash and cash | 19 | 16 | - |
equivalents | |||
Cash and cash equivalents | 359 | (333) | 23 |
Non-current and current liabilities | (31) | - | - |
Total net assets disposed of attributable to equity holders of the parent | 349 | (317) | 23 |
attributable to non-controlling interests | - | - | - |
Total consideration received, all consisting | - | - | - |
of cash and cash equivalents |
- | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
57
1 General information (cont‘d)
Parama | Concierge | Skydas | |||||
Group | Atrium 21 | Zarzadzanie | Przeglady | ||||
Sp.z.o.o | Nieruchimosci | Budowlane | |||||
Sp.z.o.o | ami Sp.z.o.o | Sp.z.o.o | |||||
Date of disposal | 18 May, 2023 | 18 May, 2023 | 18 May, 2023 | 18 May, 2023 | |||
Goodwill | - | - | - | - | |||
Non-current assets other than goodwill | - | - | - | - | |||
Current assets | other | than cash | and cash | - | 7 | 2 | - |
equivalents | |||||||
Cash and cash equivalents | 33 | (914) | 177 | (29) | |||
Non-current and current liabilities | - | - | - | - | |||
Total net assets disposed of attributable to equity holders of the parent | 33 | (907) | 179 | (29) | |||
attributable to non-controlling interests | - | - | - | - | |||
Total consideration received, all consisting of cash and cash equivalents | - | - | - | - |
Parama Blue | Parama White | Parama Red | Parama Yellow | |||||||
Date of disposal | Sp.z.o.o | Sp.z.o.o | Sp.z.o.o | Sp.z.o.o | ||||||
21 March, 2023 | 13 April, 2023 | 08 May, 2023 | 09 May, 2023 | |||||||
Goodwill | - | - | - | - | ||||||
Non-current assets other than goodwill | - | - | - | - | ||||||
Current | assets | other | than | cash | and | cash | - | - | - | - |
equivalents | ||||||||||
Cash and cash equivalents | - | - | - | - | ||||||
Non-current and current liabilities | (3) | (8) | (4) | (3) | ||||||
Total net assets disposed of attributable to equity holders of the parent | (3) | (8) | (4) | (3) | ||||||
attributable to non-controlling interests | - | - | - | - | ||||||
Total consideration received, all consisting of cash and cash equivalents | - | - | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
58
PortalPro | Medžiagų | |||||||||
PortalPro s.r.o | Getfix UAB | tiekimo | ||||||||
UAB | centras UAB | |||||||||
Date of disposal | 27 March, 2023 | 03 May, 2023 | 03 May, 2023 | 03 May, 2023 | ||||||
Goodwill | - | - | 207 | - | ||||||
Non-current assets other than goodwill | - | 2,179 | 1 | - | ||||||
Current | assets | other | than | cash | and | cash | 1 | (1,103) | 9 | 389 |
equivalents | ||||||||||
Cash and cash equivalents | 22 | 46 | 4 | 114 | ||||||
Non-current and current liabilities | (43) | (1,124) | (5) | (265) | ||||||
Total net assets disposed of attributable to equity holders of the parent | (20) | (2) | 216 | 238 | ||||||
attributable to non-controlling interests | - | - | - | - | ||||||
Total consideration received, all consisting of cash and cash equivalents | 2 | 3 | - | 577 |
PortalPro SIA | PortalPro LDA | PortalPro | PortalPro S.L | |||||||
Sp.z.o.o | ||||||||||
Date of disposal | 12 May, 2023 | 22 May, 2023 | 29 June, 2023 | 28 July, 2023 | ||||||
Goodwill | - | - | - | - | ||||||
Non-current assets other than goodwill | - | - | - | 1 | ||||||
Current | assets | other | than | cash | and | cash | 35 | 66 | 28 | 24 |
equivalents | ||||||||||
Cash and cash equivalents | - | 12 | 13 | 9 | ||||||
Non-current and current liabilities | (3) | (105) | (131) | (226) | ||||||
Total net assets disposed of attributable to equity holders of the parent | 32 | (27) | (90) | (192) | ||||||
attributable to non-controlling interests | - | - | - | - | ||||||
Total consideration received, all consisting of cash and cash equivalents | 32 | - | 11 | 26 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
59
Eurobrokes Advisors | |
Date of disposal | 06 September, 2023 |
Non-current assets other than goodwill | 27 |
Current assets other than cash and cash equivalents | 25 |
Cash and cash equivalents | 5 |
Non-current and current liabilities | (171) |
Total net assets disposed of attributable to equity holders of the parent | (114) |
attributable to non-controlling interests | - |
Total consideration received, all consisting of cash and cash equivalents | 1 |
Grupo Aresi De | Euronamas | Aresi | |||||
Gestion De Fincas | Administracion De | ||||||
Inversiones S.L | Centro, S.L. | Fincas S.L. | |||||
20 September, | 20 September, | 20 September, | |||||
Date of disposal | 2023 | 2023 | 2023 | ||||
Goodwill | - | - | - | ||||
Non-current assets other than goodwill | 24 | 18 | - | ||||
Current assets | other | than | cash and | cash | 22 | 90 | 3 |
equivalents | |||||||
Cash and cash equivalents | 7 | 1 | - | ||||
Non-current and current liabilities | (16,262) | (513) | (81) | ||||
Total net assets disposed of attributable to equity holders of the parent | (16,209) | (404) | (78) | ||||
attributable to non-controlling interests | - | - | - | ||||
Allowance on previously eliminated | 15,313 | - | - | ||||
intercompany receivables | |||||||
Total consideration received, all consisting of cash and cash equivalents | - | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
60
1 General information (cont‘d)
• 99.99% stake in IMPROXY - TECNOLOGIAS DE INFORMAÇÃO LDA (acquisition price EUR 3 million)
• 90% stake in Homefile S.R.L. (acquisition price EUR 620 thousand);
• 90% stake in Homefile Support S.R.L. (acquisition price EUR 286 thousand);
• 100% stake in UAB Getfiks (acquisition price EUR 213 thousand);
• 100% stake in INTEGRI s.r.o (acquisition price CZK 34.7 million (EUR 1,394 thousand).
• 100% stake in Invert KFT (acquisition price EUR 417 thousand).
• 100% stake in O.K.-Soft Sokolov s.r.o. (acquisition price CZK 16,100 thousand (EUR 643 thousand).
• 100% stake in SWAN Liberec, s.r.o. (acquisition price CZK 4,394 thousand (EUR 178 thousand).
• On 03 March 2022, the Group, through its Lithuanian subsidiary established a new company InHouse Finance
• On 03 May 2022 the Group, through its Lithuanian subsidiary, established a new company BonoDomo Pay, UAB
• On 09 September 2022 the Company established a new subsidiary in Portugal PORTALPRO, UNIPESSOAL LDA
• On 29 December 2022 the Company established a new subsidiary in Czech Republic PortalPRO s.r.o. (share
- | - | - | ||||
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
61
OOO | OOO | |||||||||
Specializirov | Zhilkomservi | |||||||||
annoe | s No 3 | OOO MN | OOO Chistij | OOO | ||||||
remontno- | Frunzenskog | Grupp | dom | PortalPRO | ||||||
naladochnoe | ||||||||||
upravlenie | o rajona | |||||||||
Date of disposal | 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 | ||||||||||
UAB InHouse | STARLIT | INTEGRI, | SWAN | O.K.-Soft | ||||||
Digital | s.r.o. | s.r.o. | Liberec, s.r.o. | Sokolov s.r.o. | ||||||
19 | 19 | 19 | 19 | 19 | ||||||
September, | September, | September, | September, | September, | ||||||
Date of disposal | 2022 | 2022 | 2022 | 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 2023
(all amounts are in EUR thousand unless otherwise stated)
62
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 2023
(all amounts are in EUR thousand unless otherwise stated)
63
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 2023
(all amounts are in EUR thousand unless otherwise stated)
64
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
65
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
66
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
67
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
68
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
69 | |
Customer relationships Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business After initial recognition, intangible assets with finite lives are measured at cost less accumulated amortization and any accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives: | 5 – 40 years 2 Material accounting policies (cont’d) 2.7. Intangible assets other than goodwill combination is fair value as at the date of acquisition. |
Other intangible assets Intangible assets, other than goodwill, are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The Group does not have any intangible assets with indefinite useful life other than goodwill. Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale; | 3 – 10 years intangible asset when the Group can demonstrate: |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
70
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
71
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
72
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
73
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
74
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
75
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
76
Applicable value | As of 31 | |
Covenant | December 2023 | |
Debt Service Coverage Ratio (DSCR) 1 | >1.2 | 2.09 |
Financial debt to EBITDA 2 | <3 | 2.41 |
Capital ratio 3 | >25% | 28.3% |
Applicable value | As of 31 | |
Covenant | December 2022 | |
<EUR 2,500 | 3,723 | |
Capital expenditures | thousand | |
Financial debt to EBITDA | <5 | 4.10 |
Capital ratio | >24% | 24.51% |
1
Debt service coverage ratio – measures Group’s available cash flow to pay current debt obligations. The ratio is calculated by dividing net EBITDA by debt
service, including principal and interest.
2
Financial debt to EBITDA assesses available EBITDA to support current and non-current interest bearing debt.
3
Capital ratio is the percentage of Group‘s equity to its total assets.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
77
Climate change
The Group is constantly reviewing the latest legislation on climate change and considers its impact to financial statements.
Currently, the Group takes relevant actions to protect the environment and reduce carbon emissions. All the actions taken,
and targets reached by the Group are disclosed in detail in the Groups’ annual sustainability report, which is available on
the Groups’ website www.cityservice.eu. However, at this moment there are no legal acts, judgements or estimates that
would have a material impact on the financial reporting.
4
EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization Net profit (loss) with added back income tax, interest income
(expenses), gain (loss) on sale of investments, other finance gain (expenses), depreciation and amortization expenses.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
78
• Buildings’ administration
Year ended | Buildings’ administration | |||
31 December 2023 | All other | Total | ||
segments | ||||
Lithuania | Latvia | |||
Revenue from contracts with customers | 95,124 | 6,437 | 113 | 101,674 |
Total revenue from contracts with customers | 101,674 | |||
Segment results | 9,039 | 14 | (312) | 8,741 |
Unallocated expenses | (2,145) | |||
Profit from operations | 6,596 | |||
Net financial income | 841 | |||
Profit before income tax | 7,437 | |||
Income tax expenses | (1,519) | |||
Net profit (loss) for the year | 5,918 |
Other segment information | ||||
Additions to non-current assets other than financial | 1,726 | 24 | - | 1,750 |
instruments and deferred tax assets | ||||
Non-current assets | 33,017 | 5,327 | - | 38,344 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
79
Year ended | Buildings’ administration | |||
31 December 2022 | All other | Total | ||
segments | ||||
Lithuania | Latvia | |||
Revenue from contracts with customers | 78,468 | 5,678 | 239 | 84,385 |
Total revenue from contracts with customers | 84,385 | |||
Segment results | 2,923 | 7 | 722 | 3,652 |
Unallocated expenses | (692) | |||
Profit from operations | 2,960 | |||
Net financial income | (698) | |||
Profit before income tax | 2,262 | |||
Income tax expenses | (877) | |||
Net profit (loss) for the year | 1,385 | |||
Other segment information | ||||
Additions to non-current assets other than financial | 2,891 | 19 | 247 | 3,157 |
instruments and deferred tax assets | ||||
Non-current assets | 33,703 | 5,313 | 99 | 39,115 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
80
Note | Group | |
Cost: | ||
Balance as of 1 January 2022 | 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 | |
Balance as of 31 December 2023 | 10,475 | |
Impairment: | ||
Balance as of 1 January 2022 | 1,564 | |
Exchange differences | (20) | |
Impairment recognized | 130 | |
Discontinued operations | 8 | 2 |
Balance as of 31 December 2022 | 1,676 | |
Balance as of 31 December 2023 | 1,676 | |
Net book value as of 31 December 2022 | 8,799 | |
Net book value as of 31 December 2023 | 8,799 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
81
Name of entity acquired | Acquisition cost | Notes |
Multi House | EUR 32 thousand | EUR 32 thousand paid in cash |
Fair value of assets, liabilities and contingent | Multi House SIA |
liabilities | |
Date of acquisition | 30 May, 2023 |
Goodwill | (15) |
Other non-current assets | 83 |
Property, plant and equipment | 1 |
Trade receivables | 37 |
Other current assets | - |
Cash and cash equivalents | 84 |
Total assets | 190 |
Long-term liabilities | 12 |
Trade payables | 23 |
Other current liabilities | 123 |
Total liabilities | 158 |
Book value | Multi House SIA |
Date of acquisition | 30 May, 2023 |
Other non-current assets | 83 |
Property, plant and equipment | 1 |
Trade receivables | 37 |
Other current assets | - |
Cash and cash equivalents | 84 |
Total assets | 205 |
Long-term liabilities | 12 |
Trade payables | 23 |
Other current liabilities | 123 |
Total liabilities | 158 |
Total identifiable net assets at book value | 47 |
attributable to equity holders of the parent | 47 |
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 2023
(all amounts are in EUR thousand unless otherwise stated)
82
Multi House SIA | |
Date of acquisition | 30 May, 2023 |
Fair value of acquired assets, liabilities and contingent liabilities attributable to the Group | 47 |
Goodwill | (15) |
Total purchase consideration | 32 |
Fair value of non-controlling interest acquired | - |
Cash acquired | 84 |
Total purchase consideration, net of cash | (52) |
acquired |
Multi House SIA | |
Date of acquisition | 30 May, 2023 |
Profit (loss) incurred since acquisition date to 31 | 5 |
December 2023 | |
Total revenue since acquisition date to 31 December | 114 |
2023 | |
Total revenue for the year 2023 (unaudited) | 207 |
Total net result for the year 2023 (unaudited) | 7 |
Name of entity acquired | Acquisition cost | Notes |
INTEGRI s.r.o. | EUR 1,394 thousand | All paid in cash |
Homefile S.R.L | EUR 620 thousand | EUR 520 thousand paid in cash |
Homefile Support S.R.L | EUR 286 thousand | All paid in cash |
Improxy - Technologias de informacao LDA | EUR 3,000 thousand | All paid in cash |
UAB Getfiks | EUR 213 thousand | All paid in cash |
O.K.-Soft Sokolov s.r.o. | EUR 643 thousand | All paid in cash |
SWAN Liberec, s.r.o. | EUR 178 thousand | All paid in cash |
Invert KFT | EUR 417 thousand | EUR 377 thousand paid in cash |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
83
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 2023
(all amounts are in EUR thousand unless otherwise stated)
84
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 2023
(all amounts are in EUR thousand unless otherwise stated)
85
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 2023
(all amounts are in EUR thousand unless otherwise stated)
86
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 |
Carrying value | Carrying value | |
of allocated | of allocated | |
goodwill as of | goodwill as of | |
31 December | 31 December | |
Cash generating unit | 2023 | 2022 |
Subsidiaries operating in Lithuania | 8,011 | 8,011 |
Subsidiaries operating in Latvia | 788 | 788 |
8,799 | 8,799 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
87
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
88
Notes | Other intangible assets | |
Cost: | ||
Balance as of 1 January 2022 | 37,712 | |
Additions arising from acquisitions of subsidiaries | 5 | 180 |
Additions | 2,886 | |
Disposals | (3,449) | |
Disposals related to discontinued operations | 8 | (11,468) |
Exchange differences | 322 | |
Balance as of 31 December 2022 | 26,183 | |
Additions | 1,209 | |
Disposals and retirements | (1,084) | |
Balance as of 31 December 2023 | 26,308 | |
Accumulated amortization and impairment: | ||
Balance as of 1 January 2022 | 16,623 | |
Charge for the year | 1,180 | |
Disposals | (212) | |
Disposals of subsidiaries | (777) | |
Disposals related to discontinued operations | 8 | (9,598) |
Exchange differences | (11) | |
Balance as of 31 December 2022 | 7,205 | |
Charge for the year | 1,175 | |
Disposals and retirements | (1,028) | |
Balance as of 31 December 2023 | 7,352 | |
Net book value as of 31 December 2022 | 18,978 | |
Net book value as of 31 December 2023 | 18,956 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
89
Other | |||||
property, | Construct- | ||||
plant and | ion in | ||||
Buildings | Vehicles equipment* | progress | Total | ||
Cost: | |||||
Balance as of 1 January 2022 | 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 related to discontinued operations | (96) | (923) | (614) | - | (1,633) |
Disposals and retirements | (560) | (859) | (709) | - | (2,128) |
Reclassification to assets 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 |
Additions arising from acquisitions of subsidiaries | - | - | 4 | - | 4 |
Additions | - | - | 541 | - | 541 |
Disposals related to discontinued operations | - | - | (1) | - | (1) |
Reclassification | - | 128 | - | - | 128 |
Disposals and retirements | (387) | (383) | (75) | - | (845) |
Balance as of 31 December 2023 | 95 | 1,082 | 2,155 | - | 3,332 |
Accumulated depreciation and impairment: | |||||
Balance as of 1 January 2022 | 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 |
Charge for the year | 6 | 3 | 369 | - | 378 |
Additions arising from acquisitions of subsidiaries | - | - | 3 | - | 3 |
Disposals and retirements | (58) | (374) | 53 | - | (379) |
Disposals related to discontinued operations | - | - | (1) | - | (1) |
Reclassification | - | - | 7 | - | 7 |
Balance as of 31 December 2023 | 95 | 946 | 1,478 | - | 2,519 |
Net book value as of 31 December 2022 | 335 | 20 | 639 | - | 994 |
Net book value as of 31 December 2023 | - | 136 | 677 | - | 813 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
91
2023 | 2022 | |
Sales | 7,806 | 30,968 |
Cost of sales | (7,193) | (24,228) |
Gross profit | 613 | 6,740 |
General and administrative expenses | 92 | (7,085) |
Impairment of goodwill, other intangibles and other non-current assets | - | (3,989) |
and fair value adjustment for assets held for sale | ||
Credit loss expenses on financial assets | 62 | (253) |
Other operating income | 333 | 1,300 |
Other operating expense | (1,119) | (2,850) |
Profit (loss) from operations | (19) | (6,137) |
Interest income | 13 | 84 |
Other finance income | 69 | 19 |
Interest expenses | (39) | (142) |
Other finance expense | - | (488) |
(Gain) on sale of investments | - | 2 |
Profit (loss) before taxes | 24 | (6,662) |
Income tax | (30) | 101 |
Net profit (loss) | (6) | (6,561) |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
2022 | |
Sales | 30,968 |
Cost of sales | (24,228) |
Gross profit | 6,740 |
General and administrative expenses | (7,085) |
| Impairment of goodwill, other intangibles and other non-current assets | (3,989) |
| and fair value adjustment for assets held for sale | |
Credit loss expenses on financial assets | (253) |
Other operating income | 1,300 |
Other operating expense | (2,850) |
Profit from operations | (6,137) |
Interest income | 84 |
Other finance income | 19 |
Interest expenses | (142) |
Other finance expense | (488) |
(Gain) on sale of investments | 2 |
Profit before taxes | (6,662) |
Income tax | 101 |
Net profit (loss) | (6,561) |
92
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
93
ASSETS | As of 31 December 2022 |
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 |
LIABILITIES | As of 31 December 2022 |
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 |
Current 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 2023
(all amounts are in EUR thousand unless otherwise stated)
94
As of 31 | Group | As of 31 | |
December 2023 | December 2022 | ||
Raw and auxiliary materials (fair value less costs to sell) | 420 | 505 | |
Goods for resale (fair value less costs to sell) | 250 | 540 | |
Other (fair value less costs to sell) | 2 | 2 | |
672 | 1,047 |
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Non-current receivables for residential buildings' repair works | 2,372 | 1,891 |
performed | ||
Restricted cash and guarantees provided | 2,530 | 1,358 |
Receivable VAT | 546 | 913 |
ESCO (Energy saving projects) | 2,739 | 2,928 |
Other | 1,565 | 1,866 |
Allowance of long-term part of receivables for residential buildings' | (181) | (77) |
repair works performed | 9,571 | 8,880 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
95
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Trade receivables, gross | 31,755 | 27,814 |
Less: allowance for expected credit losses | (6,249) | (7,331) |
25,506 | 20,483 |
Individually | Collectively | Total | |
assessed | assessed | ||
Balance as of 1 January 2022 | 996 | 13,853 | 14,849 |
Charge for the year | 130 | 541 | 671 |
Exchange differences | (9) | 1,832 | 1,823 |
Reversed during the year | (14) | (181) | (195) |
Disposals related to discontinued operations | - | (8,075) | (8,075) |
Transfer to assets held for sale | (982) | (760) | (1,742) |
Balance as of 31 December 2022 | 121 | 7,210 | 7,331 |
Charge for the year | 20 | 177 | 197 |
Disposals of subsidiaries | - | (3,034) | (3,034) |
Disposals related to discontinued operations | 982 | 760 | 1,742 |
Exchange differences | - | 89 | 89 |
Reversed during the year | (6) | (69) | (75) |
Balance as of 31 December 2023 | 1,117 | 5,133 | 6,250 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
96
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Cash at bank | 9,173 | 3,430 |
Cash on hand | 3 | 4 |
9,176 | 3,434 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
97
Group | |||
As of 31 | As of 31 | ||
Currency of the loan | December 2023 | December 2022 | |
Current loans | |||
Bank loans | EUR | 9,000 | 1,829 |
Current loan balance | 9,000 | 1,829 | |
Non-current loans | |||
Bank loans | EUR | 11,417 | 13,497 |
Less: current portion of long term loans | (1,138) | (3,038) | |
Non-current loan balance | 10,279 | 10,459 |
Group | ||
As of 31 | As of 31 | |
Term | December 2023 | December 2022 |
Within one year | 1,138 | 3,038 |
From one to five years | 8,882 | 9,138 |
More than five years | 1,397 | 1,321 |
11,417 | 13,497 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
98
Cash flows | Cash flows | New leases | Deconsolidat | Foreign | 31 December | ||
from | to loans and | ion of | exchange | 2023 | |||
1 January | proceeds | leases repaid | subsidiaries | effect | |||
2023 | from loans | ||||||
Current interest-bearing | |||||||
loans and borrowing | 1,829 | 9,000 | (1,829) | - | - | - | 9,000 |
(excluding items listed | |||||||
below) | |||||||
Non-current interest- bearing loans and borrowings (excluding | 13,497 | 20,649 | (15,133) | - | (9,252) | 369 | 10,130 |
items listed below) | |||||||
Obligations under lease | |||||||
contracts (Note 17) | 4,052 | - | (2,498) | 589 | (554) | 27 | 1,616 |
Total liabilities from financing activities | 19,378 | 29,649 | (19,460) | 589 | (9,806) | 396 | 20,746 |
Deconsolidation | Reclassification to | |||||||
1 | Cash flows | Cash flows | of subsidiaries | assets held for | Foreign | 31 | ||
January | from | to loans | New | sale | exchange | December | ||
2021 | proceeds | and leases | leases | 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 contracts | 6,205 | - | (1,986) | 1,382 | (1,231) | (590) | 272 | 4,052 |
(Note 17) | ||||||||
Total liabilities | ||||||||
from financing | 31,053 | 1,552 | (11,569) | 1,382 | (2,722) | (590) | 272 | 19,378 |
activities |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
99
Acquisition cost | Buildings | Vehicles | Total |
Balance as of 1 January 2022 | 7,185 | 3,942 | 11,127 |
Additions | 1,357 | - | 1,357 |
Decrease related to lease modifications | (1,464) | - | (1,464) |
Decrease related to lease termination | - | (1,461) | (1,461) |
Exchange differences | 307 | - | 307 |
Disposals related to discontinued operations | (2,485) | - | (2,485) |
Balance as of 31 December 2022 | 4,900 | 2,481 | 7,381 |
Additions | 385 | 171 | 556 |
Decrease related to lease modifications | (96) | - | (96) |
Reclassification | - | (127) | (127) |
Decrease related to lease termination | (2,749) | (54) | (2,803) |
Balance as of 31 December 2023 | 2,440 | 2,471 | 4,911 |
Accumulated depreciation and impairment | |||
Balance as of 1 January 2022 | 2,433 | 2,869 | 5,302 |
Charge for the year | 1,083 | 421 | 1,504 |
Decrease related to lease modifications | (1,307) | - | (1,307) |
Decrease related to lease termination | - | (1,351) | (1,351) |
Exchange differences | 57 | - | 57 |
Disposals related to discontinued operations | (726) | - | (726) |
Balance as of 31 December 2022 | 1,540 | 1,939 | 3,479 |
Charge for the year | 732 | 363 | 1,095 |
Decrease related to lease modifications | (28) | - | (28) |
Decrease related to lease termination | (1,735) | (53) | (1,788) |
Balance as of 31 December 2023 | 509 | 2,249 | 2,758 |
Right of use assets as of 31 December 2022 | 3,360 | 542 | 3,902 |
Right of use assets as of 31 December 2023 | 1,931 | 222 | 2,153 |
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Within one year | 738 | 1,382 |
From one to five years | 1,512 | 2,588 |
More than five years | 120 | 240 |
Total lease obligations | 2,370 | 4,210 |
Interest | (147) | (158) |
Present value of lease obligations | 2,223 | 4,052 |
Lease obligations are accounted as: | ||
- current | 681 | 1,313 |
- non-current | 1,542 | 2,739 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
100
2023 | 2022 | |
Depreciation expense of right-of-use assets | 1,095 | 1,504 |
Interest expense on lease liabilities | 36 | 77 |
Expense relating to short-term leases or leases of low-value assets | 327 | 321 |
(included in administrative expenses) | ||
Gain on sale of property | 51 | - |
Total amount recognized in profit (loss) | 1,509 | 1,902 |
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
As of 31 December of the previous year | 214 | 230 |
Additions arising from new subsidiaries | - | 86 |
Change during the year | 60 | (102) |
As of 31 December of the financial year | 274 | 214 |
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Discount rate | 4.1% | 4.4% |
Anticipated annual salary increase | 3.0% | 3.0% |
Group | ||
As of 31 | As of 31 | |
December 2023 | December 2022 | |
Trade payables | 8,161 | 8,611 |
Payables to related parties (Note 29) | 5,120 | 3,475 |
13,281 | 12,086 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
101
Group | ||
2023 | 2022 | |
Services of subcontractors and materials used | 43,478 | 31,137 |
Wages and salaries and social security | 24,921 | 20,974 |
Cost of goods sold | 683 | 1,750 |
Depreciation | 16 | 10 |
Other | 6,215 | 6,314 |
Total cost of sales | 75,313 | 60,185 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
102
Group | ||
2023 | 2022 | |
Wages and salaries and social security | 10,288 | 9,929 |
Depreciation and amortization | 2,710 | 2,726 |
Consulting and similar expenses* | 1,627 | 1,486 |
Advertising | 468 | 554 |
Transportation and fuel expenses | 358 | 458 |
Short term rent of premises and other assets | 327 | 321 |
Computer software maintenance | 315 | 489 |
Commissions for collection of payments | 307 | 344 |
Taxes other than income tax | 305 | 120 |
Insurance | 291 | 221 |
Representational costs | 257 | 251 |
Business trips and training | 193 | 118 |
Communication expenses | 146 | 198 |
Bank charges | 99 | 103 |
Charity and support | 58 | 36 |
Utilities | 49 | 69 |
Other | 1,862 | 2,248 |
Total general and administrative expenses | 19,660 | 19,671 |
* Includes EUR 1,5 thousand of translation services and EUR 179 of news portal subscription expenses incurred during the audit period of
2022 from audit company Ernst & Young Baltic.
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
103
Group | ||
2023 | 2022 | |
Components of the income tax expenses | ||
Current income tax | 1,701 | 1,267 |
Deferred income tax (income) | (181) | (390) |
Income tax expenses recorded in the statement | 1,520 | 877 |
of comprehensive income |
Deferred income tax asset | ||
Continuing operations | 2,091 | 1,501 |
Assets held for sale (Note 8) | - | 685 |
Deferred income tax liability | ||
Continuing operations | (1,729) | (1,335) |
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 2023
(all amounts are in EUR thousand unless otherwise stated)
104
Balance as of | Recognized in | Exchange | Disposed | Balance as of | ||
31 December | profit or loss | differences | subsidiaries | 31 December | ||
2022 | 2023 | |||||
Allowance for accounts | 4,471 | 649 | - | - | 5,120 | |
receivable | ||||||
Allowance for inventories | 17 | 2 | - | - | 19 | |
Accruals and similar temporary | 2,490 | 87 | - | - | 2,577 | |
differences | ||||||
Lease liabilities | - | (1,932) | - | - | (1,932) | |
(RoUA) | ||||||
Tax loss carried | 1,979 | 1,363 | - | (57) | 3,286 | |
forward | ||||||
Tax goodwill | 1,095 | (110) | - | - | 984 | |
Property, plant and equipment and intangible assets | (8,903) | (693) | - | - | (9,596) | |
Right of use assets | - | 1,946 | - | - | 1,946 | |
Total temporary | 1,149 | 1,312 | - | (57) | 2,404 | |
differences | ||||||
Deferred income | 172 | 198* | - | (9) | 361 | |
tax, net |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
105
Transfer to | Balance as | |||||
Balance as of | Recognized | assets held | of 31 | |||
31 December | in profit or | Exchange | for sale | Disposed | December | |
2021 | loss | differences | subsidiaries | 2022 | ||
Allowance for accounts | 9,240 | (2,743) | (269) | (1,726) | (31) | 4,471 |
receivable | ||||||
Allowance for inventories | 472 | (421) | (34) | - | - | 17 |
Accruals and similar | 5,857 | 774 | (130) | (2,548) | (1,463) | 2,490 |
temporary | ||||||
differences | ||||||
Deferred | 24 | (23) | (1) | - | - | - |
income | ||||||
Tax loss | 6,880 | 2,419 | (80) | (6,058) | (1,182) | 1,979 |
carried forward | ||||||
Tax goodwill | 587 | 508 | - | - | - | 1,095 |
Property, plant | ||||||
and equipment | (10,358) | 455 | 67 | - | 933 | (8,903) |
and intangible assets | ||||||
Accrued | (81) | 81 | - | - | - | - |
income | ||||||
Total | ||||||
temporary | ||||||
differences | 12,621 | 1,050 | (447) | (10,332) | (1,743) | 1,149 |
before valuation | ||||||
allowance | ||||||
Valuation | (8,240) | 1,396 | 276 | 6,568 | - | - |
allowance | ||||||
Total | ||||||
temporary | 4,381 | 2,446 | (171) | (3,764) | (1,743) | 1,149 |
differences | ||||||
Deferred | 716 | 678* | 114 | (688) | (654) | 166 |
income tax, net |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
106
Group | ||
2023 | 2022 | |
Income tax expenses computed at 15% in 2023 and 2022 | (1,116) | (614) |
Effect of different tax rates applicable to foreign subsidiaries | (13) | - |
Permanent differences | (390) | (263) |
Income tax expenses reported in the statement of comprehensive income | (1,519) | (877) |
Income tax attributable to a discontinued operations | (30) | (103) |
(1,549) | (980) |
Group | ||
2023 | 2022 | |
Net profit (loss) attributable to the shareholders of the Parent | 5,880 | 1,901 |
Net (loss) from discontinued operations attributable to the shareholders | (6) | (6,561) |
5,874 | (4,660) | |
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) | 0.19 | (0.15) |
From continuing operations | 0.19 | 0.06 |
From discontinued operations | - | (0.21) |
2023 | 2022 | |
Approved dividends* | - | - |
Number of shares (in thousand)** | 31,610 | 31,610 |
Approved dividends per share (EUR) | - | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
107
Effect on the profit | ||
Increase/decrease before the income | ||
2023 | in basis points | tax |
EUR | +1 | (210) |
PLN | +1 | - |
2022 | ||
EUR | +1 | (163) |
PLN | +1 | - |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
108
Less than 1 | More than 5 | ||||
On demand | year | 1 to 5 years | years | Total | |
Non-current interest-bearing | - | - | 10,859 | 1,511 | 12,370 |
borrowings | |||||
Current portion of non-current | - | 3,609 | - | - | 3,609 |
interest-bearing borrowings | |||||
Current loans | 9,000 | - | - | - | 9,000 |
Lease liabilities | - | 738 | 1,512 | 120 | 2,370 |
Trade payables and payables | - | 13,281 | - | - | 13,281 |
to related parties | |||||
Other current liabilities | - | 4,175 | - | - | 4,175 |
Balance as of 31 December | 9,000 | 21,803 | 12,371 | 1,631 | 44,805 |
2023 | |||||
Non-current interest-bearing | - | - | 9,295 | 1,609 | 10,904 |
borrowings | |||||
Current portion of non-current | - | 5,108 | - | - | 5,108 |
interest-bearing borrowings | |||||
Current loans | - | 1,829 | - | - | 1,829 |
Lease liabilities | - | 1,382 | 2,588 | 240 | 4,210 |
Trade payables and payables | - | 12,086 | - | - | 12,086 |
to related parties | |||||
Other current liabilities | - | 4,698 | - | - | 4,698 |
Balance as of 31 December | - | 25,103 | 11,883 | 1,849 | 38,835 |
2022 |
2023 | 2022 | |||
Assets | Liabilities | Assets | Liabilities | |
PLN | - | - | 4,325 | 3,527 |
CZK | - | - | 2 | - |
EUR | 49,881 | 51,613 | 36,783 | 48,078 |
49,881 | 51,613 | 41,110 | 51,605 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
109
Increase/ | Effect on the | |
decrease in | profit before the | |
exchange rate | income tax | |
2023 | ||
EUR | + 15.00 % | - |
EUR | - 15.00 % | - |
2022 | ||
EUR | + 15.00 % | 719 |
EUR | - 15.00 % | (719) |
Increase/ | Effect on the | |
decrease in | profit before the | |
exchange rate | income tax | |
2023 | ||
EUR | + 15.00 % | - |
EUR | - 15.00 % | - |
2022 | ||
EUR | + 15.00 % | (2,290) |
EUR | - 15.00 % | 2,290 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
110
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
111
Relation | Purchases | Sales | Receivables | Loans | Payables and | ||
and | granted | advances | |||||
prepayments | received | ||||||
UAB Vandens | Subsidiary of | ||||||
parent | 5 | 550 | 59 | - | - | ||
parkas | company | ||||||
UAB Verslo | Subsidiary of | ||||||
finansavimo | parent | - | - | 454 | - | 4,715 | |
sprendimai | company | ||||||
Subsidiary of | |||||||
UAB PortalPRO | parent | - | 340 | 16 | - | - | |
company | |||||||
UAB Medziagu | Subsidiary of | ||||||
parent | 649 | 86 | 655 | 78 | 236 | ||
tiekimo centras | company | ||||||
Subsidiaries of UAB | Subsidiaries of | ||||||
parent | 914 | 1,082 | 381 | 552 | 169 | ||
Unit invest | company | ||||||
1,568 | 2,058 | 1,565 | 630 | 5,120 |
5
EURIBOR – Euro Interbank Offered rate
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
112
Relation | Purchases | Sales | Receivables and | Payables and | |
prepayments | advances | ||||
Entity | received | ||||
Subsidiary of | |||||
UAB ICOR | parent | 395 | 136 | 33 | 34 |
company | |||||
Subsidiary of | |||||
UAB Inhouse Digital | parent | - | - | 2 | 1,089 |
company | |||||
UAB Verslo | Subsidiary of | ||||
finansavimo | parent | - | 4 | 58 | 2,231 |
sprendimai | company | ||||
Subsidiaries of UAB | Subsidiaries | ||||
of parent | 316 | 656 | 124 | 121 | |
Unit invest | company | ||||
711 | 796 | 217 | 3,475 |
Trade receivables | |||||||
Less | Days past due | More | |||||
than 30 | 30 – 60 | 60 – 90 | 90 – 360 | than 360 | |||
Trade receivables | days | days | days | days | days | Total | |
2022 | 160 | 29 | 14 | 1 | 8 | 5 | 217 |
2023 | 481 | 72 | 181 | 191 | 632 | 8 | 1,565 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
113
Group | ||
2023 | 2022 | |
Non-current liabilities (including deferred tax) | 17,545 | 19,086 |
Current liabilities | 41,455 | 40,598 |
Liabilities | 58,999 | 59,684 |
Equity | 24,023 | 18,019 |
Debt to equity ratio | 2 | 3 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
114
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
115
As of 31 | As of 31 | |
Statement of financial position | December 2023 | December 2022 |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 2 | 3 |
Investments into subsidiaries | 63,920 | 64,338 |
Non-current receivables | 5,481 | 6,845 |
Deferred income tax asset | 324 | 158 |
Total non-current assets | 69,727 | 71,344 |
Current assets | ||
Inventories | 21 | - |
Prepayments | 149 | 86 |
Trade receivables | 2,593 | 3,067 |
Receivables from related parties (including loans granted) | 926 | 1 |
Other receivables | 407 | 202 |
Cash | 3,913 | 8 |
Total current assets | 8,009 | 3,364 |
Total assets | 77,736 | 74,708 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
116
As of 31 December As of 31 December | |||
2023 | 2022 | ||
EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | 9,483 | 9,483 | |
Share premium | 8,490 | 21,067 | |
Reserves | - | 948 | |
Retained earnings | 31,688 | 9,251 | |
Total equity | 49,661 | 40,749 | |
Liabilities | |||
Non-current liabilities | |||
Non-current borrowings | 8,175 | 8,090 | |
Total non-current liabilities | 8,175 | 8,090 | |
Current liabilities | |||
Current loans | 9,000 | 1,829 | |
Current portion of non-current borrowings | 825 | 2,775 | |
Trade payables and payables to related parties | 9,730 | 18,000 | |
Contract liabilities | 15 | 971 | |
Income tax | - | 71 | |
Other current liabilities | 330 | 2,223 | |
Total current liabilities | 19,900 | 25,869 | |
Total liabilities | 28,075 | 33,959 | |
Total equity and liabilities | 77,736 | 74,708 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
117
Statement of comprehensive income | 2023 | 2022 |
Revenue from contracts with customers | 883 | 173 |
Cost of sales | (35) | - |
Gross profit | 848 | 173 |
General and administrative expenses | (2,838) | (977) |
Expected credit losses on financial assets | (35) | (9,288) |
Other operating income | - | 104 |
Profit from operations | (2,025) | (9,988) |
Interest income | 1,573 | 1,981 |
Other finance income | 12,529 | 10,296 |
Interest expenses | (1,024) | (845) |
Profit (loss) on sale of investments | (2,307) | 3,302 |
Other finance expenses | - | (33) |
Profit (loss) before tax | 8,746 | 4,713 |
Income tax (expense) benefit | 166 | (64) |
Net profit (loss) | 8,912 | 4,649 |
Other comprehensive income | - | - |
Total comprehensive income for the year, net of tax | 8,912 | 4,649 |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
118
Statement of changes | Share | Share | Legal | Other | Retained | |
in equity | capital | premium | reserve | reserves | earnings | Total |
Balance as of 1 | 9,483 | 21,067 | 948 | - | 9,251 | 40,749 |
January 2023 | ||||||
Net profit for the year | - | - | - | - | 8,912 | 8,912 |
Other comprehensive income | - | - | - | - | - | - |
Total comprehensive income | - | - | - | - | 8,912 | 8,912 |
Transfer from reserves | - | (12,577) | (948) | - | 13,525 | - |
Balance as of 31 | 9,483 | 8,490 | - | - | 31,688 | 49,661 |
December 2023 | ||||||
Book value of holdings | ||||||
under control or significant influence | (63,920) | |||||
Value of holdings under control of significant | 42,398 | |||||
influence, calculated | ||||||
under equity method | ||||||
Adjusted | ||||||
unconsolidated equity | 28,139 | |||||
as of 31 December | ||||||
2023* |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
119
Statement of changes | Share | Share | Legal | Other | Retained | Total |
in equity | capital | premium | reserve | reserves | earnings | |
Balance as of 1 | 9,483 | 21,067 | 948 | - | 4,602 | 36,100 |
January 2022 | ||||||
Net profit for the year | - | - | - | - | 4,649 | 4,649 |
Other comprehensive income | - | - | - | - | - | - |
Total comprehensive income | - | - | - | - | 4,649 | 4,649 |
Balance as of 31 | 9,483 | 21,067 | 948 | - | 9,251 | 40,749 |
December 2022 | ||||||
Book value of holdings | ||||||
under control or significant influence | (64,338) | |||||
Value of holdings under control of significant | 78,457 | |||||
influence, calculated | ||||||
under equity method | ||||||
Adjusted | ||||||
unconsolidated equity | 54,868 | |||||
as of 31 December | ||||||
2022* |
CITY SERVICE SE, company code 12827710, Narva mnt. 5, Tallinn, Estonia
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2023
(all amounts are in EUR thousand unless otherwise stated)
Statement of cash flows | 2023 | 2022 |
Cash flows from (to) operating activities | ||
Net profit from continued operations | 8,912 | 4,649 |
Adjusting items: | ||
Income tax expenses | (166) | 64 |
Depreciation and amortization | 1 | 2 |
Impairment and write-off of accounts receivable | (6,081) | 9,192 |
Dividend (income) | (12,320) | (3,301) |
Loss (gain) from sale of investment | 2,307 | (10,296) |
Impairment of goodwill | (697) | 96 |
Interest (income) | (1,573) | (1,981) |
Interest expenses | 1,024 | 845 |
Changes in provisions | - | (1) |
Other financial activity result, net | (209) | 33 |
Changes in working capital: | (8,802) | (698) |
(Increase) decrease in inventories | (21) | - |
| (Increase) decrease in trade receivables, receivables from related | ||
| parties, non-current receivables, other receivables and other current | 9,197 | (9,852) |
| assets | ||
(Increase) decrease in prepayments | (63) | (67) |
(Increase) decrease in trade payables and payables to related parties | (6,362) | 16,043 |
Income tax paid | (71) | (9) |
(Increase) decrease in advances received and other current liabilities | (2,639) | (1,697) |
Net cash flows from (to) operating activities | (8,761) | 3,720 |
Cash flows from (to) investing activities | ||
(Acquisition) of non-current assets | (2) | (2) |
Proceeds from sale of non-current assets | 2 | 1 |
(Acquisition) of investments in subsidiaries | (2,620) | (5,721) |
Disposal of investments in subsidiaries | 928 | 3,306 |
Dividends and interest received | 13,893 | 12,277 |
Loans (granted) | (5,044) | (15,253) |
Loans repaid | 3,136 | 12,227 |
Net cash flows (to) from investing activities | 10,293 | 6,835 |
Cash flows (to) financing activities | ||
Proceeds from loans | 20,771 | 1,121 |
Loans (repaid) | (17,374) | (10,907) |
Interest (paid) | (1,024) | (845) |
Net cash flows from (to) financing activities | 2,373 | (10,631) |
Net increase in cash and cash equivalents | 3,905 | (76) |
Cash and cash equivalents at the beginning of the year | 8 | 84 |
Cash and cash equivalents at the end of the year | 3,913 | 8 |
120