ANNUAL REPORT OF THE COMPANY AND THE GROUP
FOR 2023 AND AUDITOR’S REPORT
Contents
Page
Independent Auditor’s Report
1 – 8
Statement of the Management Board's responsibilities
9
Separate and consolidated statement of comprehensive income
11 – 12
Separate and consolidated statement of financial position
13 – 14
Separate and consolidated statement of changes in equity
15 – 16
Separate and consolidated statement of cash flows
17 – 18
Notes to the separate and consolidated financial statements
19 – 86
Management Report
87 – 99
Corporate Governance Statement
100 – 102
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5
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9
10
JADRAN joint stock company for hotel management and tourism
Crikvenica
SEPARATE AND CONSOLIDATED ANNUAL
FINANCIAL STATEMENTS
FOR 2023
Separate and consolidated statement of comprehensive income
For the year ended 31 December 2023
11
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by the Management Board.
| Company | Group | ||||
| Note | 2022*Restated | 2023 | 2022*Restated | 2023 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Continuing operations | |||||
| Revenue from sales of goods and providing services on the market | 6 | ||||
| Other income and gains | 7 | ||||
| Total operating income | |||||
| Cost of goods sold | ( | ( | ( | ( | |
| Cost of raw materials and supplies | 8 | ( | ( | ( | ( |
| Cost of services | 9 | ( | ( | ( | ( |
| Staff costs | 10 | ( | ( | ( | ( |
| Depreciation and amortisation | 17,18,19,34 | ( | ( | ( | ( |
| Reversal of impairment / (Impairment) of non-current non-financial assets | 11 | ( | ( | ||
| Net gains / (losses) on value adjustments of financial assets | 12 | ( | ( | ||
| Other operating expenses | 13 | ( | ( | ( | ( |
| Total operating expenses | ( | ( | ( | ( | |
| Operating profit / (loss) | ( |
Separate and consolidated statement of comprehensive income
For the year ended 31 December 2023
12
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by the Management Board.
Company
| Company | Group | ||||
| Note | 2022*Restated | 2023 | 2022*Restated | 2023 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Finance income | 14 | ||||
| Finance costs | 14 | ( | ( | ( | ( |
| Net loss from financing activities | ( | ( | ( | ( | |
| Profit / (loss) before tax | ( | ( | |||
| Income tax | 15 | ( | ( | ( | |
| Profit / (loss) from continuing operations | ( | ( | |||
| Gain from discontinued operations | 37 | ||||
| Net profit / (loss) for the year | ( | ( | |||
| Other comprehensive income | |||||
| Total comprehensive income / (loss) for the year | ( | ( | |||
| Earnings / (loss) per share from continuing operations | ( | ( | |||
| Earnings / (loss) per share from discontinued operations | 16 | ( | ( | ||
| Total comprehensive income attributable to Owners arises from: | |||||
| Continuing operations | ( | ( | |||
| Discontinued operations |
Group
Separate and consolidated statement of financial position
As at 31 December 2023
13
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by the Management Board.
| Company | Group | ||||||
| Note | 1 January 2022 | 31 December 2022 | 31 December 2023 | 1 January 2022 | 31 December 2022 | 31 December 2023 | |
| *Restated | *Restated | *Restated | *Restated | ||||
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Assets | |||||||
| Non-current assets | |||||||
| Goodwill | 38 | ||||||
| Property, plant and equipment | 17 | ||||||
| Intangible assets | 18 | ||||||
| Investment property | 19 | ||||||
| Financial assets | 20 | ||||||
| Investments in subsidiaries | 21 | ||||||
| Right-of-use assets | 37 | ||||||
| Deferred tax assets | 15 | ||||||
| Total non-current assets | |||||||
| Current assets | |||||||
| Inventories | 22 | ||||||
| Trade receivables | 23 | ||||||
| Receivables from related parties | 23 | ||||||
| Receivables from the government and other receivables | 24 | ||||||
| Income tax receivable | |||||||
| Receivables for loans granted to related parties | 25 | ||||||
| Cash and cash equivalents | 26 | ||||||
| Assets held for sale | 21, 37 | ||||||
| Total current assets | |||||||
| Total assets |
Separate and consolidated statement of financial position
As at 31 December 2023
14
*Restated due to the change in the presentation currency from kuna to euro (see note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by the Management Board.
| Company | Group | ||||||
| Note | 1 January 2022 | 31 December 2022, | 31 December 2023 | 1 January 2022 | 31 December 2022, | 31 December 2023 | |
| *Restated | *Restated | *Restated | *Restated | ||||
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Capital and reserves | |||||||
| Share capital | |||||||
| Capital reserves | |||||||
| Accumulated loss | ( | ( | ( | ( | ( | ( | |
| Total equity | 27 | ||||||
| Non-current liabilities | |||||||
| Provisions | 28 | ||||||
| Liabilities to financial institutions | 29 | ||||||
| Other non-current liabilities | 30 | ||||||
| Lease liabilities | 34 | ||||||
| Deferred tax liabilities | 15 | ||||||
| Total non-current liabilities | |||||||
| Current liabilities | |||||||
| Trade payables | 31 | ||||||
| Liabilities for advances, deposits and guarantees | 32 | ||||||
| Liabilities to banks | 29 | ||||||
| Other current liabilities | 33 | ||||||
| Lease liabilities | 34 | ||||||
| Liabilities from assets held for sale | 37 | ||||||
| Total current liabilities | |||||||
| Total liabilities | |||||||
| Total equity and liabilities |
Separate statement of changes in equity
For the year ended 31 December 2023
15
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by the Management Board.
| Company | Share capital | Capital reserves | Accumulated loss | Total |
| EUR '000 | ||||
| Balance at 1 January 2022 | ( | |||
| Effect of change in accounting policy (presentation currency) –Note 2 | ( | ( | ( | |
| Net profit | ||||
| Balance at 31 December 2022 | ( | |||
| Comprehensive income for the year | ||||
| Balance at 31 December 2023 | ( |
Consolidated statement of changes in equity
For the year ended 31 December 2023
16
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by he Management Board.
Group
| Group | Share capital | Capital reserves | Accumulated loss | Total |
| EUR '000 | ||||
| Balance at 1 January 2022 | ( | |||
| Effect of change in accounting policy (presentation currency) –note 2 | ( | ( | ( | |
| Net loss | ( | ( | ||
| Balance at 31 December 2022 | ( | |||
| Comprehensive income for the year | ( | ( | ||
| Balance at 31 December 2023 | ( |
Share capital
Capital reserves
Accumulated loss
Total
Separate and consolidated statement of cash flows
For the year ended 31 December 2023
17
*Restated due to the change in the presentation currency from kuna to euro (see Note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by he Management Board.
| Company | Company | Group | Group | ||
| Note | 2022*Restated | 2023 | 2022*Restated | 2023 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Cash flow from operating activities | |||||
| Profit / (loss) before tax from: | |||||
| Continuing operations | 15 | ( | ( | ||
| Discontinued operations | |||||
| Profit / (loss) before tax including discontinued operations | ( | ||||
| Depreciation and amortisation | 17,18,19,34 | ||||
| Net loss on sale and disposal of non-current assets | |||||
| Change in non-current provisions | ( | ( | |||
| Interest received | 14 | ( | ( | ( | |
| Interest paid | 14 | ||||
| Net foreign exchange differences | ( | ( | |||
| Net gains on value adjustments of financial assets | 12 | ( | ( | ( | ( |
| Net gains on sale of subsidiary | 7 | ( | |||
| Net gains on termination of lease contract | 7 | ( | ( | ( | ( |
| (Reversal of impairment) / impairment of non-current non-financial assets | 11 | ( | ( | ||
| Impairment of goodwill | 11 | ||||
| Changes in trade and other receivables | |||||
| Changes in inventories | ( | ( | |||
| Changes in trade and other payables | ( | ( | ( | ||
| Cash flows from operating activities | |||||
| Interest paid | 36 | ( | ( | ( | ( |
| A. Net cash from operating activities |
Separate and consolidated statement of cash flows
For the year ended 31 December 2023
18
*Restated due to the change of presentation currency from kuna to euro (see note 2).
**The accompanying notes are an integral part of these financial statements. These financial statements have been authorised and signed by he Management Board.
.
| Company | Company | Group | Group | ||
| Note | 2022*Restated | 2023 | 2022*Restated | 2023 | |
| EUR '000 | EUR '000 | EUR '000 | EUR '000 | ||
| Cash flow from investing activities | |||||
| Acquisition of the cash of a subsidiary | 38 | ||||
| Payments for purchases of non-current tangible and intangible assets | ( | ( | ( | ( | |
| Cash receipts from the sale of subsidiary | 37 | ||||
| Interest received | |||||
| Loans granted | ( | ( | |||
| Repayment of loans granted | |||||
| B. Net cash from investing activities | ( | ( | ( | ( | |
| Cash flow from financing activities | |||||
| Proceeds from borrowings | 36 | ||||
| Repayment of borrowings | 36 | ( | ( | ( | ( |
| Repayment of lease principal | 36 | ( | ( | ( | ( |
| C. Net cash from financing activities | ( | ( | ( | ( | |
| Net (decrease) / increase in cash | ( | ( | |||
| Cash and cash equivalents at beginning of period | 26 | ||||
| Effects of exchange rate changes | ( | ( | |||
| Cash and cash equivalents at end of period | 26 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
19
1. Principal activity and general information about the Company and the Group
Jadran joint stock company for hotel management and tourism , Bana Jelačića 16, Crikvenica
registered with the Commercial Court in Rijeka under Reg. No. (MBS): 040000817. The Company’s subscribed share
capital amounts to EUR 64.039.780 and is divided into 27,971,463 ordinary shares without nominal amount with the
ticker symbol JDRN-R-B. The company's shares are listed on the official market of the Zagreb Stock Exchange. The
major shareholder is PBZ Croatia osiguranje mandatory pension fund - category B ("Parent Company"), which owns
58.30% of the Company's share capital. Given that the parent company is an investment entity, and the company
Jadran d.d. is not an investment entity and its business activity is not related to the investment activities of the
investment entity, the Parent Company in accordance with IFRS 10 is not obliged to consolidate subsidiaries.
Pursuant to the provisions of the Act on the Introduction of the Euro as the Official Currency in the Republic of Croatia
and the Act on Amendments to the Companies Act, and based on the decision of the General Assembly on the
adjustment of share capital dated 14 July 2023, the share capital of the Company, by applying a fixed HRK to EUR
conversion rate, was converted into euros and reduced by the amount of 1.01 euros to the extent necessary for
compliance with the relevant regulations in a simplified manner, in favour of capital reserves.
The Company’s authorised representatives are Ivan Safundžić, Member of the Management Board, appointed on 1
December 2020, Miroslav Pelko, Member of the Management Board, appointed on 1 September 2021 and Irina Tomić,
President of the Management Board, appointed on 1 December 2023. The Company is represented by the
Management Board in such a manner that each Member of the Management Board represents the Company jointly
with another member of the Management Board. The Company’s principal activity is the provision of accommodation
services in hotels, resorts and campsites, preparation of food and provision of food services, and preparation and
In 2023, the average number of employees of the Company was 383 (2022: 289 employees). In 2023, the average
number of employees of the Group was 443 (2022: 329 employees).
The Jadran Group consists of Jadran d.d ., Crikvenica and its subsidiaries Adria coast turizam d.o.o. and Stolist d.o.o.
(the “Group”) in which Jadran d.d ., Crikvenica has a 100% share and voting rights (2022: The Jadran Group consisted
of Jadran d.d., Crikvenica and its subsidiaries Club Adriatic d.o.o. and Stolist d.o.o. in which Jadran d.d., Crikvenica
had a 100% share and voting rights).
As stated in Notes 37 and 38, on 6 February 2023, Jadran d.d. successfully fulfilled all the prerequisites established
by the concluded agreements on the purchase of business shares in Adria coast turizam d.o.o., which provided for the
acquisition of 100% of the shares in that company by Jadran d.d., as well as the agreement on the sale of business
shares in Club Adriatic d.o.o., by which Jadran sold and transferred 100% of the shares in that company to Adria Grupa
Baško Polje d.o.o.
Based on the above facts, the criteria for classifying this subsidiary as Assets held for sale in accordance with IFRS 5
Non-current assets held for sale and discontinued operations were met as of 31 December 2022.
In 2023, the Supervisory Board consisted of the following persons:
• Goran Hanžek, Chairman of the Supervisory Board
• Karlo Došen, Deputy Chairman of the Supervisory Board
• Mirko Herceg, Member of the Supervisory Board
• Sandra Janković, Member of the Supervisory Board
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
20
2. Material accounting policy information
The most significant accounting policies consistently applied in the current year and previous years are set out below:
2.1. Statement of compliance and basis of presentation
The Company's separate and Group’s consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards ("IFRS") as adopted by the European Union. The financial statements also
comply with the Croatian Accounting Act which refers to the IFRSs as adopted by the EU.
The accounting policies are consistent with those of the previous fiscal year, except as stated and disclosed below.
The separate and consolidated financial statements have been prepared under the accrual basis according to which
the transaction effects are recognised when incurred and are included in the financial statements for the period to
which they relate, and by applying the basic accounting assumption of going concern.
Change in accounting policy
M As of 1 January 2023, the euro became the official currency and legal tender in the Republic of Croatia, replacing
the previous kuna. The introduction of the euro as the official currency in the Republic of Croatia represents a change
in the functional currency that is applied prospectively from the above specified date. Consequently, the presentation
currency for the financial statements for 2023 was changed from kuna to euro, and the financial information for the
comparative period was re converted to euro as the new functional and presentation currency.
As the prior period’s financial statements were presented in kuna, the change in the presentation currency of the
comparative period in this year's financial statements represents a change in the Company's and Group’s accounting
policy.
Accordingly, the Company and the Group present three statements of financial position in this year's financial
statements, as of 1 January 2022, 31 December 2022, and 31 December 2023. As the conversion rate of the
statement of financial position as of 31 December 2023, the fixed prescribed exchange rate was used, which was HRK
7.5345 for the euro, while for the conversion rate of the statement of financial position as of 1 January 2022 was the
middle exchange rate of the CNB on 1 January 2022, which amounted to HRK 7.520447 for EUR 1. Also, for the
conversion of the items of capital and reserves, the aforementioned fixed prescribed exchange rate as of 31 December
2022, i.e., the middle exchange rate of the CNB as of 1 January 2022, was used. As the conversion rate of the
statement of comprehensive income for the year ended 31 December 2022 the average annual exchange rate of the
CNB was used, which was HRK 7.531381 for EUR 1. During 2022, there were no significant fluctuations in the
relationship between the euro and the Croatian kuna, therefore the Company's Management considers that the
application of the average exchange rate instead of the exchange rate on the date of the transaction is appropriate in
the given circumstances. The conversion difference that occurs due to the different exchange rates used for translating
the balance sheet and profit and loss account for 2022 in the amount of EUR 2,068 (for the Group in the amount of
EUR 43) is recognised within equity, in the position "accumulated loss " and was recognised within accumulated loss
as at 1 January 2023, after the introduction of the euro as the functional and presentation currency.
Subsidiaries in separate financial statements
The Company discloses its subsidiaries in the separate financial statements at cost less impairment (Note 21 –
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
21
2. Material accounting policy information (continued)
2.2. Critical accounting judgements and key sources of estimation uncertainty
In preparing these separate and consolidated financial statements, certain estimates have been used that affect the
presentation of the Company’s and Group’s assets and liabilities, income and expenses and the disclosure of the
Company's and Group’s contingent liabilities.
Future events and their effects cannot be anticipated with certainty, and therefore actual results may differ from these
estimates. The estimates used in the preparation of the financial statements are subject to change as new events
occur, as more experience is gained, additional information is obtained and due to the changing environment in which
the Company and the Group operate.
The key estimates used in the application of accounting policies when preparing financial statements are disclosed in
Note 3 below.
2.3. Going concern
The separate and consolidated financial statements have been prepared on the assumption that the Company and the
Group will continue in business on a going concern basis.
In the course of the past years, the Company and the Group have invested significant amounts in the renovation of
facilities from the portfolio and the improvement of the portfolio of services provided to clients.
After three years of struggling with the impact of the COVID-19 pandemic on business, 2023 was the first year in which
the Company’s and the Group’s business operations took place without any health restrictions.
The positive tourism trends that marked 2022 continued at the beginning of 2023. New Year's holidays and occupancy
of facilities were a good indicator of tourist trends in the coming period. Even though the contract for the lease of Hotel
Lišanj in Novi Vinodolski expired on 31 January 2023, the lack of family capacity was successfully compensated by the
capacity at Hotel Katarina. In addition to the family segment, the group segment also increased its activities, and in the
first quarter, in the same capacities, the best tourism results have been achieved so far.
In addition to Hotel Lišanj, in 2023, compared to 2022, the Company operated without Garden Palace Resort Umag
(the contract was terminated on 30 September 2022), while the Heritage Hotel Stypia entered the Company's portfolio
at the end of 2022 with 25 accommodation units, followed by the Boutique Hotel Noemia with 62 accommodation units
(transferring the lease agreement from Club Adriatic d.o.o. to Jadran d.d.). Also, at the beginning of February, Jadran
d.d. bought the company Adria coast turizam and the contract for the lease of the Grand Hotel View was terminated,
by which the mentioned hotel became part of the Jadran group.
The Company's cumulative losses as of 31 December 2023 amounted to EUR 23,021 thousand (31 December 2022:
EUR 25,750 thousand), and current liabilities exceeded current assets by EUR 9,386 thousand (31 December 2022:
EUR 6,710 thousand).
The Group's cumulative losses as of 31 December 2023 amounted to EUR 26,463 thousand (31 December 2022: EUR
23.073 thousand), and current liabilities exceeded current assets by EUR 11.117 thousand (31 December 2022: current
assets including assets held for sale exceeded short term liabilities including liabilities from assets held for sale by EUR
14.748 thousand).
After the challenging period caused by the COVID-19 pandemic ended, which greatly affected the Company, the Group
and the entire sector in which they operate, the Company and the Group made an operating profit in the past two years.
Cash flow projections prepared by the Company's management (and approved by the Supervisory Board) for the next
period show positive results.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
22
2. Material accounting policy information (continued)
2.3. Going concern (continued)
The Company’s revenue for the first three months of 2024 is significantly higher than in the same period last year. This
revenue normalised for the one-off income from the termination of the lease agreement for the Grand Hotel View and
compared to the same capacities, the Company's performance is 20% above compared to the previous year. According
to the current bookings, overnight stays are 7%, and income from accommodation is 15% above those in 2023, based
on which the Company expects a continuation of the positive trend in the rest of the year.
The Group's revenue for the first three months of 2024 is significantly higher than in the same period last year. This
revenue normalised for the one-off income from the termination of the lease agreement for the Grand Hotel View and
compared to the same capacities, the Group's performance is 17% above compared to the previous year. According
to the current bookings, overnight stays are 10%, and income from accommodation is 22% above those in 2023, based
on which the Group expects a continuation of the positive trend in the rest of the year.
Most of the Company's and Group’s current liabilities as of the reporting date refer to liabilities to banks, trade payables
and lease liabilities, which the Company and the Group regularly settle from the funds in the account from regular
business activities. Due to the seasonality of their business, the Company and the Group have agreed credit
arrangements, so that, in case of need, they would be able to ensure liquidity.
Given the fact that the Company and the Group record positive operating results and have the full support of the
owners, in the opinion of the Management, the above supports the assertion that the Company and the Group will have
sufficient resources to continue operations for a period of at least 12 months from the reporting date.
Accordingly, the separate and consolidated financial statements have been prepared in line with the going concern
principle.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
23
2. Material accounting policy information (continued)
2.4. Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those of the previous financial year except for the introduction of
the euro as a new functional and presentational currency, as explained in Note 2.1.and the following amended IFRSs
which have been adopted by the Company and the Group as of 1 January 2023:
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction, issued on 7 May 2021 (effective for annual periods beginning on or after 1 January 2023). The
effect of the adoption of these amendments is disclosed in Note 15.
• Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules, issued on 23 May
2023 (effective for annual periods beginning on or after 1 January 2023).
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of
Accounting policies, issued on 12 February 2021 (effective for annual periods beginning on or after 1 January
2023). The changes resulted in the correction of accounting policies in terms of disclosure of significant
information about accounting policies instead of extensive detailed descriptions.
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates, issued on 12 February 2021 (effective for annual periods beginning on or after 1
January 2023).
The adoption of these standards and interpretations did not have a significant impact on the financial statements of the
Company and the Group, unless otherwise stated.
2.4.1 Standards, amendments to standards and interpretations that are issued, but not yet effective
The standards, amendments to standards and interpretations that are issued, but not yet effective, up to the date of
issuance of the financial statements are disclosed below. The Company and the Group intend to adopt these standards,
if applicable, when they become effective.
The European Commission endorsed the following changes to the accounting principles applicable to reporting, that
were not effective for the preparation of 2023 financial statements:
• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-
current - Deferral of Effective Date, issued on 23 January 2020 and 15 July 2020 respectively (effective for
annual periods beginning on or after 1 January 2024).
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback, issued on 22 September 2022
(effective for annual periods beginning on or after 1 January 2024).
The IASB issued the following standards, amendments, interpretations or revisions, whose application is subject to
completion of the endorsement process by the competent bodies of the European Commission, which is still ongoing:
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued
on 15 August 2023).
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier
Finance Arrangements (issued on 25 May 2023).
• New standard IFRS 18 Presentation and disclosures in financial statements, effective for periods beginning
on or after January 1, 2027, which will replace IAS 1 Presentation of financial statements. The Company and
the Group are currently evaluating the impact of this standard on their financial statements.
The Company and the Group do not expect that the adoption of these standards and interpretations will have a
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
24
2. Material accounting policy information (continued)
2.5. Property, plant and equipment
Property, plant and equipment are presented in the statement of financial position (balance sheet) at historical cost
less accumulated depreciation and accumulated impairment losses.
The calculation of depreciation begins at the moment at which the asset is ready for its intended use. Depreciation is
calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
2.6. Intangible assets
Non-current intangible assets include licenses and software and are measured at historical cost less accumulated
amortisation and any accumulated impairment losses.
The amortisation charge is recognised in profit and loss on a straight-line basis over the estimated useful lives of
intangible assets, from the date that they are available for use.
Intangible assets are amortised using the straight-line method over a period of 5 years.
2.7. Investment property
Investment property mainly relates to buildings and other business premises within the hotels and campsites and is
held to earn long-term rentals or capital appreciation and is not owner-occupied. The Company and the Group do not
use them and they are measured at cost less accumulated depreciation and impairment losses, if any. Income from a
lease with the Company and the Group as lessor is recognised in income for the period over the lease term.
2.8. Impairment of non-financial assets
Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. The recoverable amount of an asset or cash-generating unit is the higher of the asset's
value in use or fair value less costs to sell. In assessing value in use, the present value of estimated future cash flows
is calculated using a pre-tax discount rate that reflects the assessment of the time value of money in the market and
the risk specific to that asset. For the purposes of assessing impairment, assets are grouped at the lowest level in order
to individually determine the cash flow (cash generating unit - CGU). For the Company and the Group, the CGU is
defined at the level of the accommodation facility.
Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting
| Buildings - buildings made of concrete, metal, stone and brick | 20-59 years |
| Buildings - buildings made of wood and other materials | 20-59 years |
| Campsite infrastructure | 20 years |
| Infrastructure | 5-20 years |
| Infrastructure related to the duration of the concession | 3-4 years |
| Furniture and technological equipment | 2-20 years |
| Transportation vehicles | 7 years |
| Passenger cars | 10 years |
| Office equipment | 4-10 years |
| Equipment - mobile homes | 10 years |
| ICT equipment | 2-14 years |
| Other equipment | 2-20 years |
| Landscaping | 10 years |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
25
2. Material accounting policy information (continued)
2.9. Financial assets
The business model reflects how the Company and the Group manage their assets in order to generate cash flows -
regardless whether the Company’s and Group’s objective is: (i) solely to collect contractual cash flows from the assets
(“hold to collect contractual cash flows”) or (ii) to collect both the contractual cash flows and cash flows arising from the
sale of assets (“hold to collect contractual cash flows and sell”).
As at the reporting date, the Company’s and the Group’s financial assets comprise receivables.
Impairment of financial instruments
The measurement of the expected credit loss (ECL) is based on reasonable and supportable information available
without undue costs or effort, including information about past events, current and foreseeable future conditions and
circumstances. Assessments of expected credit losses are normally based on historical probability of the inability to
collect debts, supplemented by future parameters relevant to credit risk.
For trade receivables, a simplified approach to expected credit loss measurement is applied i.e. measurement on a
collective basis, depending on the type of customer, and are monitored according to their ageing structure. For
example, ageing groups may be defined as follows: not past due, due in 0-90 days, due in 90-180 days, etc. The ageing
groups are determined according to the stages of the collection process.
2.10. Inventories
Inventories are carried at the lower of cost and net realisable value. Cost is determined using the weighted average
cost method. Net realisable value is the estimated selling price in the ordinary course of business, less costs to sell.
2.11. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held at call with banks, and other short-term highly liquid
2.12. Borrowings
Borrowings are initially recognised at fair value less transaction costs and subsequently at amortised cost using the
effective interest rate method. Interest is recognised as an expense, except in the case of the construction of a
qualifying asset, when it is capitalised as part of the asset’s cost.
The effective interest rate method is a method to calculate the amortised cost of a financial liability and allocate interest
expenses over the accounting period.
Borrowings are classified based on the agreed maturity as current liabilities, or non-current liabilities if they mature in
more than 12 months. If the Company and the Group have an unconditional right to defer the settlement of a liability
for at least 12 months after the reporting date, such liabilities are classified as non-current liabilities.
The Company and the Group derecognises financial liabilities when, and only when, they have been discharged,
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
26
2. Material accounting policy information (continued)
2.13. Trade payables
Trade payables are obligations to pay for goods or services that have been acquired from suppliers in the ordinary
course of business. Trade payables are classified as current liabilities if payment is due within one year or less. If not,
they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method.
2.14. Taxation
The income tax expense represents the sum of the tax currently payable and deferred tax.
The current tax liability is based on taxable profit for the year. Taxable profit differs from profit as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years or non-taxable,
i.e. not recognised as expense for income tax purposes.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences,
and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences and tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the tax asset to be recovered.
Deferred tax assets and liabilities are offset where there is a legally permitted right to set off current tax assets and
2.15. Employee benefits
Pension obligations and post-employment benefits
In the normal course of business through salary deductions, the Company and the Group make payments to mandatory
pension funds on behalf of their employees as required by law. All contributions made to the mandatory pension funds
are recorded as salary expense when incurred. The Company and the Group are not obliged to provide any other post-
employment benefits.
Termination benefits
The Company and the Group pay one-time termination benefits to their employees at retirement. The liability and costs
of such benefits are determined using the projected unit credit method and discounted to their present value based on
calculations made at the end of each reporting period, which take into account the assumptions of the number of
employees estimated to become entitled to termination benefits at regular retirement, the estimated cost of such
termination benefits, and the discount rate defined as the average anticipated rate of return on investment in
government bonds. Actuarial gains and losses resulting from experience adjustments and changes in actuarial
assumptions are recognised immediately in profit or loss.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
27
2. Material accounting policy information (continued)
2.15. Employee benefits (continued)
Long-term employee benefits
The Company and the Group recognise a liability for long-term employee benefits (jubilee awards) evenly over the
period the benefit is earned based on actual years of service. The long-term employee benefit liability is determined
annually at the end of each reporting period using assumptions regarding the likely number of staff to whom the benefits
will be payable, estimated benefit cost and the discount rate which is determined as the average expected yield rate
on investments in government bonds. Actuarial gains and losses arising from experience adjustments and changes in
2.16. Provisions
Provisions are recognised when the Company and the Group have a present legal or constructive obligation as a result
of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the
amount has been reliably estimated. Provisions are determined by discounting the expected future cash flows at a pre-
tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where
the Company and the Group expect a provision to be reimbursed, the reimbursement is recognised as a separate
asset but only when the reimbursement is virtually certain. The Company and the Group recognise provisions for legal
disputes in their financial statements.
2.17. Share capital
The Company’s and the Group’s share capital comprises ordinary shares. The consideration paid for treasury shares,
including any directly attributable transaction costs, is deducted from equity attributable to the Company’s shareholders
until the shares are withdrawn, reissued or disposed of. When such shares are subsequently disposed of or reissued,
any consideration received, net of any directly attributable transaction costs, is included in equity attributable to the
Company’s and the Group’s shareholders.
2.18. Revenue recognition
Revenue is income arising in the course of the Company’s and the Group’s ordinary activities. IFRS 15 establishes a
comprehensive framework for determining whether, when and how much revenue is recognized. According to IFRS
15, revenues are recognized in a manner that reflects the pattern of transfer of goods and services to customers. The
amount recognized should reflect the amount to which the entity expects to be entitled in exchange for those products
and services.
Income from services
The Company and the Group generate income primarily from accommodation services. The aforementioned services
are provided on the basis of concluded contracts with a fixed price. The sale of services also includes spa services and
certain other services such as transfers, excursions and similar. Revenues from performed hospitality services are
recognized in the period in which the services were performed ("over time"). Individual services are usually contracted
separately with customers and as such are recognized separately as revenue.
Food and beverages
The Company and the Group offer food and drinks in hotel restaurants to hotel guests and other guests. Revenues are
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
28
2. Material accounting policy information (continued)
2.19. Government grants
Government grants are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Company and the Group will comply with all attached conditions. A grant receivable as compensation
for costs or losses already incurred or for immediate financial support, with no future related costs, is recognised as
2.20. Leases
The Company and the Group as the lessee
At the inception of a contract, the Company and the Group assess whether the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. If the above conditions are met, the
contract is considered to be or contain lease. If the terms and conditions of the contract are changed, the Company
and the Group shall reassess whether the above conditions are met.
At the lease commencement date (the date on which the underlying asset is available for use), the Company and the
Group recognise a right-of-use asset and a lease liability.
After the commencement date, the right-of-use assets are measured using the cost model. Under the cost model, the
right-of-use asset is measured at cost less any accumulated depreciation on a straight-line basis over the period of the
lease (3-15 years), and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
the lessee’s incremental borrowing rate is used.
After the commencement date, the lease liability is measured considering any changes in the interest rate, lease
payments made and any reassessment or lease modifications.
Short-term leases and leases of low-value assets
The Company and the Group have decided to apply the short-term lease exemption recognition (for leases up to 12
months that do not include the purchase option) and leases for which the underlying asset is of low value (up to EUR
4,000). Payments for leases for which the underlying asset is of low value are recognised on a straight-line basis as
an expense over the lease term. The Company and Group will consider a short-term lease to be a new lease if there
is a lease modification and/or a change to the lease term. These leases mainly relate to photocopier machines and fire
extinguishers.
The Company and the Group as the lessor
Leases where the Company and the Group do not transfer substantially all the risks and rewards of ownership of the
asset are classified as operating leases. Lease income is recognised on a straight-line basis over the lease term and
included in the statement of comprehensive income due to its operating nature.
Maritime domain concession arrangements
If investments are made that are expected to last less than one accounting period, then that expense is recognised as
expense for the period, and if investments made in the concession area are expected to last longer than one accounting
period, they will be capitalised. Investments in the concession area have a limited useful life and are stated at cost less
accumulated depreciation. Depreciation is calculated using the straight-line method to allocate the cost of investments
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
29
2. Material accounting policy information (continued)
2.21. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use or sale.
2.22. Foreign currencies
Transactions in currencies other than euro are recorded at the exchange rate prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are re-translated at the reporting date using the
exchange rate prevailing at that date. Gains and losses arising on translation are charged to profit or loss in the period
when incurred.
2.23. Earnings / (loss) per share
Earnings / (loss) per share are determined by dividing the profit or loss attributable to shareholders of the Company
and Group by the weighted average number of ordinary shares during the year.
2.24. Investments in subsidiaries
Subsidiaries are all entities over which the Company has the power to govern the financial and operating policies
generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls
2.25. Business combinations
Subsidiaries are all entities controlled by the Group. The Group controls the entity when the Group is exposed or is
entitled to variable returns from its association with the entity and has the ability to influence those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and
are de-consolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the
acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the
acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either
at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of the acquiree’s
identifiable net assets. Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value as at the acquisition date through comprehensive income.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is
recognised in accordance with IFRS 9 either as income or expense or as a change to other comprehensive income.
The contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
30
2. Material accounting policy information (continued)
Goodwill is initially measured as the difference between the consideration transferred and the amount of non-controlling
interest in the acquiree in relation to the fair value of identified net assets acquired. If this consideration is lower than
the fair value of the net assets acquired, the difference is recognised in the statement of comprehensive income.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
2.26. Consolidation
Intercompany transactions, balances, income and expenses from transactions with Group entities are eliminated.
Gains and losses from intercompany transactions recognised in assets are also eliminated. Accounting policies of
2.27. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance
2.28. Non-current assets held for sale
Non-current assets and disposal groups classified as held for sale are measured at the lower of the carrying amount
or fair value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their carrying
amount will be recovered primarily through sale rather than through continued use. This condition is considered to be
met only when the sale is highly probable, and the asset or disposal group is immediately available for sale in its current
condition at the balance sheet date. The activities necessary to complete the sale should indicate that it is not likely
that there will be any significant changes to the sale or that the sale will be abandoned. Management must commit to
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
31
3. Critical accounting judgements and estimates
In applying the accounting policies described in Note 2, management has made certain judgements that had a
significant impact on the amounts reported in the financial statements (independent of those presented below).
These judgements are detailed in the relevant notes and the most significant ones among them relate to the following:
Estimated useful life of property, plant and equipment
The Company and the Group, with the assistance of an expert, analysed the useful lives of buildings and their individual
components. When a significant investment in tourism properties (buildings) occurs, the useful life of buildings or their
components is reassessed / reviewed. The useful lives should be periodically revised to reflect any changes in
circumstances since the previous assessment. Changes in estimate, if any, will be reflected prospectively in a revised
depreciation charge over the remaining, revised useful life.
Analysis of sensitivity to changes in useful lives
By using a certain asset, the Company and the Group use the economic benefits contained in this asset, which diminish
more intensely with economic and technological ageing. Consequently, in the process of determining the useful life of
an asset, in addition to assessing the expected physical utilisation, it is necessary to consider the changes in demand
on the tourism market, which will cause a faster economic obsolescence as well as a more intense development of
new technologies.
In view of the above, business operations in the hotel industry impose the need for more frequent investments, and
this circumstance contributes to the fact that the useful life of assets is decreasing.
If the useful life of property, plant and equipment of the Company had been 10% longer / shorter, with all other variables
held constant, the net profit for 2023 would have been EUR 329 thousand higher / lower (for 2022 it would have been
EUR 302 thousand higher / lower), and the net carrying value of property, plant and equipment would have been EUR
401 thousand higher / lower (for 2022 it would have been EUR 369 thousand higher / lower).
If the useful life of property, plant and equipment of the Group had been 10% longer / shorter, with all other variables
held constant, the net profit for 2023 would have been EUR 544 thousand higher / lower (for 2022 it would have been
EUR 302 thousand higher / lower), and the net carrying value of property, plant and equipment would have been EUR
664 thousand higher / lower (for 2022 it would have been EUR 369 thousand higher / lower).
Impairment of non-current assets - recoverable amount of property, plant and equipment, investment property and
right-of-use assets
1) Property, plant and equipment and investment property
In accordance with the adopted accounting policy, the Company and the Group review the carrying amounts of non-
financial assets (including property, plant and equipment, investment property and right-of-use assets) at least once a
year to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable
amount is estimated. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). The cash-generating unit in the hotel industry/tourism is
the accommodation facility. The accounting policy is presented in Note 2.8.
Given the impact inflationary challenges that the Company and Group faced in 2022 and 2023 on the Company's and
the Group’s operations, the Company and Group have assessed that there are indicators of impairment of certain
categories of non-current non-financial assets and in accordance with IAS 36 made an impairment test of all its cash-
generating units i.e. accommodation facilities (own as well as rental facilities).
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
32
3. Critical accounting judgements and estimates (continued)
Impairment of non-current assets - recoverable amount of property, plant and equipment, investment property and
right-of-use assets (continued)
1) Property, plant and equipment and investment property (continued)
The recoverable amount is calculated in one of two ways: by calculating the value of assets in use or by calculating
the fair value of assets less costs to sell for individual cash-generating units whose value in use determined by the
Discounted Cash Flows (DCF) method does not reflect their intrinsic value (taking into account their location and
development potential).
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In
determining the recoverable amount, management considers key indicators such as revenue growth based on
occupancy of facilities, revenue per unit and expected market growth in the hotel industry, etc. The valuations are
based on five-year cash flow projections prepared by the Company's management, with the budget for 2024 also
approved by the Supervisory Board. For the period after the end of the five-year period, the assumed long-term
sustainable growth rate (sustainable growth rate) was applied. Taking into account the significant capital investments
in the Company's and the Group’s accommodation units, the sustainable growth rates used in the valuation represent
the maximum value of the projected inflation rates in the Republic of Croatia.
An overview of the assumptions used in the value-in-use calculation model is as follows:
Note: the margin and revenue growth listed in the table above reflect the ranges after returning to the business level
after the Covid-19 pandemic (in 2023 or onward) and depend on the individual facility of different characteristics.
The calculation of fair value less costs to sell is based primarily on the revenue method, and in two cases on the
comparative (for land) and cost method. According to the income method, real estate is worth as much as the cash it
is able to generate over its lifetime. After determining all income and expenses related to an individual accommodation
unit, the net income of all future periods is calculated and discounted at an adequate discount rate in order to obtain
the present value of future cash flows. The assumptions used in the income method are the average board price per
accommodation unit, the average occupancy rate, the estimated total cost defined as % of gross operating profit
(“GOP”) and the capitalisation factor.
The following is an overview of the key assumptions in the revenue method used:
Tourism 2023
Average board price (EUR) 90 - 228
Average occupancy rate 19% - 56%
Estimated total cost (% of GOP) 60%
Capitalisation factor 7%
| Tourism | |
| Average board price (EUR) | 90 - 228 |
| Average occupancy rate | 19% - 56% |
| Estimated total cost (% of GOP) | 60% |
| Capitalisation factor | 7% |
| Tourism | 2024 - 2028 |
| EBITDA margin | 8% - 45% (higher profitability rates are assumed for campsites) |
| Revenue growth | 0% - 70% (depending on the type of accommodation and capital investment) |
| Discount rate (before tax) | 10.2 |
| Sustainable long-term growth rate | 2% |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
33
3. Critical accounting judgements and estimates (continued)
Impairment of non-current assets - recoverable amount of property, plant and equipment, investment property and
right-of-use assets (continued)
1) Property, plant and equipment and investment property (continued)
For accommodation facilities where land represents the most significant part of the estimated value, a comparative
method was used, i.e. method of determination based on realised comparable transactions on the real estate market,
in accordance with the current state of the respective real estate.
Prepared impairment tests suggest that the recoverable amount of each facility exceeds the net carrying amount of
each facility as at 31 December 2023 and, accordingly, there are no indications of impairment.
The Company considered the impact of reasonable changes in key assumptions:
• if the EBITDA margin rate were to decrease by 100 bps within the projected five-year period
• if the growth rate were to decrease by 100 bps within the projected five-year period,
• if the discount rate were to increase by 50bps and
• if the terminal growth rate were to decrease by 50bps.
According to each of these scenarios, the Company and the Group should recognise an impairment of EUR 267
thousand in its records.
2) Right-of-use assets
In 2023, the Company and the Group conducted an impairment test for right-of-use assets with respect to the indicators
of impairment due to the prolonged effects of the COVID-19 pandemic. A leased accommodation facility was identified
as a cash-generating unit.
The recoverable amount of leased accommodation facilities has been determined on the basis of the value in use
based on financial projections in the contracted lease term at a discount rate.
For tourism facilities for which the recoverable amount is determined at fair value less valuation costs, the Company
and the Group have determined that the level of the fair value hierarchy is - Level 3. The applied valuation methods for
these facilities are described above.
The results of this analysis suggest that the recoverable amount of each leased facility exceeds the reported net
carrying amount of each facility as of 31 December 2023 and, accordingly, there are no indications of impairment.
It should be noted that on 1 January 2023, the Company recognised an impairment in the amount of EUR 3,205
thousand at the initial recognition of the Noemia hotel.
Recoverability of investments in subsidiaries
As at 31 December 2023, the investment in subsidiaries relates to 100% shares in the subsidiary Stolist d.o.o. in the
amount of EUR 129 thousand. The Company's management believes that the investment in the subsidiary is
recoverable and that there are no indications of its impairment.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
34
3. Critical accounting judgements and estimates (continued)
Recoverability of investments in subsidiaries (continued)
Additionally, investment in subsidiaries also includes 100% shares in the subsidiary Adria coast turizam d.o.o. in the
amount of EUR 22,942 thousand as of 31 December 2023. Considering that this is the amount realised in the
transaction of the purchase and sale of business shares carried out in February 2023 (with a subsequent additional
payment by the Company in the amount of EUR 1,500 thousand) Management believes that the investment in the
subsidiary is recoverable and that there are no indications of its impairment.
Deferred tax assets
Deferred tax assets include the amount of EUR 2,200 thousand (2022: EUR 2,886 thousand) both for the Company
and the Group, which is created based on tax losses carried forward and deductible temporary tax differences.
The Company has a remaining period of 3 years to use the amounts reported based on tax losses carried forward (for
more details please see Note 15). The realisation of deferred tax assets arising from deductible temporary tax
differences is not time-limited, and therefore the uncertainty regarding the use of this part is remote.
In its assessment of the recoverability of the recognised deferred tax assets, Jadran d.d. earlier recorded the sale of
the subsidiary, Club Adriatic (Note 37), and subsequently other factors, such as the result achieved in the observed
year and projections of future operations.
The unfavourable factor of uncertainty regarding the full realisation of current business plans was also considered.
Detailed projections of future business results were made for the next 6 years. Considering the uncertainty factor, the
Company decided to recognise deferred tax assets in the amount corresponding to the projections for the next 5 years.
Based on the analysis, the Company concludes that the deferred tax assets will be recoverable using estimated future
taxable income based on approved business plans and budgets. Considering all of the above, it is expected that the
Company will fully utilise all tax losses carried forward in the next couple of years, i.e. before they expire.
Leases
As the interest rate implicit in the lease cannot be readily determined, the Company and the Group use its own
incremental borrowing rate of 3.50% (2022: 3.50%) when calculating the lease liability for cash flow discounting
purposes in 2023.
The Company and the Group define a lease term as a non-cancellable period, together with periods under the lease
extension and/or termination option if it is reasonably certain that such option will be exercised (extension) or not
exercised (termination).
The Company and Group do not expect to exercise either the lease termination or the extension option, and no potential
effects were calculated in relation to these options.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
35
3. Critical accounting judgements and estimates (continued)
Impairment of receivables
The Company and the Group use a simplified approach (provision matrix) because they primarily have receivables
from customers as financial assets. Credit losses are calculated based on the matrix for expected credit losses and
are applied collectively to all claims included in the calculation. Stage 3 represents receivables for which, after the
analysis, it was concluded that they will not be collectible, and their value is individually adjusted to the expected
collectible amount. At the end of each year, the Inventory Committee reviews the recoverability of receivables and
adjustments are made according to the information gathered from the sales and legal departments, depending on the
maturity of the receivables.
In 2023, the Company released the previously recognised credit losses under the simplified IFRS 9 model for trade
receivables whose total net effect amounted to EUR 77 thousand (2022: EUR 56 thousand).
In 2023, the Group released the previously recognised credit losses under the simplified IFRS 9 model for trade
receivables whose total net effect amounted to EUR 73 thousand (2022: EUR 14 thousand).
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
36
4. Financial instruments
Capital risk management
The Company and the Group manage its capital to ensure that they will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company’s and the
Group’s capital structure consists of share capital, capital reserves, retained earnings / (accumulated loss) and profit
for the year.
Classes of financial instruments
Financial risk factors
The Company’s and the Group’s activities expose it to a variety of financial risks: market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company and Group do not have a
formal risk management programme in place, and the overall risk management is carried out by the Company’s and
the Group’s Management Board and the Company’s and the Group’s management.
Company
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Financial assets | ||
| Trade receivables | 287 | 428 |
| Receivables from related parties | 18 | 72 |
| Cash and cash equivalents | 795 | 1,023 |
| Loans receivable | 13 | 474 |
| Total | 1,113 | 1,997 |
| Financial liabilities | ||
| Liabilities to banks | 29,581 | 27,314 |
| Trade payables | 1,454 | 1,035 |
| Lease liabilities | 37,056 | 11,452 |
| Total | 68,091 | 39,801 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Financial assets | ||
| Non – current financial assets | - | 130 |
| Trade receivables | 287 | 457 |
| Cash and cash equivalents | 806 | 1,769 |
| Total | 1,093 | 2,356 |
| Financial liabilities | ||
| Liabilities to banks | 29,581 | 51,672 |
| Trade payables | 1,407 | 2,629 |
| Lease liabilities | 45,060 | 11,682 |
| Total | 76,048 | 65,983 |
31 December
2022
31 December
2023
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
37
4. Financial instruments (continued)
Market risk
The Company’s and the Group’s activities primarily expose the Company and the Group to the financial risks of
changes in interest rates (see below). Market risk exposures are supplemented by the sensitivity analysis. There has
been no change to the Company’s and the Group’s exposure to market risks or the way it manages and measures the
risk.
Currency risk management
The Company and the Group undertake certain transactions denominated in foreign currencies, resulting in exposures
to exchange rate fluctuations.
Analysis of foreign currency sensitivity
The Company and the Group were exposed to foreign currency risk in the event of a change in the euro (EUR)
exchange rate until the adoption of euro. The Company and the Group may be exposed to currency transaction risk if
they enter transactions using a currency that is different from the national currency (euro). At the Company and the
Group level, transactions in other currencies do not make up a material part of the total turnover. After the introduction
of the euro as the domestic currency as of 1 January 2023, the Company and the Group have not been significantly
exposed to currency risk.
Interest rate risk management
The Company and Group are exposed to interest rate risk as they enter into loan agreements with variable interest
rates. The Company’s and the Group’s exposure to interest rates based on financial assets and liabilities is detailed
under Liquidity risk management. The Company and the Group manage this risk by maintaining an appropriate ratio
of loans with fixed and variable interest rates in its loan portfolio.
Interest rate sensitivity analysis
Cash flow interest rate risk is the risk that the cost of interest for the instrument will fluctuate over time. Most financial
liabilities are contracted at fixed interest rates and the sensitivity analysis of interest rate changes to financial liabilities
contracted at a variable interest rate is shown in the following table:
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss for
the Company and the Group. The Company and the Group constantly monitor their exposure to the parties they
conducts business with and their credit ratings and allocate the total value of transactions among acceptable
customers.
The carrying amount of financial assets recorded in the financial statements, net of impairment losses, represents the
Company’s and the Group’s maximum exposure to credit risk without taking account of the value of any collateral
obtained.
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Interest rate change by +100 bp | ||
| (Increase in loss) / (Decrease in profit) | 124 | 111 |
| Interest rate change by -100 bp | ||
| Decrease in loss / increase in profit | (124) | (111) |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Interest rate change by +100 bp (Increase in loss) / (Decrease in profit) | 124 | 351 |
| Interest rate change by -100 bp Decrease in loss / increase in profit | (124) | (351) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
38
4. Financial instruments (continued)
Inflation risk (increase in consumer prices)
Inflation risk is present in contractual relationships where the price of a service or product is indexed. As this is an
external risk, the ability to eliminate it is minimal. The Company and the Group note trends of increasing inflation rates
primarily measured through the consumer price index, as a result of extremely expansive monetary policies of central
banks and for the purpose of minimising inflation risk, the Company and Group insist on negotiating fixed terms of
supply with all suppliers where possible. Suppliers of energy are an exception – their prices are subject to market
variations.
Liquidity risk management
The ultimate responsibility for liquidity risk management rests with the Company’s Management Board which has built
an appropriate liquidity risk management framework for the management of the Company’s and Group’s short, medium
and long-term funding and liquidity management requirements. The Company and the Group manage liquidity risk by
maintaining adequate reserves, bank borrowings and other sources of financing, by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The table below details the remaining contractual maturities for the Company and Group for non-derivative financial
liabilities. The table has been prepared on the basis of undiscounted cash flows of financial liabilities based on the
| Company | Weighted average interest method | Up to 1 month | 1 to 3 months | 3 months to 1 year | 1 to 5 years | Over 5 years | Total |
| EUR ‘000 | |||||||
| 2022 | |||||||
| Interest-free | 1,382 | 72 | - | - | - | 1,454 | |
| Lease liabilities | 273 | 210 | 1,356 | 15,676 | 30,336 | 47,851 | |
| Fixed interest rate | 2.7% | 108 | 211 | 2,720 | 9,022 | 5,550 | 17,611 |
| Variable interest rate | 2.1% | 2 | 467 | 2,185 | 6,106 | 5,986 | 14,746 |
| Total | 1,765 | 960 | 6,261 | 30,804 | 41,872 | 81,662 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
39
4. Financial instruments (continued)
Based on the contract with Gorenjska banka, the Company acted as a financial guarantor for the credit obligation of
the subsidiary in the total nominal amount of EUR 24 million. The fair value of the financial guarantee is not significant
and therefore not recorded in the Company’s separate financial statements, and the loan matures in 2036 (over 5
| Company | Weighted average interest method | Up to 1 month | 1 to 3 months | 3 months to 1 year | 1 to 5 years | Over 5 years | Total |
| EUR ‘000 | |||||||
| 2022 | |||||||
| Interest-free | 964 | 71 | - | - | - | 1,035 | |
| Lease liabilities | 30 | 37 | 1,339 | 5,943 | 6,247 | 13,596 | |
| Fixed interest rate | 2.7% | 112 | 227 | 5,234 | 7,171 | 4,428 | 17,172 |
| Variable interest rate | 2.1% | - | 511 | 1,523 | 7,295 | 4,874 | 14,203 |
| Financial guarantee (nominal amount) | 1,500 | - | - | 22,500 | - | 24,000 | |
| Total | 2,606 | 846 | 8,096 | 42,909 | 15,549 | 70,006 |
| Group | Weighted average interest method | Up to 1 month | 1 to 3 months | 3 months to 1 year | 1 to 5 years | Over 5 years | Total |
| EUR ‘000 | |||||||
| 2022 | |||||||
| Interest-free | 1,335 | 72 | - | - | - | 1,407 | |
| Lease liabilities | 273 | 210 | 1,911 | 19,173 | 35,838 | 57,405 | |
| Fixed interest rate | 2.7% | 108 | 211 | 2,720 | 9,022 | 5,550 | 17,611 |
| Variable interest rate | 2.1% | 2 | 467 | 2,185 | 6,106 | 5,986 | 14,746 |
| Total | 1,718 | 960 | 6,816 | 34,301 | 47,374 | 91,169 | |
| 2023 | |||||||
| Interest-free | 2,558 | 71 | - | - | - | 2,629 | |
| Lease liabilities | 30 | 37 | 1,365 | 6,028 | 6,407 | 13,867 | |
| Fixed interest rate | 2.7% | 112 | 227 | 5,234 | 7,171 | 4,428 | 17,172 |
| Variable interest rate | 2.1% | - | 511 | 3,256 | 17,408 | 31,375 | 52,550 |
| Total | 2,700 | 846 | 9,855 | 30,607 | 42,210 | 86,218 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
40
5. Segment information
Operating segments are presented in accordance with the internal procedure of reporting to the Company’s
Management Board, the chief operating decision-maker, which is responsible for allocating resources to the reportable
segments and assessing their performance.
Management defined Hotels & Apartments, Campsites and Other (beach buffet Kačjak, Inter café bar, Katarina
swimming pools etc.) as its reportable segments.
The segment information for the reportable segments for the year ended 31 December 2023 is as follows:
| Company | Income by segment | Expenses by segment | Result by segment |
| Operating segment | EUR ‘000 | EUR ‘000 | EUR ‘000 |
| Hotels & Apartments | 23,656 | (21,693) | 1,963 |
| Campsites | 3,052 | (2,070) | 982 |
| Other | 1,103 | (958) | 145 |
| Total reportable segments | 27,811 | (24,721) | 3,090 |
| Group | Income by segment | Expenses by segment | Result by segment |
| Operating segment | EUR ‘000 | EUR ‘000 | EUR ‘000 |
| Hotels & Apartments | 28,234 | (24,891) | 3,343 |
| Campsites | 3,052 | (2,070) | 982 |
| Other | 1,138 | (1,109) | 29 |
| Total reportable segments | 32,424 | (28,070) | 4,354 |
| Company | Income by segment | Expenses by segment | Result by segment |
| Operating segment | EUR ‘000 | EUR ‘000 | EUR ‘000 |
| Hotels & Apartments | 27,491 | (21,404) | 6,087 |
| Campsites | 3,028 | (1,785) | 1,243 |
| Other | 967 | (854) | 113 |
| Total reportable segments | 31,486 | (24,043) | 7,443 |
| Group | Income by segment | Expenses by segment | Result by segment |
| Operating segment | EUR ‘000 | EUR ‘000 | EUR ‘000 |
| Hotels & Apartments | 28,616 | (22,818) | 5,798 |
| Campsites | 3,028 | (1,813) | 1,215 |
| Other | 1,000 | (885) | 115 |
| Total reportable segments | 32,644 | (25,516) | 7,128 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
41
5. Segment information (continued)
Result by segment represents the profit of each segment before the distribution of other operating income, other
operating expenses, finance income, finance costs and income tax. This result represents a benchmark that is
submitted to the Company’s Management Board for the purpose of making a decision on allocating resources to that
segment and evaluating its performance.
The Company does not monitor assets and liabilities by segments and therefore, this information has not been
disclosed. The hotels, apartments and campsites (operating assets) are located in the Republic of Croatia.
The Company provides its hotel/hospitality services and sales activities in Croatia to domestic and foreign customers.
| Company | 31 December 2022 | 31 December 2022 |
| EUR ‘000 | EUR ‘000 | |
| Item | ||
| Result by reportable segment | 7,443 | 3,090 |
| Unallocated operating income | 643 | 7,510 |
| Unallocated finance income | 245 | 12 |
| Unallocated operating costs: | (3,769) | (5,630) |
| Cost of raw materials and supplies | (90) | (55) |
| Cost of services | (928) | (2,606) |
| Staff costs | (2,176) | (2,349) |
| Depreciation and amortisation | (253) | (268) |
| Reversal of impairment / (impairment) | 56 | - |
| Other operating expenses | (378) | (352) |
| Unallocated finance costs | (2,076) | (1,567) |
| Profit for the year before tax | 2,486 | 3,415 |
| Group | 31 December 2022 | 31 December 2022 |
| EUR ‘000 | EUR ‘000 | |
| Item | ||
| Result by reportable segment | 7,128 | 4,354 |
| Unallocated operating income | 504 | - |
| Unallocated finance income | 248 | 4 |
| Unallocated operating costs: | (5,871) | (5,613) |
| Cost of raw materials and supplies | (90) | (50) |
| Cost of services | (907) | (2,630) |
| Staff costs | (2,176) | (2,349) |
| Depreciation and amortisation | (253) | (268) |
| Impairment | (2,182) | 76 |
| Other operating expenses | (221) | (392) |
| Unallocated finance costs | (2,298) | (2,978) |
| Profit for the year from discontinued operations | 186 | 1,373 |
| Income tax | (168) | (530) |
| Loss for the period | (271) | (3,390) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
42
6. Revenue from sales of goods and providing services on the market
The Company and the Group provide their hotel / hospitality services and sales activities in Croatia to domestic
/i/ Other includes revenues from the sale of trade goods, alcoholic and non-alcoholic beverages, food, parking
services, wellness and other similar services, where it is not possible to determine whether revenue was earned
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Accommodation | 20,249 | 17,017 |
| Food and beverages | 8,462 | 6,017 |
| Other hotel services | 443 | 498 |
| Trade goods | 66 | 68 |
| Total | 29,220 | 23,600 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Accommodation | 20,998 | 20,647 |
| Food and beverages | 8,676 | 7,291 |
| Other hotel services | 469 | 630 |
| Trade goods | 76 | 74 |
| Total | 30,219 | 28,642 |
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Sales – domestic customers | 6,140 | 4,228 |
| Sales – foreign customers | 20,444 | 16,733 |
| Other /i/ | 2,636 | 2,639 |
| Total | 29,220 | 23,600 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Sales – domestic customers | 6,265 | 4,829 |
| Sales – foreign customers | 21,222 | 20,548 |
| Other /i/ | 2,732 | 3,265 |
| Total | 30,219 | 28,642 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
43
7. Other income and gains
/i/ Net gains on the disposal of the subsidiary refers to the difference between the investment in the former
subsidiary Club Adriatic d.o.o. which the Company held at acquisition cost (in the amount of EUR 15,609 thousand)
and the realised transaction price, as described in Notes 21 and 37.
/ii/ Net gains on the termination of the lease contract in 2022 refer to the termination of the contract for the Garden
Palace Resort Umag, which was initially signed for ten years, for a period from 1 April 2020 to 31 March 2030.
With the contract on the termination of the lease contract, the lease was terminated on 30 September 2022.
Net gains on the termination of the lease contract in 2023 refer to the termination of the contract for the Grand
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net gains on disposal of subsidiary | - | 7,510 |
| Net gains on termination of lease contract /ii/ | 1,417 | 2,156 |
| Rental income | 617 | 529 |
| Recharged costs of lessees | 131 | 180 |
| Insurance reimbursements | 111 | 81 |
| Income from marketing and other services | 76 | 122 |
| Direct aid | 65 | 101 |
| Reversal of provisions | 32 | 80 |
| Disposal of non-current assets | 1 | 2 |
| Collection of amounts due as per judgement and out-of-court settlement | 1 | - |
| Collection of doubtful and bad debts | 1 | - |
| Other operating income | 457 | 960 |
| Total | 2,909 | 11,721 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net gains on termination of lease contract /ii/ | 1,417 | 2,156 |
| Rental income | 617 | 529 |
| Recharged costs of lessees | 131 | 180 |
| Insurance reimbursements | 111 | 91 |
| Income from marketing and other services | 78 | 128 |
| Direct aid | 65 | 101 |
| Reversal of provisions | 32 | 80 |
| Disposal of non-current assets | 9 | 2 |
| Collection of amounts due as per judgement and out-of-court settlement | 1 | - |
| Collection of doubtful and bad debts | 1 | - |
| Other operating income | 467 | 515 |
| Total | 2,929 | 3,782 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
44
8. Cost of raw materials and supplies
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Groceries consumed | 2,792 | 2,075 |
| Electricity | 1,323 | 1,635 |
| Consumables and cleaning supplies | 458 | 379 |
| Water consumed | 427 | 300 |
| Heating oil and gas | 293 | 173 |
| Write-off of small inventory | 215 | 86 |
| Alcoholic and soft drinks consumed | 211 | 190 |
| Fuel for passenger and freight vehicles | 74 | 50 |
| Office supplies | 14 | 11 |
| Packaging | 13 | 12 |
| Overheads – leased properties | - | 5 |
| Other costs | 34 | 23 |
| Total | 5,854 | 4,939 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Groceries consumed | 2,896 | 2,563 |
| Electricity | 1,405 | 1,885 |
| Consumables and cleaning supplies | 475 | 459 |
| Water consumed | 436 | 351 |
| Heating oil and gas | 296 | 176 |
| Write-off of small inventory | 222 | 108 |
| Alcoholic and soft drinks consumed | 221 | 238 |
| Fuel for passenger and freight vehicles | 74 | 54 |
| Office supplies | 15 | 13 |
| Packaging | 13 | 13 |
| Overheads – leased properties | - | 5 |
| Other costs | 44 | 24 |
| Total | 6,097 | 5,889 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
45
9. Cost of services
/i/ Contractor services refer to services of washing, dry cleaning and ironing of hotel bed linen and services of
protection of property and persons.
Auditors’ fee
The costs of audit services amounted to EUR 57 thousand (2022: EUR 58 thousand) for the Company and EUR
72 thousand (2022: EUR 71 thousand) for the Group. The agreed fee for audit services for the year 2023 was EUR
54 thousand for the Company and EUR 68 thousand for the Group. Additionally, a company from the network to
which the audit firm belongs provided non-audit services worth EUR 17 thousand (2022: EUR 5 thousand) for the
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Commissions and banking services | 2,161 | 1,778 |
| Contractor services /i/ | 1,457 | 1,083 |
| Investment and current maintenance | 538 | 500 |
| Utilities | 374 | 277 |
| Intellectual services | 332 | 765 |
| Student employment agency services | 325 | 164 |
| Telephone, Internet and mail | 193 | 252 |
| Gross temporary service contract cost | 166 | 157 |
| Advertising services | 129 | 185 |
| Rentals | 122 | 208 |
| Music and ZAMP fees | 45 | 34 |
| Transport services (road and maritime transport) | 29 | 16 |
| Other services | 182 | 204 |
| Total | 6,053 | 5,623 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Commissions and banking services | 2,270 | 2,189 |
| Contractor services /i/ | 1,478 | 1,170 |
| Investment and current maintenance | 573 | 568 |
| Utilities | 384 | 313 |
| Intellectual services | 334 | 784 |
| Student employment agency services | 326 | 267 |
| Telephone, Internet and mail | 196 | 257 |
| Gross temporary service contract cost | 166 | 175 |
| Advertising services | 129 | 186 |
| Rentals | 129 | 247 |
| Music and ZAMP fees | 48 | 38 |
| Transport services (road and maritime transport) | 29 | 21 |
| Other services | 184 | 217 |
| Total | 6,246 | 6,432 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
46
10. Staff costs
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net salaries | 4,147 | 4,270 |
| Contributions from salaries | 1,176 | 1,216 |
| Contributions on salaries | 968 | 1,000 |
| Performance bonus and holiday pay | 511 | 662 |
| Taxes and surtaxes | 472 | 524 |
| Transportation to and from work | 223 | 180 |
| Meal | 183 | 222 |
| Children’s gifts, Christmas bonus, non-taxable voucher | 155 | 141 |
| Accruals for unused vacation days | 18 | 58 |
| Termination benefits and jubilee awards | 17 | 27 |
| Unused hours off – redistribution | 17 | (40) |
| Non-current provisions for termination benefits and jubilee awards | - | 15 |
| Other | 50 | 57 |
| Total | 7,937 | 8,332 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net salaries | 4,422 | 4,814 |
| Contributions from salaries | 1,177 | 1,368 |
| Contributions on salaries | 969 | 1,126 |
| Performance bonus and holiday pay | 534 | 719 |
| Taxes and surtaxes | 473 | 589 |
| Transportation to and from work | 235 | 190 |
| Meal | 183 | 267 |
| Children’s gifts, Christmas bonus, non-taxable voucher | 155 | 155 |
| Accruals for unused vacation days | 19 | 67 |
| Termination benefits and jubilee awards | 17 | 27 |
| Unused hours off – redistribution | 18 | (27) |
| Non-current provisions for termination benefits and jubilee awards | - | 16 |
| Other | 50 | 64 |
| Total | 8,252 | 9,375 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
47
10. Staff costs (continued)
Remuneration for the members of the Company’s key management personnel and Supervisory Board:
Remuneration for the members of the Group’s key personnel and Supervisory Board:
11. Reversal of impairment / (impairment) of non-current financial assets
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Key personnel | 405 | 329 |
| of which benefits in kind | 20 | 3 |
| Supervisory Board | 75 | 93 |
| Total | 480 | 422 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Key personnel | 405 | 329 |
| of which benefits in kind | 20 | 3 |
| Supervisory Board | 88 | 95 |
| Total | 493 | 424 |
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Impairment of right-of-use assets (Note 34) | - | (3,205) |
| Reversal of impairment / (impairment) of property, plant and equipment (Note 17) | 1,225 | (46) |
| Total | 1,225 | (3,251) |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| (Impairment) / reversal of impairment of right-of-use assets (Note 34) | (2,021) | 322 |
| Reversal of impairment / (impairment) of property, plant and equipment (Note 17) | 1,225 | (46) |
| Impairment of goodwill | (175) | - |
| Total | (971) | 276 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
48
12. Net gains / (losses) on value adjustments of financial assets
13. Other operating expenses
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Impairment of trade receivables | (16) | (30) |
| Release of impairment of expected credit losses– trade receivables | 56 | 77 |
| Expected credit losses – loans | - | (17) |
| Total | 40 | 30 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Write-off of trade receivables | - | (126) |
| Impairment of trade receivables | (16) | (30) |
| Release of impairment of expected credit losses– trade receivables | 14 | 73 |
| Total | (2) | (83) |
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Expenses from unrealised investments /i/ | - | 975 |
| Municipal charges and concessions | 346 | 330 |
| Employee accommodation | 221 | 260 |
| Fees paid to Hrvatske vode | 178 | 148 |
| Insurance premiums | 172 | 177 |
| Animation and entertainment | 138 | 36 |
| Reimbursement to students in practice and scholarships | 83 | 53 |
| Aid to employees | 69 | 10 |
| Taxes and contributions irrespective of business result | 68 | 74 |
| Subscriptions and memberships | 65 | 67 |
| Entertainment | 53 | 34 |
| Net book amount of disposed assets | 39 | 31 |
| Travel expenses, per diems, accommodation and field bonus | 30 | 20 |
| Professional training of employees | 18 | 23 |
| Disability benefits | 9 | 10 |
| Other operating expenses | 219 | 252 |
| Total | 1,708 | 2,500 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
49
13. Other operating expenses (continued)
/i/ Expenses from unrealised investments refers to assets under construction for which the Company decided to
discontinue further investments, which is why it will not be possible to capitalise the mentioned amounts. The
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Expenses from unrealised investments /i/ | - | 975 |
| Municipal charges and concessions | 351 | 381 |
| Employee accommodation | 224 | 385 |
| Fees paid to Hrvatske vode | 181 | 148 |
| Insurance premiums | 174 | 218 |
| Animation and entertainment | 138 | 55 |
| Reimbursement to students in practice and scholarships | 83 | 54 |
| Aid to employees | 73 | 11 |
| Taxes and contributions irrespective of business result | 68 | 82 |
| Subscriptions and memberships | 66 | 74 |
| Entertainment | 54 | 42 |
| Net book amount of disposed assets | 39 | 34 |
| Travel expenses, per diems, accommodation and field bonus | 30 | 21 |
| Professional training of employees | 18 | 24 |
| Disability benefits | 9 | 10 |
| Other operating expenses | 220 | 573 |
| Total | 1,728 | 3,087 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
50
14. Finance income and costs
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Finance income | ||
| Interest income | 29 | 12 |
| Foreign exchange gains | 216 | - |
| 245 | 12 | |
| 2022 | 2023 | |
| EUR ‘000 | EUR ‘000 | |
| Finance costs | ||
| Interest expense | (790) | (1.054) |
| Foreign exchange losses | (296) | - |
| Interest expense on lease | (990) | (513) |
| (2.076) | (1.567) | |
| Net finance (costs) | (1.831) | (1.555) |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Finance income | ||
| Interest income | 29 | 4 |
| Foreign exchange gains | 219 | - |
| 248 | 4 | |
| 2022 | 2023 | |
| EUR ‘000 | EUR ‘000 | |
| Finance costs | ||
| Interest expense | (791) | (2.453) |
| Foreign exchange losses | (296) | - |
| Interest expense on lease | (1.211) | (525) |
| (2,298) | (2,978) | |
| Net finance (costs) | (2,050) | (2,974) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
51
15. Income tax and deferred tax assets and liabilities
Income tax
The Company is liable for income tax under the laws and regulations of the Republic of Croatia. The tax base is
determined as the difference between income and expenses for the period plus and net of income and expenses
having a different tax treatment according to the tax regulations concerning the taxation of income. The income
tax rate was 18% in all presented periods.
/i/ The effects of expenses not recognised for tax purposes mainly include depreciation above the prescribed rates,
provisions and value adjustments of financial assets and receivables.
/ii/ The effects of income not recognised for tax purposes include depreciation expenses that were not previously
| Income tax | ||
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Current tax | - | - |
| Deferred tax | (2,342) | 686 |
| Income tax in statement of profit or loss | (2,342) | 686 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Current tax | - | - |
| Deferred tax | 168 | 530 |
| Income tax on the profit from discontinued operations | 115 | - |
| Income tax in statement of profit or loss | 283 | 530 |
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Accounting profit before tax | 2,486 | 3,415 |
| Income tax calculated at the rate of 18% | 447 | 615 |
| Effects of expenses not recognised for tax purposes /i/ | 180 | 774 |
| Effects of income not recognised for tax purposes /ii/ | (531) | (397) |
| Effects of unrecognised deferred tax assets | 168 | - |
| Effects of unrecognised deferred tax assets utilization | (96) | (306) |
| Effect of recognition of deferred tax assets of tax losses carried forward and deductible temporary differences from previous years | (2,510) | - |
| Income tax / (tax credit) | (2,342) | 686 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
52
15. Income tax and deferred tax assets and liabilities (continued)
/i/ The effects of expenses not recognised for tax purposes mainly include depreciation above the prescribed rates,
provisions and value adjustments of financial assets and receivables.
/ii/ The effects of income not recognised for tax purposes include depreciation expenses that were not previously
recognized and state grants for education.
The Tax Administration has not conducted any audits of the Company’s income tax returns in the past several
years. According to the relevant tax regulations, the Tax Administration may inspect the Company’s books and
records at any time within three years of the end of the year in which the relevant tax liability is presented and may
impose additional tax liabilities and penalties. The Management Board is not aware of any circumstances that may
give rise to a potential material liability in this respect.
Deferred tax assets
Deferred tax assets were created as a temporary difference between the book value of assets and liabilities
determined for financial reporting purposes and the legally prescribed tax base.
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Accounting loss before tax from continuing operations | (289) | (4,233) |
| Accounting profit before tax from discontinued operations | 300 | - |
| Accounting profit / (loss) before tax | 11 | (4,233) |
| Income tax calculated at the rate of 18% | 2 | (762) |
| Effects of expenses not recognised for tax purposes /i/ | 181 | 960 |
| Effects of income not recognised for tax purposes /ii/ | (68) | (397) |
| Effects of unrecognised deferred tax assets utilization | 168 | 729 |
| Income tax | 283 | 530 |
| Year incurred | Amount | Year of expiry |
| Company Jadran | ||
| EUR ‘000 | ||
| 2021 | (3,187) | 2026 |
| Total | (3,187) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
53
15. Income tax and deferred tax assets and liabilities (continued)
Based on deductible temporary tax differences related to the depreciation of property, plant and equipment, the
Company has EUR 947 thousand available for which no deferred tax assets have been recognised.
Gross amount of deferred tax assets and liabilities of the Company is shown in the following table:
| Company | Available tax losses | Amortisation | Lease liabilities / Right-of-use assets | Total |
| EUR ‘000 | ||||
| Creation of deferred tax assets | - | - | 2,903 | 2,903 |
| Less deferred tax liability created | - | - | (2,358) | (2,358) |
| Balance at 1 January 2022 (restated) | - | - | 545 | 545 |
| Creation of deferred tax assets | 1,565 | 944 | 3,767 | 6,276 |
| Less deferred tax liability created | - | - | (3,935) | (3,935) |
| (Charged to) / recognised in profit and loss | 1,565 | 944 | (168) | 2,341 |
| Balance at 31 December 2022 (restated) | 1,565 | 944 | 377 | 2,886 |
| Release of deferred tax assets | (992) | - | (4,608) | (5,600) |
| Less release of deferred tax liability | - | - | 4,914 | 4,914 |
| (Charged to) / recognised in profit and loss | (992) | - | 306 | (686) |
| Balance at 31 December 2023 | 573 | 944 | 683 | 2,200 |
| Company | 2023 | 2022 | ||||
| EUR ‘000 | Deferred tax assets | Deferred tax liabilities | Net | Deferred tax assets | Deferred tax liabilities | Net |
| Gross balance at 1 January | 9,179 | (6,293) | 2,886 | 2,903 | (2,358) | 545 |
| Increase/(decrease)during the year | (4,608) | 3,922 | (686) | 6,276 | (3,935) | 2,341 |
| Gross balance at 31 December | 4,571 | (2,371) | 2,200 | 9,179 | (6,293) | 2,886 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
54
15. Income tax and deferred tax assets and liabilities (continued)
| Year incurred | Amount | Year of expiry |
| Group Jadran | ||
| EUR ‘000 | ||
| 2020 | (481) | 2025 |
| 2021 | (3,308) | 2026 |
| 2022 | (1,882) | 2027 |
| 2023 | (2,800) | 2028 |
| Total | (8,471) |
| Group | Available tax losses | Amortisation | Lease liabilities / Right-of-use assets | Total deferred tax assets | Revaluation of property, plant and equipment |
| EUR ‘000 | |||||
| Creation of deferred tax assets | - | - | 2,903 | 2,903 | - |
| Less deferred tax liability created | - | - | (2,358) | (2,358) | - |
| Balance at 1 January 2022 (restated) | - | - | 545 | 545 | - |
| Creation of deferred tax assets | 1,565 | 944 | 3,767 | 6,276 | - |
| Less deferred tax liability created | - | - | (3,935) | (3,935) | (2,509) |
| (Charged to) / recognised in profit and loss | 1,565 | 944 | (168) | 2,341 | (2,509) |
| Balance at 31 December 2022 (restated) | 1,565 | 944 | 377 | 2,886 | (2,509) |
| Release of deferred tax assets | (992) | - | (4,608) | (5,600) | - |
| Less release of deferred tax liability | - | - | 4,914 | 4,914 | (2,267) |
| (Charged to) / recognised in profit and loss | (992) | - | 306 | (686) | 156 |
| Balance at 31 December 2023 | 573 | 944 | 683 | 2,200 | (2,111) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
55
15. Income tax and deferred tax assets and liabilities (continued)
| GroupEUR ‘000 | Deferred tax assets | 2023Deferred tax liabilities | Net | Deferred tax assets | 2022Deferred tax liabilities | Net |
| Gross balance at 1 January | 9,179 | (8,802) | 377 | 2,903 | (2,358) | 545 |
| Increase/(decrease)during the year | (5,559) | 5,271 | (288) | 6,276 | (6,444) | (168) |
| Gross balance at 31 December | 3,620 | (3,531) | 89 | 9,179 | (8,802) | 377 |
| Offsetting | (1,420) | (1,420) | (6,293) | (6,293) | ||
| Net balance in statement of financial position | 2,200 | (2,111) | 2,886 | (2,509) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
56
16. Earnings / (loss) per share
| Company | ||
| 2022 | 2023 | |
| EUR ‘000 | EUR ‘000 | |
| Earnings attributable to shareholders of the Company | 4,828 | 2,729 |
| Weighted average number of ordinary shares used to calculate basic/diluted earnings per share | 27,970,832 | 27,970,832 |
| EUR | EUR | |
| Basic and diluted earnings per share | 0.17 | 0.10 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| Weighted average number of ordinary shares used to calculate basic/diluted earnings per share | 27,970,832 | 27,970,832 |
| Loss from continuing operations | (457) | (4,763) |
| EUR | EUR | |
| Basic and diluted loss per share from continuing operations attributable to shareholders of the Group | (0.02) | (0.17) |
| Gain from discontinued operations | 186 | 1,373 |
| EUR | EUR | |
| Basic and diluted gain per share from discontinued operations | 0.01 | 0.05 |
| Loss attributable to shareholders of the Group | (271) | (3,390) |
| EUR | EUR | |
| Basic and diluted loss per share with discontinued operations | (0.01) | (0.12) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
57
17. Property, plant and equipment
| Company | Land | Buildings | Plant and equipment | Other assets | Tangible assets under construction | Total |
| EUR ‘000 | ||||||
| Cost | ||||||
| At 1 January 2022 | 35,685 | 98,470 | 20,037 | 226 | 477 | 154,895 |
| Direct additions | - | 737 | 1,620 | 38 | 1,779 | 4,174 |
| Disposals | (43) | - | (127) | - | - | (170) |
| Transfer to investment property | (212) | - | - | - | - | (212) |
| At 31 December 2022 | 35,430 | 99,207 | 21,530 | 264 | 2,256 | 158,687 |
| Additions | - | 1,451 | 1,186 | 31 | (2,668) | - |
| Direct additions | - | - | - | - | 1,486 | 1,486 |
| Disposals | (114) | - | (418) | - | (975) | (1,507) |
| At 31 December 2023 | 35,316 | 100,658 | 22,298 | 295 | 99 | 158,666 |
| Accumulated depreciation | ||||||
| At 1 January 2022 | 3,715 | 66,023 | 7,453 | 70 | - | 77,261 |
| Depreciation charge | - | 1,199 | 2,453 | 28 | - | 3,680 |
| Disposals | - | - | (93) | - | - | (93) |
| Reversal of impairment of non-current assets | (327) | (898) | - | - | - | (1,225) |
| At 31 December 2022 | 3,388 | 66,324 | 9,813 | 98 | - | 79,623 |
| Depreciation charge | - | 1,311 | 2,639 | 30 | - | 3,980 |
| Disposals | - | - | (330) | - | - | (330) |
| Impairment of non-current assets | - | - | 46 | - | - | 46 |
| At 31 December 20233 | 3,388 | 67,635 | 12,168 | 128 | - | 83,319 |
| Net book amount | ||||||
| At 31 December 2022 | 32,042 | 32,883 | 11,717 | 166 | 2,256 | 79,064 |
| At 31 December 2023 | 31,928 | 33,023 | 10,130 | 167 | 99 | 75,347 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
58
17. Property, plant and equipment (continued)
Additions to tangible assets in 2023: buildings in the amount of EUR 1,451 thousand relate to investments in hotel
facilities (upgrading the classification of hotels, developing campsites and other construction works), equipment in
the amount of EUR 1,186 thousand relates to the purchase of equipment necessary for operations in hotels and
campsites, additions to tangible assets under construction in the amount of EUR 1,486 thousand relate to
investments in hotel facilities and campsite development, which were not put into use during 2023. The disposals
in land in the amount of EUR 114 relate to the divestment in 2023 (sale of own property). The write-off in the
amount of EUR 975 thousand refers to assets under construction for which the Company decided to discontinue
further investments, which is why it will not be possible to capitalise the stated amounts. The majority of the amount
refers to the project International.
Additions to tangible assets in 2022: buildings in the amount of EUR 737 thousand relate to investments in hotel
facilities (upgrading the classification of hotels, developing campsites and other construction works), equipment in
the amount of EUR 1,620 thousand relates to the purchase of equipment necessary for operations in hotels and
campsites, additions to tangible assets under construction in the amount of EUR 1,779 thousand relate to
investments in hotel facilities and campsite development, which were not put into use during 2022. The disposals
in land in the amount of EUR 255 thousand relate to the divestment in 2022 (of which the amount of EUR 43
thousand relates to own property, and the amount of EUR 212 thousand relates to investment property).
As at 31 December 2022, the carrying amount of mortgaged properties (hotels Omorika, Ad Turres, Esplanade,
Katarina, International, Slaven resort, pavilions, swimming pool and central restaurant within the Ad Turres, Kačjak
and Kaštel resorts) amounts to a total of EUR 44,463 thousand (31 December 2022: EUR 37,412 thousand).
The total value of tangible assets that are fully depreciated, and which are still in use as of 31 December 2023
amounts to EUR 15,469 thousand (31 December 2022: EUR 14,291 thousand).
Proceeds from the sale of property, plant and equipment in 2023 amounted to EUR 95 thousand (in 2022: EUR 12
thousand without discontinued operations).
The book value of assets where the Company is not listed as the owner or in respect of which there is a legal
dispute regarding ownership as of 31 December 2023, amounts to EUR 279 thousand.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
59
17. Property, plant and equipment (continued)
Additions to tangible assets in 2023: buildings in the amount of EUR 1,451 thousand relate to investments in hotel
facilities (upgrading the classification of hotels, developing campsites and other construction works), equipment in
the amount of EUR 1,186 thousand relates to the purchase of equipment necessary for operations in hotels and
campsites, additions to tangible assets under construction in the amount of EUR 1,422 thousand relate to
investments in hotel facilities and campsite development, which were not put into use during 2023. The disposals
in land in the amount of EUR 114 relate to the divestment in 2023 (sale of own property). The write-off in the
amount of EUR 975 thousand refers to assets in preparation for which the Company decided to discontinue further
investments, which is why it will not be possible to capitalise the stated amounts. The majority of the amount refers
to the project International. Other direct additions to assets refer to the assets that the Group acquired with the
purchase of the subsidiary Adria coast turizam.
| Group | Land | Buildings | Plant and equipment | Other assets | Tangible assets under construction | Total |
| EUR ‘000 | ||||||
| Cost | ||||||
| At 1 January 2022 | 54,544 | 103,301 | 22,604 | 251 | 924 | 181,624 |
| Reclassification to assets held for sale (Note 37) | (18,859) | (5,197) | (2,503) | (24) | (173) | (26,756) |
| Direct additions | - | 1,103 | 1,633 | 37 | 1,505 | 4,278 |
| Disposals | (43) | - | (194) | - | - | (237) |
| Transfer to investment property | (212) | - | - | - | - | (212) |
| At 31 December 2022 | 35,430 | 99,207 | 21,540 | 264 | 2,256 | 158,697 |
| Acquisition of subsidiary (Note 38) | 3,990 | 32,674 | 11,592 | 314 | 64 | 48,634 |
| Transfer to use | - | 1,451 | 1,186 | 31 | (2,668) | - |
| Direct additions | - | 1,296 | 274 | 14 | 1,422 | 3,006 |
| Disposals | (114) | (1) | (427) | - | (975) | (1,517) |
| At 31 December 2023 | 39,306 | 134,627 | 34,165 | 623 | 99 | 208,820 |
| Accumulated depreciation | ||||||
| At 1 January 2022 | 3,715 | 68,191 | 8,661 | 77 | - | 80,644 |
| Reclassification to assets held for sale (Note 37) | - | (2,339) | (1,418) | (7) | - | (3,764) |
| Depreciation charge | - | 1,370 | 2,705 | 28 | - | 4,103 |
| Disposals | - | - | (125) | - | - | (125) |
| Reversal of impairment of non-current assets | (327) | (898) | - | - | - | (1,225) |
| At 31 December 2022 | 3,388 | 66,324 | 9,823 | 98 | - | 79,633 |
| Acquisition of subsidiary (Note 38) | - | 634 | 833 | 27 | - | 1,494 |
| Depreciation charge | - | 2,747 | 4,462 | 92 | - | 7,301 |
| Disposals | - | (1) | (335) | - | - | (336) |
| Impairment of non-current assets | - | - | 46 | - | - | 46 |
| At 31 December 20233 | 3,388 | 69,704 | 14,829 | 217 | - | 88,138 |
| Net book amount | ||||||
| At 31 December 2022 | 32,042 | 32,883 | 11,717 | 166 | 2,256 | 79,064 |
| At 31 December 2023 | 35,918 | 64,923 | 19,336 | 406 | 99 | 120,682 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
60
17. Property, plant and equipment (continued)
Additions to tangible assets in 2022: buildings in the amount of EUR 1,103 thousand relate to investments in hotel
facilities (upgrading the classification of hotels, developing campsites and other construction works), equipment in
the amount of EUR 1,633 thousand relates to the purchase of equipment necessary for operations in hotels and
campsites, additions to tangible assets under construction in the amount of EUR 1,505 thousand relate to
investments in hotel facilities and campsite development, which were not put into use during 2022. The disposals
in land in the amount of EUR 255 thousand relate to the divestment in 2022 (of which the amount of EUR 43
thousand relates to own property, and the amount of EUR 212 thousand relates to investment property).
As at 31 December 2022, the carrying amount of mortgaged properties (hotels Omorika, Ad Turres, Esplanade,
Katarina, International, Slaven resort, pavilions, swimming pool and central restaurant within the Ad Turres, Kačjak,
Kaštel resorts and Grand hotel View) amounts to a total of EUR 71,078 thousand (31 December 2022: EUR 37,412
thousand).
The total value of tangible assets that are fully depreciated, and which are still in use as of 31 December 2023
amounts to EUR 15,469 thousand (31 December 2022: EUR 14,291 thousand).
Proceeds from the sale of property, plant and equipment in 2023 amounted to EUR 95 thousand (in 2022: EUR 12
thousand without discontinued operations).
The book value of assets where the Group is not listed as the owner or in respect of which there is a legal dispute
regarding ownership as of 31 December 2023, amounts to EUR 279 thousand.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
61
18. Intangible assets
| Company | Licences, software and other rights | Total |
| EUR ‘000 | ||
| Cost | ||
| At 1 January 2022 | 461 | 461 |
| Direct additions | 109 | 109 |
| Disposals | (13) | (13) |
| At 31 December 2022 | 557 | 557 |
| Direct additions | 44 | 44 |
| Disposals | (26) | (26) |
| At 31 December 2023 | 575 | 575 |
| Accumulated amortisation | ||
| At 1 January 2022 | 211 | 211 |
| Amortisation charge | 85 | 85 |
| Disposals | (7) | (7) |
| At 31 December 2022 | 289 | 289 |
| Amortisation charge | 99 | 99 |
| Disposals | (20) | (20) |
| At 31 December 2023 | 368 | 368 |
| Net book amount | ||
| At 31 December 2022 | 268 | 268 |
| At 31 December 2023 | 207 | 207 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
62
18. Intangible assets (continued)
| Group | Licences, software and other rights | Total |
| EUR ‘000 | ||
| Cost | ||
| At 1 January 2022 | 572 | 572 |
| Reclassification to assets held for sale (Note 37) | (106) | (106) |
| Direct additions | 109 | 109 |
| Disposals | (18) | (18) |
| At 31 December 2022 | 557 | 557 |
| Direct additions | 44 | 44 |
| Disposals | (26) | (26) |
| At 31 December 2023 | 575 | 575 |
| Accumulated amortisation | ||
| At 1 January 2022 | 312 | 312 |
| Reclassification to assets held for sale (note 37) | (104) | (104) |
| Amortisation charge | 91 | 91 |
| Disposals | (10) | (10) |
| At 31 December 2022 | 289 | 289 |
| Amortisation charge | 99 | 99 |
| Disposals | (20) | (20) |
| At 31 December 2023 | 368 | 368 |
| Net book amount | ||
| At 31 December 2022 | 268 | 268 |
| At 31 December 2023 | 207 | 207 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
63
19. Investment property
| Company | Land and buildings | Total |
| EUR ‘000 | ||
| Cost | ||
| At 1 January 2022 | 4,262 | 4,262 |
| Transfer from property, plant and equipment | 212 | 212 |
| At 31 December 2022 | 4,474 | 4,474 |
| Transfer from property, plant and equipment | - | - |
| At 31 December 2023 | 4,474 | 4,474 |
| Accumulated depreciation | ||
| At 1 January 2022 | 244 | 244 |
| Depreciation charge | 9 | 9 |
| At 31 December 2022 | 253 | 253 |
| Depreciation charge | 9 | 9 |
| At 31 December 2023 | 262 | 262 |
| Net book amount | ||
| At 31 December 2022 | 4,221 | 4,221 |
| At 31 December 2023 | 4,212 | 4,212 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
64
19. Investment property (continued)
Investment property relates to land and buildings that are leased or held for future realisation through renting or
selling.
The fair value of investment property based on an external appraisal by independent appraisers or an internal
appraisal amounts to EUR 4,212 thousand at the balance sheet date. Estimates of the fair value of investment
| Group | Land and buildings | Total |
| EUR ‘000 | ||
| Cost | ||
| At 1 January 2022 | 5,164 | 5,164 |
| Reclassification to assets held for sale (Note 37) | (902) | (902) |
| Transfer from property, plant and equipment | 212 | 212 |
| At 31 December 2022 | 4,474 | 4,474 |
| Transfer from property, plant and equipment | - | - |
| At 31 December 2023 | 4,474 | 4,474 |
| Accumulated depreciation | ||
| At 1 January 2022 | 1,053 | 1,053 |
| Reclassification to assets held for sale (Note 37) | (827) | (827) |
| Depreciation charge | 27 | 27 |
| At 31 December 2022 | 253 | 253 |
| Depreciation charge | 9 | 9 |
| At 31 December 2023 | 262 | 262 |
| Net book amount | ||
| At 31 December 2022 | 4,221 | 4,221 |
| At 31 December 2023 | 4,212 | 4,212 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
65
20. Financial assets
21. Investments in subsidiaries and non-current assets held for sale
As at 31 December, the Company holds shares in the following subsidiaries:
Investments in subsidiaries
Non – current assets held for sale
/i/ Adria coast turizam and Club Adriatic
On 6 February 2023, Jadran d.d. successfully fulfilled all the prerequisites established by the concluded
agreements on the purchase of business shares in the company Adria coast turizam d.o.o., which provided for the
acquisition of 100% of the shares in that company by Jadran d.d., as well as the agreement on the sale of business
shares in the company Club Adriatic d.o.o., by which Jadran sold and transferred 100% of the shares in that
company to Adria Grupa Baško Polje d.o.o. (Note 38).
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Hoteli Novi d.d. in bankruptcy | 582 | 582 |
| Impairment of shares | (582) | (582) |
| Total | - | - |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Hoteli Novi d.d. in bankruptcy | 582 | 582 |
| Impairment of shares | (582) | (582) |
| Loans given | - | 130 |
| Total | - | 130 |
| Country | Ownership share | 31 December 2022 | 31 December 2023 | |
| EUR ‘000 | EUR ‘000 | |||
| Adria coast turizam /i/ | Republic of Croatia | 100% | - | 22,942 |
| Stolist /ii/ | Republic of Croatia | 100% | 129 | 129 |
| Total | 129 | 23,071 | ||
| Non – current assets held for sale | ||||
| 31 December 2022 | 31 December 2023 | |||
| EUR ‘000 | EUR ‘000 | |||
| Club Adriatic /i/ | 15,609 | - | ||
| Total | 15,609 | - |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
66
21. Investments in subsidiaries and non-current assets held for sale (continued)
With the agreement on the transfer of business shares in the company Club Adriatic d.o.o., by which Jadran
transferred 100% of the shares in that company to Adria Grupa Baško Polje d.o.o. the conditions to classify this
business segment as discontinued operations as at 31 December 2022 were met.
As a result of the above, as at 31 December 2022, the Company presented the investment in the subsidiary Club
Adriatic d.o.o. in the amount of EUR 15,609 thousand within non – current assets held for sale. For more details
please see Notes 37 and 38.
/ii/ Stolist
As at 18 June 2019, the Company entered into a Sale and Purchase Agreement for the acquisition of Stolist d.o.o.
Pursuant to this Agreement, the Company acquired 100% of the shares in the said company. The Company paid
EUR 129 thousand to acquire Stolist d.o.o.
22. Inventories
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Raw materials and supplies on stock | 113 | 75 |
| Cost of small inventory and tyres | 1,297 | 1,219 |
| Impairment of small inventory and tyres | (1,297) | (1,219) |
| Trade goods | 3 | 2 |
| Packaging | 5 | 4 |
| Total | 121 | 81 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Raw materials and supplies on stock | 113 | 110 |
| Cost of small inventory and tyres | 1,297 | 1,481 |
| Impairment of small inventory and tyres | (1,297) | (1,481) |
| Trade goods | 3 | 3 |
| Packaging | 5 | 5 |
| Total | 121 | 118 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
67
23. Trade receivables and related party receivables
/i/ The carrying amount of foreign trade receivables in 2022 is translated from EUR.
Maturity structure of total trade receivables:
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Domestic trade receivables | 397 | 1.086 |
| Foreign trade receivables /i/ | 78 | 14 |
| Impairment of trade receivables – individual adjustments | (98) | (660) |
| Impairment of receivables – expected credit losses (IFRS 9) | (90) | (12) |
| Receivables from related parties | 1,487 | 73 |
| Impairment of trade receivables from related parties | (1,469) | (1) |
| Total | 305 | 500 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Domestic trade receivables | 398 | 1.109 |
| Foreign trade receivables /i/ | 78 | 24 |
| Impairment of trade receivables – individual adjustments | (99) | (660) |
| Impairment of receivables – expected credit losses (IFRS 9) | (90) | (16) |
| Total | 287 | 457 |
| Company | Gross trade receivables | Impairment | Net trade receivables | |||
| 31 December 2022 | 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 | 31 December 2023 | |
| EUR ‘000 | EUR ‘000 | EUR ‘000 | EUR ‘000 | EUR ‘000 | EUR ‘000 | |
| Not past due | 147 | 443 | (4) | (5) | 143 | 438 |
| Up to 30 days | 106 | 38 | (11) | (1) | 95 | 37 |
| 31-60 days | 38 | 2 | (16) | (2) | 22 | - |
| 61-90 days | 13 | 14 | - | - | 13 | 14 |
| 91-180 days | 41 | 33 | (23) | (22) | 18 | 11 |
| 181-365 days | 31 | 7 | (17) | (7) | 14 | - |
| 365 days and more | 1,586 | 636 | (1,586) | (636) | - | - |
| Total | 1,962 | 1,173 | (1,657) | (673) | 305 | 500 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
68
23. Trade receivables and related party receivables (continued)
Changes in the impairment allowance on trade receivables for expected credit losses and individual adjustments
were as follows:
/i/ The item refers to impaired receivables from Club Adriatic, which was previously a subsidiary, so this category
| Group 31 December 2023 | Not past due | Past due up to 30 days | Past due from 31–90 days | Past due from 91–180 days | Past due from 181–270 days | Past due beyond 270 days | TOTAL |
| Expected loss rate | 1.35% | 1.79% | 17.24% | 63.64% | 87.50% | 100% | 77.85% |
| Gross book amount – trade receivables | 370 | 56 | 29 | 33 | 8 | 637 | 1,133 |
| Loss allowance | (5) | (1) | (5) | (21) | (7) | (637) | (676) |
| Trade receivables – net of impairment | 365 | 55 | 24 | 12 | 1 | - | 457 |
| Group 31 December 2023 | Not past due | Past due up to 30 days | Past due from 31–90 days | Past due from 91–180 days | Past due from 181–270 days | Past due beyond 270 days | TOTAL |
| Expected loss rate | 2.82% | 10.79% | 30.98% | 57.74% | 53.57% | 100.00% | 39.66% |
| Gross book amount – trade receivables | 129 | 106 | 51 | 41 | 32 | 117 | 476 |
| Loss allowance | (4) | (11) | (16) | (24) | (17) | (117) | (189) |
| Trade receivables – net of impairment | 125 | 95 | 35 | 17 | 15 | - | 287 |
| Company | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| At 1 January | 1,732 | 1,657 |
| Increase in expected credit losses in the current period | - | 30 |
| Collection/reversal of impairment in the current period | (56) | (77) |
| Total changes in expected credit loss through profit or loss | (56) | (47) |
| Write-off of previously impaired receivables | (19) | (937) |
| At 31 December | 1,657 | 673 |
| Group | 2022 | 2023 |
| EUR ‘000 | EUR ‘000 | |
| At 1 January | 752 | 189 |
| Increase in bad debt allowance over the period | 5 | 30 |
| Write-off of previously impaired receivables | (24) | (8) |
| IFRS 9 effects | (56) | (73) |
| Transfer of movements in provisions for losses for trade | ||
| receivables related to discontinued operations to assets held for | (478) | - |
| sale | ||
| Transfer of impaired receivables from a subsidiary sold /i/ | - | 538 |
| Other movements | (10) | - |
| At 31 December | 189 | 676 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
69
24. Receivables from the government and other receivables
/i/ Suspense accounts for services accounted for refer to the balance of transition accounts that are uploaded
from the reception software.
/ii/ Receivables arising from advances given relate to advances for insurance premium paid in the amount of EUR
104 thousand, the amount of EUR 59 paid to HEP and other advances given to suppliers. (31 December 2022:
Receivables arising from advances given relate to rent advances in the amount of EUR 20 thousand, the amount
of EUR 59 thousand paid to HEP, EUR 40 thousand paid to Gradnja Slavonska d.o.o. and other advances given
to suppliers).
/i/ Suspense accounts for services accounted for refer to the balance of transition accounts that are uploaded
from the reception software.
/ii/ Receivables arising from advances given relate to advances for insurance premium paid in the amount of EUR
129 thousand, the amount of EUR 59 paid to HEP and other advances given to suppliers. (31 December 2022:
Receivables arising from advances given relate to rent advances in the amount of EUR 20 thousand, the amount
of EUR 59 thousand paid to HEP, EUR 40 thousand paid to Gradnja Slavonska d.o.o. and other advances given
to suppliers).
| Company | 31 December 2021 | 31 December 2022 |
| EUR ‘000 | EUR ‘000 | |
| Grants receivable | 2 | - |
| Prepaid VAT receivable | 402 | 148 |
| Other receivables from the government | 42 | 80 |
| Suspense accounts for services accounted for /i/ | 10 | 141 |
| Banking charges for loans | 21 | 13 |
| Receivables for advances given /ii/ | 169 | 177 |
| Prepayments – other costs | 55 | 9 |
| Total | 701 | 568 |
| Group | 31 December 2021 | 31 December 2022 |
| EUR ‘000 | EUR ‘000 | |
| Grants receivable | 2 | - |
| Prepaid VAT receivable | 402 | 185 |
| Other receivables from the government | 43 | 120 |
| Suspense accounts for services accounted for /i/ | 10 | 150 |
| Banking charges for loans | 21 | 13 |
| Receivables for advances given /ii/ | 169 | 182 |
| Prepayments – other costs | 55 | 9 |
| Total | 702 | 659 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
70
25. Receivables for loans granted to related parties
/i/ Receivables from related parties relate to two loans granted to Stolist d.o.o. in the total amount of loan principal
and of associated interest of EUR 15.2 thousand. The loans were granted in 2021 and 2022.
Additionally, in 2023 the Company granted a loan f EUR 475 thousand to Adria coast turizam, with EUR 3 thousand
of associated interest.
The above-mentioned loans were granted at the legally prescribed intra-group interest rate (repayable at the
lender’s first call). The loans are classified as Stage 2.
26. Cash and cash equivalents
/i/ The carrying amount of cash at banks in foreign currency in 2022 was translated from EUR.
The Company mainly deposits cash with local banks that are members of banking groups with the following credit
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Receivables for loans granted to related parties /i/ | 15 | 493 |
| Impairment of loan receivables – IFRS 9 | (2) | (19) |
| Total | 13 | 474 |
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Bank balances – domestic currency | 267 | 1,022 |
| Bank balances – foreign currency /i/ | 528 | - |
| Cash on hand | - | 1 |
| Total | 795 | 1,023 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Bank balances – domestic currency | 278 | 1,768 |
| Bank balances – foreign currency /i/ | 528 | - |
| Cash on hand | - | 1 |
| Total | 806 | 1,769 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
71
26. Cash and cash equivalents (continued)
27. Capital and reserves
The Company’s share capital amounts to EUR 64.039.780 and is divided among 27,971,463 ordinary shares
without a nominal value with the ticker symbol JDRN-R-B. The Company’s ID No. (OIB) is 56994999963, while its
Reg. No. (MBS) is 040000817. The share capital represents the Company’s own sources of assets for its operating
purposes.
Capital reserves as of 31 December 2023 as well as of 31 December 2022 amount to EUR 31.085.132 and are
not available for distribution to the shareholders.
Individual major shareholders are PBZ CO OMF – CATEGORY B which holds 58.30% of shares and ERSTE
PLAVI OMF CATEGORY B which holds 30.56% of the Company’s shares.
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| A | 444 | 15 |
| BBB | 341 | 986 |
| No credit rating | 10 | 21 |
| Total | 795 | 1,022 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| A | 444 | 15 |
| BBB | 352 | 1,731 |
| No credit rating | 10 | 22 |
| Total | 806 | 1,768 |
| 31 December 2022 | 31 December 2023 | |||
| Investor | Balance | % | Balance | % |
| Erste & Steiermarkische bank d.d./PBZ CO OMF – category B (1/1) – custodial account | 16,307,401 | 58.30 | 16,307,401 | 58.30 |
| OTP banka d.d. /Erste Plavi OMF category b – custodial account | 8,547,346 | 30.56 | 8,547,346 | 30.56 |
| Restructuring and Sale Center – CERP (0/1) Republic of Croatia (1/1) zs | 673,666 | 2.41 | 673,666 | 2.41 |
| Hrvatske vode, Water Management Corporation (1/1) | 208,292 | 0.74 | 208,292 | 0.74 |
| Town of Crikvenica (1/1) | 184,056 | 0.66 | 184,056 | 0.66 |
| OTP banka d.d./Erste Plavi Expert – voluntary pensionfund (1/1) – custodial account | 174,249 | 0.62 | 174,249 | 0.62 |
| Other shareholders | 1,876,453 | 6.71 | 1,876,453 | 6.71 |
| TOTAL | 27,971,463 | 100.00 | 27,971,463 | 100.00 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
72
27. Capital and reserves (continued)
Pursuant to the provisions of the Act on the Introduction of the Euro as the Official Currency in the Republic of
Croatia and the Act on Amendments to the Companies Act, and based on the decision of the General Assembly
on the adjustment of share capital dated 14 July 2023, the share capital of the Company, by applying a fixed HRK
to EUR conversion rate, was converted into euros and reduced by the amount of 1.01 euros to the extent necessary
for compliance with the relevant regulations in a simplified manner, and credited to capital reserves.
As of 31 December 2023, the Company holds 631 treasury shares (2022: 631), which represents 0.0023% (2022:
0.0023%) of the Company’s share capital.
28. Provisions
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Provisions for termination benefits | 29 | 34 |
| Provisions for jubilee awards | 28 | 38 |
| Provisions for legal disputes | 24 | 80 |
| Total | 81 | 152 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Provisions for termination benefits | 29 | 35 |
| Provisions for jubilee awards | 28 | 39 |
| Provisions for legal disputes | 24 | 80 |
| Total | 81 | 154 |
| Company | Legal disputes | Termination benefits | Jubilee awards | Total |
| EUR ‘000 | ||||
| At 31 December 2021 | 24 | 32 | 38 | 94 |
| Release of provisions | - | (3) | (10) | (13) |
| At 31 December 2022 | 24 | 29 | 28 | 81 |
| Additional provisions based on estimate | 56 | 5 | 10 | 71 |
| At 31 December 2023 | 80 | 34 | 38 | 152 |
| Group | Legal disputes | Termination benefits | Jubilee awards | Total |
| EUR ‘000 | ||||
| At 31 December 2021 | 24 | 32 | 38 | 94 |
| Release of provisions | - | (3) | (10) | (13) |
| At 31 December 2022 | 24 | 29 | 28 | 81 |
| Additional provisions based on estimate | 56 | 5 | 10 | 71 |
| At 31 December 2023 | 80 | 34 | 38 | 152 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
73
29. Liabilities to banks
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Long-term loans-HBOR – DT-1/16 /i/ | 1,355 | 1,075 |
| Long-term loans-HBOR – DT-10/16 /ii/ | 790 | 626 |
| Long-term loans-PBZ – 2016 -5110217867-5110217867 /iii/ | 3,672 | 2,448 |
| Long-term loans-PBZ – 2019 -5110228722-5110228722 /iv/ | 10,401 | 9,380 |
| Long-term loans-ERSTE – 2019 -5117407680/15 /v/ | 12,433 | 11,089 |
| Short-term loans-ERSTE – 2022 – 5002285447 /vi/ | 800 | - |
| Short-term loans – OTP 2023-3825/23 /viii/ | - | 2,000 |
| Short-term loans – ZABA 5702182152 /ix/ | - | 500 |
| Interest | 130 | 196 |
| Total liabilities | 29,581 | 27,314 |
| Current maturities of long-term loans in the current year | (4,071) | (4,071) |
| Short-term loans-ERSTE – 2022 – 5002285447 /vi/ | (800) | - |
| Short-term loans – OTP 2023-3825/23 /vii/ | - | (2,000) |
| Short-term loans – ZABA 5702182152 /ix/ | - | (500) |
| Interest | (130) | (196) |
| Current liabilities | (5,001) | (6,767) |
| Non-current liabilities | 24,580 | 20,547 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Long-term loans-HBOR – DT-1/16 /i/ | 1,355 | 1,075 |
| Long-term loans-HBOR – DT-10/16 /ii/ | 790 | 626 |
| Long-term loans-PBZ – 2016 -5110217867-5110217867 /iii/ | 3,672 | 2,448 |
| Long-term loans-PBZ – 2019 -5110228722-5110228722 /iv/ | 10,401 | 9,380 |
| Long-term loans-ERSTE – 2019 -5117407680/15 /v/ | 12,433 | 11,089 |
| Long-term loans-Gorenjska banka /vi/ | - | 24,000 |
| Short-term loans-ERSTE – 2022 – 5002285447 /vii/ | 800 | - |
| Short-term loans – OTP 2023-3825/23 /viii/ | - | 2,000 |
| Short-term loans – ZABA 5702182152 /ix/ | - | 500 |
| Interest | 130 | 554 |
| Total liabilities | 29,581 | 51,672 |
| Current maturities of long-term loans in the current year | (4,071) | (5,571) |
| Short-term loans-ERSTE – 2022 – 5002285447 /vi/ | (800) | - |
| Short-term loans – OTP 2023-3825/23 /viii/ | - | (2,000) |
| Short-term loans – ZABA 5702182152 /ix/ | - | (500) |
| Interest | (130) | (554) |
| Current liabilities | (5,001) | (8,625) |
| Non-current liabilities | 24,580 | 43,047 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
74
29. Liabilities to banks (continued)
/i/ In 2016, the Company entered into a long-term loan agreement with the Croatian Bank for Reconstruction
and Development for a loan of HRK 17,400,000, repayable over 8 years, with a 1-year and 10 months
grace period and 3% interest rate, for the renovation of facilities and upgrading the classification of Hotel
Omorika and Hotel Varaždin (Katarina).
/ii/ In 2016, the Company entered into a long-term loan agreement with the Croatian Bank for Reconstruction
and Development for a loan of HRK 10 million, repayable over 8 years, with a 1-year and 3 months grace
period and 3% interest rate, for the renovation of facilities and upgrading the classification of Hotel
Varaždin (Katarina).
/iii/ In 2016, the Company entered into a long-term loan agreement with Privredna banka Zagreb d.d. for a
loan of EUR 7,400,000, repayable over 6 years, with a 1-year and 6 months grace period and 2.6%
interest rate, for the renovation of facilities and upgrading the classification of Hotel Varaždin (Katarina)
and Hotel Esplanade and to purchase the receivables from Veneto banka d.d. This Agreement was
entered into in December of 2016. The amount of EUR 7,343,852 was drawn under the loan, and the loan
commencement date was 20 July 2019.
/iv/ In 2019, the Company entered into a long-term loan agreement with Privredna banka Zagreb d.d. for a
loan of EUR 12,250,000, repayable over 12 years, with a 2.05% interest rate, for the renovation of facilities
and upgrading the classification of the Ad Turres resort, Selce Campsite – swimming pool and allotment,
Hotel Katarina, Hotel Omorika, Kačjak resort, Slaven pavilions and Hotel Esplanade.
/v/ In 2019, the Company entered into a long-term loan agreement with Erste&Steiermärkische Bank d.d. for
a loan of EUR 13,441,000, repayable over 10 years, with a 2.1% + 3M Euribor interest rate, to be used
for investments – purchasing and other costs of acquiring Club Adriatic d.o.o. Zagreb.
/vi/ In 2022, Adria coast turizam, Company’s subsidiary, entered into an agreement with Gorenjska banka on
a long-term loan in the amount of EUR 27.5 million, with a repayment period of 15 years, and an interest
rate of 3.5% + 3M Euribor, for the construction of the Grand Hotel View.
/vii/ In 2022, the Company entered into a short-term loan agreement with Erste&Steiermärkische Bank d.d. for
a loan of EUR 800,000, repayable until 30 September 2023, with a 1.2% + 3M Euribor interest rate, to be
used for current liquidity financing.
/viii/ In 2023, the Company entered into a short-term loan agreement with OTP Bank d.d. for a loan of EUR 2
million, repayable until 31 October 2024, with a 6% interest rate, to be used for current liquidity financing.
/ix/ In 2023, the Company entered into a short-term revolving loan agreement with Zagrebačka banka d.d.
for a loan of EUR 3 million, repayable until 30 November 2024, with a 4,4% interest rate, to be used for
current liquidity financing. From the stated amount by the end of the year, EUR 500 thousand had been
withdrawn.
Covenant for the above loans of the Company and the Group include the obligation to perform a certain % of
payment transactions through specific bank, the obligation to maintain the agreed interest coverage ratio, the need
to notify banks in cases of major new loans of the Company and the Group, and the need to notify banks in cases
of granting loans to subsidiary. Additionally, the contractual provisions for the subsidiary’s loan imply the need to
maintain a minimum debt repayment coverage ratio. The Company and the Group believe that there was no
covenant breaches during or at the end of the year.
All loans of the Company and the Group are denominated in local currency. Credit collateral are promissory notes,
debentures and property, plant and equipment of the Company and Group, as disclosed in note 17. As of 31
December 2023, the Company’s (and Group’s) agreed unused credit lines with financial institutions for the year
2023 total EUR 2.5 million.
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
75
30. Other non-current liabilities
/i/ The liabilities under the Bankruptcy Plan of EUR 8 thousand relate to liabilities to secured creditors of the 2
nd
rank in the amount of EUR 4 thousand and liabilities intended to be included in the share capital in the amount of
EUR 4 thousand. The Bankruptcy Plan does not infringe on the secured creditors’ right to be paid from items
subject to separate satisfaction.
31. Trade payables
32. Liabilities for advances, deposits and guarantees
| Company and Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Bankruptcy Plan /i/ | 8 | 8 |
| Total | 8 | 8 |
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Domestic trade payables | 1,387 | 1,019 |
| Liabilities to related suppliers (Note 35) | 50 | - |
| Foreign trade payables | 17 | 16 |
| Total | 1,454 | 1,035 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Domestic trade payables | 1,390 | 2,604 |
| Foreign trade payables | 17 | 25 |
| Total | 1,407 | 2,629 |
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Advances received | 283 | 424 |
| Security and other deposits | 71 | 58 |
| Total | 354 | 482 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Advances received | 283 | 441 |
| Security and other deposits | 71 | 58 |
| Total | 354 | 499 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
76
33. Other current liabilities
/i/ The capital grants remitted by the Energy Efficiency and Environmental Protection Fund relate to the
reconstruction of the heating system at Hotel Katarina in 2016 and are prorated to revenue on an annual basis.
/ii/ Obligations for additional payments refer to the obligation of the company Jadran to pay into the capital reserves
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net salaries payable | 276 | 285 |
| Unused vacation days | 217 | 242 |
| Liabilities to employees – bonuses | 266 | 276 |
| Liabilities to employees – redistribution of working hours | 96 | 56 |
| Other liabilities to employees | 16 | 11 |
| Contributions from and on salaries | 153 | 151 |
| Taxes and surtaxes payable | 31 | 33 |
| Other liabilities to the government | 53 | 124 |
| Accrual of received capital grants /i/ | 90 | 94 |
| Fees based on temporary service agreements | 4 | 10 |
| Scholarships | 5 | - |
| Other liabilities – unpaid to bankruptcy creditors | 1 | 1 |
| Obligations for additional payments /ii/ | - | 1,500 |
| Deferred income | - | 12 |
| Total | 1,208 | 2,795 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Net salaries payable | 276 | 316 |
| Unused vacation days | 217 | 250 |
| Liabilities to employees – bonuses | 266 | 284 |
| Liabilities to employees – redistribution of working hours | 96 | 69 |
| Other liabilities to employees | 16 | 12 |
| Contributions from and on salaries | 153 | 166 |
| Taxes and surtaxes payable | 31 | 36 |
| Other liabilities to the government | 53 | 144 |
| Accrual of received capital grants /i/ | 91 | 94 |
| Fees based on temporary service agreements | 4 | 10 |
| Scholarships | 5 | - |
| Other liabilities – unpaid to bankruptcy creditors | 1 | 1 |
| Deferred income | - | 12 |
| Total | 1,209 | 1,394 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
77
34. Lease liabilities and right-of-use assets
The cost of interest on lease liabilities is included in Finance costs – Interest expense on lease (Note 14).
Lease liabilities
/i/ It refers to the initial recognition of the lease contracts for Grand Hotel View in June 2022 and Stypia in December
2022.
/ii/ It refers to the termination of the contract for the Garden Palace Resort Umag, which was initially signed for ten
years, for a period from 1 April 2020 to 31 March 2030. With the contract on the termination of the lease contract,
| Lease liabilities | ||
| Company | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Non-current lease liabilities | 36,383 | 10,499 |
| Current lease liabilities | 673 | 953 |
| Total | 37,056 | 11,452 |
| Group | 31 December 2022 | 31 December 2023 |
| EUR ‘000 | EUR ‘000 | |
| Non-current lease liabilities | 44,045 | 10,709 |
| Current lease liabilities | 1,015 | 973 |
| Total | 45,060 | 11,682 |
| Company | Vehicles | Real estate | Beach concession | Total |
| EUR ‘000 | ||||
| Net book amount at 31 December 2021 | 113 | 12,897 | 65 | 13,075 |
| Initial recognition as per new contracts /i/ | 132 | 33,061 | - | 33,193 |
| Depreciation for the year | (115) | (3,590) | (10) | (3,715) |
| Termination of existing contracts /ii/ | (21) | (7,572) | - | (7,593) |
| Net book amount at 31 December 2022 | 109 | 34,796 | 55 | 34,960 |
| Initial recognition as per new contracts /iii/ | 234 | 7,730 | - | 7,964 |
| Depreciation for the year | (87) | (1,514) | (11) | (1,612) |
| Termination of existing contracts /iv/ | (87) | (30,361) | - | (30,448) |
| Impairment /v/ | - | (3,205) | - | (3,205) |
| Net book amount at 31 December 2023 | 169 | 7,446 | 44 | 7,659 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
78
34. Lease liabilities and right-of-use assets (continued)
/iii/ It refers to the initial recognition of the lease contracts for hotel Noemia, that was transferred on 1 January 2023
from Club Adriatic and the contract for the office in Zagreb, signed in June 2023.
./iv/ It refers to the lease contract for Grand hotel View, that was terminated on 6 February 2023, with the purchase
of Adria coast turizam.
/v/ It refers to the impairment recognised at initial recognition of the lease contract for the Noemia hotel.
/i/ It refers to the initial recognition of the lease contract for Grand Hotel View in June 2022 and Stypia in December
2022.
/ii/ It refers to the termination of the contract for the Garden Palace Resort Umag, which was initially signed for ten
years, for a period from 1 April 2020 to 31 March 2030. With the contract on the termination of the lease contract,
the lease was terminated on 30 September 2022.
/iii/ It refers to the initial recognition of the lease contracts for the Noemia hotel, that was transferred on 1 January
2023 from Club Adriatic and the contract for the office in Zagreb, signed in June 2023.
./iv/ It refers to the lease contracts for Grand hotel View, that was terminated on February 6, 2023, with purchase
of Adria coast turizam.
/v/ It refers to the net result of the termination of the lease agreement for the Noemia hotel (by exiting the portfolio
of the then subsidiary Club Adriatic) and the impairment recognised upon the initial recognition of the lease
agreement for the Noemia hotel by the parent company Jadran.
As stated in Note 2.20, the Company and the Group use the exemption expedient for short-term leases and low-
value leases.
In 2023, short-term leases and low-value leases of the Company amounted to EUR 208 thousand (Note 9).
In 2023, short-term leases and low-value leases of the Group amounted to EUR 247 thousand (Note 9).
| Group | Vehicles | Real estate | Beach concession | Total |
| EUR ‘000 | ||||
| Net book amount at 31 December 2021 | 113 | 20,069 | 87 | 20,269 |
| Initial recognition as per new contracts /i/ | 132 | 33,061 | - | 33,193 |
| Depreciation for the year | (115) | (4,139) | (15) | (4,269) |
| Termination of existing contracts /ii/ | (21) | (7,572) | - | (7,593) |
| Reversal of impairment | - | (2,021) | - | (2,021) |
| Net book amount at 31 December 2022 | 109 | 39,398 | 72 | 39,579 |
| Initial recognition as per new contracts /iii/ | 234 | 146 | 247 | 627 |
| Depreciation for the year | (87) | (1,514) | (46) | (1,647) |
| Termination of existing contracts /iv/ | (87) | (30,906) | - | (30,993) |
| Impairment /v/ | - | 322 | - | 322 |
| Net book amount at 31 December 2023 | 169 | 7,446 | 273 | 7,888 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
79
35. Related party transactions
The main related party transactions during 2023 and 2022 were as follows:
31 December 2023
31 December 2022
| 31 December 2023 | ||||
| Subsidiary | Revenue | Expenses | Receivables and | Liabilities |
| loans | ||||
| EUR ‘000 | ||||
| Stolist | 5 | - | 16 | - |
| Adria coast turizam | 575 | (104) | 551 | (1,500) |
| Total | 580 | (104) | 567 | (1,500) |
| 31 December 2022 | ||||
| Subsidiary | Revenue | Expenses | Receivables and | Liabilities |
| loans | ||||
| EUR ‘000 | ||||
| Stolist | 4 | - | 16 | - |
| Club Adriatic | 154 | (7) | 18 | (50) |
| Total | 158 | (7) | 34 | (50) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
80
36. Net debt
| Company | Cash | Liabilities to banks | Lease liabilities | Total |
| EUR ‘000 | ||||
| Net debt at 1 January 2022 | 2,091 | (32,552) | (16,128) | (46,589) |
| Cash flow | (1,292) | 2,980 | 2,967 | 4,655 |
| Increase arising from new lease agreements and modifications | - | - | (33,193) | (33,193) |
| Termination of existing contracts | - | - | 9,010 | 9,010 |
| Interest expense | - | (790) | (990) | (1,780) |
| Interest paid | - | 772 | 990 | 1,762 |
| Non-cash movements | (4) | 9 | 288 | 293 |
| Net debt at 31 December 2022 | 795 | (29,581) | (37,056) | (65,842) |
| Cash flow | 228 | 2,333 | 1,385 | 3,946 |
| Increase arising from new lease agreements and modifications | - | - | (7,964) | (7,964) |
| Termination of existing contracts | - | - | 32,604 | 32,604 |
| Interest expense | - | (1,054) | (513) | (1,567) |
| Interest paid | - | 986 | 513 | 1,499 |
| Non-cash movements | - | 2 | (421) | (419) |
| Net debt at 31 December 2023 | 1,023 | (27,314) | (11,452) | (37,743) |
| Group | Cash | Liabilities to banks | Lease liabilities | Total |
| EUR ‘000 | ||||
| Net debt at 1 January 2022 | 3,092 | (32,552) | (24,418) | (53,878) |
| Cash flow | (2,281) | 2,980 | 3,650 | 4,349 |
| Increase arising from new lease agreements and modifications | - | - | (33,193) | (33,193) |
| Termination of existing contracts | - | - | 9,010 | 9,010 |
| Interest expense | - | (791) | (1,211) | (2,002) |
| Interest paid | - | 771 | 1,211 | 1,982 |
| Non-cash movements | (5) | 11 | (109) | (103) |
| Net debt at 31 December 2022 | 806 | (29,581) | (45,060) | (73,835) |
| Cash flow | 954 | 2,333 | 1,411 | 4,698 |
| Acquisition of subsidiary (Note 38) | 9 | (24,163) | - | (24,154) |
| Increase arising from new lease agreements and modifications | - | - | (627) | (627) |
| Termination of existing contracts | - | - | 33,149 | 33,149 |
| Interest expense | - | (2,453) | (525) | (2,978) |
| Interest paid | - | 2,234 | 525 | 2,759 |
| Non-cash movements | - | (42) | (555) | (597) |
| Net debt at 31 December 2023 | 1,769 | (51,672) | (11,682) | (61,585) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
81
37. Discontinued operations
On 6 February 2023, Jadran d.d. successfully fulfilled all the prerequisites established by the concluded
agreements on the purchase of business shares in the company Adria coast turizam d.o.o., which provided for the
acquisition of 100% of the shares in that company by Jadran d.d., as well as the agreement on the sale of business
shares in the company Club Adriatic d.o.o., by which Jadran sold and transferred 100% of the shares in that
company to Adria Grupa Baško Polje d.o.o.
With the agreement on the transfer of business shares in the company Club Adriatic d.o.o., dated 6 February by
which Jadran transferred 100% of the shares in that company to Adria Grupa Baško Polje d.o.o. the conditions
have been met for this business segment to be classified as discontinued operations on December 31, 2022.
As stated above, Club Adriatic was sold on 6 February 2023 (effective from 31 January 2023) and presented as
discontinued operations. Financial information relating to the discontinued operations until the date of sale are
shown below.
The impact of discontinued operations and assets held for sale on the statement of comprehensive income,
statement of financial position and statement of cash flows is presented below.
| Discontinued operations | ||
| 2022 | January 2023 | |
| EUR ‘000 | EUR ‘000 | |
| Revenue | 3,225 | - |
| Other income | 94 | 33 |
| Total operating income | 3,319 | 33 |
| Cost of raw materials and supplies | (545) | (27) |
| Cost of services | (330) | (13) |
| Staff costs | (860) | (35) |
| Depreciation and amortisation | (444) | (32) |
| Losses on impairment of non-financial assets | (11) | - |
| Other operating expenses | (781) | (14) |
| Total operating expenses | (2,971) | (121) |
| Operating profit | 348 | (88) |
| Finance income | - | - |
| Finance costs | (47) | - |
| Net loss from financing activities | (47) | - |
| - | ||
| Profit before tax | 301 | (88) |
| Income tax | (115) | - |
| Gain/(loss) from discontinued operations | 186 | (88) |
| Gain on sale of subsidiary, after tax | - | 1,461 |
| Total gain from discontinued operations | - | 1,373 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
82
37. Discontinued operations (continued)
Details on the sale of the subsidiary:
The carrying amounts of assets and liabilities at the date of sale (31 January 2023) were as follows:
| Details on the sale of the subsidiary: | |
| 2023 | |
| EUR ‘000 | |
| Consideration received | |
| Cash | 1,676 |
| Consideration defined by the Sales Contract and Annexes to | |
| the Contract | 21,442 |
| For the acquisition of a 100% share in Adria coast tourism | |
| Total disposal consideration | 23,118 |
| Carrying amount of net assets sold | (21,657) |
| Gain on sale of subsidiary | 1,461 |
| The carrying amounts of assets and liabilities at the date of sale (31 January 2023) were as | follows: |
| 31 January 2023 | |
| EUR ‘000 | |
| Assets | |
| Property, plant and equipment | 23,035 |
| Intangible assets | 2 |
| Financial assets | 120 |
| Inventory | 14 |
| Trade receivables | 122 |
| Receivables from the government and other receivables | 43 |
| Tax receivables | 123 |
| Cash and cash equivalents | 879 |
| Total assets | 24,338 |
| Liabilities | |
| Deferred tax liability | 2,509 |
| Trade payables | 76 |
| Liability for advances, deposits and guarantees | 41 |
| Other short-term liabilities | 55 |
| Total liabilities | 2,681 |
| Net assets | 21,657 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
83
37. Discontinued operations (continued)
Impact on the statement of financial position
Impact on the statement of cash flows
| 31 December 2022 | |
| Assets | EUR ‘000 |
| Non-current assets | |
| Property, plant and equipment (Note 17) | 22,992 |
| Intangible assets (Note 18) | 2 |
| Investment property (Note 19) | 75 |
| Financial assets | 119 |
| Other non-current assets | 1 |
| Total non-current assets | 23,189 |
| Current assets | |
| Inventories | 14 |
| Trade receivables | 7 |
| Receivables from the government | 21 |
| Income tax receivable | 216 |
| Other receivables | 30 |
| Cash and cash equivalents | 942 |
| Total current assets | 1,230 |
| Total assets held for sale | 24,419 |
| Liabilities | |
| Trade payables | 45 |
| Liabilities for advances, deposits and guarantees | 13 |
| Liabilities to employees | 56 |
| Liabilities to the government | 22 |
| Other current liabilities | 1 |
| Deferred tax liability | 2,509 |
| Total liabilities | 2,646 |
| ies from assets held for sale Total liabilit | 2,646 |
| Impact on the statement of cash flows | |
| 2022 | |
| EUR ‘000 | |
| A. Net cash from operating activities | 1,705 |
| B. Net cash from investing activities | (380) |
| C. Net cash from financing activities | (1,379) |
| Net (decrease in) cash generated by subsidiary | (54) |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
84
38. Acquisition of Adria coast turizam d.o.o.
After Jadran d.d. has successfully fulfilled all the prerequisites established by the concluded agreements on the
purchase of business shares in the company Adria coast turizam d.o.o., which foresees the acquisition of 100% of
the shares in that company by Jadran d.d., as well as the agreement on the sale of business shares in the Club
Adriatic d.o.o., by which Jadran sells and transfers 100% of the shares in that company to Adria Grupa Baško Polje
d.o.o., on February 6, 2023, the following contracts were concluded:
• agreement on the transfer of business shares in the company Adria coast turizam d.o.o., by which Jadran
d.d. acquired 100% of the shares in that company;
• agreement on the transfer of business shares in the company Club Adriatic d.o.o., by which Jadran
transferred 100% of the shares in that company to Adria Grupa Baško Polje d.o.o. (“AGBP”).
On 6 February 2023, the Group acquired 100% ownership of Adria Coast Turizam d.o.o. for the agreed amount
of EUR 47,000 thousand, net of the amount of the loan obligations to Gorenjska banka (in the amount of EUR
24,245 thousand), the value of the investment in the beach (EUR 1,611 thousand) adjusted for the items of the
financial position as of 31 January 2023, which Jadran d.d. and Adria Grupa Baško Polje d.o.o. used for the
purposes of concluding the transaction: short-term receivables and financial assets in the amount of EUR 358
thousand, cash in the amount of EUR 9 thousand of money and short-term liabilities.in the amount of EUR 69
thousand.
The fair value of the compensation transferred in the business transaction of the acquisition of Adria coast turizam
d.o.o. was determined based on the assessment of the fair value of non-current tangible assets in the amount of
EUR 22 million and current assets in the amount of EUR 1.1 million of the company Club Adriatic d.o.o. net of the
amount paid by the owner of AGBP totalling EUR 1.7 million.
The amounts were calculated in accordance with Jadran’s accounting policies.
The acquired net asset value and the determined goodwill are presented as follows:
| 2023 | |
| EUR ‘000 | |
| Acquisition cost | 21,442 |
| Compensation defined by the Sales Contract and the Annexes to the Contractfor the acquisition of 100% shares in Club Adriatic d.o.o. | 21,442 |
| Fair value of acquired assets of Adria Coast Turizam d.o.o. | (20,953) |
| Goodwill | 489 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
85
38. Acquisition of Adria coast turizam d.o.o. (continued)
The fair value of acquired assets at the acquisition date is as follows:
As stated above, for the acquisition of shares in Adria coast turizam d.o.o. the shares of Club Adriatic d.o.o. were
transferred, with an adjustment for financial position items, and there was no outflow of cash, while the account
balance of Adria coast turizam at the time of acquisition is not material.
| 2023 | |
| EUR ‘000 | |
| Land (Note 17) | 3,990 |
| Buildings (Note 17) | 32,040 |
| Plant and equipment (Note 17) | 10,759 |
| Other equipment (Note 17) | 287 |
| Tangible assets under construction (Note 17) | 64 |
| Trade and other receivables | 287 |
| Cash | 9 |
| Deposits | 130 |
| Trade and other payables | (183) |
| Deferred tax liability | (2,267) |
| Loans from banks (Note 36) | (24,163) |
| Net assets acquired | 20,953 |
Notes to the separate and consolidated financial statements
For the year ended 31 December 2023
86
39. Contingent liabilities and assets
After the bankruptcy proceedings were completed in 2014, the Company continued to conduct all legal disputes
initiated at the time of bankruptcy of Jadran d.d., as well as those that the stated company did not manage to
resolve during the bankruptcy period.
The process of the Company’s transformation and the Property Statement Resolution issued by the Croatian
Privatisation Fund resulted in unresolved proprietary matters. For the purpose of resolving such proprietary matters
regarding the Company’s properties, the Company initiated individual corrective processes to align the land registry
status with the actual status of the properties, as well as processes to establish title.
Modular structures owned by third parties were illegally mounted on a part of assets owned by the Company, namely
at the Selce campsite. As the owners of such modular structures refuse to remove them and surrender the plots, the
Company took legal action for the purpose of repossessing the land/plots as well as action for damages for the
unauthorised use of land owned by the Company.
The Company is involved in property disputes for determining the title over a part of land surrounding the Slaven
hotel and annex buildings.
The book value of assets in respect of which Jadran is not listed as the owner or in respect of which there is a legal
dispute regarding ownership as of 31 December 2023, amounts to EUR 279 thousand.
The Company is involved in three legal proceedings concerning the establishment of title regarding two restaurants
that had been owned by the Company until 2006, when the Company leased them out. Based on the Decisions of
the Primorje-Gorski Kotar County, these facilities were given to be managed by third parties, without the Company
receiving any compensation. In the meantime, the border of the maritime domain has been determined, which also
includes the stated facilities. The proceedings in question are being conducted against the Town of Crikvenica and
the Republic of Croatia.
Also, the Company is a party to several ongoing proceedings against the Town of Crikvenica, related to property
issues.
As regards other legal proceedings, the Company is a party to proceedings for the restitution of and compensation
for property seized and enforcement proceedings to collect debt owed to it by third parties.
In 2023, Adria coast turizam and Stolist were not involved in any proprietary or other legal disputes and the above-
mentioned disputes are also relevant for the Group.
40. Events after the balance sheet date
On 19 March 2024, the lease contract for Uvala Slana camp was terminated, and on 20 March 2024, the camp
was handed over to the owners.
After 31 December 2023, no business events or transactions have occurred or are expected to have a significant
impact on the financial statements as of or for the period ending on 31 December 2023 or that they are of such
importance for the operations of the Company and the Group that they should be disclosed in the notes to the
financial statements.
Management Report
For the year ended 31 December 2023
87
MANAGEMENT REPORT
Management Report
For the year ended 31 December 2023
88
1. Key operating information
Key operating indicators for the Company
Key financial indicators for the Company
1
EBITDA was normalised for one-time costs non-recurring income (net gains on termination of lease contract, net gains on disposal of subsidiary Club
Adriatic) and expenses (value adjustments, impairment of long-term non-financial assets, expenses from unrealized investments).
2
EBIT was normalised for one-time costs.
| 2022 | 2023 | 2023 / 2022 | |
| Number of accommodation units (capacity) | 2,661 | 2,101 | (21.0%) |
| Number of bed-places | 6,186 | 4,954 | (19.9%) |
| Full occupancy days | 93 | 100 | 7.6% |
| Annual occupancy rate | 25% | 28% | 9.9% |
| Number of accommodation units sold | 247,368 | 210,921 | (14.7%) |
| Number of overnights | 640,777 | 504,232 | (21.3%) |
| Average daily rate ADR (in EUR) | 83 | 82 | (0.9%) |
| Revenue Per Available Room RevPar (in EUR) | 10,059 | 10,092 | 0.3% |
| 2022 | 2023 | 2023 / 2022 | |
| EUR ‘000 | |||
| Total revenue | 32,374 | 35,333 | 9.1% |
| Sales revenue | 29,220 | 23,600 | (19.2%) |
| Other operating income | 2,909 | 11,721 | 302.9% |
| Total costs | 29,888 | 31,918 | 6.8% |
| Operating expenses | 27,812 | 30,351 | 9.1% |
| Material costs | 11,943 | 10,598 | (11.3%) |
| Staff costs | 7,937 | 8,332 | 5.0% |
| Depreciation and amortisation | 7,489 | 5,700 | (23.9%) |
| Impairment of non-current non-financial assets | (1,225) | 3,251 | (365.3%) |
| Value adjustment | (40) | (30) | (24.8%) |
| Other costs | 1,708 | 2,500 | 46.3% |
| Finance income | 245 | 12 | (95.1%) |
| Finance costs | 2,076 | 1,567 | (24.5%) |
| EBITDA | 11,806 | 10,670 | (9.6%) |
| EBITDA margin | 37% | 30% | (17.8%) |
| Normalised EBITDA1 | 9,124 | 5,199 | (43.0%) |
| Normalised EBITDA margin | 28% | 15% | (48.2%) |
| EBIT | 4,317 | 4,971 | 15.1% |
| Normalised EBIT2 | 1,635 | (501) | (130.6%) |
| Net profit | 4,828 | 2,729 | (44.1%) |
Management Report
For the year ended 31 December 2023
89
1. Key operating information (continued)
Key operating indicators for the Group
Key financial indicators for the Company
| 2022 | 2023 | 2023 / 2022 | |
| Number of accommodation units (capacity) | 3,548 | 2,331 | (34.3%) |
| Number of bed-places | 8,575 | 5,414 | (36.9%) |
| Full occupancy days | 88 | 86 | (2.3%) |
| Annual occupancy rate | 24% | 27% | 16.3% |
| Number of accommodation units sold | 305,821 | 233,759 | (23.6%) |
| Number of overnights | 805,701 | 561,072 | (30.4%) |
| Average daily rate ADR (in EUR) | 72 | 90 | 25.2% |
| Revenue Per Available Room RevPar (in EUR) | 7,911 | 11,007 | 39.1% |
| 2022 | 2023 | 2023 / 2022 | |
| EUR ‘000 | |||
| Total revenue | 33.396 | 32.428 | (2.9%) |
| Sales revenue | 30.219 | 28.642 | (5.2%) |
| Other operating income | 2.929 | 3.782 | 29.1% |
| Total costs | 33.685 | 36.661 | 8.8% |
| Operating expenses | 31.387 | 33.683 | 7.3% |
| Material costs | 12.385 | 12.358 | (0.2%) |
| Staff costs | 8.252 | 9.375 | 13.6% |
| Depreciation and amortisation | 8.049 | 9.056 | 12.5% |
| Impairment of non-current non-financial assets | 971 | -276 | (128.4%) |
| Value adjustment | 2 | 83 | 4,789.7% |
| Other costs | 1.728 | 3.087 | 78.6% |
| Finance income | 248 | 4 | (98.4%) |
| Finance costs | 2.298 | 2.978 | 29.6% |
| EBITDA | 9.811 | 7.797 | (20.5%) |
| EBITDA margin | 29.60% | 24.05% | (18.8%) |
| Normalised EBITDA1 | 9.812 | 7.604 | (22.5%) |
| Normalised EBITDA margin | 29.60% | 23.45% | (20.8%) |
| EBIT | 1,761 | -1,259 | (171.5%) |
| Normalised EBIT2 | 1,763 | -1,452 | (182.4%) |
| Gain from discontinued business | 186 | 1,373 | 638.2% |
| Net loss | -271 | -3,390 | 1,380.3% |
Management Report
For the year ended 31 December 2023
90
2. General Company and Group information
Name and company
Jadran, joint stock company for hotel management and tourism, entity registration number (MBS): 040000817,
Company ID No. (OIB): 56994999963. The abbreviated name of the company is Jadran d.d.
Registered office and legal form
Jadran d.d. is a joint stock company. Its registered office is in Crikvenica, Bana Jelačića 16, Republic of Croatia.
Securities
The Company’s share capital amounts to EUR 64,039,780 and is divided among 27,971,463 ordinary shares
without a nominal value. The shares were issued in dematerialized form, ticker symbol JDRN-R-B, ISIN code
HRJDRNB0002 and are kept in the SKDD depository.
Based on the decision of the General Assembly on the adjustment of share capital dated 14 July 2023, pursuant
to the provisions of the Act on Amendments to the Companies Act, the share capital of the Company, was reduced
by the amount of 1.01 euros, from the amount of EUR 64,039,781.01 to the amount of EUR 64,039,780.00. The
difference of EUR 1.01 was allocated to capital reserves.
In 2023, the Supervisory Board comprised the following members:
o Goran Hanžek, Chairman of the Supervisory Board
o Karlo Došen, Deputy Chairman of the Supervisory Board
o Mirko Herceg, Member of the Supervisory Board
o Sandra Janković, Member of the Supervisory Board
o Adrian Čajić, Member of the Supervisory Board
In 2023, the Management Board comprised the following members:
• from 1 January 2023 to 30 November 2023:
o Ivan Safundžić, Member of the Management Board
o Miroslav Pelko, Member of the Management Board
• from 1 December 2023 to 31 December 2023:
o Irina Tomić, President of the Management Board
o Ivan Safundžić, Member of the Management Board
o Miroslav Pelko, Member of the Management Board.
The members of the Company’s Management Board are authorised to represent the Company together with
another member of the Management Board, based on the amendment to the provisions of the Articles of
Association adopted at the General Assembly as at 31 August 2020.
The Jadran group consists of Jadran d.d. and its subsidiaries:
Until 6 February 2023
• Club Adriatic d.o.o. in which Jadran d.d. had 4 business shares with a total value of EUR 15,542,438.12,
which makes 100% of shares and voting rights (one business share with a nominal amount of EUR
1,325.90, one business share with a nominal value of EUR 7.110.239,56, one business share with a
nominal amount of EUR 851,814.98 and one business share with a nominal amount of EUR
7,579,069.91).
• Stolist d.o.o. in which Jadran d.d. has 100% business shares.
Management Report
For the year ended 31 December 2023
91
2. General Company and Group information (continued)
After the Company has successfully fulfilled all the prerequisites established by the concluded agreements on the
purchase of business shares in the company Adria coast turizam d.o.o., which foresees the acquisition of 100% of
the shares in that company by Jadran d.d., as well as the agreement on the sale of business shares in the Club
Adriatic d.o.o., by which Jadran sells and transfers 100% of the shares in that company to Adria Grupa Baško Polje
d.o.o., on 6 February 2023, the following contracts were concluded:
• agreement on the transfer of business shares in the company Adria coast turizam d.o.o., by which Jadran
d.d. acquired 100% of the shares in that company;
• agreement on the transfer of business shares in the company Club Adriatic d.o.o., by which Jadran
transferred 100% of the shares in that company to Adria Grupa Baško Polje d.o.o.
Based on the above-mentioned contracts, as of 6 February 2023, Jadran group consists of Jadran d.d. and its
subsidiaries:
• Adria coast turizam d.o.o., in which Jadran d.d. has 20 business shares with a total value of EUR 13,200,
the individual nominal value of the business share in the amount of EUR 660, which constitutes 100% of
the shares and voting rights and
• Stolist d.o.o. in which Jadran d.d. has 100% business shares.
The list of the Company’s shareholders with a 5% share or more in the share capital of Jadran d.d. (balance at 31
December 2023) is as follows:
• Erste & Steiermarkische bank d.d../PBZ CO OMF - CATEGORY B holds 16,307,401 shares, representing
a 58.30% share in the Company’s share capital;
• OTP banka d.d./ERSTE PLAVI OMF CATEGORY B holds 8,547,346 shares, representing a 30.56%
share in the Company’s share capital.
Management Report
For the year ended 31 December 2023
92
3. Realised overnights
In 2023, the Republic of Croatia faced a series of challenges that impacted the hospitality industry, including the
transition to the euro as the official currency. In analysing the company's business for the reporting period, it is
important to highlight the influence of economic factors on the tourism industry. As widely known, economic
conditions play a crucial role in consumers' decisions about travel and spending during these travels. The
introduction of the euro as a new currency in the Republic of Croatia significantly marked the business environment,
causing fluctuations in prices and adjustments in consumer habits. For this reason, the year 2023 started with
bookings relatively late, with a majority of last-minute bookings.
If we focus on campsites, in 2023 they did not record the expected number of overnight stays, despite being a
popular choice in the tourism industry in the past. Their attractiveness stems from a combination of comfort, hotel-
like infrastructure, additional privacy, proximity to nature, and freedom of movement. This allure became
particularly evident due to specific epidemiological circumstances in previous years, becoming a trend in choosing
preferred accommodation.
The lack of the expected number of overnight stays in campsites in 2023 can be attributed to various factors,
including changes in tourist preferences, competition from other types of accommodation, as well as economic and
political influences on the tourism industry as a whole.
In hotel accommodation, there was a 27% decrease compared to 2022, while campsites within the Company
record a smaller decrease of 2% compared to the previous year. It is important to note that the Company did not
operate at the same capacities in 2023 and 2022. When comparing overnight stays in the same capacities, there
was an overall increase of 3% in 2023 compared to 2022.
The share of the group channel of sales, observed in the same capacities, increased by 29% compared to 2022,
the share of the allotments channel increased by 6%, the share of the online channel increased by 5%, and the
share of the individual channel decreased by 10% compared to the year before.
Jadran d.d. achieved 82% of overnight stays from foreign guests in 2023, with 18% of overnight stays from
domestic guests in hotel capacities. In 2023, foreign guests mostly came from the source markets of Slovenia,
Germany, Hungary, Austria, Czech Republic, Slovakia, and Poland.
Looking at the data for the Group, there was a 25% decrease in hotel accommodation compared to 2022, while
campsites within the Company recorded decrease of 43% compared to the previous year. It is important to note
that the Group did not operate at the same capacities in 2023 and 2022. When comparing overnight stays in the
same capacities, 13% more overnights were realized in hotel accommodation, 2% fewer overnights were realized
in campsites, while overall 9% more overnights were realized compared to 2022.
For the Group, the share of the group channel of sales, observed in the same capacities, increased by 42%
compared to 2022, the share of the allotment channel increased by 15%, the share of the online channel increased
by 13%, and the share of the individual channel decreased by 6% compared to the year before.
In 2023, the Group achieved 82% of overnight stays from foreign guests, with 18% of overnight stays from domestic
guests in hotel capacities. Foreign guests mostly came from the source markets of Slovenia, Germany, Austria,
Hungary, Poland, Czech Republic and Slovakia in 2023
Management Report
For the year ended 31 December 2023
93
4. Company and Group business performance
4.1. Overview of the Company's operations in 2023
After three years of struggle with the impact of the COVID-19 pandemic on business operations, 2023 was the first
year in which the business of the Company and the Group took place without any health restrictions.
The positive tourism trends that marked the 2022 continued at the beginning of 2023. New Year's holidays and
occupancy of facilities were a good indicator of tourist trends in the coming period. Even though the contract for
the lease of Hotel Lišanj in Novi Vinodolski expired on 31 January 2023, the lack of family capacity was successfully
compensated by the capacity at Hotel Katarina. In addition to the family segment, the group segment also
increased its activities, and in the first quarter, in the same capacities, the best tourism results were achieved so
far.
In addition to Hotel Lišanj, in 2023, compared to 2022, the Company operated without Garden Palace Resort Umag
(the contract was terminated on September 30, 2022), while the Heritage Hotel Stypia entered the Company's
portfolio at the end of 2022 with 25 accommodation units, and also Boutique Hotel Noemia with 62 accommodation
units (transferring the lease agreement from Club Adriatic d.o.o. to Jadran d.d.). Also, at the beginning of February,
Jadran d.d. bought the company Adria coast turizam and the contract for the lease of the Grand Hotel View was
terminated, and the mentioned hotel became part of the Jadran group.
In the period from January to December, Jadran d.d. achieved a total of 504,232 overnights, which is 21% less
than the overnight stays achieved in the same period in 2022. If overnights in the same capacity were compared,
then in 2023, 3% more overnight stays were realized. The most overnight stays were made by guests from the
Republic of Croatia, Slovenia, Germany, Hungary, Austria, the Czech Republic, Slovakia and Poland.
Business in 2023 was still marked by an increase in costs, primarily food and beverage costs, but the Company
carried out all necessary activities to optimize operations.
In the period from January to December 2022, Jadran d.d. generated total revenues of EUR 35,333 thousand
which is 9% higher than the total revenues generated in 2022. Total expenses amounted to EUR 31,918 thousand
and are 7% higher than the expenses realized in 2023. The realized profit before taxation amounts to EUR 3,415
thousand, in contrast to the year before, when the realized profit was EUR 2,486 thousand.
EBITDA in 2023 amounts to EUR 10,670 thousand and is 10% less than EBITDA realized in 2022.
In 2023, the Company generated a total of EUR 35,333 thousand in revenue, which is 9% more than the revenue
generated in 2022. If you were to compare the revenues generated in the same capacities and without one off
revenues, then in 2023, 12% more revenues were generated.
Sales revenues amounted to EUR 23,600 thousand and are 19% less than those realized in 2022, while other
revenues amounted to EUR 11,721 thousand or EUR 8,812 thousand higher than those realized in 2022.
Finance income amounted to EUR 12 thousand and is EUR 233 thousand less than the income realized in 2022.
In 2023, the company made a total of EUR 31,918 thousand in expenses, which is 7% more than the expenses
made in 2022. Operating expenses amounted to EUR 30,351 thousand and are 9% higher than the expenses
realized in 2022. Finance costs amounted to EUR 1,567 thousand and are 25% less than the costs realized in
2022.
Management Report
For the year ended 31 December 2023
94
4. Company and Group business performance (continued)
4.1. Overview of the Company's operations in 2023 (continued)
The costs of raw materials and materials amounted to EUR 4,975 thousand and are 16% lower than those in 2022.
The costs of services amounted to EUR 5,623 thousand and are 7% lower than those realized in 2022. Staff costs
amounted to EUR 8,332 thousand and are 5% higher than the costs realized in 2022. Depreciation amounted to
EUR 5,700 thousand and is 24% less than the depreciation realized in 2022. Impairment of long-term non-financial
assets amounts to EUR 3,251 thousand, while the impairment of non-financial assets in 2022 amounted to EUR -
1,225 thousand. Net gains from the adjustment of the value of financial assets amounted to EUR 30 thousand and
are 25% lower than those realized in 2022. Other operating expenses amounted to EUR 2,500 thousand and are
46% higher than those realized in 2022.
4.2 Overview of the Group's operations in 2023
During 2023, subsidiaries of the Group changed. By selling the company Club Adriatic d.o.o. the Group was left
without facilities located in Baška voda, while with the purchase of the company Adria coast turizam it became the
owner of the Grand Hotel View in Postire. The group recorded the investment in the subsidiary Club Adriatic d.o.o.
at cost (in the amount of EUR 15.6 million). In the sale transaction of Club Adriatic d.o.o. and purchase of Adria
coast turizam d.o.o. with the other party, Adria Group Baško Polje, the net value of the transaction ("company for
company") was defined in the amount of approximately EUR 23.1 million, from which it follows that Jadran realized
a profit on the transaction in the amount of approximately EUR 7.5 million.
The Group achieved a total of 561,072 overnights from January to December 2023, which is 30% less than the
overnights achieved in 2022. However, when comparing the data in the same capacity, in 2023 a total of 9% more
overnight stays were achieved than in 2022.
From January to December 2023, the Group generated a total of EUR 32,428 thousand in revenue, which is 3%
less than the revenue generated in 2022. Total expenses amounted to EUR 36,661 thousand and are 9% higher
than the expenses realized in 2023. The realized loss before taxation amounts to EUR 4,233 thousand, in contrast
to the year before, when a loss of EUR 289 thousand was realized.
EBITDA in 2023 amounts to EUR 7,797 thousand and is 21% lower than EBITDA realized in 2022.
In 2023, the Group generated a total of EUR 32,428 thousand in revenue, which is 3% less than the revenue
generated in 2022. If we were to compare the revenues generated in the same capacities and without one-off
revenues, then in 2023 a total of 21% more revenues were generated.
Sales revenues amounted to EUR 28,642 thousand and are 5% less than those realized in 2022, while other
revenues amounted to EUR 3,782 thousand or 29% more than those realized in 2022. Financial income amounted
to EUR 4 thousand and is EUR 244 thousand less than the income realized in 2022.
In 2023, the Group incurred a total of EUR 36,661 thousand in expenses, which is 9% more than the expenses
incurred in 2022. Operating expenses amounted to EUR 33,683 thousand and are 7% higher than the expenses
realized in 2022. Finance costs amounted to EUR 2,978 thousand and are 30% higher than the costs realized in
2022.
Management report
For the year ended 31 December 2023
95
4. Company and Group business performance (continued)
4.2 Overview of the Group's operations in 2023 (continued)
The costs of raw materials and supplies amounted to EUR 5,926 thousand and are 3% lower than those in 2022. The
costs of services amounted to EUR 6,432 thousand and are 3% higher than those realized in 2022. Staff costs
amounted to EUR 9,375 thousand and are 14% higher than the expenses realized in 2022. Depreciation amounted to
EUR 9,056 thousand and is 13% higher than the depreciation realized in 2022. Impairment of long-term non-financial
assets amounted to EUR -276 thousand, while the impairment of non-financial assets in 2022 amounted to EUR 971
thousand. Net gains from the adjustment of the value of financial assets amounted to EUR 83 thousand, while in 2022
they amounted to EUR 2 thousand. Other business expenses amounted to EUR 3,087 thousand, while in 2022 they
amounted to EUR 1,728 thousand.
5. Asset management
5.1. Management of Company and Group assets
Jadran d.d. manages owned properties and properties for which it has entered into lease agreements for a period
longer than 1 year.
On 1 February 2023, the lease contract for the Hotel Lišanj in Novi Vinodolski expired, and Jadran d.d. returned the
possession of the hotel to the lessor.
On February 6, 2023, the Company concluded a sales contract for the purchase of business shares of Adria coast
turizam d.o.o. which has one real estate which essentially represents the hotel View on the island of Brač. By concluding
this purchase agreement, the Company no longer had the need to extend the lease agreement for the lease of the
hotel View. During 2023, the hotel View operated as part of Adria coast turizam d.o.o.
5.2. Company and Group disputes
After the bankruptcy proceedings were completed in 2014, the Company continued to conduct all legal disputes initiated
at the time of bankruptcy of Jadran d.d., as well as those that the Company did not manage to resolve during the
bankruptcy period.
The process of the Company’s transformation and the Property Statement Resolution issued by the Croatian
Privatisation Fund resulted in unresolved proprietary matters. For the purpose of resolving such proprietary matters
regarding the Company’s properties, the Company initiated individual corrective processes to align the land registry
status with the actual status of the properties, as well as processes to establish title.
Modular structures owned by third parties were illegally mounted on a part of assets owned by the Company, namely at
the Selce campsite. As the owners of such modular structures refuse to remove them and surrender the plots, the
company took legal action for the purpose of repossessing the land/plots.
The Company is involved in property disputes for determining the title over a part of land surrounding the Slaven hotel
and annex buildings.
Management report
For the year ended 31 December 2023
96
5. Asset management (continued)
5.2. Company and Group disputes (continued)
The Company is involved in three legal proceedings concerning the establishment of title regarding two restaurants
that had been owned by the Company until 2006, when the Company leased them out. Based on the Decisions of the
Primorje-Gorski Kotar County, these facilities were given to be managed by third parties, without the Company
receiving any compensation. In the meantime, the border of the maritime domain has been determined, which also
includes the stated facilities. The proceedings in question are being conducted against the Town of Crikvenica and the
Republic of Croatia.
Also, the Company has several disputes with the Town of Crikvenica, related to property issues.
As regards other legal proceedings, the Company is a party to proceedings for the restitution of and compensation for
property seized and enforcement proceedings to collect debt owed to it by third parties.
In 2023, Adria coast turizam and Stolist were not involved in any proprietary or other legal disputes and the above-
mentioned disputes are also relevant for the Group.
Management report
For the year ended 31 December 2023
97
6. Group and Company risk exposure
The most significant risks faced by the Company and the Group are as follows:
Competition risk
Competition risk in the tourism market is very high because other similar tourism destinations have invested substantial
funds to further improve and develop their capacities, as well as in other marketing activities focusing on the arrival of
tourists. Among other things, competition is based on the prices, quality and substance of tourism offers on the
Crikvenica Riviera, Makarska Riviera, Riviera of Brač island and other domestic and foreign tourism destinations. In
order to increase its market competitiveness, the Company and the Group are in the period from 2018-2023 launched
an investment cycle that does not only involve investing in accommodation facilities with the aim of increasing the
number of units and raising the quality of accommodation, but also investing in the destination through active
involvement in all existing events, as well as thinking about new attractions in the area of all the Rivieras where the
Company and the Group operate.
Currency risk
The official currency of the Company and the Group in 2023 is EUR, which reduced the currency risk to a minimum.
The Company and the Group realise most of their sales with guests whose official currency is the euro, therefore no
significant disruptions are expected that could affect the Company's and the Group's operations.
Interest rate risk
The Company and the Group are exposed to interest rate risk because they enters into loan agreements with banks at
variable interest rates, which exposes the Company and the Group to higher risk. The inflation rate trends and the
levels of interest rates on foreign and domestic financial markets are actively monitored, enabling the Company and
the Group to react in a timely manner in the event of expected changes in interest rates on the domestic money market.
In particular, announcements by central banks that create monetary policy are actively followed, and accordingly the
Company and the Group plan to align their credit arrangements.
Settlement risk
Settlement risk is present in all bilateral transactions. Given that settling financial obligations to issuers is one of the
key elements necessary for smooth business operations, the Company and the Group consider this risk to be highly
important. The Company and Group have established stringent procedures to minimise collection risks. In times of
pandemic diseases, armed conflicts in the immediate or distant environment, individual partners may be additionally
exposed to the risk of reduced liquidity, which may lead to an increase in the risk of settlement from the other contracting
party. In addition, settlement risk arising from executed contracts may be significantly increased if there is an option of
terminating them on grounds of force majeure if the free movement of people and goods is disrupted during a pandemic
or armed conflicts in the immediate or distant environment.
Inflation risk (increase in consumer prices)
The pandemic caused by COVID-19 and the disruptions in supply chains that it caused as a direct consequence had
an increase in energy prices, but also the prices of other goods and services, which were further increased by the war
in Ukraine. The war in Ukraine has fuelled global inflation and a general rise in prices.
Inflation and an increase in the purchase prices of goods and services can have an impact on the purchasing power of
guests, but also on the selling prices in the Company's and Group's facilities.
The Company and the Group achieve a large share of overnight stays through direct channels, thus achieving flexibility
when forming final prices.
Management report
For the year ended 31 December 2023
98
6. Group and company risk exposure (continued)
Liquidity risk
The Company and the Group manage liquidity risk by maintaining adequate reserves, bank borrowings and other
sources of financing, by continuously monitoring planned and actual cash flows and matching the maturity profiles of
financial assets and liabilities. The Company and the Group pay special attention to this risk in order to determine
possible factors and negative effects that may affect the free movement of guests, the reduction of guests' purchasing
power and the fulfilment of contractual obligations by business partners.
Liquidity risk management includes maintaining sufficient cash and working capital.
Risk of changes in tax and concession regulations
The risk of changes in tax and concession regulations is the likelihood that legislative authorities will amend tax
regulations in a way that they adversely impact the Company’s and the Group’s profitability. This risk is reflected in
potential changes in tax rates and taxable assets, as well as changes in regulations concerning concessions and
concessional authorisations. The right to use maritime domain is one of the significant conditions for the Company’s
further operations, and the Company has actively endeavoured to establish new bases for cooperation with the local
community in this segment.
Tourism industry risk
The wider political situation, the rise of terrorism, the global financial crisis and pandemic diseases have a significant
impact on tourism trends. Tourism as a branch is very sensitive to the security situation in the destination and
surroundings. Through the previously indicated investment cycle, the Company and the Group will try to minimize the
impact of "negative" market trends and risks on this basis.
The global financial crisis can significantly reduce the purchasing power of the population that is inclined to travel, while
pandemic diseases and war can also significantly reduce or completely or partially eliminate the effect of tourists
arriving at the Company's and Group's destination.
Environmental risk
Environmental risk may significantly affect the Company’s performance, notably through the quality of the sea and
coast where guests stay. Climate changes may directly affect the length of stay in the Company’s accommodation
facilities. This risk also includes various other natural disasters.
7. Employees
As at 31 December 2023, Jadran d.d. had a total of 265 employees.
As at 31 December 2023, Adria coast turizam d.o.o. had a total of 28 employees.
As at 31 December 2023, Stolist d.o.o. had no employees.
As at 31 December 2023, the Group had a total of 293 employees.
8. Research and development activities
The Company and the Group constantly monitor development in its environment and invests in market research,
identification of new business opportunities and new acquisitions. The Company directs and supports the activities of
its related parties.
Management report
For the year ended 31 December 2023
99
9. Treasury share redemption
As at 31 December 2023, the share capital of Jadran d.d. amounted to EUR 64,039,780, divided into 27,971,463
regular dematerialised shares with no nominal value and the Company held 631 treasury shares, which accounted for
0,0023% of the Company's share capital.
As at 31 December 2023, the share capital of Adria coast turizam d.o.o. amounted to EUR 13,200.
As at 31 December 2023, the share capital of Stolist d.o.o. amounted to EUR 2,654.46.
10. Significant events after the reporting period
On 19 March 2024, the lease contract for Uvala Slana camp was terminated, and on 20 March 2024, the camp was
handed over to the owners.
After 31 December 2023, no business events or transactions have occurred or are expected to have a significant
impact on the financial statements as of or for the period ending on 31 December 2023 or that they are of such
importance for the operations of the Company and the Group that they should be disclosed in the notes to the financial
statements.
11. Related party transactions
Related party transactions take place under normal commercial conditions and terms and with the application of market
prices, as disclosed in Note 35.
Corporate Governance Statement
For the year ended 31 December 2023
100
Corporate Governance Statement
Jadran d.d. (hereinafter Jadran d.d. or the Company), in accordance with Article 250.b. paragraphs 4 and 5 and Article
272.p of the Companies Act (Official Gazette No. 111/93, 34/99, 121/99, 52/00 - Decision of the Constitutional Court
of the Republic of Croatia, 118/03, 107/07, 146/08, 137/09,152/11 - consolidated text, 111/12, 68/13, 110/15, 40/19
34/22, 114/22 and 18/23), hereby issues this Corporate Governance Statement.
In 2023, Jadran d.d., whose shares are listed on the ZSE Official Market, applied the Code of Corporate Governance
adopted by the Croatian Financial Services Supervisory Agency (HANFA) and the Zagreb Stock Exchange, Inc.
Zagreb. This Code has been in force since 1 January 2020, and has been published on the website of the Stock
Exchange (www.zse.hr) and on the website of the Croatian Financial Services Supervisory Agency (www.hanfa.hr).
The Company’s application of the Zagreb Stock Exchange’s Code is reflected in an annual questionnaire which is
publicly disclosed in accordance with the applicable regulations. The answers in the questionnaire clearly show which
provisions of the Code are complied with by the Company and which are not, and the Questionnaire is publicly available
on the official website of the Zagreb Stock Exchange (www.zse.hr).
The Company's shares were listed on the official market of the Zagreb Stock Exchange in January 2018, and the
shareholding report is an integral part of the Annual Report. As of the date its shares were first quoted on the stock
exchange, the Company has not distributed dividend.
The Company’s share capital is EUR 64,039,780, divided and contained in 27,971,463 registered common
dematerialised shares without nominal value, each entitling its holder to one vote. There are no holders of securities in
the Company that entail special control rights or voting limitations to a specific percentage or number of votes. As at
31 December 2023, the Company held 631 treasury shares.
Information about significant shareholders is available on a daily basis on the official website of the Central Depositary
and Clearing Company (www.skdd.hr). The corporate bodies of the Company consist of the General Assembly, the
Supervisory Board and the Company's Management Board. The members of the corporate bodies of the Company
have the duty and obligation to act in accordance with the best interest of the Company in their work. The Company
applied the principle of equal treatment of all shareholders. The shareholders exercised their primary control rights by
deciding on matters within their scope of responsibility via the General Assembly. The operation of the General
Assembly, its powers, the rights of shareholders and the manner of their realisation are prescribed by the Company's
Articles of Association, which are publicly available on the Company's website (www.jadran-crikvenica.hr).
The General Assembly is responsible for deciding on the following matters: election and removal of Supervisory Board
members, allocation of profits, granting discharge to Management Board members, appointment of auditors,
amendments to the Articles of Association, increasing and decreasing of share capital and any other matters placed
under its responsibility under the law. The shareholders exercise their rights via the General Assembly .
In 2023, the General Assembly was convened and held in accordance with the provisions of the Companies Act and
the Company's Articles of Association. The General Assembly notice, the motions made to, and resolutions passed by
the General Assembly are publicly disclosed in accordance with the Companies Act, the Capital Market Act, the Zagreb
Stock Exchange Rules and the Company's Articles of Association. Registrations for the General Assembly are limited
insomuch as each shareholder is required to notify his/her their participation in accordance with the Companies Act.
At the session held on14 July 2023, decisions, as mentioned below, were adopted: on granting discharge to the
members of the Management Board and the Supervisory Board, the decision on loss coverage, the decision on the
election of the members of the Supervisory Board, the Report on the Remuneration of Members of the Management
Board and the Supervisory Board was approved, the Decision on share capital adjustment was adopted, as well as the
decision on amendments to the Company's Articles of Association, and an auditor was appointed to audit the financial
statements for the year 2023.
All decisions from the sessions of the General Assembly were published in accordance with legal regulations on the
websites of the Company (www.jadran-crikvenica.hr), the Zagreb Stock Exchange and HANFA.
Corporate Governance Statement
For the year ended 31 December 2023
101
In accordance with the Corporate Governance Code of the Zagreb Stock Exchange and HANFA in force since 1
January 2020, the Supervisory Board is mainly composed of independent members who do not have business, family
or other relations with the Company, the majority shareholder or a group of majority shareholders or members of the
Management Board or the Supervisory Board of the Company or the majority shareholder. The Supervisory Board has
five members, four of whom are elected and relieved of duty by the General Assembly, and one representative is
elected by the employees in accordance with the provisions of the Labour Act. In accordance with the amendment of
the Articles of Association adopted at the General Assembly on 31 August 2020, the term of office of the Supervisory
Board members was 2 years. In accordance with the amendment of Article 19. para. 4. of the Articles of Associatio
adopted at the General Assembly held on 14 July 2023, the term of office of members of the Supervisory Board is 4
years.
The rules for appointing and removing members of the Management Board and the Supervisory Board are defined by
the Articles of Association and the Companies Act.
No restrictions as regards gender, age, education, profession or other similar restrictions apply in any executive,
managing or supervisory bodies or at any other level.
Pursuant to the Companies Act and the Company's Articles of Association, the Supervisory Board renders decisions
at its meetings. In 2023, the Supervisory Board supervised the management of the Company's affairs in accordance
with the Companies Act, the Articles of Association and other internal corporate documents. The Supervisory Board
held a total of 10 meetings, which is consistent with good corporate practices. At its session held on 14 July 2023, the
General Assembly passed the Decision on the reappointment of Supervisory Board Members Mr. Goran Hanžek and
Mr. Karlo Došen. The decision in question established that their mandate lasts 4 years.
After the General Assembly, a meeting of the Supervisory Board was held at which the Chairman and Deputy Chairman
of the Supervisory Board were appointed, and a Decision was made on the appointment of Committees that assist the
work of the Supervisory Board. During 2023, the Supervisory Board was assisted in its work by two Committees,
namely the Audit and Remuneration Committee and the Appointment Committee.
As at 14 July 2023, the Supervisory Board comprised the following persons:
- Goran Hanžek, Chairman of the Supervisory Board
- Karlo Došen, Deputy Chairman of the Supervisory Board
- Mirko Herceg, Supervisory Board Member
- Sandra Janković, Supervisory Board Member
- Adrian Čajić - Supervisory Board Member (employee representative).
In 2023, the Management Board managed the Company’s affairs in accordance with the Companies Act, the Articles
of Association and other internal corporate documents, and fully complied with the provisions of the Code. On 8
November 2023, the Supervisory Board decided on the appointment of the President of the Management Board, Mrs.
Irina Tomić. The appointment decision established that Mrs. Tomić's term of office begins on 1 December 2023 and
lasts for 4 years.
In 2023, the Company’s Management Board comprised the following persons:
- from 1 January 2023 to 30 November 2023:
- Ivan Safundžić, Member of the Management Board
- Miroslav Pelko, Member of the Management Board.
- from 1 December 2023 to 31 December 2023:
- Irina Tomić, President of the Management Board
- Ivan Safundžić, Member of the Management Board
- Miroslav Pelko, Member of the Management Board.
At the session held on 29 December 2023, the Supervisory Board passed the Decision on amending the Management
Board's Rules of Procedure.
Members of the Company’s Management Board are authorised to represent the Company together with another
member of the Management Board, based on the amendment of the Articles of Association adopted at the General
Assembly on 31 August 2020.
In 2020, the Company established the Internal Audit Department, and in June 2020, the Internal Audit Charter was
adopted, which defines the operational framework and the main principles used in the Company's internal audits.
Corporate Governance Statement
For the year ended 31 December 2023
102
The Internal Audit Department is responsible for assessing the level of risk management in business processes,
auditing the effectiveness of internal control systems, in order to improve risk management and compliance with
procedures, examining and analysing compliance of existing business systems with adopted policies, plans,
procedures, laws and rules that may have a significant impact on business reports. It is charged with recommending
preventive measures in the areas of financial reporting, compliance, operations and control in order to eliminate risks
and possible deficiencies that could lead to the inefficiency of processes or fraudulent procedures. Internal audit informs
the Management Board, the Audit and Remuneration Committee and the Supervisory Board about its activities and
audit plan.
The Company complies with the provisions of the Code, except for those provisions that cannot be implemented at a
given time. Such exceptions are as follows:
- The Company will not provide a proxy holder for shareholders who are unable to vote personally at the General
Assembly for any reason. The Company has not received such requests from its shareholders to date but
does provide its shareholders with a proxy form to help them authorise a person of their choice as their proxy;
- The Company does not maintain a long-term succession plan within the meaning of the Code but has a
general plan for the replacement of key function holders through ongoing training programs;
- The remuneration paid to the Supervisory Board Members was not determined based on their contribution to
the Company’s performance but equals a fixed amount in line with the decision of the General Assembly. In
order to maintain the independence and objectivity of the Supervisory Board members, the remuneration of
the members of the Supervisory Board does not depend on the results of the Company and does not contain
a variable part of the remuneration. In addition, it is not possible to evaluate each Supervisory Board Member’s
contribution to the Company’s performance, especially since the Supervisory Board Members are not actively
involved in the management of Company’s business;
- The Audit and Remuneration Committee is not mostly comprised of independent Supervisory Board Members.
It was decided to implement an alternative solution offered by Article 65 of the Audit Act, so the Supervisory
Board appointed all three Members of the Audit Committee from among Supervisory Board Members. Of
these three Audit and Remuneration Committee members, one is an independent Supervisory Board member
and his membership in this Committee reflects the relevant proportion of independent members in the
Supervisory Board. All three Audit Committee members are financial experts;
- The Supervisory Board did not prepare an evaluation of its activities in the past period, except for the review
contained in the 2023 Supervision Report and the results of examining reports relevant to the closing of the
fiscal year 2023;
- No transactions were conducted that involved any Supervisory Board Members or their related parties and
the Company or its related parties, which is why they were not specified in the Company’s reports. This also
pertains to transactions involving Management Board members or Executive Directors or their related parties
and the Company or its related parties;
- No contracts or agreements were entered into in 2023 between Supervisory Board Members or Management
Board Members and the Company;
In accordance with the provisions of the Corporate Governance Code, the Company adopted the Code of Conduct,
the Policy on Reporting Irregularities and the Conflict of Interest Management Policy, which acts are also published on
the Company's official website.
The Audit and Remuneration Committee adopted the Policy on Prohibited Audit Services.
As part of its organisational model that encompasses all business operations and processes, the Company maintains
developed internal control systems on all relevant levels which, inter alia, provide a true and fair view of the financial
statements and business reports
Pursuant to the Capital Market Act, the Zagreb Stock Exchange Rules and other applicable regulations, Jadran d.d.
discloses the required inside information and any changes thereto as soon as such changes occur within the required
deadlines.
Temeljni kapital Društva iznosi 64.039.780,00 euro uplaćen u cijelosti, podijeljen i sadržan u 27.971.463 redovnih nematerijaliziranih dionica koje glase
na ime, bez nominalnog iznosa i svaka s pravom na jedan glas. Društvo je upisano u Sudski registar Trgovačkog suda u Rijeci pri Trgovačkom sudu u
Rijeci pod MBS: 040000817. Uprava Društva: Irina Tomić predsjednica Uprave, Ivan Safundžić član Uprave, Miroslav Pelko član Uprave, predsjednik
Nadzornog odbora: Goran Hanžek. Poslovne banke i računi: PRIVREDNA BANKA ZAGREB d.d., IBAN: HR4323400091110722690, SWIFT:
PBZGHR2X te ERSTE & STEIERMÄRKISCHE BANK d.d., IBAN: HR3924020061100620496, SWIFT: ESBCHR22.
SUPERVISORY BOARD
Crikvenica, April 29, 2024
Pursuant to Article 300.d, subject to the provision of Article 300.c of the Companies Act (Official Gazette No. 111/93,
34/99, 121/99, 52/00, 118/03, 107/07, 146/08, 137/09, 125/11, 152/11, 111/12, 68/13, 110/15, 40/19, 34/22), and Article
34 of the Articles of Association of JADRAN d.d., the Supervisory Board of JADRAN d.d., having its registered office
in Crikvenica, Bana Jelačića 16, at its 10
th
meeting held on April 29, 2024 brings the following
Resolution on the Validation of Annual Financial Statements
I
The 2023 Annual Financial Statements for the Company are hereby approved, including as follows:
• Balance Sheet with assets equal to the liabilities in the amount of EUR 115,342,865
• Profit and Loss Statement with an operating gain in the amount of EUR 2,728,967
• Cash Flow Statement – Indirect Method- showing an increase in cash and cash equivalents in the amount of
EUR 227,466 in 2023
• Statement of Changes in Capital and Reserves amounting as of December 31, 2023, to a total of EUR
72,103,971
• Notes to the Annual Financial Statements
• Management Board's Annual Financial Condition Report
The 2023 Consolidated Annual Financial Statements for the Group are hereby approved.
The Auditor’s Report for the Company and the Group prepared by PricewaterhouseCoopers d.o.o., Heinzelova 70,
10000 Zagreb, PIN: 81744835353, is hereby also approved.
II
In accordance with the provision of Article 300.d of the Companies Act, based on the approval referred to in Section I
of this Resolution, the 2023 Annual Financial Statements for Jadran d.d are hereby validated by the Management
Board and the Supervisory Board.
Goran Hanžek
Chairman of the Supervisory Board
This is to certify that this Decision is
Identical as the signed original thereof
Jadran d.d. za hotelijerstvo i turizam
Bana Jelačića 16, HR-51260 Crikvenica
T. +385 51 241 222
E: uprava@jadran-crikvenica.hr
www.jadran-crikvenica.hr
OIB: 56994999963
Temeljni kapital Društva iznosi 64.039.780,00 euro uplaćen u cijelosti, podijeljen i sadržan u 27.971.463 redovnih nematerijaliziranih dionica koje glase
na ime, bez nominalnog iznosa i svaka s pravom na jedan glas. Društvo je upisano u Sudski registar Trgovačkog suda u Rijeci pri Trgovačkom sudu u
Rijeci pod MBS: 040000817. Uprava Društva: Irina Tomić predsjednica Uprave, Ivan Safundžić član Uprave, Miroslav Pelko član Uprave, predsjednik
Nadzornog odbora: Goran Hanžek. Poslovne banke i računi: PRIVREDNA BANKA ZAGREB d.d., IBAN: HR4323400091110722690, SWIFT:
PBZGHR2X te ERSTE & STEIERMÄRKISCHE BANK d.d., IBAN: HR3924020061100620496, SWIFT: ESBCHR22.
SUPERVISORY BOARD
Crikvenica, April 29, 2024
Pursuant to Article 300.d, subject to the provision of Article 300.c of the Companies Act (Official Gazette No. 111/93,
34/99, 121/99, 52/00, 118/03, 107/07, 146/08, 137/09, 125/11, 152/11, 111/12, 68/13, 110/15, 40/19, 34/22), and Article
34 of the Articles of Association of JADRAN d.d., the Supervisory Board of JADRAN d.d., having its registered office
in Crikvenica, Bana Jelačića 16, at its 10
th
meeting held on April 29, 2024 brings the following
PROPOSED DECISION ON THE USE OF GAIN FOR THE YEAR 2023
I
It is established that in the business year that ended on December 31, 2023, JADRAN d.d. made an operating gain in
the amount of EUR 2,728,967 and it is hereby proposed that the realized gain is to be used to cover losses from
previous years.
II
It is hereby further proposed that the General Meeting accept the joint proposal of the Management Board and the
Supervisory Board, as determined in Section I of this Resolution.
Goran Hanžek
Chairman of the Supervisory Board
This is to certify that this Decision is
Identical as the signed original thereof
Jadran d.d. za hotelijerstvo i turizam
Bana Jelačića 16, HR-51260 Crikvenica
T. +385 51 241 222
E: uprava@jadran-crikvenica.hr
www.jadran-crikvenica.hr
OIB: 56994999963