City Service : Consolidated interim financial statements for the nine months period ended 30 September, 2023 (1.4 MB)

CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER, 2023 (UNAUDITED)

Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

City Service SE

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER, 2023 (UNAUDITED)

Beginning of the reporting period	1 January 2023
End of the reporting period	30 September 2023
Business name	City Service SE
Registration number	12827710
Legal address	Narva mnt. 5, 10117 Tallinn, the Republic of Estonia
Telephone	[phone]
Fax	[phone]
E-mail	[e-mail]
Website	http://www.cityservice.eu
Auditor	Ernst & Young Baltic AS

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONTENTS
DECLARATION OF THE MANAGEMENT	4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	5
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	7
STATEMENTS OF COMPREHENSIVE INCOME	8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	9
CONSOLIDATED STATEMENT OF CASH FLOWS	10
GENERAL INFORMATION	11
1.1. ACTIVITY	11
1.2. SHARE CAPITAL OF THE COMPANY	12
1.3. SHAREHOLDERS OF THE COMPANY	12
1.4. CITY SERVICE GROUP	13
1.5. COMPANY'S SUPERVISORY BOARD	16
1.6. COMPANY'S MANAGEMENT BOARD	17
1.7. ACTIVITY AND SEGMENT INFORMATION	18
ACCOUNTING POLICIES	20
GOODWILL	20
SIGNIFICANT EVENTS	22
OTHER INTANGIBLE ASSETS	24
PROPERTY, PLANT AND EQUIPMENT	25
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	26
RIGHT OF USE ASSETS AND LEASE	29
TRADE RECEIVABLES	30
BORROWINGS	30
COST OF SALES	31
GENERAL AND ADMINISTRATIVE EXPENSES	31
OTHER OPERATING INCOME (EXPENSES)	32
INTEREST AND OTHER FINANCE INCOME AND (EXPENSES)	32
DIVIDENDS PER SHARE	32
RELATED PARTY TRANSACTIONS	33
SUBSEQUENT EVENTS	34

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

DECLARATION OF THE MANAGEMENT

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			Notes	As of 30	As of 31
			September 2023	December 2022
	Assets
	NON-CURRENT ASSETS
Goodwill	3	8,800	8,799
Other intangible assets	5	18,967	18,978
Property, plant and equipment	6	723	994
Right of use assets	8	2,011	3,902
Non-current receivables	9	4,816	4,941
Deferred income tax asset			2,003	1,501
TOTAL NON-CURRENT ASSETS			37,320	39,115
CURRENT ASSETS
Inventories			1,127	1,047
Prepayments			1,640	1,579
Trade receivables	9	24,369	20,483
Receivables from related parties	16	1,945	217
Contract assets			1,085	1,485
Other receivables and current assets			3,481	4,311
Cash and cash equivalents			4,504	3,434
TOTAL CURRENT ASSETS			38,151	32,556
Assets held for sale			-	6,032
	Total assets			75,471	77,703

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (cont'd)

Notes

Equity and liabilities

EQUITY

Share capital

Other reserves

Share premium

Retained earnings (deficit)

Reserves of a disposal group classified as held for sale

Non-controlling interests

TOTAL EQUITY

Liabilities
NON-CURRENT LIABILITIES
Non-current borrowings	10
Lease liabilities	8
Deferred income tax liabilities
Non-current payables
TOTAL NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Current portion of non-current borrowings	10
Current portion of lease liabilities	8
Current loans	10
Trade payables
Payables to related parties	16
Contract liabilities
Other current liabilities

TOTAL CURRENT LIABILITIES

Liabilities related to assets held for sale

Total liabilities

Total equity and liabilities

As of 30		As of 31
September 2023		December 2022
9,483	9,483
948	948
21,066	21,067
(9,009)	(13,525)
-	(92)
22,488	17,881
172	138
22,660		18,019
9,141	10,459
1,441	2,739
1,242	1,335
4,520	4,553
16,344		19,086
2,583	3,038
564	1,313
4,782	1,829
7,102	8,611
4,586	3,475
6,496	7,891
10,354	10,427
36,467		36,584
-	4,014
52,811	59,684
75,471		77,703

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (for the period 1 January - 30 September)

		Notes
Revenue from contracts with customers	1.7
Cost of sales	11
Gross profit (loss)
General and administrative expenses	12
Credit loss expenses on financial assets
Other operating activity, net	13
Profit (loss) from operations
Interest and other finance income	14
Interest and other finance expenses	14
Profit (loss) before tax
Income tax
Profit (loss) from continued operations
Discontinued operations
Net profit (loss) from discontinued operations	7
Net profit (loss)

Other comprehensive income

Exchange differences on translation of foreign operations

Total comprehensive income

Attributable to:

The shareholders of the Company

Non-controlling interests

Total comprehensive income attributable to:

The shareholders of the Company

Non-controlling interests

2023 Q3 2022 Q3 (Restated)

73,69659,376

(54,340)(42,226)

19,35617,150

(14,446)(14,306)

(150)(344)

27484

4,7872,984

5,9352,110

(4,877)(2,839)

5,8452,255

(1,235)(616)

4,6101,639

(60)(3,163)

4,550(1,524)

-1,915

4,550391

4,516(1,031)

34(506)

4,550(1,537)

4,516884

34(506)

4,550(378)

Basic and diluted earnings per share (EUR)		0.14	(0.03)

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

STATEMENTS OF COMPREHENSIVE INCOME (for the period 1 July - 30 September)

	2023 Q3		2022 Q3 (Restated)
Sales	25,357	20,858
Cost of sales	(19,076)		(14,669)
Gross profit (loss)	6,281	6,189
General and administrative expenses	(4,279)		(4,503)
Credit loss expenses on financial assets	(294)		(150)
Other operating income, net	(124)		115
Gain (loss) from operations	1,584		1,651
Finance activity result, net	1,617		1,581
Gain (loss) before tax	3,201		3,232
Income tax	(406)		(332)
Net gain (loss) from continued operations	2,795		2,900
Discontinued operations
Net profit (loss) from discontinued operations	-	(1,275)
Net profit (loss)	2,795		1,625

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

								Foreign					Assets		Non-
						Share		currency		Other		Retained
			Notes		Share capital				held for	Total	controlling	Total
				premium		translation		reserves		earnings
									sale		interest
								reserve
	Balance as of				9,483	21,067	(3,249)		948	(8,865)	-	19,384	492	19,876
	1 January 2022
	Net profit (loss)	-	-	-	-	(1,031)	-	(1,031)	(506)	(1,537)
	Other comprehensive	-	-	1,863	-	-	-	1,863	52	1,915
	Income
	Total comprehensive	-	-	1,863	-	(1,031)	-	832	(454)	378
	Income
	Disposal of subsidiaries	-	-	1,837	-	-	-	1,837	114	1,951
	Balance as of				9,483	21,067		451		948		(9,896)	-	22,053	152	22,205
	30 September 2022
	Balance as of				9,483	21,067	-		948	(13,525)	(92)	17,881	138	18,019
	1 January 2023
	Net profit (loss)	-	-	-	-	4,516	-	4,516	34	4,550
	Total comprehensive	-	-	-	-	4,516	-	4,516	34	4,550
	Income
	Disposal of subsidiaries	-	-	-	-	-	92	92	-	92
	Balance as of				9,483	21,067		-		948		(9,009)	-	22,489	172	22,661
	30 September 2023

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Consolidated interim financial statements for the nine months period ended 30 September, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF CASH FLOWS

	Notes	2023 Q3*	2022 Q3*
Cash flows from (to) operating activities
Net profit (loss) from continued operations		4,610	1,639
Net profit (loss) from discontinued operations		(60)	(3,163)
Adjustments for non-cash items:
Income tax expenses		1,265	627
Depreciation and amortisation	5,6,8	3,138	2,986
Impairment and discounting of accounts receivable		2,306	480
Gain (loss) on disposal of property, plant and equipment	13	160	(484)
Gain (loss) from sale of investments		(2,183)	(115)
Impairment of goodwill		581	-
Interest (income)		(80)	(100)
Interest (expenses)		1,767	773
Other financial activity, net		(422)	1,165
		11,082	3,808
Changes in working capital:
(Increase) decrease in inventories		539	(1,415)
(Increase) decrease in receivables, contract assets and other current assets		(4,326)	3,817
(Increase) decrease in prepayments		92	(757)
Increase (decrease) in trade payables and payables to related parties		6,503	1,850
Income tax (paid)		(650)	(1,143)
Increase (decrease) in advances received, contract liabilities and other current		(8,589)	1,975
liabilities

Net cash flows from (to) operating activities
Cash flows from (to) investing activities
(Acquisition) of non-current assets (except investments)	5,6

Proceeds from sale of non-current assets

(Acquisition) of investments in subsidiaries (net of cash acquired in the Group) Disposal of investments in subsidiaries

Interest received

Loans (granted)

Loans repaid

Net cash flows (to) from investing activities

Cash flows from (to) financing activities (Repayment) proceeds of loans

(Repayment) of financial lease liabilities Interest (paid)

Net cash (to) financial activities

Net increase (decrease) in cash and cash equivalents

Foreign exchange difference

4,6518,135

(4,008)(2,988)

3,4821,066

52(6,288)

(695)(854)

144100

-(1)

-3

(1,025)(8,962)

1,272332

(2,341)(1,372)

(1,767)(773)

(2,836)(1,813)

790(2,640)

48191

Cash and cash equivalents at the beginning of the period*	3,666	6,172
Cash and cash equivalents at the end of the period	4,504	3,723

*Group cash flows for 2023 Q3 and 2022 Q3 comprise total consolidated Group, including discontinued operations.

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