City Service : Consolidated interim financial statements for the twelve months period ended 31 December, 2023

CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER, 2023 (UNAUDITED)

Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

City Service SE

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER, 2023 (UNAUDITED)

Beginning of the reporting period	1 January 2023
End of the reporting period	31 December 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 twelve months period ended 31 December, 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	25
PROPERTY, PLANT AND EQUIPMENT	26
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	27
RIGHT OF USE ASSETS AND LEASE	30
TRADE RECEIVABLES	31
BORROWINGS	31
COST OF SALES	32
GENERAL AND ADMINISTRATIVE EXPENSES	32
OTHER OPERATING INCOME (EXPENSES)	33
INTEREST AND OTHER FINANCE INCOME AND (EXPENSES)	33
DIVIDENDS PER SHARE	33
RELATED PARTY TRANSACTIONS	34
SUBSEQUENT EVENTS	35

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Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

DECLARATION OF THE MANAGEMENT

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Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			Notes	As of 31	As of 31
			December 2023	December 2022
	Assets
	NON-CURRENT ASSETS
Goodwill	3	8,799	8,799
Other intangible assets	5	18,957	18,978
Property, plant and equipment	6	856	994
Right of use assets	8	2,154	3,902
Non-current receivables	9	5,939	4,941
Deferred income tax asset			1,732	1,501
TOTAL NON-CURRENT ASSETS			38,437	39,115
CURRENT ASSETS
Inventories			672	1,047
Prepayments			1,758	1,579
Trade receivables	9	25,506	20,483
Receivables from related parties	16	2,196	217
Contract assets			1,154	1,485
Other receivables and current assets			3,741	4,311
Cash and cash equivalents			9,176	3,434
TOTAL CURRENT ASSETS			44,203	32,556
Assets held for sale			-	6,032
	Total assets			82,640	77,703

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Consolidated interim financial statements for the twelve months period ended 31 December, 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 31		As of 31
December 2023		December 2022
9,483	9,483
-	948
8,490	21,067
6,044	(13,525)
-	(92)
24,017	17,881
176	138
24,193		18,019
10,279	10,459
1,564	2,739
1,222	1,335
4,707	4,553
17,772		19,086
1,138	3,038
701	1,313
9,000	1,829
8,160	8,611
5,119	3,475
6,335	7,891
10,221	10,427
40,674		36,584
1	4,014
58,447	59,684
82,640		77,703

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Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (for the period 1 January - 31 December)

		Notes
Revenue from contracts with customers	1.7
Cost of sales	11
Gross profit (loss)
General and administrative expenses	12
Impairment of goodwill, other intangibles and other non-current assets
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 Q4 2022 Q4 (Restated)

101,65784,385

(75,199)(60,185)

26,45824,200

(19,644)(19,671)

-(1,511)

(275)(568)

170510

6,7092,960

14,683248

(13,850)(946)

7,5422,262

(1,373)(877)

6,1691,385

(90)(9,890)

6,079(8,505)

-3,319

6,079(5,186)

6,041(4,660)

38(516)

6,079(5,176)

6,041(1,503)

38(354)

6,079(1,857)

Basic and diluted earnings per share (EUR)		0.19	(0.15)

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Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

STATEMENT OF COMPREHENSIVE INCOME

(for the period 1 October - 31 December)

Sales

Cost of sales

Gross profit (loss)

General and administrative expenses Impairment of goodwill, other intangibles and other non-current assets

Credit loss expenses on financial assets Other operating income, net

Gain (loss) from operations

Finance activity result, net

Gain (loss) before tax

Income tax

Net gain (loss) from continued operations Discontinued operations

Net profit (loss) from discontinued operations

Net profit (loss)

	2023 Q4		2022 Q4 (Restated)
	27,961	25,009
	(20,859)		(17,959)
	7,102	7,050
	(5,198)		(5,365)
	-		(1,511)
	(125)		(224)
	143		26
	1,922		(24)
	(225)		(36)
	1,697		(60)
	(138)		(261)
	1,559		(321)
	(30)	(6,727)
	1,529		(7,048)

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Consolidated interim financial statements for the twelve months period ended 31 December, 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)	-	-	-	-	(4,660)	-	(4,660)	(516)	(5,176)
	Other comprehensive	-	-	3,157	-	-	-	3,157	162	3,319
	Income
	Total comprehensive	-	-	3,157	-	(4,660)	-	(1,503)	(354)	(1,857)
	Income
	Disposal of subsidiaries	-	-	92	-	-	(92)	-	-	-
	Balance as of				9,483	21,067		-		948		(13,525)	(92)	17,881	138	18,019
	31 December 2022
	Balance as of				9,483	21,067	-		948	(13,525)	(92)	17,881	138	18,019
	1 January 2023
	Net profit (loss)	-	-	-	-	6,042	-	6,042	38	6,080
	Total comprehensive	-	-	-	-	6,042	-	6,042	38	6,080
	Income
	Transfers from	-	(12,577)	-	(948)	13,525	-	-	-	-
	reserves
	Disposal of subsidiaries	-	-	-	-	-	92	92	-	92
	Balance as of				9,483	8,490		-		-		6,042	-	24,015	176	24,191
	31 December 2023

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Consolidated interim financial statements for the twelve months period ended 31 December, 2023 (unaudited), thousand euros

CONSOLIDATED STATEMENT OF CASH FLOWS

	Notes	2023 Q4*	2022 Q4*
Cash flows from (to) operating activities
Net profit (loss) from continued operations		6,170	1,385
Net profit (loss) from discontinued operations		(90)	(9,890)
Adjustments for non-cash items:
Income tax expenses		1,403	776
Depreciation and amortisation	5,6,8	3,803	3,841
Impairment and discounting of accounts receivable		763	369
Gain (loss) on disposal of property, plant and equipment	13	93	(871)
Gain (loss) from sale of investments		(1,624)	(117)
Impairment of goodwill		(110)	130
Interest (income)		(131)	(155)
Interest (expenses)		1,264	1,044
Other financial activity, net		(275)	516
		11,266	(2,972)
Changes in working capital:
(Increase) decrease in inventories		994	(1,080)
(Increase) decrease in receivables, contract assets and other current assets		(13,726)	330
(Increase) decrease in prepayments		(28)	(554)
Increase (decrease) in trade payables and payables to related parties		16,970	6,764
Income tax (paid)		(961)	(1,361)
Increase (decrease) in advances received, contract liabilities and other current		(8,416)	4003
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

6,0995,130

(2,442)(3,707)

1,4141,579

52(6,279)

(704)545

131155

(7,560)(1)

6,9932,246

(2,116)(5,462)

5,183(8,031)

(2,439)(1,986)

(1,264)(1,044)

1,480(11,061)

5,463(11,393)

48216

Cash and cash equivalents at the beginning of the period*	3,666	6,172
Cash and cash equivalents at the end of the period	9,176	(5,005)

*Group cash flows for 2023 Q4 and 2022 Q4 comprise total consolidated Group, including discontinued operations.

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