1. Introduction
During 2006 Baltic real estate market experienced rapid growth, but stabilized
both in demand and price levels in the second half of the year. In all Baltic
countries also construction costs increased remarkably as a result of increased
labor and row material prices. At the same time extended selling period was
noticed only in higher segment in Estonian market caused by customers wish to
see the final product. Q Vara OÜ has successfully coped with the new market
situation. To respond to quickly changing market conditions the management
decided to postpone the beginning of the sales process into the final phases of
the project both in Kirsiaed and Pinki II. This has helped to avoid the
situation in which the selling prices are fixed long before the final
construction prices are clear that may significantly impact profit margin. The
management is strongly focused on the long-term profitability and has not
decreased the margins in order to fasten the sales process and meet the short
term forecasts.
In its development activities Q Vara Group is focusing mainly on the large
strategic projects and if suitable opportunities arise, realizes smaller
projects with a good yield. By the end of 2006 agreement with buyers was reached
in terms of the Pärnu mnt land plot selling contract. Funds made available with
this transaction were directed to Tabasalu residential project and Jüri
industrial park project.
Q Vara Group's investment policy is based on segmentation and the best
risk-return ratio principle. The segmentation principle means that the Group's
goal is to keep at least three different segment projects in its portfolio in
each market. For example in Estonia Q Vara has the following portfolio: Tabasalu
residential project (village project; middle segment); Jüri industrial park,
Kirsiaed (village project; high segment), Maakri project (downtown project, high
segment) and some smaller projects. But for example in Latvia a new village
project and probably a commercial RE project must be added to the portfolio
after Pinki (village; middle segment) and Jurmala (high segment) projects are
finished.
When making investments the risk-return ratio compared to alternative investment
possibilities is analyzed carefully. In Estonia where the market has stabilized
the Group's goal is to keep the size of the current portfolio size in terms of
buildable space. At the same time the investments are targeted to Lithuania
where the Group sees better yield at the given risk level. In the long-run the
Group's management is also interested in markets outside the Baltic countries.
Today the first investment into Bulgarian market is made.
2. Management and personnel.
During 2006 the team of Q Vara Group increased by 20 people. In Estonia the
team building is in the final phase, In Latvia some strengthening of the team is
still ahead and in Lithuania the process of setting up the team is just in the
very beginning.
From July Meelis Šokman started as a new chairman of the management board. He
came from Hansapank where he held the position of the head of business financing
division. Also from July new group chief accountant Marge Laanemaa joined the
company. Previously she worked as a chief accountant in AS Lõhmus,
Haavel&Viisemann. In August Andre Poopuu started as new sales department
manager. He was also elected as the new management member by the supervisory
board. Tõnis Vare, Q Vara OÜ's development department manager was also elected
as the new member of the management board. Andre Poopuu has previously worked as
a youth banking department manager in Hansapank and Tõnis Vare has previously
worked in Estonia's largest construction company Merko Ehitus as a project
manager. At the same time Ivo Lillepea and Tanel Peeters were withdrawn from the
management board and they continue managing the whole group from Q Vara OÜ's
mother company OÜ SLProductions. As of the year end of 2006 the management board
members are Meelis Šokman (chairman of the management board), Andre Poopuu and
Tõnis Vare.
New members of management board of Q Estate SIA (Latvia) are Meelis Šokman,
Ervins Koncevics (manager of development department) and Sarmite Sazoncika
(manager of sales department). Ervins Koncevics worked previously in a real
estate development company Re&Re as a project manager (managed projects with
total volume of 40 000 sqm in 2005). Sarmite Sazoncika worked previously as a
client executive in Hansabanka. The supervisory board of Q Estate withdrew
Peeter Põldaru and Alo Lillepea from the management board. Alo Lillepea
continues managing the Group from Q Vara OÜ's mother company SLProductions OÜ as
a chairman of management board. As the 31. Of December 2006 Q Estate SIA
management board members are Meelis Šokman (chairman of the management board),
Sarmite Sazoncika and Ervins Koncevics.
At the end of 2006 Peeter Põldaru decided to leave from Q Estate SIA and sell
his 15% share in Q Estate SIA to Q Vara OÜ. In February 2007 the contract was
signed. The preliminary transaction price is agreed at EEK 28 million and the
transaction is carried out in stages during 2006 and 2007.
In Lithuania Q Vara OÜ's subsidiary UAB Q Vara started operations in August
after Lina Verbliugeviciute was elected as the company's managing director. Lina
Verbliugeviciute worked previously in a real estate company Progresyvios
Investicijos as a development manager and worked on various apartment building
projects in Vilnius. In the last quarter of 2006 project manager Ingrida
Talzuniene and development manager Andre Nutautiene joined the company. Ingrida
Talzunienel has project management experience from real estate company
Progresyvios Investicijos, Andre Nutautiene came from Lithuanian subsidiary of
AS Merko Ehitus - UAB Merko Statyba - were she worked as a development manager.
Alo Lillepea and Ivo Lillepea were withdrawn from the management board. As of
November 2006 UAB Q Vara's management board members are Meelis Šokman, Lina
Verbliugeviciute and Jürgen Järvik. Meelis Sokman is the new chairman of the
management board in UAB Q Vara.
To enable flexibility in construction activities and to secure the high
construction quality in autumn 2006 Q Vara OÜ's subsidiary Q Ehitus OÜ
established a subsidiary in Latvia - Q Büve SIA. By now Q Büve SIA has taken
over the whole construction of Pinki. Members of the new company's management
board are Alo Lillepea and Urmas Altin.
In fourth quarter of 2006 Q Vara OÜ decided to enter into high potential
Bulgarian market by acquiring 60% share in Bulgarian company OOD Delta Retail.
Active team forming process is in process.
3. Development projects
3.1 Soosepa residential area
- Project type: residential area, 22 gallery houses, 9 double houses and
rowhouse with 3 units, total 145 living spaces.
- Segment: village, middle;
- Location: Viimsi parish, Pärnamäe village, Lageda tee,
Põllu tee, Soosepa tee;
Short description: Project started at 2004 with the aim to provide integral
living environment - gallery houses, playgrounds, kindergarten, and greenery.
Developing Soosepa gallery apartments was the first big real estate project for
Q Vara. The success of this first project motivated the whole group to set new
goals. Soosepa project gathered publicity with the TV show by TV3.
Development: Construction and sales of last 10 gallery houses shift to 2006.
Last deals were made in December 2006. Important event was the joint project of
Q Vara, TV channel TV3 and Hansapank, “ Naabrist parem” (“Better Than Neighbor”
and the attention paid by ETV cultural program OP! to Soosepa gallery houses'
architectural uniqueness and good match with environment. Design and planning
processes of Soosepa kindergarten for 90 children were started in 2006. At the
same time began negotiations with Viimsi parish to finish the development of
kindergarten by summer 2008. To improve the integral environment of village, Q
Vara has decided to improve playgrounds and the whole greenery.
Sales overview: During two and the half years altogether 22 gallery houses - 15
houses with 6 apartments and 7 houses with 4 apartments - totally 118 apartments
with more than 8000 m2 were sold. The financial volume of the project with
earlier developed double houses (7 double houses, 14 units) was 150 million
kroons.
3.2 Rowhouse project „Kirsiaed”
- Project type: residential area, 10 triple-houses, 30 units;
- Segment: village, high;
- Location: Viimsi parish, Pärnamäe village, Lageda tee and Lageda põik;
Short description: Rowhouses with three apartments combined with an interesting
landscape, ideal positioning towards the sun and nice greenery creates an ideal
enjoyable environment for families. The houses create a unified setting but
still leave room for privacy. The units have much light, are practical and well
planned to which the beauty of the nature and the view on the city panorama add
up. It is a perfect opportunity to buy a home with full finishing or choose the
design as one likes already today because the houses will be finished by the end
of February 2007.
Development: First construction in Kirsiaia began at the end of the first
quarter. Construction permission was issued in May and Q Ehitus started to
construct ten rowhouses. By the end of the second quarter walls were up. By 26th
of November the first unit was ready and all interested people have an
opportunity to visit the finished unit. By the year end the external works were
finished and the internal finishing was under way.
Active sales process started with completion of the first unit as the higher
segment customers wished to see the finished product before the final buying
decision.
Sales overview: Could be that sale has been successful: by the year end out of
the 30 units with a price range of EEK 3,4 - EEK 3,8 million 1 unit was sold and
6 units was booked. By today 4 units is sold, 3 sales contracts will be in
notary during 2 weeks and additional 3 very interested customers are in waiting
list. Most of the units will be realized in the first half of 2007.
3.3 Land plot project “Kirsiaed”
- Project type: residential area, 16 land plots for individual houses;
- Location: Viimsi parish, Pärnamäe village, Kesk-kaare tee and Vehema tee;
- Short description: It is a residential area that in the current market
situation is one of the very few land plot development projects in Viimsi parish
which also offers full set of utilities and existing green areas. All this is
ready and can be purchased immediately. The land plots feature immediate
construction readiness with existing gas, water, sewer and electricity lines at
the side of each land plot to which asphalt street, street lighting and paved
entrance paths add up. The greening is also prepared that includes trees and
bushes. The final touch is the land plots' location on the hill side that offers
a unique view on Tallinn city.
Development: Due to increased construction prices Q Vara OÜ' management made a
decision to realize the land that was previously planned for row houses
(Kirsiaed II) as land plots. Financially the decision results in similar gross
profit but the resources remain available for larger projects. The expected
gross margin of the project is 60%. Warm winter permit to do greenery and build
roads even in the last months of the year.
Sales overview: The sale of the land plots was launched in September. As
December 31, 2006 1 plot was sold. Currently still 1 plot is sold, but during
the first half of March 2007 2 plots' sale transactions will be in notary and 1
customer with serious interest is in negotiation phase. Most of the land plots
will be realized in the first half of 2007.
3.4 Jüri industrial park
- Project type: Industrial park; warehouses and office space;
- Segment: commercial;
- Location: Rae parish, Koplipere (at the Tallinna ringtee);
Short description: Warehouses that are targeted at small and medium sized
companies who value optimal size - possibility to acquire warehouse space
starting from 360 sqm that has small office space included and that offer
excellent working conditions for employees and efficient systems for the
company. The focus is on the end users monthly expense savings and affordable
maintenance costs. Above all the clients can acquire the facilities without own
financing because 100% of loan financing is offered.
Development: In the second quarter of 2006 formation of the sales team began.
From third quarter Q Vara OÜ employed a new project manager who focuses on
commercial developments. His first project was Jüri Industrial park. By the year
end the first draft of the business plan was finished, the first draft drawings
were being drawn by the architects and the negotiations with the utility
companies (Eesti Energia and WaterSer) were finished. During last months of the
year sales concept was worked out and final marketing plan agreed - Velvet and
Loovvool were chosen as the marketing partners.
Permission for construction of the utility lines were received in the beginning
of 2007, at the same time the first draft of the buildings' design was
finished. The construction will be financed by debt and equity with debt forming
approximately 70-80% of the construction price. At the moment there is agreement
with Sampo Bank for utility lines financing. Negotiations about general
construction financing in the process.
Q Vara's plan is to start the construction of the first warehouses in the second
quarter of 2007 and hand over the first objects by the end of the year.
Sales overview: Although the presale of Jüri industrial park begins in the first
quarter of 2007 potential customers have shown their interest.
3.5 Tabasalu residential project
- Project type: Residential area, rowhouses, gallery houses and apartment
houses;
- Segment: village, middle;
- Location: Harjumaa, Harku parish, Tiskre village, Eestkünka I and Eestkünka
III;
Short description: Living environment next to Tabasalu is a place that already
has the value of nature and privacy. Q Vara is offering there private and
modestly priced practical apartments and rowhouse units. In creating the area
health and healthy lifestyle have been kept in the focus that includes houses
with small number of apartments, sporting facilities, playgrounds, large green
areas, park and kindergarten. In all houses the main features are ergonomic and
practical solutions and efficient planning with special design furniture.
Development: In the third quarter the negotiations with the utility companies
(Eesti Energia and WaterSer) to build all utilities to the project's land plot
were initiated. The construction will probably begin in March. The construction
of the utilities will be financed by debt from DnB Nord (agreement for I phase
financing is signed).
Architectural competition to draft the whole area's design was initiated in the
third quarter. The drafts were ordered from four different architectural
companies. From offered solutions Põldme Arhitektuur OÜ's ideas for gallery
houses and of Meelis Press‘ ideas for rowhouses were considered as the best area
was started.
In the last quarter competition for advertising agencies was held. Based on
competition results two agencies were chosen - Brilliant and Loovvool, who
offered the best visual solution. General agreements for creating sales concept
were made.
The construction of the first stage houses (altogether the project will be
divided into 4 stages) will begin in spring 2007.
Sales overview: The presale of the project begins in the first half of 2007.
3.6 Maakri block project
- Project type: apartments and offices in the city centre, high rise buildings;
- Segment: High
- Location: Tallinn city centre, Maakri and Lennuki streets;
Short description: Land plots in the city centre of Tallinn next to Radisson
SAS hotel. According to Tallinn city government's preliminary plans the area
will become a high rise buildings district with office and residential spaces.
Development: In the third quarter the most important event was the architectural
competition arranged by the city of Tallinn in which Estonian top architects
presented their vision of the possible developments in this area. According to
most of the presented ideas Q Vara Group's land plots enable building different
high rise buildings. Currently negotiations are held with other plot owners in
the same area with the objective to find a solution for development of unified
high rise building area.
3.7 Pärnu mnt 113 / Rapla street 1 project
- Project type: apartments and offices near Tallinn city centre;
- Location: Pärnu mnt 113 / Rapla str 1, near the Tallinn city centre;
Short description: Q Vara owns a land plot at Pärnu mnt near Tallinn city
centre. The city's general plan allows building there an office/apartment
building.
Development: Q Vara decided to sell Pärnu mnt project land plot. The realization
enables to earn at least 400% yield on the investment and to use the resources
for developing other larger projects. The negotiations with the potential buyers
were started in September. In December final agreement with buyer was made and
the notary transaction took place in the first days of 2007.
3.8 Pinki residential project
- Project type: residential area, double houses and rowhouses;
- Segment: village, middle;
- Location: Pinki village near Riga (between Jurmala and Riga);
Short description: A beautiful residential development next to a pine forest
that is comfortably located near Riga and is suitable for families. The double
houses and rowhouses feature 72 units;
Development: In Pinki project the construction of the double houses and
rowhouses was continued. In the third quarter a decision was made that the
second stage of Pinki project will be constructed by SIA Q Buve that is a
subsidiary of OÜ Q Ehitus. Initially it was decided to continue the first stage
construction with SIA Pinki, but company's inability to keep due dates and
secure demanded construction quality lead to decision to cease the co-operation
with SIA Pinki. Construction of the whole project was given to SIA Q Büve.
The first stage houses that are already presold are handed over to the clients
in the first quarter of 2007. Sales process: Half of the apartments are presold.
Beginning of the sales process of the second and third stage was intentionally
started as late as December 2006, because sales prices almost doubled compared
to the prices of the first stage. The interest towards the apartments is high
already before the official sales process and altogether 27 people have
registered themselves on the waiting list. Although by year end no apartments
were sold, by today 4 contracts are signed. Real marketing activities will start
from March and most of the revenue is planned into the first half of 2007.
3.9 Jurmala apartment building
- Project type: apartment building with 30 apartments;
- Segment: high;
- Location: Jurmala, Edinburgas prospekts 11;
Short description: Stylish apartment building in the prestigious Jurmala beach
town that is designed by one of the top Latvian architectural firms Silis,
Sabers & Klava. The house features thirty 60-160 sqm high quality apartments.
Development: The most significant development in the project was the selection
of the construction company for foundation and earth works. The selected company
was one of the largest Latvian construction companies in this area - BMGS. The
earth works were started and the first foundation pillars were installed in
November. For general construction (including inner decoration) Ars Domina was
chosen. Planned completion of construction works is the first quarter 2008.
The project is financed by construction debt from DnB Nord.
At the same time with construction preparations also the sales strategy was
being developed. Currently the product is placed in the top segment with selling
prices falling between EUR 3 000 - EUR 3 800 per sqm.
Sales process: The pre-sales started in November and by now 1 apartment is sold
and 5 higher price class apartments are booked. Active sales and marketing will
be launched in Spring 2007.
3.10 Maskavas apartment building
- Project type: apartment building with 403 apartments in Riga by the river side
of Daugava;
- Segment: middle;
- Location: Riga, Maskavas street.
Short description: Apartment building that is located 15 minutes drive away
from Riga city centre. The distinctive features of the project include location
at the river and a pond in the middle of the square sized building.
Development: During the year processing of detail planning and technical
planning were the main activities. In the fourth quarter the detail planning
process was finished and the signed document from was receivedfrom Riga City.
The proposed detail plan allows subsidiary of Q Estate SIA, Quality Nami SIA to
build 30 000 sqm apartment building by the riverside of Daugava.
4. New investments
4.1 Elniu
- Project type: apartment building;
- Segment: high;
- Location: Elniu 20, Zverynas district, Vilnius.
Short description: By the end of 2006. Q Vara OÜ subsidiary in Lithuania - UAB Q
Vara - acquired 1 800 m2 plot at Elniu street 20 in Vilnius. Purchase price for
the plot was LTL 3,64 million and purchase was financed 75% with loan from SEB
Vilniaus Bank.
It is planned to build 3-4 floor apartment building with construction volume
2300 m2. Plot is situated in the prestigious and green Zverynas district,
central part of Vilnius. The house features 55-120 m2 high quality apartments
with estimated selling price EUR 2 300 - EUR 2 900 m2.The product is targeted to
upper and upper middle class customers.
Development: Just after plot acquisition, detail planning and designing was
started. Detailed plan should be finished at the end of second quarter of 2007
and the permit for construction should be received at the beginning of the
fourth quarter 2007. The start of project's sales together with active marketing
and construction is planned in October 2007.
4.2 Sofia
- Project type: apartments and offices, high rise buildings;
- Segment: middle;
- Location: centre of Sofia, Boulevard Stoletov;
Short description: In 2006 Q Vara OÜ entered into Bulgarian market by acquiring
60% share in Bulgarian company OOD Delta Retail, which owns 11 000 m2 plot in
the center of Sofia. Minority share of company belongs to local real estate
development company Delta Imoti Capital. It is planned to develop high rise
building with apartments and offices. The price of Q Vara OÜ share was EUR 2,98
million and this was financed from Q Vara OÜ own funds.
Development: In the fourth quarter approval process of general plan of Sofia
city continued. According to initial plans high rise buildings with apartments
and offices will be developed. Additionally preparations of design drafts were
made.
4.3 Other
Investments in other sectors than real estate - Urbanfors OÜ, Eesti Metsamaakler
OÜ and Digitech OÜ - were stated as financial investments in Q Vara OÜ's
accounting during 2006. According to the owners' agreement, Q Vara OÜ sold its
share in above mentioned companies to Q Capital OÜ in order to make the group
structure more clear. Transaction was made at 22nd of December 2006. Economic
results of sold companies were not consolidated with Q Vara OÜ financial results
during 2006.
5. Accounting
The quality and reliability of Q Vara group's accounting data and processes
have increased considerably during 2006. The company's rapid growth made urgent
upgrade of personnel, accounting software and accounting quality an inevitable
decision. Therefore Q Vara OÜ replaced its previous accountant with two new team
members -with extensive experience (including international consolidation etc)
chief accountant Marge Laanemaa and with strong general accounting background
accountant, Piret Pärnamets.
The first task of the new accounting team was to sort out the existing databases
that due to the poor quality of the previous system resulted in re-entering the
whole financial data of 2006 into a brand new accounting database (MS Dynamics
NAV). This caused delays in meeting reporting deadlines in the second half of
the year.
Additionally implementation of Q Vara Group wide enterprise resource planning
system Navision was started.
As the deadline for filing the audited annual report is the end of first quarter
each year, the auditing process started in December based on 9 months results in
order to accelerate the completion process of annual report.
6. Bonds
Starting from September 19th, 2006 Q Vara's bonds are listed on OMX Tallinn
Stock Exchange. Therefore Q Vara OÜ is obliged to disclose all company
information firstly though the Stock Exchange system. Also the listing means
that Q Vara OÜ in under the close supervision of Estonian Financial Supervisory
board and OMX Tallinn Stock Exchange.
A significant change was also made in the bond issue structure. The previous
collateral of the bond issue (mortgages and share pledges) were replaced by the
guarantee of Q Vara OÜ's mother company OÜ SLProductions. The change in the
collateral structure had the following reasons: the need to finance the
construction of Tabasalu residential project, changes in the group structure
with which two subsidiaries (OÜ Merona Group and OÜ Multi Metall Kinnisvara)
will be merged with Q Vara OÜ and the sale of the Pärnu mnt land plot. The
investor's interests are not harmed by these changes but for Q Vara Group the
change facilitates strong development.
7. Financial overview
The total revenues of Q Vara Group in 2006 were EEK 227 643 thousand (2005:256
848). The realized revenues from real estate development were EEK 63 231
thousand (2005:126 614) and the consolidated net profit of 2006 was EEK 102 716
thousand (2005:137 045).
Although the forecasts for the financial results of the year 2006 have decreased
compared to the forecasts from the beginning of the year Q Vara Group is
developing as planned. Also from the investors' point of view several favorable
developments have occurred. It must be noted that the projects planned for 2006
have just been delayed and will partly realize in the beginning of 2007. The
cash flows from the projects are still in line with the forecasts.
The main issues that cause the delay of cash flows is that the sales process was
put into the final stage of the project and pre-sales was minimized. Such
arrangement has proven to be a successful solution because Q Vara group has been
able to avoid the loss in profit margin that could appear in the environment of
rapidly growing construction costs if the prices are fixed long before the
completion of the project.
Operating expenses of Q Vara in 2006 were EEK 41 735 thousand (2005:17 145)
including development expenses EEK 8 950 thousand and sales and marketing
expenses EEK 9 459 thousand. The capitalization of Q Vara OÜ group is strong as
before: equity forms 40,1% (2005:43%) of the total assets. In the end of the
third quarter Q Vara OÜ's assets amounted EEK 768 594 thousand (2005:372 289)
and equity capital was EEK 308 326 thousand (2005:205 768).
8. Q Vara's consolidated 12 month profit and loss statement of 2006
-------------------------------------------------------------
01.01.2006- 01.01.2005-
31.12.2006 31.12.2005
Unaudited Audited
thousand EEK thousand EEK
-------------------------------------------------------------
Operating revenues
Sales revenues 63 231 126 614
Change in RE investments' value 161 545 130 038
Other operating revenues 2 867
Total operating revenues 227 643 256 848
Operating expenses
Cost of construction 63 789 -106 227
Direct development costs -8 950 -5 478
Development overhead costs -23 326 -7 849
Marketing costs -9 459 -3 818
Maintenance expenses -1 940 0
Other operating expenses -6 929 -295
Total operating expenses 114 393 -123 667
Operating profit 113 250 133 181
Financial income and expenses 312 20 244
Pre-tax profit 113 562 153 425
Deferred income tax -10 787 -16 355
Real estate tax -59 -25
Net profit (loss) 102 716 137 045
Mother company's shareholders' share 83 189 107 884
Minority share 19 527 29 161
-------------------------------------------------------------
-------------------------------------------------------------
01.01.2006- 01.01.2005-
31.12.2006 31.12.2005
Unaudited Audited
thousand EUR thousand EUR
-------------------------------------------------------------
Operating revenues
Sales revenues 4 041 8 092
Change in RE investments' value 10 325 8 311
Other operating revenues 183 13
Total operating revenues 14 549 16 416
Operating expenses
Cost of construction -4 077 -6 789
Direct development costs -572 -350
Development overhead costs -1 491 -502
Marketing costs -605 -244
Maintenance expenses -124 0
Other operating expenses -443 -19
Total operating expenses -7 311 -7 904
Operating profit 7 238 8 512
Operating profit 20 1 294
Pre-tax profit 7 258 9 806
Deferred income tax -689 -1 045
Real estate tax -4 -2
Net profit (loss) 6 565 8 759
Mother company's shareholders' share 5 317 6 895
Minority share 1 248 1 864
-------------------------------------------------------------
9. Q Vara's consolidated balance sheet of 31.12.2006
-------------------------------------------------------------
31.12.2006 31.12.2005
Unaudited Audited
thousand EEK thousand EEK
-------------------------------------------------------------
Current assets
Cash and cash equivalents 1 116 2 883
Accounts receivable 52 150 3 853
Short-term loans 74 334 40 659
Other short-term receivables 669 893
Interest receivables 10 035 16
Prepayments 25 908 7 395
Real estate for sale 216 043 79 173
Total current assets 380 255 134 872
Non-current assets
Long-term loans 5 759 117
Other long-term receivables 0 91
Associated companies 32 618 24 488
Real estate investments 338 250 206 058
Tangible and intangible assets 8 826 3 777
Goodwill 2 886 2 886
Total non-current assets 388 339 237 417
Total assets 768 594 372 289
-------------------------------------------------------------
Liabilities and equity
Current liabilities
Short-term loans 290 169 64 551
Capital lease liabilities 1 149 430
Customer prepayments 5 577 6 292
Accounts payable 22 163 9 880
Personnel related liabilities 2 650 1 983
Interest liabilities 14 164 2 317
Tax liabilities 0 2 548
Total current liabilities 335 872 88 001
Non-current liabilities
Long-term loans 14 936 60 888
Other long-term payables 90 0
Issued bonds 76 863 0
Capital lease liabilities 5 468 1 427
Deferred income tax 27 040 16 205
Total non-current liabilities 124 397 78 520
Total liabilities 460 269 166 521
Equity
Mother company's shareholders' equity
Share capital 73 511 73 511
Reserves 7 361 10
Unrealized exchange rate differences 177 335
Retained earnings 178 589 102 751
Mother company's shareholders' equity 259 638 176 607
Minority share 48 688 29 161
Total equity 308 326 205 768
Total liabilities and equity 768 595 372 289
-------------------------------------------------------------
-------------------------------------------------------------
31.12.2006 31.12.2005
Auditeerimata Auditeeritud
Tuhat EUR Tuhat EUR
-------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 71 184
Accounts receivable 3 333 246
Short-term loans 4 751 2 599
Other current receivables 43 57
Interest receivables 641 1
Prepayments 1 656 473
Real estate for sale 13 808 5 060
Total current assets 24 303 8 620
Non-current assets
Long-term loans 368 7
Other non-current receivables 0 6
Associated companies 2 085 1 565
Real estate investments 21 618 13 170
Tangible and intangible assets 564 240
Godwill 184 184
Total non-current assets 24 819 15 173
Total assets 49 122 23 793
Liabilities and equity
Current liabilities
Short-term loans 18 545 4 126
Capital lease liabilities 73 27
Customer prepayments 356 402
Accounts payable 1 416 631
Personnel related liabilities 169 127
Interest liabilities 905 148
Tax liabilities 0 163
Total current liabilities 21 466 5 624
Non-current liabilities
Long-term loans 955 3 891
Other long-term liabilities 6 0
Issued bonds 4 912 0
Capital lease liabilities 349 90
Deferred income tax liabilities 1 728 1 036
Total non-current liabilities 7 950 5 017
Total liabilities 29 417 10 642
Equity
Mother company's shareholders' equity
Share capital 4 698 4 698
Reserves 470 1
Unrealized exchage rate differences 11 21
Retained earnings 11 413 6 567
Mother company's shareholders' equity 16 592 11 287
Minority share 3 114 1 864
Total equity 19 706 13 151
Total liabilities and equity 49 122 23 793
-------------------------------------------------------------
Additional information:
Meelis Šokman
Chairman of the management board
Q Vara OÜ
Phone: 668 1600
Q Vara OÜ's 12 month financial results of 2006
| Source: Q Vara