In 2023, comparing to 2022, demand for the use of the Company's owned and leased assets increased by 4%; therefore, also as in 2023, the Company focused its activities on the management and renting of its own and leased properties. Net turnover from operations in 2023 was EUR 1 741 796, a slight increase compared to 2022. One of the factors influencing the increase in turnover was the strengthening of trust among long-term partners.
The total assets of the Company at the end of 2023 dropped to EUR 6 381 425 compared to the beginning of the financial year. In 2023, the Company's total liabilities decreased by 5%, while equity has decreased because of negative profitability and at the end of the reporting period amounted to EUR 904 234.
The losses and decrease in assets for the reporting period are attributable to the fixed assets owned by the Company that were written off and disposed of in 2023 as they were no longer fit for use, the dismantling of structures that had been abandoned and were not used in business operations, and were classified as structures causing environmental degradation, as well as the accelerated settlement of financial liabilities within the framework of the legal protection proceedings, which ensured successful implementation of the plan of measures of the legal protection proceedings.
The amount of the Company's equity as of December 31st, 2023, was positive and amounted to EUR 1 934 347. The Company's operating result for 2023 was a net loss of EUR 1 029 648 (comparing to net profit of EUR 1 006 722 in 2022) and as of December 31st, 2023, short-term liabilities exceed its current assets multiple times, therefore, the management had to seek solutions for the ongoing liquidity challenges in 2024.
Since the approval of the plan of measures of the legal protection proceedings until the preparation of the annual report, there have been several amendments to the plan of measures of legal protection proceedings, the latter of which was approved on November 01st, 2022, which allows, without changing the total amount of liabilities to be covered, to adjust the planned revenue and expenses of the Company, as well as the schedule for covering creditors' claims. The Company notes that it has been able to fulfil its obligations to both secured creditors and unsecured creditors in 2023 and until the preparation of the annual report of 2023 in accordance with the plan of measures of the legal protection proceedings approved by the court, and at the time of approval of its annual report the Company has successfully implemented the plan of measures, as well as has settled its liabilities to its creditors within the specified time periods, in compliance with all the conditions of the plan of measures, as a result of which on March 31st, 2025 in the Riga City Court adopted a decision to terminate the legal protection proceedings of the Company due to the implementation of the plan of measures of legal protection proceedings.
The Company expects that it will be able to improve its economic performance and financial results within the next couple of years, at the same time it continues to take measures in the field of process efficiency and cost optimisation, as a result of which the Company's operating financial results are planned with a profit.
Although the Company has clear prospects for continuing its operations, it is already known that it will take time to optimise personnel composition, restore the flow of current assets, diversify production, as well as to raise investment and attract new business partners.
This conclusion is based on the information available at the time of signing of this financial report, as the future performance of the Company will be substantially and directly affected by the planned business development strategy of its largest shareholder. In October 2024 Netaman invest OÜ, a capital company registered in Estonia, became the majority shareholder of the Company's parent company AS "Remars-Riga", thus acquiring the voting rights derived from 5 819 194 shares of the Company in the form of an indirect shareholding, representing 49,8556% of the total number of voting shares of the Company, whilst in June 2025 Netaman invest OÜ acquired 2 149 108 shares of the Company or 18,4123% of the total number of voting shares of the Company, as a direct shareholding, as a result of the mandatory offer to buy back shares, whereas at the time of approval of the annual report, Netaman Invest OÜ has acquired in total 7 968 302 voting shares of the Company, representing 68,2679% of the total number of voting shares of the Company, both by way of indirect and direct shareholding.
The Company has not performed any activities in the field of research and development in the reporting year.
In the reporting year the Company has neither redeemed, nor sold its shares.
The Company does not have representation offices or branches abroad.
The Board of Directors of the Company proposes to cover the loss for the current year with the profit forecast for the coming years.
Find hereby enclosed the audited Financial Report of year 2023, auditor's report, Remuneration report of the Board of Directors and Council for 2023 and Corporative Governance Report on 2023.
An audited Financial Report of year 2023 is enclosed in the *.xhtml and *.pdf formats, where the Company requests to consider the Financial Report of year 2023 in the *.xhtml format as the original version of the Financial Report.
The Board of Directors of AS "Rigas kugu buvetava"
