20
24
INTERIM CONSOLIDATED REPORT
1 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT For six months of 2024 | |
INTERIM
CONSOLIDATED
REPORT
for the six months of 2024
Beginning of the reporting period | 1 January 2024 |
End of the reporting period | 30 June 2024 |
Business name | City Service SE |
Registration number | 12827710 |
Legal address | Narva mnt. 5, 10117 Tallinn, |
the Republic of Estonia | |
Telephone | +370 5 239 49 00 |
Fax | +370 5 239 48 48 |
info@cityservice.eu | |
Website | http://www.cityservice.eu |
Auditor | Ernst & Young Baltic AS |
CONTENTS
Declaration of the management | 4 | |
1. Corporate profile | 5 | |
1.1. | City Service Group | 5 |
1.2. | Strategy and objectives | 6 |
1.3. | Mission and vision | 6 |
1.4. Structure of the Group | 7 |
2. Interim management report | 8 | |
2.1. | Main areas of activity | 8 |
2.1.1. | Administration of apartment buildings | 8 |
2.1.2. | Management of commercial building facilities | 12 |
2.1.3. | Maintenance and cleaning of territories | 15 |
2.1.4. | Other activities | 15 |
2.2. | Performance improvement | 16 |
2.3. | Significant and latest events | 17 |
2.4. | Key risk activity types and uncertainties | 18 |
2.5. | The main financial ratios concerning the reporting period | 19 |
2.6. | Significant related party transactions | 19 |
3. Consolidated interim financial statements | 21 | |
Consolidated statement of financial position | 21 | |
Consolidated statement of comprehensive income | 23 | |
Statement of comprehensive income | 24 | |
Consolidated statement of changes in equity | 25 | |
Consolidated statement of cash flows | 26 | |
4. Notes to the financial statements | 27 | |
General information | 27 | |
1.1. | Activity | 27 |
1.2. | Share capital of the company | 28 |
1.3. | Shareholders of the company | 28 |
1.4. | City service group | 29 |
1.5. | Company's supervisory board | 31 |
1.6. | Company's management board | 32 |
1.7. | Activity and segment information | 33 |
Accounting policy | 35 | |
Goodwill | 35 | |
Other intangible assets | 37 | |
Property, plant and equipment | 38 | |
Discontinued operations and assets held for sale | 39 | |
Right of use assets and lease | 40 |
DECLARATION
OF THE MANAGEMENT
30 August 2024
According to Management Board Regulations of City Service SE, Chairman of the Management Board hereby declares and confirms that according to his best knowledge, the financial state- ments, prepared according to the accounting standards in force, present a correct and fair view of the assets, liabilities, financial situation and loss or profit of the issuer and the undertakings involved in the consolidation as a whole, and the management report gives a correct and fair view of the development and results of the business activities and financial status of the issuer and the undertakings involved in the consolidation as a whole and contains a description of the main risks and doubts.
Chairman of the Management Board | Artūras Gudelis |
CORPORATE
PROFILE
1.1. CITY SERVICE GROUP
City Service SE is a holding company managing a group of facility maintenance and integrated services companies in Baltics.
The Group's companies are involved in the administration of the building management process, maintenance, and repair of engineering systems, energy management based on artificial intelligence solutions, renovation, technical and energy audits of buildings, territory maintenance and cleaning of premises, IT services, petrol station maintenance, and debt management services.
The Group's companies operate in an environmentally sustainable manner.
Main business areas of the Group:
Administration | Commercial | Teritory | Other |
of apartment | facility | cleaning and | activities |
buildings | management | maintenance | |
5 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT |
For six months of 2024
Today, the Group's companies operate in
Lithuania and Latvia.
The total area of buildings managed in these regions amounts to
15.4millions m2
1.2. STRATEGY AND OBJECTIVES
By combining City Service expertise with a deep understanding of local specifics, we provide our customers with modern and convenient services.
Our long-term objective is very linked with our mission - growth of commercial, public and private property management, development of integrated utility services.
1.3. MISSION AND VISION
OUR VISION | OUR MISSION |
is to be a leader in | is to represent our client's interests by |
creating value for residential | increasing the value of their property and |
property. | improving their living environment. |
6 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT |
For six months of 2024
1.4. STRUCTURE OF THE GROUP
LITHUANIA
LATVIA
SPAIN
100%
76%
UAB Alytaus namų valda
100%
UAB City Service Engineering
100%
UAB Mano Būstas
Alytus
100%
UAB Mano Būstas Sostinė
100%
UAB Pastatų priežiūra
100%
UAB Baltijos NT valdymas
100%
UAB CSG IT
100%
UAB Mano Būstas
Aukštaitija
100%
UAB Mano Būstas Šiauliai
100%
UAB Pastatų valdymas
100%
UAB Baltijos transporto valdymas
100%
UAB Energijos taupymo paslaugos
100%
UAB Mano Būstas
Baltija
100%
UAB Mano Būstas Ukmergė
100%
UAB Rinkų vystymas
57.71%
UAB Biržų butų ūkis
100%
UAB Kapitalo
Sprendimai
100%
UAB Mano Būstas
Dainava
99.97%
UAB Mano Būstas
Vakarai
100%
UAB Skolos LT
100%
UAB BonoDomo
100%
UAB EPC projektai
100%
UAB Mano Būstas
Neris
100%
UAB Mano Būstas
Vilnius
100%
UAB Šiaulių NT valdymas
100%
UAB BonoDomo Pay
100%
UAB Butų ūkio valdos
100%
UAB Mano aplinka
100%
UAB Mano Būstas
Kaunas
100%
UAB Mano Būsto priežiūra
100%
UAB Mano Būstas
NPC
100%
UAB Mano Būsto klientų patirčių centras
100%
UAB Unitechna
100%
UAB Būsto aplinka
100%
UAB Mano bendrabutis
100%
UAB Mano Būstas Klaipėda
100%
UAB Merlangas
100%
UAB City Service Cleaning
100%
UAB Mano Būstas
100%
UAB Mano Būstas
Radviliškis
100%
UAB Nacionalinis renovacijos fondas
100%
SIA BILANCE
100%
SIA Manas MĀJAS
100%
SIA BonoDomo
100%
SIA Manas
MĀJAS 2
100%
SIA City Service
100%
SIA Manas Majas Salnas 21
100%
SIA City Service Engineering
100%
SIA Manas
MĀJAS 3
100%
SIA Ēku pārvaldīšanas serviss
100%
SIA Ventspils nami
100%
SIA MultiHouse
100%
SIA Latvijas Namsaimnieks
100%
SIA Livonijas Nami
100%
SIA Namu serviss
APSE
100%
SIA Jauntukums
100%
Nebruk Jelgava
100%
Nia Nami
Concentra
Servicios y
Mantenimiento,
S.A.*
100%
Vetell dos iberica, S.L.*
*The Group ceased to consolidate Concentra Servicios y Mantenimiento, S.A. (including sub-consolidated subsidiary Vetell dos iberica, S.L.) in its Financial statements after bankruptcy administrator was appointed on 10 May 2017, as from that date the Group has lost its control.
7 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT |
For six months of 2024
INTERIM MANAGEMENT
REPORT
2.1. MAIN AREAS OF ACTIVITY
2.1.1. Administration of apartment buildings
The Group's companies provide apartment building administration services: take all actions necessary to preserve common-use objects and ensure their proper function as well as carry out ongoing technical maintenance.
The Companies take care of maintaining the mechanical durability of the main structures of the buildings, repairing minor defects, caring out preventive maintenance, tuning, ensuring safe operation of engineering equipment designed for general use, liquidation of accidents, handling and preparing heat and hot water supply systems.
The Group's companies provide administration, technical maintenance and repair services of apartment buildings in Lithuania and Latvia.
8 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT |
For six months of 2024
The Group's companies increased the area of supervised apartment buildings by signing new contracts with owners of apartment buildings in Lithuania. During the first
half of 2024, new comprehensive housing maintenance services were additionally provided to 77 apartment buildings, the total area of which is almost 112,000 square meters. The Company focused more on the quality of services pro- vided, customer service, and sustainable business solutions. The Group's companies continued to measure the customer satisfaction index (NPS) on a daily basis and applied relevant operational processes based on its results in order to improve the quality of services and meet customers' expec- tations. Compared to the beginning of the year, customers' satisfaction with the Group's companies and the services provided increased by 29 percent. The Group has initiated the development of an Artificial Intelligence (AI) assistant.
This tool will generate detailed and high-quality responses to customer inquiries instantly and will have a significant impact on the routine of customer service representatives. Once the system is fully implemented, clients will receive answers to their concerns within moments. This tool will be capable of analysing extensive databases to provide highly detailed and quality responses to Group's clients. Currently, the AI assistant is being tested in the email channel. The Group plans to integrate it into all customer communication channels, including voice calls. The Group's companies continued focusing on the development of digitized servic- es. "BonoDomo", a self-service platform launched in March 2022, had 157,000 active accounts by June 2024. Customers handled almost 294 thousand invoices via this platform and the total number of user logins exceeded 1,6 million in half year period. Area of currently maintained buildings in Lithu- ania amounts to 9 million m2.
Area of currently | The self-service platform | Masters of the PortalPRO |
maintained buildings in | BonoDomo has | platform have already |
Lithuania amounts to | 157,000 | completed more than |
9 | active accounts | 91,000 |
million m2 | orders in Lithuania | |
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For six months of 2024
The Group's company operating in Latvia provides services in Riga, Liepaja, Ventspils, Tukums, Jelgava and Ogre Town. Customer request management, invoicing,
and new customer management systems were upgraded in 2024. As a result, operation of the Company has become more efficient, and led to increased quality of services provided to customers. At the beginning of the year, the
Group acquired three companies - SIA "Nebruk Jelgava", SIA "Nia Nami", and SIA "Jauntukums" - which provide residential building administration services in Riga, Tukums, and Jelgava. These acquisitions increased the serviced area by over 300,000 square meters. The Group will continue to increase the area of serviced buildings organically through new acquisitions and geographical expansion in other cities of the country. Area of currently maintained buildings in Latvia amounts to 1 million m2.
Area of currently maintained | acquisitions increased the |
buildings in Latvia amounts to | serviced area by over |
1 | 157,000 m2 |
million m2 | |
10 | CITY SERVICE SE INTERIM CONSOLIDATED REPORT |
For six months of 2024