In the reporting period from 1 January 2024 to 31 March 2024, the Group's net turnover was EUR 2 564 694. Compared to the corresponding period in 2023, it has increased by 29 %. The largest impact was from increase in the sales of goods (+95%), which was facilitated by high demand for the Group's products and good cooperation conditions with suppliers. «Similarly to previous years, the first quarter of 2024 was completed with losses EUR 371 228. Beginning of the year (winter) is a low season in rental business and it is common to have low profit or losses in this period. These losses will be recovered during the high season (summer). Most of our excavators are out in rental and we are looking for options how to increase our rental fleet to meet customer demand. » says Gints Vanags, CEO of the Group. In the first quarter of 2024, the Group asked an independent valuator to perform a valuation of the Groups fixed assets. The valuation report showed that the market value of fixed assets is higher by EUR 1 186 763 than the book value in accounting. Based on this report, the fixed assets book value in accounting was increased by that difference on the Assets side of the Balance sheet and reserves of revaluated assets was increased on the EQUITY side of the Balance sheet. The Equity adjustment improved the financial covenant Capitalization ratio, which was not fulfilled in the fourth quarter of 2023 and if tested again, the Capitalization ratio would be 23%, which is higher by 8% than it was required in the fourth quarter of 2023. The main activity of the Group, the Parent Company of which is SIA Arsenal Industrial (hereinafter- the Parent Company, together with daughter companies - "the Group"), is rent and sale of construction equipment and hand tools with complementary activities of transportation and technical services. Currently, the Group works in all three Baltic countries. The Group's goal is to provide products and services in high quality and to be an effective company that listens to the wishes of customers and implements them. To be a stable cooperation partner providing high quality customer service, establishing partnerships with entrepreneurs and continuing to invest in the Group's infrastructure. Gatis Melniks SIA Arsenal Industrial, CFO Mobile: + 371 26442812 E-mail: gatis.melniks@arsenalrent.com www.arsenalnoma.lv Attachment: https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=1225584
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