Development in activities and financial matters
The gross loss for the year totals EUR -3.956.000 against EUR -595.000 last year. Income or loss from ordinary activities after tax totals EUR 156.478.000 against EUR 3.313.000 last year. Management considers the net profit or loss for the year satisfactory.
We draw attention to the description of going concern in note 1 to the Financial Statements.
Financial resources
The company's cash reserve is limited, however, it is management's expectation that a positive cash flow will be created through renting out and/or sale of the company's property, whereby the company will be able to meet its liabilities. With a view to making adequate operating cash funds available, the ultimate Parent Company Paris Premier Properties SARL has issued a letter of support to the Company, which is in force until the 28 February 2023. Based on this, it is Management’s assessment that the Company’s Annual Report may be presented under the going concern assumption.
Investments
The company's investment property is measured at fair value. The measurement of fair value is based on estimates of existing leases, and current market rent for similar properties, in the same location and condition. The return rate used is significant for the valuation of the company's investment property. In one of the company's properties, 8.301 m² has been rented out, where the tenants have not been handed over the leases yet. The leases entered into have led to a significant increase in the value of the company's one property.
Tax
The company's investment property is established as a branch located in France under the current tax laws. In this regard, the company has acquired an external evaluation of the tax conditions in France. The management concluded, based on the evaluation, that the company does not have any tax obligations which are not included in the balance. Based on the above, it is the management's overall expectation that the company can run its day to day business with a satisfactory income in the coming year.
31-08-2022