JOINT STOCK COMPANY
“STORENT HOLDING”
(UNIFIED REGISTRATION NUMBER 40203174397)
SEPARATE ANNUAL REPORT FOR YEAR 2024
(The 6th financial year)
PREPARED IN ACCORDANCE WITH THE
IFRS ACCOUNTING STANDARDS
AS ADOPTED BY THE EUROPEAN UNION
AND INDEPENDENT AUDITORS’ REPORT
Riga, 2025
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
2
CONTENTS
General information 3
Management report 4
Statement of management’s responsibility 6
Separate financial statements:
Separate statement of comprehensive income 7
Separate statement of financial position 8
Separate statement of cash flows 10
Separate statement of changes in equity 11
Notes to the separate financial statements 12
Independent auditors’ report 41
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
3
General information
Name of the company
“STORENT HOLDING” (until 05.03.2024 "Storent Holdings”)
Legal status
Joint Stock Company (until 05.03.2024 Limited Liability Company)
Number, place and date of registration
40203174397
Riga, 11 October 2018
Registered and business address
Matrožu iela 15a
Riga, Latvia, LV-1048
Shareholders
“EEKI” SIA 50%, Erī Esta, (from 28.12.2022)
“SUPREMO” SIA 50%, Andris Pavlovs, (from 28.12.2022)
Board of the Company
Andris Pavlovs, Chairperson of the Board
Baiba Onkele, Member of the Board (from 27.11.2024)
Eri Esta, Member of the Board (till 01.07.2024)
Supervisory Board
Mišels Zavadskis, Chairman of the Supervisory Board (from
27.11.2024)
Erī Esta, Deputy Chairman of the Supervisory Board (from 01.07.2024)
Daiga Auziņa-Melalksne, Member of the Supervisory Board (from
01.07.2024)
Baiba Onkele, Chairman of the Supervisory Board (from 05.03.2024 till
27.11.2024)
Deniss Mironcevs, Deputy Chairman of the Supervisory Board (from
05.03.2024 till 01.07.2024)
Anzela Serkevica, Member of the Supervisory Board (from 05.03.2024
till 01.07.2024)
Annual report prepared by
Marina Grigore
Chief accountant of Storent Holding AS
Type of activity
Supervision and management of subsidiaries; performance of functions
of strategic and organizational planning and decision-making.
NACE code
70.22 Business and other management consultancy activities (NACE
rev. 2.0)
Reporting year
1 January 2024 – 31 December 2024
Previous reporting year
1 January 2023 – 31 December 2023
Name and address of the independent auditor
and the responsible sworn auditor
KPMG Baltics SIA
License Nr. 55
Roberta Hirša street 1, Rīga, LV-1045,
Latvia
Armine Movsisjana
Latvian sworn auditor
Certificate No. 178
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
4
Management report
Type of activity of the Company
Storent Holding AS (hereinafter referred to as the “Company”) was established on 11 October 2018 and this is the sixth reporting
year of the Company. The Company from 28 December 2022 is the parent company of the Storent Group (hereinafter referred to as
the “Group”). The main type of activity of the Company is to provide management and consultancy services, which accounts for the
most part of the Company’s turnover, and attract external funding and provide financial resources to its subsidiaries.
Development of the Company and results of financial operations in the reporting year
The main type of activity of the Company is related to provision of all the companies of the Storent group with financial resources, as
well as provision of management services to related companies. The reporting year closed with a profit of EUR 3 196 392 (EUR
2 752 461 in 2023), which was mostly the result of received dividends from subsidiaries. Storent Holding AS balance sheet has a
very strong and steady financing structure consisting of 48% shareholder’s equity (55% in 2023), 25% long term liabilities (44% in
2023) and 28% (1% in 2023 ) short term liabilities. Non-current assets constitute 91% of the total assets (91% in 2023).
In 2024, Group invested nearly 24 million euros in renewing and expanding its equipment fleet. A significant portion of these
investments was allocated to key product groups: telehandlers, earthmoving equipment, lifts and work platforms, generators, and
other machinery. Currently, 32% of the rental fleet equipment is less than two years old.
During 2024, the Group successfully transitioned from its outdated ERP system to a new cloud-based solution across all five operating
countries, marking a significant milestone in improving operational efficiency on a broad scale. The transition required substantial
time and financial resources to optimize workflows and ensure continuous improvements in employee productivity. The new system
automates daily tasks, allowing the team to focus on business priorities and overall increasing profitability. This optimization enables
Group to achieve greater efficiency with fewer resources. The Group remains committed to investing in digital tools and technologies.
A new customer-facing website, set to launch in 2025, will provide an enhanced online experience, offering more features and
capabilities than the current platform.
Storent’s success is grounded in high performance and innovation. To foster a high-performance culture across the company, Storent
implemented the “Star Program” — a remuneration system covering most positions across the organization. The program offers top
industry-level earnings to outstanding employees by recognizing individual achievements and rewarding team performance when
financial targets are met. The program is designed to retain and attract top talent in the industry — those who are proactive, results-
driven, and eager to grow.
On 1 March 2024, based on a reorganization agreement, the shares in five subsidiaries were transferred from the subsidiary Storent
Investments to the Company, thereby increasing the Company’s share capital to EUR 33,500,000. Storent Investments was excluded
from the Storent Group, and the company’s new name is SM Investments SIA (registration No. 40103834303).
As a result of the reorganization, the assets and liabilities of the merged companies were taken over at their carrying amounts as of
the date of the merger. The retained earnings of the merged company was added to the Company’s retained earnings from previous
years, and intercompany receivables and payables were eliminated (see Note 28). As part of the reorganization, the Company wrote
off its investment in SIA SM Investments in the amount of EUR 18,000,000 and acquired investments in five Storent Group companies
in the amount of EUR 41,000,000.
A detailed description of the reorganization is provided in Note 28
The future development of the Group
The Storent Group is preparing for growth by expanding its equipment fleet and opening new rental locations. Additional investments
of up to 20 million euros are planned before the start of the active season. In early 2025, the Group opened a new rental branch in
Kaunas, Lithuania, marking its 30th location. Another branch is set to open in Gulbene, Latvia. Storent sees the highest growth
potential in the Baltic region; however, the Nordic markets are also showing positive trends following a period of downturn.
At the same time, Storent is making significant investments in its team by launching extensive training programs in key areas such
as sales, product knowledge, leadership, and maintenance. Currently, Storent is developing a digital platform to centralize training
materials, providing continuous learning opportunities for all employees. These initiatives ensure that team members are equipped
with the necessary knowledge to support growth and drive operational excellence.
See also the section Post Balance Sheet Events, which provides information on Storent's new bond issuance, which took place in
April 2025, with the aim of promoting further growth.
Please see Note 27 for the management consideration of the Company’s ability to continue as a going concern.
Financial risk management
The Company’s key principles of financial risk management are laid out in Note 24.
Conditions and events after the end of the reporting year
In April 2025, Storent Holding AS announced a new bond issuance in the amount of EUR 35 million. Through the bond offering, the
company raised EUR 23 million. The funds raised will be used for new investments, future mergers and acquisitions, as well as for
refinancing existing liabilities. The company is actively seeking opportunities for further growth in all operating countries by investing
in its fleet and pursuing mergers and acquisitions. The company’s shareholders are also considering an IPO as one of the options
for capital raising.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
5
The Group has signed a letter of intent with a potential acquisition target based in Texas, United States. If the due diligence process
is satisfactory, the Group plans to acquire 70% of the target company’s shares. The remaining 30% will be equally retained by the
company’s two current shareholders, each holding 15%. These shareholders will continue to be actively involved in the company's
operations. The Group aims to bring its expertise, particularly in information technology and business development, to support the
continued growth and strategic development of the target company.
From the last day of the reporting year until the date of signing these separate financial statements, there have been no other events
that would require adjustments to or disclosure in these separate financial statements.
The management report was signed on 30 April 2024 on the Company’s behalf by:
Andris Pavlovs
Member of the Board
The annual report was approved at the general shareholders’ meeting on 30 April 2025
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
6
Statement of management’s responsibility
The management of Storent Holding AS confirms that the separate financial statements have been prepared in accordance with the
applicable legislation requirements and present a true and fair view of the Storent Holding AS financial position as at 31 December
2024 and as at 31 December 2023 and its financial performance and cash flows for the years then ended. The management report
contains a clear summary of Storent Holding AS and its subsidiaries business development and financial performance. The separate
financial statements have been prepared according to the IFRS Accounting Standards as adopted by the European Union. During
the preparation of the Storent Holding AS separate financial statements the management:
used and consequently applied appropriate accounting policies;
provided reasonable and prudent judgments and estimates;
applied a going concern principle unless the application of the principle wouldn’t be justifiable.
Storent Holding AS management is responsible for maintaining appropriate accounting records that would provide a true and fair
presentation of the Storent Holding AS financial position at a particular date and financial performance and cash flows and enable
the management to prepare the separate financial statements according to the IFRS Accounting Standards as adopted by the
European Union.
This statement of management’s responsibility was signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
7
Separate statement of comprehensive income
Note 2024 2023
EUR EUR
Net revenue 3 9 721 791 163 396
Materials and services costs 4 (4 144 739) -
Gross profit: 5 577 052 163 396
Personnel costs 9 (1 049 879) (321)
Other operating expenses 5 (2 260 707) (130 220)
Depreciation and amortization 6 (223 157) (19 855)
Impairement gain / (loss) on trade receivables from related parties (108 777) (61 839)
Interest and similar income 7 4 504 754 3 617 411
Interest payments and similar expenses 8 (3 213 836) (816 111)
Profit (loss) before income tax 3 225 450 2 752 461
Corporate income tax (29 058) -
Profit (loss) after calculation of the corporate income tax 3 196 392 2 752 461
Total comprehensive profit (loss) of the reporting year 3 196 392 2 752 461
The notes on pages 12 to 40 are an integral part of these separate financial statements.
These separate financial statements were signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
Marina Grigore
Chief Accountant
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
8
Separate statement of financial position
ASSETS
Note 31.12.2024 31.12.2023
NON-CURRENT ASSETS EUR EUR
Intangible assets
Development of intangible assets 32 570 -
Licenses and similar rights 4 731 641 -
Other intangible investments 372 450 -
TOTAL 10 5 136 661 -
Property, plant and equipment
Other fixed assets 334 341 3 309
TOTAL 11 334 341 3 309
Other non-current assets
Investments in subsidiaries 12 42 699 584 18 000 000
Loans to related parties 22(b) 8 335 804 14 177 300
TOTAL 51 035 388 32 177 300
TOTAL NON-CURRENT ASSETS 56 506 390 32 180 609
CURRENT ASSETS
Trade and other receivables
Trade receivables from related parties 22(b) 5 231 651 923 472
Trade receivables 100 000 -
Other receivables 13 27 218 3 990
Deferred expenses 14 113 717 49 545
TOTAL 5 472 586 977 007
Cash and cash equivalents 15 66 659 409 019
TOTAL CURRENT ASSETS 5 539 245 1 386 026
TOTAL ASSETS
62 045 635 33 566 635
The notes on pages 12 to 40 are an integral part of these separate financial statements.
These separate financial statements were signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
Marina Grigore
Chief Accountant
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
9
Separate statement of financial position
EQUITY AND LIABILITIES
Note 31.12.2024 31.12.2023
EQUITY EUR EUR
Share capital 16 33 500 000 18 150 000
Restructuring reserve 11 (4 200 688) -
Accumulated profit/(losses):
Previous reporting periods retained earnings / (uncovered losses) - 2 629
Profit (loss) of the reporting year 303 400 353 991
TOTAL EQUITY 29 602 712 18 506 620
LIABILITIES
Non-current liabilities
Issued bonds 19 9 710 617 14 609 965
Borrowings from related parties 22(c) 3 340 000 -
Other borrowings 20 2 040 727 -
Lease liabilities 21 166 925 -
TOTAL 15 258 269 14 609 965
Current liabilities
Issued bonds 19 15 066 250 41 250
Other borrowings 20 868 597 -
Lease liabilities 21 38 291 -
Borrowings from related parties 22(c) 174 400 359 400
Trade payables 165 264 1 522
Trade payables from related parties 22(a) 558 541 -
Corporate income tax 13 754 -
Taxes and mandatory state social insurance contribution 17 44 827 4 675
Other liabilities 18 206 602 10 370
Accrued liabilities 48 128 32 833
TOTAL 17 184 654 450 050
TOTAL LIABILITIES 32 442 923 15 060 015
TOTAL EQUITY AND LIABILITIES
62 045 635 33 566 635
The notes on pages 12 to 40 are an integral part of these separate financial statements.
These separate financial statements were signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
Marina Grigore
Chief Accountant
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
10
Separate statement of cash flows
Note 2024 2023
Cash flows from operating activities EUR EUR
Profit / (loss) before Income tax of the reporting period 3 196 392 2 752 461
Adjustments:
Depreciation of fixed assets 6 223 156 19 855
Interest payments and similar expenses 8 3 206 818 816 111
Interest and similar income (1 003 887) (783 487)
Cash flows from operating activities before changes in working capital 5 622 479 2 804 940
Decrease / (increase) in receivables (1 536 509) (498 993)
(Decrease)/ increase in payables (599 919) (397 558)
Gross cash flows from operations 3 486 051 1 908 389
Interest expenses (3 266 726) (766 340)
Net cash flows from operating activities 219 325 1 142 049
Cash flows from investing activities
Funds obtained through reorganization* 28 1 428 -
Acquisition of shares of subsidiaries (2 116 932) -
Acquisition of intangible investments and fixed assets (2 364 835) -
Loans issued - (14 177 300)
Net cash flows from investing activities (4 480 339) (14 177 300)
Cash flows from financing activities
Issued bonds 19 10 000 000 15 000 000
Loans received 20 4 009 910 714 400
Repayment of borrowings to related parties 22(c) (5 200 000) -
Repayment of other borrowings (926 466) -
Lease payments (58 848) (21 198)
Dividends paid (3 905 942) (2 398 470)
Net cash flows from financing activities 3 918 654 13 294 732
Net (Decrease) / increase in cash (342 360) 259 481
Cash at the beginning of the reporting year 409 019 149 538
Cash at the end of the reporting year 15 66 659 409 019
*please refer to Note 28
The notes on pages 12 to 40 are an integral part of these separate financial statements.
These separate financial statements were signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
Marina Grigore
Chief Accountant
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
11
Separate statement of changes in equity
Share capital
Restructuring
reserve
Previous years
retained earnings/
(uncovered losses)
Profit/(loss) of
the reporting
year
Total
EUR EUR EUR EUR EUR
31 December 2022 18 150 000 - (1 566) 4 195 18 152 629
Carrying over of profit of the previous year - - 4 195 (4 195) -
Profit for the reporting year - - - 2 752 461 2 752 461
Transactions with the owners of
Company
Distributed dividends - - - (2 398 470) (2 398 470)
31 December 2023 18 150 000 - 2 629 353 991 18 506 620
Increase of share capital 15 350 000 - (2 629) 2 629 15 350 000
Result of the restructuring - (4 200 688) - 656 330 (3 544 358)
Carrying over of profit of the previous year - - - - -
Profit for the reporting year - - - 3 196 392 3 196 392
Transactions with the owners of
Company
Distributed dividends - - - (3 905 942) (3 905 942)
31 December 2024 33 500 000 (4 200 688) - 303 400 29 602 712
The notes on pages 12 to 40 are an integral part of these separate financial statements.
These separate financial statements were signed on 30 April 2025 on the Company’s behalf by:
Andris Pavlovs
Chairman of the Board
Marina Grigore
Chief Accountant
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
12
Notes to the separate financial statements
1. General information about the Company
Storent Holding AS (hereinafter – the Company) (until 05.03.2024 Storent Holdings SIA) was registered in the Company Register of
the Republic of Latvia on 11 October 2018. The legal status of the Company is joint stock company (until 05.03.2024 - limited liability
company). Registered address of the Company is 15A Matrozu street, Riga, Latvia. Starting from 28 December 2022, the
shareholders of the Company are Supremo LTD and EEKI LTD (Latvia), none of which has been identified as an ultimate controlling
party.
The Company’s main operations relate to providing management and consultancy services and financial resources to its subsidiaries.
The separate financial statements of the Company for 2024 were approved by the decision of the Board on 30 April 2025 and have
to be approved by the shareholders. Shareholders have the right to reject the financial statements prepared and issued by the Board
and to request that new financial statements are prepared.
2. Summary of significant accounting policies
(a) The framework for the preparation of financial statements
The Company’s separate financial statements have been prepared in accordance with the IFRS Accounting Standards as adopted
by the European Union (EU) and the interpretations issued by the International Financial Reporting Issues Committee as adopted
by the EU.
The financial statements have been prepared according to the historical cost basis. The monetary unit used in the financial
statements is the official currency of the Republic of Latvia – the Euro. The financial statements cover the period from 1 January
2024 until 31 December 2024. The financial statements have been prepared in accordance with below mentioned measurement
and recognition principles. The consolidated financial statements of STORENT HOLDING AS are prepared separately.
The material accounting policies applied in the preparation of these separate financial statements are set out below.
(b) Use of estimates and judgements
Requirements of IFRS Accounting Standards as adopted by EU set out that the preparation of financial statements requires the
management of Company to make assumptions that affect the amounts of assets, liabilities reported in the statements and off-balance at
the day of preparation of financial statements, as well as shown income and expenses of the reporting period. Actual results could differ
from these estimates.
The following are the critical judgments and key estimates concerning the future, and other key sources of estimation uncertainty, which
exist at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
during the next reporting period. The most critical areas related to estimates of the recoverable amount of investment in subsidiary and the
recoverable amount of loans granted.
Recoverable value of investment in subsidiary
The Company management evaluates the carrying amount of investment in subsidiary and assesses whenever indications exist that
asset’s recoverable amount is lower than its carrying amount. The Company management calculates and records an impairment
loss on investment in subsidiary based on the estimate related to the future return on it. Taking into consideration the 5-year business
plan for the subsidiary the Company’s management considers that no significant adjustments to the carrying amount of investment
in subsidiary are necessary as of 31 December 2024. Please see Note 12 for more information.
Impairment losses and recoverable amount of loans granted to and guarantees issued on behalf of related parties
The Company's management assesses the carrying amount of loans and guarantees issued with accrued interest, establishing
expected credit losses. Expected credit losses from loans and guarantees issued with accrued interest are calculated based on
assumptions about default risk and expected loss level. In making these assumptions and selecting data for the calculation of
expected credit losses, the Company takes into account its experience, current market conditions, as well as future estimates at the
end of each reporting period. Expected credit losses on loans issued to related parties and guarantees issued on behalf of related
parties are assessed by determining and applying by the management the probability of default of each receivable and the expected
loss in the event of default. The Company's management has assessed loans issued to related parties and guarantees issued on
behalf of related parties and believes that no significant additional expected credit losses are required as at 31 December 2024. See
Note 22(b) for more information.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
13
2. Summary of significant accounting policies (cont.)
(c) Foreign currency conversion
The monetary unit used in the financial statements is the official currency of the European Union (hereinafter – “EUR”), which is the
Company’s functional and presentation currency.
All transactions in foreign currency are converted to EUR based on the European Central Bank published reference exchange rate
on trade date. On the balance sheet date, foreign currency monetary assets and liabilities are translated at the European Central
Bank published reference exchange rate as at 31 December.
European Central Bank published reference exchange rates:
31.12.2024
31.12.2023
EUR
EUR
1 USD
0.96256
0.90498
1 GBP
1.20601
1.15068
1 SEK
0,08726
0.08716
Profit or losses from these transactions, as well as from the foreign currency monetary assets and liabilities denominated in EUR,
are recognized in the income statement.
(d) Intangible assets
Intangible assets are recorded at their initial cost and are amortised over their useful lives using the straight-line method, based on
an estimated useful life of 3–5 years. Except for the newly established rental program, which has a useful life of 10 years. The
amortisation methods and useful lives are reviewed at each reporting date and adjusted if necessary. If any events or changes in
circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the asset is reviewed for impairment.
Impairment losses are recognised when the carrying amount of the intangible asset exceeds its recoverable amount.
Development of intangible investments
According to IAS 38, an intangible asset arising from development shall be recognised if, and only if, the Company can demonstrate
all of the following: a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; b) its
intention to complete the intangible asset and to use or sell it; c) its ability to use or sell the intangible asset; d) how the intangible
asset will generate probable future economic benefits. Among other things, the Company can demonstrate the existence of a market
for the output of the intangible asset or for the intangible asset itself, or if it is to be used internally, the usefulness of the intangible
asset; e) the availability of adequate technical, financial, and other resources to complete the development and to use or sell the
intangible asset; f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
The project initiated by the Company met all of the above criteria. Only those expenses that could be measured reliably by the
Company were included under the item “Development of intangible investments.” The development of the intangible asset began in
2023 and is expected to be completed by the end of 2025.
(e) Property, plant and equipment
Property, plant and equipment are carried in their historic cost less accumulated depreciation and impairment losses, if any.
Depreciation is calculated using the straight-line method to allocate the cost of the assets over their estimated useful lives:
Other fixed assets
2 - 5 years.
Depreciation is charged in the month when an item of property, plant or equipment was put into operation or used for business
purposes. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total costs of the item
shall be depreciated separately. If the company depreciates some parts of a fixed asset individually, the remaining parts of this fixed
asset are also depreciated individually. The balance consists of those parts of the fixed asset, which are not important by themselves.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and, if appropriate, amended.
If events or changes in circumstances indicate that the carrying amount of an item of property, plant and equipment may not be
recoverable, the carrying amount of the item is tested for impairment. See Note 2. (f) for more details.
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. The gain or loss (calculated as a difference between net disposal proceeds and the carrying
amount of the item of item of fixed asset) arising from the derecognition of an item of property, plant and equipment is recognized in
profit or loss in the period when the item is derecognized.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
14
2. Summary of significant accounting policies (cont.)
(f) Investments in subsidiaries
Investments in subsidiaries (i.e., where the Company holds more than 50% of interest in the share capital or otherwise controls the
investee company) are measured initially at cost. Control is achieved where the Company has the power to govern the financial and
operating policies of the investee company, and if Company has opportunity to reap the return of investments from the exercise of
such powers.
Subsequent to initial recognition, all investments are stated at historical cost less any accumulated impairment losses. The carrying
amounts of investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. Impairment loss is recognized in the statement of profit and loss. Please also refer to note 2.(f).
(g) Impairment of non-financial assets
At the end of each reporting period, the Company reviews whether there is any indication that an investment in subsidiary, may be
impaired. The Company identifies its investment in subsidiary as a single CGU, which is the smallest identifiable group of assets
that generates cash inflows largely independent of the cash inflows from other assets or groups of assets. It should be noted that
Storent Holding Group continuously monitors the utilization of its items of property, plant and equipment in various locations and
moves assets according to their utilization and market demand. However, in the opinion of management, taking into account the
principle of prudence, an impairment analysis at the country level (which corresponds to the CGU classification) is justified.
If any such indication exists or if the CGU annual impairment test needs to be done, the Company estimates the recoverable amount
of the CGU. The recoverable amount of a CGU is its fair value less costs to sell or value in use, whichever is greater.
If the carrying amount of a CGU exceeds its recoverable amount, the CGU is impaired and the carrying amount of the CGU is written
down to its recoverable amount. For determining the value in use, the planned load of the equipment used by the CGU (i.e. the
Company’s indirect subsidiaries) and the average rental price are taken into account, as a result, the planned revenue and the
payback period of the initial investment are calculated. Impairment losses are recognized in the comprehensive income statement.
Please also see Note 10.
At each balance sheet date, the Company reviews whether there is any indication that impairment loss recognized for an asset in
prior periods could have reduced or no longer exist. If such indications exist the Company estimates the recoverable amount of the
respective asset. Previously recognized impairment loss is reversed when and only when the estimates on the basis of which the
recoverable amount of the asset was determined have changed since the last time the impairment loss was recognized. In such a
case the carrying amount of an asset is increased to its recoverable amount. Where the value of an asset has increased, the carrying
amount of the asset may not exceed as a result of the increase in the carrying value which would have resulted less depreciation
were impairment loss not recognized in respect of the asset in prior years. Such increase in value is recognized in income statement.
(h) Financial assets and financial liabilities
Financial assets
Recognition, classification and subsequent measurement
A financial asset is recognised in the statement of financial position when the Company becomes party to a contract that is a financial
instrument.
On initial recognition, the Company classifies and measures a financial asset at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL with recognition in the income statement:
• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.
The Company classifies its financial assets as financial assets at amortised cost in line with its business model to hold the financial
assets and collect the contractual cash flows, which consist only of payments of principal and interest on the outstanding principal
amount. The assets in the statement of financial position that belong to this category are Loans to related parties, Trade receivables,
Trade receivables from related parties and Other receivables.
These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in consolidated statement of
comprehensive income. Any gain or loss on derecognition is recognised in consolidated statement of comprehensive income.
A financial asset is derecognized if:
• The contractual rights to the cash flows from the financial asset expire;
• The Company retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation
to pay cash flows without material delay to a third party based on and earlier arrangement without any profit arising,
• The Company transfers the contractual rights to receive the cash flows of the and either (a) it transfers substantially all the risks
and rewards of ownership of the financial asset to a third party, or (b) it neither transfers no retains substantially all the risks and
rewards of ownership of these assets but has transferred control over the item of financial asset.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
15
2. Summary of significant accounting policies (cont.)
(h) Financial assets and financial liabilities (cont.)
Impairment of financial assets
• Loans to related parties, trade receivables from related parties and guarantees issued on behalf of related parties
The Company recognizes expected credit losses on issued loans, which are measured at amortized cost, and issued guarantees
even if no credit loss has occurred. The amount of expected credit losses is updated at each reporting date to reflect changes in
credit risk since the date of initial recognition of the financial asset or the previous reporting date. Expected credit losses on loans to
related parties, receivables from related parties and issued guarantees are estimated using the EAD x PD x LGD approach, with
management individually determining the default exposure (EAD) of each obligor and applying the probability of default (PD) and
expected loss for each obligor (LGD).
Taking into account that the cash flows of the Storent Group are centrally controlled, at the end of reporting period the Company
knows what the amount of cash flows from related parties will be, the Company’s management has determined that the credit risk
of the direct and indirect subsidiaries as well as its shareholders has not increased significantly since the date of initial recognition
of the financial asset or the previous reporting date.
Taking into account the above, the Company's management believes that as at 31 December 2024 (as at 31 December 2023 –
none), additional provisions for possible credit losses from debts of related companies, loans to related companies and guarantees
issued on behalf of related parties are not required.
• Trade receivables and Other receivables
The Company applies the simplified approach under IFRS 9. The Company always recognises expected lifetime credit losses over
the life cycle for trade receivables and other receivables. Lifetime credit losses represent the expected credit losses that will result
from all possible default events over the expected life of a financial instrument. The expected credit losses on these financial assets
are estimated using a provision matrix based on the Company’s historical credit loss experience over a two-year period, adjusted for
factors that are specific to the debtors.
The Company considers a financial asset to be in default when the borrower is in significant financial difficulty and is unlikely to pay
its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held); or
the financial asset is more than 90 days past due. Such financial assets in default are considered to be credit-impaired.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Debts
are written off when their recovery is considered impossible.
Financial liabilities
Recognition, classification and subsequent measurement
A financial liability is recognised in the statement of financial position when the Company becomes party to a contract that is a
financial instrument.
All of the Company’s financial liabilities are classified as measured at amortised cost.
Financial liabilities are subsequently measured in fair value of the borrowing less costs associated with obtaining the borrowing.
These costs are an integral part of the effective interest rate of the borrowings and are accounted for as an adjustment to the effective
interest rate.
Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognised in consolidated statement of comprehensive income. Any gain or loss on derecognition
is also recognised in consolidated statement of comprehensive income.
A financial liability is derecognized, if the obligation specified in the contract is discharged or cancelled or expired. On derecognition
of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash
assets transferred or liabilities assumed) is recognised in comprehensive income.
Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms,
or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the respective
carrying amounts is recognized in consolidated statement of comprehensive income.
Change in the terms of a financial liability
When changes in the contractual terms of a financial liability, such as expected cash flow dates, an assessment is made as to
whether the change is material and, accordingly, it is necessary to derecognise the liability. To determine whether the change is
significant, the Company evaluates qualitative factors and whether the difference between the carrying amount and the discounted
value of the changed expected future cash flows, applying the original effective interest rate of the financial liability, is equal to or
greater than 10 percent. If a change in such contractual terms is recognized as material, it results in derecognition of the financial
liability, the estimated fair value of the liability is treated as a settlement of the existing financial liability, and the new liability is
recognized at fair value plus transaction costs. If the contractual condition is not recognized as material, the liability is not
derecognised, the Company recalculates the gross carrying amount of the financial liability and recognizes the gain or loss in the
income statement.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
16
2. Summary of significant accounting policies (cont.)
(h) Financial assets and financial liabilities (cont.)
Financial guarantees
The Company has issued a number of guarantees in favor of third parties for the liabilities of its subsidiaries. The Company has
elected to apply IFRS 9 to all of its financial guarantees. In assessing guarantees, the Company applies the method described above
to determine the expected credit losses on loans to related parties and receivables from related parties, where EAD corresponds to
the guaranteed amount at the end of the relevant period.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis
or to realise the asset and settle the liability simultaneously.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in bank and in hand, deposits held at call with banks with original maturities of three months
or less.
(j) Provisions
Provisions are recognised, when the Company has present obligation (legal or constructive) due to any past event and there is a
probability that an outflow of resources from the Company including economic benefits will be required to settle this obligation, and
the amount of the obligation can be measured reliably.
(k) Accrued liabilities for unused vacations
The amount of accrued liabilities is determined by multiplying average daily earnings of employees in the last 6 months by the
number of unused vacation days accumulated at the end of the reporting year, in additional calculating employer’s mandatory state
social insurance contributions.
(l) Contingent liabilities and assets
No contingent liabilities are recognised in these financial statements. Contingent liabilities are recognised only if it the probability
that an outflow of resources will be required is reasonably certain. Contingent assets in these financial statements are not recognised,
yet they are reflected solely where the possibility that economic benefits related to operations will reach the Company is sufficiently
substantiated.
(m) Restructuring reserve
During the reporting year, a corporate reorganisation under common control took place, as a result of which control over the indirect
subsidiaries was transferred to the Company. The fair value of the investment was reviewed, and the result of the change in the
carrying value was recognised as a reorganisation reserve. This transaction had no impact on the Company’s profit or loss, as it was
carried out under common control.
(n) Leases
The Company as lessee
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-
use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal
computers, small items of office furniture and telephones). The term of contract is assessed on the following criteria: the contract is
concluded for a specified period; the end of the lease term is stipulated in the agreement and the further extension of the
agreement must be agreed with the cooperation partner by concluding additional agreements. For these leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing
rate.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the
effective interest method) and by reducing the carrying amount to reflect the lease payments made.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
17
2. Summary of significant accounting policies (cont.)
(n) Leases
The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment
of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using
a revised discount rate;
• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount
rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is
used);
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability
is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount
rate at the effective date of the modification.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the
commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over period of lease term.
(o) Revenue recognition
The Company has applied and recognises income, using a 5-step model. The model consists of:
• Determination of contractual relations;
• Determination of contract performance obligation;
• Determination of transaction price;
• Attribution of transaction price to the performance obligation;
• Recognition of income, when the Company has fulfilled the performance obligation.
The following criteria are used for determination of contractual relations:
• The contractual parties have approved a contract and are committed to fulfil their liabilities;
• The Company may identify the rights of each party in relation to deliverable goods or services;
• The Company may identify settlement procedures for the goods or services;
• The contract has commercial nature;
• There is high possibility, that the Company will charge remuneration due to it in exchange for goods or services that will be
transferred to the customer.
Management and consulting services
Fees for the provision of management and consultancy services are treated as variable remuneration because their amount is
determined on the basis of the actual costs of the services provided. Revenue from variable remuneration is recognized by the
Company only when it is probable that the uncertainty surrounding the variable remuneration will be resolved and the amount of
cumulative revenue recognized will not be significantly reduced.
Management and consulting fees are calculated and recognized and invoiced on a monthly basis when the actual costs are recorded
and the uncertainty surrounding the variable remuneration is resolved. The Company is not required to make significant judgments
in determining the transaction price or the fulfillment of these performance obligations.
A performance obligation exists when there is a good or service that is severable or when there is a series of separate goods or
services that are substantially the same. The Company's performance obligations are set out in its agreements with service
recipients.
Determination of the transaction price and attribution to the performance obligation - the Company determines the transaction price
in contracts with service recipients for each performance obligation separately, which directly depends on the Company's actual
costs for the performance of the respective performance obligation, therefore attribution is not necessary.
The Company uses the relief for the financing component and does not adjust the transaction price, as the time between the
customer's payment and the performance obligation does not exceed one year.
Inventory Sales
In 2024, the Company sold inventories to its subsidiaries, which it had received from suppliers under concluded financing agreements
(please refer to Note 20). Inventories are measured at the lower of cost or net realisable value. Inventories are accounted for at
purchase cost using the First-In, First-Out (FIFO) method. The cost of inventories is recognised as an expense at the time the
respective inventories are sold. Revenue from the sale of goods is recognized when control over the goods has been transferred to
the buyer and the amount of revenue can be reliably measured. Control is considered to be transferred when the buyer has the
ability to direct the use of the goods and obtain substantially all of the remaining benefits from them. Revenue is recognized at the
net amount, excluding discounts, returns, and other trade allowances. Transportation costs borne by the seller are recognized as
expenses and are not included in revenue. In cases where goods are sold with deferred payment terms, revenue is recognized in
full unless the deferral period is significant, in which case a financing component may be considered.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
18
3. Summary of significant accounting policies (cont.)
(p) Corporate income tax and deferred corporate income tax
Corporate income tax expenses are included in financial statements based on management calculations according to laws of
Republic of Latvia.
Based on the Corporate Income tax law of the Republic of Latvia, corporate income tax is applicable to distributed profits and several
expenses that would be treated as profit distribution. In case of undistributed profit, corporate income tax shall not be applied. The
applicable corporate income tax rate is 20% from the taxable base.
Distributed dividends by the Company in 2023 were eligible to exemption from corporate income tax as these were based on profits,
which had already been subject to application of corporate income tax in the Company’s subsidiaries.
In accordance with International Accounting Standard No 12 “Income Taxes” requirements, income tax includes only taxes, which
are calculated based on taxable profit, thus corporate income tax calculated from the taxable base, which consists of conditionally
distributed profit, is presented in Other operating expenses.
In accordance with International Accounting Standard No 12 “Income Taxes” requirements, in cases where income tax is payable at
a higher or lower rate, depending on whether the profit is distributed, the current and deferred tax assets and liabilities are measured
at the tax rate applicable to undistributed profits. In Latvia the applicable rate for undistributed profits is 0%. Therefore, no deferred
tax assets and liabilities arise.
(q) Transactions with related parties
Related parties represent both legal entities and private individuals related to the Group in accordance with the following rules:
a) person or a close member of that person’s family is related to a reporting entity if that person:
i. Has control or joint control over the reporting entity;
ii. Has significant influence over the reporting entity; or
iii. Is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
b) An entity is related to a reporting entity if any of the following conditions applies:
i. The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow
subsidiary is related to the others);
ii. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of
which the other entity is a member);
iii. Both entities are joint ventures of the same third party;
iv. One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
v. The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related
to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting
entity;
vi. The entity is controlled, or jointly controlled by a person identified in a);
vii. A person identified in a) i) has significant influence over the entity or is a member of the key management personnel of the
entity (or of a parent of the entity).
viii. The entity, or any member of the group of which it is a part, provides key management personnel services to the reporting
entity or to the parent of the reporting entity.
(r) Post balance sheet events
Only such post balance sheet events are presented in the financial statements which provide additional information on the
Company’s financial position at balance sheet date (adjusting events). If post balance sheet events are not adjusting, they are
disclosed in the financial statements only if they are material.
(s) IFRS Accounting Standards changes
New standards and amendments to standards, including any consequential amendments to other standards, effective for annual
periods beginning on or after 1 January 2023, have not had a material impact on these separate financial statements.
(t) Standards and amendments to existing standards issued by IASB but that are not yet effective
A number of new standards are effective for annual periods beginning after 1 January 2024 and earlier application is permitted;
however, the Company has not early adopted the new or amended standards in preparing these separate financial statements.
The following standards and interpretations effective for annual periods beginning after 1 January 2024 are not expected to have a
material impact on the Company’s separate financial statements:
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
• Non-current Liabilities with Covenants (Amendments to IAS 1)
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
• Lack of Exchangeability (Amendments to IAS 21)
Effect of the following standard is still being assessed:
• IFRS 18 Presentation and Disclosure in Financial Statements
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
19
2. Summary of significant accounting policies (cont.)
(t) Standards and amendments to existing standards issued by IASB but that are not yet effective
IFRS Accounting Standards currently adopted by the EU do not differ materially from those issued by the International Accounting
Standards Board (IASB), except for some of the above-mentioned standards, amendments to existing standards and interpretations
not yet endorsed by the EU on 31 December 2024 (effective dates refer to IFRS Accounting Standards, as issued by the IASB).
The Company decided not to introduce new standards, amendments to existing standards and interpretations before their effective
date.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
20
3. Net revenue
2024
2023
By type of services
EUR
EUR
Management and consultancy services to related parties
5 474 331
163 396
Rental revenue from related parties
4 147 460
-
Other income
100 000
-
TOTAL:
9 721 791
163 396
In 2024, the Company sold inventory to its subsidiaries, which it received from suppliers under signed financing agreements (please
see Note 20).
The Company has no contract liabilities or contractual assets from contracts with customers. All of the Company's revenues are
generated from providing services and selling goods to subsidiaries in Latvia, Lithuania, Estonia, Finland, and Sweden.
At the beginning of March 2024, the Storent Holding group completed the legal reorganization process, resulting in the capital shares
of five subsidiaries being transferred from SM Investments (until May 21, 2024, Storent Investments AS) to Storent Holding. The
Company assumed the parent company's functions, which were previously carried out by SM Investments (until May 21, 2024,
Storent Investments AS), significantly increasing the Company's revenue from management services.
4. Material expenses
2024
2023
EUR
EUR
The cost of goods sold
4 144 739
-
TOTAL:
4 144 739
-
5. Other expenses
2024
2023
EUR
EUR
IT expenses
692 514
-
Compensation according to company contracts
631 349
-
Insurance expenses
253 491
Consultancy services
163 610
14 569
Marketing expenses
152 901
4 886
Services of statutory auditors*
83 980
97 455
Administration transport costs
82 882
11 691
Legal services
69 662
-
Rental and operating expenses for premises and territories
51 133
-
Communication expenses
3 300
-
Other administration expenses
75 885
1 619
TOTAL:
2 260 707
130 220
* Including payments for audit services to the company of independent auditors KPMG Baltics SIA:
2024
EUR
2023
EUR
Financial statements auditing services
83 980
97 455
TOTAL:
83 980
97 455
In early March 2024, the Storent Holding group completed a legal reorganization process, as a result of which the shares of five
subsidiaries were transferred from SM Investments (until May 21, 2024, Storent Investments AS) to Storent Holding. The company
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
21
took over the functions of the parent company, which were previously carried out by SM Investments (until May 21, 2024, Storent
Investments AS), leading to a significant increase in the company's operating expenses.
6. Depreciation
2024
2023
EUR
EUR
Depreciation of intangible assets (see Note 10)
183 220
-
Depreciation of fixed assets (see Note 11)
39 937
19 855
TOTAL:
223 157
19 855
In early March 2024, the Storent Holding Group completed the legal reorganization process, as a result of which the capital shares
of five subsidiaries were transferred from SM Investments (until May 21, 2024, Storent Investments AS) to Storent Holding. The
Company took over the functions of the parent company, which had previously been performed by SM Investments (until May 21,
2024, Storent Investments AS), leading to a significant increase in depreciation and amortization for the Company.
7. Interest and similar income
2024
2023
EUR
EUR
Income from dividends*
3 500 867
2 803 546
Interest income from related parties
984 385
808 336
Interest income from non-related parties
19 502
5 529
TOTAL:
4 504 754
3 617 411
*In 2024, the Company has received dividends income of EUR 3 500 867 from subsidiaries (in 2023 EUR 2 803 546).
8. Interest payments and similar expenses
2024
2023
EUR
EUR
Interest on bonds
2 817 821
796 863
Interest on borrowings from related parties
278 380
18 629
Interest on borrowings from unrelated parties
106 299
-
Interest on financial lease
4 317
619
Other similar expenses
7 019
-
TOTAL:
3 213 836
816 111
9. Personnel costs and number of employees
2024
2023
EUR
EUR
Salaries
768 661
-
National social security mandatory contributions
182 639
-
Other personnel costs
98 579
321
TOTAL:
1 049 879
321
In early March 2024, the Storent Holding Group completed the legal reorganization process, resulting in the transfer of the capital
shares of five subsidiaries from SM Investments (until 21.05.2024 Storent Investments AS) to Storent Holding. The Company took
over the functions of the parent company, which were previously carried out by SM Investments (until 21.05.2024 Storent Investments
AS), leading to a significant increase in personnel costs and a rise in the number of employees.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
22
9. Personnel costs and number of employees (cont.)
2024
2023
Personnel costs by function:
EUR
EUR
Administration and finance staff
1 049 879
321
TOTAL:
1 049 879
321
2024
2023
Incl. executive management remuneration:
EUR
EUR
Members of the Board
Salaries
54 366
-
National social security mandatory contributions
12 860
-
TOTAL:
67 226
-
In 2023, Members of the Board performed their functions without compensation.
2024
2023
Average number of employees during the reporting year
11
2
TOTAL:
11
2
10. Intangible assets
Licences and
similar costs
Other
intangible
assets
Development
of intangible
assets
TOTAL
EUR EUR EUR EUR
At 31 December 2023
Historical cost
- - - -
Accumulated amortisation and depreciation
- - - -
Net carrying value
- - - -
FY 2024
Historical cost
- - - -
Acquisition
- 1 681 982 601 680 2 283 662
Acquisitions, restucturing the company*
42 091 2 591 528 402 600 3 036 219
Write-off
- - - -
Transfered
- 631 830 (631 830) -
Excluded depreciation
- - - -
Amortisation
(9 521) (173 699) - (183 220)
Net carrying value
32 570 4 731 641 372 450 5 136 661
At 31 December 2024
Historical cost
42 091 4 905 340 372 450 5 319 881
Accumulated amortisation and depreciation
(9 521) (173 699) - (183 220)
Net carrying value
32 570 4 731 641 372 450 5 136 661
*Please refer to Note 28
The item "Other intangible assets" consists of the new ERP systems that the Company began using from January 1, 2024.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
23
11. Property, plant and equipment
Other fixed assets TOTAL
EUR EUR
FY 2023
Net carrying value, opening
23 164 23 164
Amortisation
(19 855) (19 855)
Net carrying value
3 309 3 309
At 31 December 2023
Historical cost
99 275 99 275
Accumulated amortisation and depreciation
(95 966) (95 966)
Net carrying value
3 309 3 309
FY 2024
Net carrying value, opening
3 309 3 309
Acquisition
336 286 336 286
Acquisitions, restructuring companies*
34 683 34 683
Write-off
(406) (406)
Excluded depreciation
406 406
Amortisation
(39 937) (39 937)
Net carrying value
334 341 334 341
At 31 December 2024
Historical cost
469 838 469 838
Accumulated amortisation and depreciation
(135 497) (135 497)
Net carrying value
334 341 334 341
*Please refer to Note 28
12. Investments in subsidiaries
In March 2024, a reorganization of Storent Investments ASwas carried out (please see note 28), as a result of which Storent
Investments ASchanged its name to SM Investments SIA. The capital shares in five active direct subsidiaries were transferred from
Storent Investments to Storent Holding, and all other assets of Storent Investments, including intangible assets, and liabilities, except
for its investment in a subsidiary registered in Kaliningrad, were merged with Storent Holding AS. The remaining legal entity of
Storent Investments AS, which only contained the investment in the subsidiary registered in Kaliningrad, was sold to third parties
and removed from the Storent Holding group, sales consideration is EUR 100 000.
As a result of the reorganization, the fair value of the transferred investments in subsidiaries was determined based on the market
multiplier method (Level 3 of the fair value hierarchy). The total value of the investments, net of the Company's mutually exclusive
debts, was determined at EUR 41,000,000. The total fair value was allocated to the investments in individual subsidiaries in
proportion to their individual market values, estimated using the income method and consistent with the assumptions for impairment
estimates set out below.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
24
12. Investments in subsidiaries (cont.)
Adress
%
31.12.2024
31.12.2023
EUR
EUR
SM Investments SIA*
Matrožu iela 15a, Rīga, Latvia
-
18 000 000
STORENT SIA
Zolitūdes iela 89, Rīga, LV-1046, Latvia
100
22 550 000
-
STORENT UAB
Savanorių pr. 180B, Vilnius, LT-03154,
Vilniaus m., Lithuania
100
8 610 000
-
STORENT OU
Betooni 15/Paneeli 5, Tallinn, 11415,
Estonia
100
5 875 000
-
STORENT Holding Finland OY
Virkatie 16, Vantaa, FI-01510, Finland
100
4 550 000
-
STORENT AB
Arrendevagen 50, 163 44, Spanga,
Stokholma, Sweden
100
1 114 584
-
TOTAL:
42 699 584
18 000 000
* till 21.05.2024 Storent Investments AS
2024
2023
Movement of the value of investments
EUR
EUR
At the beginning of the year
18 000 000
18 000 000
Result of the reorganization*:
Investment in SM Investments SIA**
(18 000 000)
-
Investment in STORENT SIA
22 550 000
-
Investment in STORENT UAB
8 610 000
-
Investment in STORENT OU
4 920 000
-
Investment in STORENT Holding Finland Oy
4 100 000
-
Investment in STORENT AB
820 000
-
TOTAL:
41 000 000
18 000 000
Change in 2024:
Investment in STORENT OU
955 000
-
Investment in STORENT AB
294 584
-
Investment in STORENT Holding Finland Oy
450 000
-
TOTAL:
42 699 584
18 000 000
*Please refer to Note 28
** till 21.05.2024 Storent Investments AS
Name
Country
Business
Date of incorporation / acquisition
Company
STORENT SIA
Latvia
Rental of construction machinery and equipment
17 April 2008
STORENT UAB
Lithuania
Rental of construction machinery and equipment
27 November 2008
STORENT OU
Estonia
Rental of construction machinery and equipment
7 July 2009
STORENT Holding
Finland OY
Finland
Operation of central offices
28 September 2012
STORENT AB
Sweden
Rental of construction machinery and equipment
27 June 2013
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
25
12. Investments in subsidiaries (cont.)
Audited
Profit for the reporting year
Equity
2024
2023
2024
2023
31.12.2024
31.12.2023
Name
EUR
EUR
EUR
EUR
STORENT SIA
No
Yes
4 360 542
4 829 331
31 954 758
22 011 869
STORENT UAB
No
Yes
(365 882)
480 477
258 826
(1 872 487)
STORENT OU
No
Yes
(633 759)
(953 611)
(590 637)
(8 091 523)
STORENT Holding Finland OY
No
Yes
(717 856)
92 303
1 068 945
(1 133 199)
STORENT AB
No
Yes
(647 952)
(299 325)
(632 138)
(1 174 243)
STORENT Holding Finland OY meitas
sabiedrība:
STORENT OY
No
Yes
(1 104 206)
(531 752)
937 101
(3 111 690)
The company’s management conducted an assessment of the recoverable value of each investment in the capital of affiliated
companies. An evaluation was made to determine whether there has been an impairment of the value of the investments in the
capital of affiliated companies. In order to perform the impairment test for the investments in the capital of affiliated companies, the
recoverable amount – the value in use – is determined by discounting the future cash flows of each affiliated company. The
calculation is based on the following assumptions: each affiliated company is considered a separate cash-generating unit (CGU).
The cash flows are estimated based on a 5-year business plan, which takes into account the current results as of the date of
preparation of the financial statements. The 5-year business plan of the Storent Holdings Group is created based on the following
assumptions: total depreciation and amortization expenses, IT costs, management fees, insurance expenses, and interest expenses
are allocated to each affiliated company according to the proportion of the machinery fleet belonging to that company. Using the
same proportion of the machinery fleet, the group’s liabilities for the purchase of new equipment are distributed in the calculation of
the investment value. The cash flows were extrapolated using a terminal growth rate of 2% (2% in 2023). To determine the present
value of the assets, a post-tax discount rate of 10.12% till 10.76% (8.96% in 2023) was applied. The discount rate forecasts are
based on the actual cost of capital for the group’s companies.
The recoverable value of long-term investments is significantly dependent on the assumptions used in the valuation regarding the
consolidated net revenue growth of the Storent Holding Group's subsidiaries, EBITDA profitability (which is influenced by internal
cost optimization), the timing and rate of EBITDA growth, the applied discount rate, as well as the company's management's ability
to implement these assumptions and the overall development of the construction machinery rental market in the Baltics and Nordic
countries. Any adverse changes in these assumptions, which may be caused by market volatility in which the company or its direct
and indirect subsidiaries operate, may negatively impact the carrying value of the company's investment in the subsidiaries as
reflected in the balance sheet as of December 31, 2024.
The key assumptions used in the estimation of the recoverable amount (value in use) are as follows:
31.12.2024
Storent SIA
Storent UAB
Storent OU
Storent Oy
Storent AB
EBITDA level
38%-45% from
2025 to 2029,
with 45% in the
terminal year
(2024: currently
38%)
29%-36% from
2025 to 2029,
with 36% in the
terminal year
(2024: currently
27%)
24%-32% from
2025 to 2029,
with 32% in the
terminal year
(2024: currently
21%)
26%-33% from
2025 to 2029,
with 32% in the
terminal year
(2024: currently
20%)
21%-34% from
2025 to 2029, with
34% in the terminal
year (2024:
currently 11%)
EBITDA annual growth
rate**
10,16%
15,2%
53,8%
12,7%
49,6%
Cash flow forecast period
5 gadi + terminal
year
5 gadi +
terminal year
5 gadi +
terminal year
5 gadi + terminal
year
5 gadi + terminal
year
Weighted Average Cost
of Capital (WACC)
10,67%
10,76%
10,58%
10,32%
10,12 %
Terminal Growth Rate
2%
2%
2%
2%
2%
* Discount rate forecasts are based on the actual cost of capital for the group companies.
** The increase in nominal EBITDA growth rates is related to the additional funding attracted by the Group, which allows for increased
investments in the expansion and renewal of the rental fleet.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
26
To determine the key assumptions for EBITDA level and EBITDA growth rate, the Group's management has considered both the
Group's past experience and the future trends and forecasts of the construction market in the specific country where the cash-
generating unit (CGU) is located.
The recoverable value of investments is significantly dependent on the recently established Storent Holding group's net revenue
growth, EBITDA profitability (affected by internal cost optimization), and the timing and pace of EBITDA growth, the applicable
discount rate, as well as the Group's management's ability to implement these assumptions in the overall development of the
construction equipment rental market in the Baltic States and Nordic countries. Any adverse changes to these assumptions, which
may be caused by market volatility in the Group's operating environment, could negatively impact the recoverable value of intangible
assets and other long-term non-financial assets, as reflected in the balance sheet as of December 31, 2024.
Sensitivity Analysis
The Company has performed a sensitivity analysis of the impairment test with respect to changes in the key assumptions used to
determine the recoverable amount for each CGU. The sensitivity analysis is based on the same assumptions as the investment
value calculation described above. According to the Group's management estimates, a similar EBITDA level will be achieved across
all countries (except for Latvia) by increasing sales volume and significantly improving efficiency, particularly in Estonia, Lithuania,
and Sweden. The main assumptions that may affect the recoverable value and alter the investment value include the execution of
the EBITDA budget and the weighted average cost of capital. The table shows the impact of changes in these two assumptions on
the cash-generating unit's value reserve/(impairment).
Weighted average cost of capital
10.12%-10.76%
EBITDA target achieved at 90%
EBITDA target
achieved at
90%
EBITDA target
achieved at 80%
Weighted average
cost of capital -1%
Weighted average
cost of capital
+1%
m EUR
2024
2024
2024
2024
Latvia
27,3
18,2
33,3
22,6
Lithuania
4,8
0,8
7,3
2,8
Estonia
2,2
-0,9
4,4
0,5
Sweden
0,6
-0,4
1,5
0,08
Finland
7,7
4,5
9,9
6,0
TOTAL:
42,6
22,2
56,4
32,0
Based on management's calculations, a decrease in EBITDA or an increase in the discount rate could result in the carrying amount
of the Lithuanian, Estonian and Swedish CGUs not reaching the expected recoverable amount as of December 31, 2024. Storent
Group management, in close cooperation with the management of the local subsidiaries is carefully considering and implementing
a sales strategy in Lithuania, Estonia and Sweden to prevent any discrepancies from the planned EBITDA level. In the first three
months of 2025, the performance of all these markets improved, thanks to an experienced and focused management and sales
team. The Group's management is supporting the Lithuanian, Estonian and Swedish businesses with new investments. According
to the internal budget, Lithuania, Estonia and Sweden will receive the largest portion of the Group's total capital expenditure plan in
2025.
13. Other receivables
31.12.2024
31.12.2023
EUR
EUR
Guarantee
14 801
-
Prepayment for services
12 417
3 990
TOTAL:
27 218
3 990
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
27
14. Deferred expenses
31.12.2024
31.12.2023
EUR
EUR
Insurance expenses*
83 982
49 545
IT support
27 661
-
Other deferred expenses
2 074
-
TOTAL:
113 717
49 545
*Please refer to Note 28
15. Cash and cash equivalents
31.12.2024
31.12.2023
EUR
EUR
Cash in bank, EUR
66 659
409 019
TOTAL:
66 659
409 019
16. Share capital
The Company's registered share capital was increased by EUR 15 350 000 in 2024, with contributions made by the shareholders,
and as of December 31, 2024, amounts to EUR 33 500 000, consisting of 33 500 000 shares. The nominal value of each share is
EUR 1. All shares have equal voting rights and the right to dividends.
In 2024, the Company received dividend income of EUR 3 500 867 (EUR 2 803 546 in 2023) from its subsidiary in Latvia.
The Company's registered share capital as of December 31, 2023, was EUR 18 150 000, consisting of 18 150 000 shares. The
nominal value of each share is EUR 1. All shares have equal voting rights and the right to dividends.
17. Taxes and mandatory state social insurance contributions
31.12.2024
31.12.2023
EUR
EUR
Social insurance contributions
23 775
-
Personal income tax
21 047
4 675
Risk charge
5
-
TOTAL:
44 827
4 675
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
28
18. Other liabilities
31.12.2024
31.12.2023
EUR
EUR
Accruals for unused vacations
160 405
-
Employee compensation
46 197
-
Other liabilities
-
10 370
KOPĀ:
206 602
10 370
19. Issued bonds
In 2023, Storent Holding AS issued its first emission of bonds with maturity date 21.12.2025, coupon interest rate 11%, bond
nominal value 100 EUR and total nominal value 15 000 000 EUR. Bonds are listed on the official bond list of Nasdaq Riga AS.
In 2024, Storent Holding AS issued bonds with a maturity date of 21 September 2026 and an annual interest rate of 10%. The
nominal value of one bond is EUR 100, and the total value is EUR 10 000 000. The bonds are listed on the official bond list of
Nasdaq Riga.
Issued bonds
Emission
date
Maturity
date
Amount
Actual
interest
rate (%)
31.12.2024
EUR
31.12.2023
EUR
ISIN code LV0000850089
26.06.2023
21.12.2025
15 000 000
11
15 000 000
15 000 000
ISIN kods LV0000850345
21.03.2024
21.09.2026
10 000 000
10
10 000 000
Accrued interest for bonds coupon
payment
66 250
41 250
Incremental cost allocation
emission*
(289 383)
(390 035)
TOTAL:
24 776 867
14 651 215
Total Non-current liabilities:
9 710 617
14 609 965
Total Current liabilities:
15 066 250
41 250
Borrowings against issued bonds are unsecured. Full amount of borrowings is repayable upon maturity date. Coupon payment
is payable on a quarter basis.
*Total borrowing origination fees and costs amounted to 695 823 EUR. The Company treated these fees and costs as incremental
costs related to attract the financing. These fees and costs are an integral part of the effective interest rate of the loans and are
treated as an adjustment to the effective interest rate.
Reconciliation of movements of issued bond liabilities to cash flows arising from financing activities:
31.12.2024
EUR
31.12.2023
EUR
Balance at the beginning of the year
14 651 215
-
Proceeds from bonds
10 000 000
15 000 000
Total changes from financing cash flows
10 000 000
15 000 000
Incremental cost allocation
(214 029)
(481 794)
Incremental cost allocation amortization
314 681
91 759
Interest expense
2 817 821
705 104
Interest paid
(2 792 821)
(663 854)
Total liability-related other changes
125 652
(348 785)
Balance at the end of the year
24 776 867
14 651 215
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
29
19. Issued bonds (cont.)
According to the Terms, Storent Group must meet the following financial conditions from the date of bond issuance, June 26,
2023, and until the bonds are repaid:
• The shareholders’ equity to assets ratio at the end of each quarter must not be less than 25% (twenty-five percent).
The “shareholders' equity to assets ratio” is the issuer’s total equity expressed as a percentage of the issuer’s
consolidated total assets at the end of each quarter, as determined based on the issuer’s consolidated quarterly
financial statements.
• Net debt/EBITDA ratio for the previous 12 (twelve) months:
a) must not exceed 2.5 until the second quarter of 2024 (inclusive);
b) must not exceed 4 starting from the third quarter of 2024 until the second quarter of 2025 (inclusive);
c) starting from the third quarter of 2025, must not exceed 3.5.
The net debt/EBITDA ratio is calculated: a) at the end of each quarter, as determined based on the issuer’s consolidated monthly
financial reports for the previous 12 (twelve) months; and (b) on December 31st of each year, as determined on a consolidated
basis, based on each of the issuer's annual financial reports
“Net debt/EBITDA ratio” is the ratio of interest-bearing liabilities minus cash to the EBITDA for the respective measurement
period. See also the information below.
“EBITDA” is the net income for the measurement period before: a) tax accruals; b) all interest, fees, discounts, or other charges
arising or payable, received or receivable in relation to financial debt obligations; c) any items considered as extraordinary or
exceptional items; d) depreciation and amortization of tangible and intangible assets; and e) asset revaluation, disposals, or
write-offs.
In 2024 and as of December 31, 2024, the Company has met the aforementioned financial conditions (taking into account the
amendments described in section “Bond Events 2024”)
Bond Events in 2024
In August 2024, Storent Holding AS announced a written procedure to obtain bondholder consent for amendments to the terms of
bonds with ISIN codes LV0000850089 and LV0000850345. With the amendments, the issuer proposes to adjust the Net
Debt/EBITDA ratio, setting a cap of 4 for the net debt to EBITDA ratio from the third quarter of 2024 until the second quarter of
2025, and starting from the third quarter of 2025, reducing it to 3.5. This change will allow full compliance with the financial
conditions until the bonds are repaid. On September 6, 2024, the vote was concluded with a positive outcome, and the amendments
were approved.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
30
20. Other borrowings
In 2024, the Company received supplier credits from aerial lift manufacturers in Europe –Yanmar Construction Equipment Europe
S.A.S and LGMG Europe B.V. The total loan amount is EUR 4 009 910 with an interest rate of 5.5% per annum. The repayment
dates of the loans are shown in the table below. The inventories received from suppliers under the aforementioned agreements were
sold to subsidiaries (please refer to Notes 3 and 4).
As additional security for these loans from Yanmar Construction Equipment Europe S.A.S and LGMG Europe B.V., promissory
notes for each payment have been registered.
Maturity
date of the
liability
Amount
Effective
interest
rate (%)
31.12.2024
31.12.2023
EUR
EUR
LGMG Europe B.V
01.07.2028
2 099 985
5,5
1 555 504
-
SAS Yanmar construction equipment Europe
02.10.2028
1 909 925
4,92
1 541 643
-
Financing arrangement costs
(236 441)
-
(187 823)
-
Kopā:
2 909 324
-
Kopā ilgtermiņa saistības:
2 040 727
-
Kopā īstermiņa saistības:
868 597
-
The total loan issuance costs amounted to EUR 236 441. The Company recognized these costs as financing costs. These costs
are an integral part of the effective interest rate and are recorded as a correction to the effective interest rate.
Comparison of other loan movements with financing cash flows:
2024
EUR
2023
EUR
Balance at the start of the period
-
-
Funds received from loans
4 009 910
-
Received due to reorganization (see Note 28)
430 354
-
Loan repayment
(1 356 820)
-
Total changes from financing cash flows
3 083 444
-
Financing costs
(236 441)
-
Amortization of financing costs
48 618
-
Interest expenses
69 121
-
Paid interest
(55 418)
-
Total changes related to liabilities
(174 120)
-
Balance at the end of the period
2 909 324
-
21. Lease liabilities
End date
Interest rate, (%)
31.12.2024
EUR
31.12.2023
EUR
Lease liabilities
till 30.11.2029
3%
205 216
-
TOTAL:
205 216
-
Long-term liabilities:
166 925
-
Short-term liabilities:
38 291
-
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
31
22. Transactions with related parties
22.(a) Transactions with related parties:
Related party Year
Goods and
services
provided
Interest
income
Goods
purchased
and services
received
Payables
related
parties
Interest
expenses
Receivables
from related
parties
EUR EUR EUR EUR EUR
SM Investments SIA* 2024 - - - - (7 786) -
SM Investments SIA 2023 197 709 577 158 - - (5 944) 768 746
STORENT SIA 2024 3 675 251 130 508 (255 755) - (91 915) 1 552 352
STORENT SIA 2023 - 17 382 - - - 14 741
STORENT UAB 2024 2 217 714 - - (720) (178 679) 635 113
STORENT OU 2024 2 085 264 - - - - 604 884
STORENT Oy 2024 1 275 986 25 500 (125 564) (25 742) - 1 167 852
STORENT Holding Finalnd Oy 2024 - 453 050 - - - 663 281
STORENT AB 2024 365 552 1 325 (42 774) - - 202 959
Selectia SIA 2023 - 11 972 - - (5 683) -
Selectia Plus SIA 2023 - - - - (6 824) -
SEL Investments SIA 2023 - - - - (178) -
Aston Baltic SIA
21.09.2023-
31.12.2023
- - (1 128 752) (396 852) - -
Aston Baltic SIA 2024 - - (3 226 610) (532 079) - -
Supremo SIA 2024 - 232 099 - - - 333 011
Supremo SIA 2023 - 100 912 - - - 100 912
EEKI SIA 2024 141 903 242 815
EEKI SIA 2023 - 100 912 - - - 100 912
KOPĀ: 2024 9 619 767 984 385 (3 650 703) (558 541) (278 380) 5 402 267
KOPĀ: 2023 197 709 808 336 (1 128 752) (396 852) (18 629) 985 311
*till 21.05.2024 Storent Investments AS
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
32
22. Transactions with related parties (cont.)
22.(b) Loans issued to and receivables from related parties
31.12.2024 31.12.2023
EUR EUR
SM Investments SIA* 31.12.2026 10 872 300 13% - 10 872 300
Storent SIA 31.12.2027 1 206 717 13% 1 206 717 305 000
Storent Holding Finland OY
31.12.2027 4 100 000 13% 4 100 000 -
Storent Oy
31.12.2027 600 000 13% 600 000 -
EEKI SIA 31.12.2027 1 500 000 13% 763 683 1 500 000
Supremo SIA 31.12.2027 1 500 000 13% 1 665 404 1 500 000
Accured interest (22(a) note) - - - 575 826 808 336
Receivables (22(a) note) - - - 4 826 441 176 975
Accruals for receivables - - - (170 616) (61 839)
8 335 804 14 177 300
5 231 651 923 472
Non-current liabilities
Current liabilities
Maturity date
Loan amount
Actual interest
rate (%)
Loans to related parties issued without security and their recoverability is assessed individually.
During the reporting year, no insolvency or payment delay events were identified, nor were any other specific indicators of
increased credit risk observed. As of 31 December 2024, all loans to related parties were classified as Stage 1 under the
requirements of IFRS 9. The impairment provisions for expected credit losses are considered immaterial and are therefore
not disclosed separately. No movement between stages occurred for related party loans during 2024. The contractual terms
of loans issued to related parties were not modified during the year 2024. No loans issued to related parties were written off
in 2024.
The carrying amount of loans, accrued interest, and trade receivables from related parties represents the Company’s
maximum exposure to related credit risk.
*SM Investments SIA (renamed from Storent Investments ASon 21.05.2024) had a debt of EUR 10 872 300 to Storent
Holding AS as of 31.12.2023. Before the reorganisation that took place on 1 March 2024, SM Investments partially repaid
this loan by transferring EUR 1 144 400 to Storent Holding AS’s bank account. The remaining loan amount of EUR 9 727
900 was mutually offset following the reorganisation of SM Investments. Please see Note 28.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
33
22.(c) Borrowings from related parties
31.12.2024 31.12.2023
EUR EUR
Storent Investments AS* 2024 359 400 13% - 359 400
Storent UAB 2026 3 340 000 13% 3 340 000 -
Storent SIA 2025 174 400 13% 174 400 -
3 340 000 -
174 400 359 400
Maturity date
Loan amount
Actual interest rate
(%)
Ilgtermiņa saistības:
Īstermiņa saistības:
*A loan from SM Investments SIA (formerly Storent Investments ASuntil 21.05.2024) in the amount of EUR 359 400 was mutually
offset between Storent Holding and SM Investments, and therefore had no impact on the results of the reorganisation.
Loans from related parties are unsecured.
Reconciliation of movements from borrowings from related parties to cash flows arising from financing activities:
31.12.2024
EUR
31.12.2023
EUR
Balance at the beginning of the year
359 400
-
Proceeds from borrowings from related parties
-
714 400
Loan repayment expenses
(5 200 000)
-
Acquired as a result of the reorganisation (see Note 28)
8 355 000
-
Total changes from financing cash flows
3 155 000
714 400
Interest expense
278 380
18 629
Interest paid
(278 380)
(18 629)
Other changes (mutual offset of amounts due)
-
(355 000)
Total liability-related other changes
-
(355 000)
Balance at the end of the year
3 514 400
359 400
22.(d) Terms and conditions applicable to transactions with related parties
Unsettled liabilities have not been secured in any way at the end of the year, and settlements are made in cash. No
guarantees have been provided or received for any receivables from related parties.
Loan interest
income
Borrowing interest
expenses
31.12.2024
31.12.2023
31.12.2024
31.12.2023
EUR
EUR
EUR
EUR
Shareholders of the Company
374 002
201 824
-
-
Subsidiaries of the Company
610 383
606 512
278 380
18 629
TOTAL:
984 385
808 336
278 380
18 629
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
34
23. Financial instruments
The company's main financial instruments are short-term and long-term loans issued, receivables, cash and received long-term and
short-term borrowings, issued bonds and financial lease. The main purpose of these financial instruments is to ensure the financing
of the Company's economic activities. The Company also faces a number of other financial instruments, such as trade and other
receivables, trade payables and other creditors arising directly from its business.
In accordance with IFRS 13, the levels of the fair value hierarchy are:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The table shows the carrying amounts and fair values of financial assets and financial liabilities. Fair value is determined at initial
recognition and for disclosure purposes at the end of each reporting period. None of the Company's financial assets or financial
liabilities are measured at fair value.
• Fair value of Trade receivables and Other receivables with no stated interest rate and cash and cash equivalents is
deemed to approximate their face value on initial recognition and carrying value on any subsequent date as the effect of
discounting is immaterial and therefore not disclosed in these financial statements.
Fair value of loans to related parties with outstanding maturities longer than six months and issued with a stated interest rate, is
estimated based on the present value of future principal and interest cash flows, discounted using the effective interest rate of the
corresponding agreement which, in the management’s view, represents the market rate of interest at the measurement date for
companies similar to the Company.
Fair value of financial liabilities with outstanding maturities shorter than six months, other than issued bonds, is deemed to
approximate their face value on initial recognition and carrying value on any subsequent date as the effect of discounting is
immaterial and therefore not disclosed in these financial statements.
Fair value of financial liabilities with outstanding maturities longer than six months, other than issued bonds, is estimated based on
the present value of future principal and interest cash flows, discounted using the effective interest rate of the corresponding
agreement which, in the management’s view, represents the market rate of interest at the measurement date for companies similar
to the Company.
The Company’s issued bonds are classified as Level 3 in the fair value hierarchy. The market for these bonds is not assessed as
an active market. The significant non-observable key input to determining the fair value of the issued bonds is that no adjustment
to the observable quotes is required.
All of the Company’s financial assets and financial liabilities are determined to be Level 3 in the fair value hierarchy. There were
no transfers between fair value hierarchy levels in 2024 and in 2023.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
35
23. Financial instruments (cont.)
Categories of financial assets and liabilities as at 31.12.2024 and as at 31.12.2023:
Financial assets
Carrying
amount
Fair value
Carrying
amount
Fair value
EUR EUR EUR EUR
Loans issued to and receivables from related companies 8 335 804 8 189 421 14 177 300 14 014 376
Trade receivables from related parties 5 231 651 5 231 651 923 472 923 472
Other receivables 100 000 100 000 - -
Cash and cash equivalents 66 659 66 659 409 019 409 019
TOTAL financial assets: 13 734 114 13 587 731 15 509 791 15 346 867
Financial liabilities
Carrying
amount
Fair value
Carrying
amount
Fair value
EUR EUR EUR EUR
Issued bonds 24 776 867 24 940 478 14 651 215 15 030 925
Other borrowings 2 909 324 2 909 324 - -
Lease liabilities 205 216 205 216 - -
Loans from related parties 3 514 400 3 514 400 359 400 359 400
Trade payables 723 805 723 805 1 522 1 522
Other payables 206 602 206 602 10 370 10 370
TOTAL financial liabilities: 32 336 214 32 499 825 15 022 507 15 402 217
31.12.2024
31.12.2023
Loans and receivables held at amortised cost
31.12.2024
31.12.2023
Financial liabilities held at amortized cost
24. Financial risk management
The Company’s operations are subject to the following financial risks: currency risk, credit risk and liquidity risk.
Foreign currency risk
Foreign currency risk is the risk of financial losses incurred by the Company due to adverse fluctuations in foreign currency
exchange rates. This risk arises when financial assets denominated in a foreign currency do not match financial liabilities in that
currency which results in open currency positions for the Company. The Company does not have any material financial assets
and liabilities denominated in currencies other than the Euro. Therefore, during the reporting year the Company’s exposure to
foreign currency risk was not significant.
Credit risk
Credit risk is the risk that the Company incurred a financial loss if counterparties fail to fulfil their obligations to the Company. The
Company has credit risk exposure related to cash, trade receivables and issued loans. The maximum credit risk of the Company
is equal to the carrying amount of the respective asset items
Cash
Credit risk in relation to cash in bank is managed by evaluating the banks to cooperate with, this reducing the probability of losing
financial resources.
Trade receivables
The Company monitors outstanding trade receivables on a regular basis.
Loans issued
The Company controls the credit risk by evaluating financial performance indicators of loan recipients.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to timely and in full to ensure fulfilling its own commitments. Liquidity risk
arises when terms of payments of financial assets and liabilities are not correlating. The Company’s liquidity risk management is
to maintain adequate cash and cash equivalent amount and provide sufficient financing in order to be able to fulfil its obligations
in time. The Company management considers that the Company will have sufficient cash resources and its liquidity will not be
compromised. Please refer to Note 27.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
36
24. Financial risk management (cont.)
Please refer to note 27 in the appendix regarding the continuation of the Company's operations. The repayment terms of the
Company's financial liabilities, based on the undiscounted payments stipulated in the agreement, as of December 31, 2024, and
December 31, 2023, are as follows:
Expected
interest
payments
Carrying
amount
31.12.2024
< 3 month
3-6 month
6-12 month
1-5 years
TOTAL
TOTAL
TOTAL
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Issued bonds
(662 500)
(662 500)
(16 825
000)
(10 250 000)
(28 400 000)
(3 623 133)
24 776 867
Other borrowings
(378 019)
(131 725)
(986 523)
(2 046 846)
(3 543 113)
(633 789)
2 909 324
Lease liabilities
(14 969)
(13 563)
(54 253)
(176 944)
(259 729)
(54 513)
205 216
Loans from related parties
-
-
(197 072)
(3 774 200)
(3 971 272)
(456 872)
3 514 400
Trade payables
(723 805)
-
-
-
(723 805)
-
723 805
Other financial liabilities
(206 602)
-
-
-
(206 602)
-
206 602
TOTAL:
(1 985 895)
(807 788)
(18 062
848)
(16 247 990)
(37 104 521)
(4 768 307)
32 336 214
Expected
interest
payments
Carrying
amount
31.12.2023
< 3 month
3-6 month
6-12 month
1-5 years
TOTAL
TOTAL
TOTAL
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Issued bonds
(412 500)
(412 500)
(825 000)
(16 650 000)
(18 300 000)
(3 648 785)
14 651 215
Loans from related parties
-
-
(406 122)
-
(406 122)
(46 722)
359 400
Trade payables
(1 522)
-
-
-
(1 522)
-
1 522
Other financial liabilities
(10 370)
-
-
-
(10 370)
-
10 370
TOTAL:
(424 392)
(412 500)
(1 231 122)
(16 650 000)
(18 718 014)
(3 695 507)
15 022 507
25. Capital management
The purpose of the Company’s capital management is to provide a high credit rating and a balanced structure of capital to ensure
successful activity of the Company and to maximize the Company’s share value. The Company is not subject to any externally
imposed capital requirements. The Company is controlling the structure of capital and adjusts this structure according to economic
conditions. To control and adjust the capital structure, the Company can change conditions of payment of dividends to shareholders,
to return them part of shares or to issue new shares. In 2024 and 2023, there were no changes introduced to purposes, policy or
processes related to capital management.
31.12.2024
31.12.2023
EUR
EUR
Interest bearing loans and borrowings
31 405 807
15 010 615
Trade and other payables
930 407
16 567
Less cash and cash equivalents
(66 659)
(409 019)
Net debt
32 269 555
14 618 163
Equity
29 602 712
18 506 620
Net debt to equity ratio:
0,92
0,79
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
37
26. Issued guarantees
The Company has issued several guarantees in favor of third parties for the liabilities of its indirect subsidiaries. When assessing
the expected credit losses of these guarantees, the management individually determines and applies the probability of default for
each indirect subsidiary’s liabilities and the expected losses in case of default, using the method described in note 2(g). Upon
evaluating the indirect subsidiaries' ability to fulfill their obligations as of December 31, 2024, the Company's management believes
that significant additional provisions for credit losses are not required.
In 2023, Storent Holding AS provided a guarantee for Luminor Līzings SIA in connection with all active lease agreements between
Storent SIA and Luminor Līzings SIA. The amount of the secured claim is EUR 9 588 697, and the guarantee is valid until November
30, 2029. As of the preparation date of the financial statements, the Company’s management has not identified any circumstances
indicating that an outflow of economic benefits from the Company will be required to settle the liabilities.
In 2023, Storent Holding AS provided a guarantee for Luminor Liising AS in connection with all active lease agreements between
Storent OU and Luminor Liising AS. The amount of the secured claim is EUR 633 219, and the guarantee is valid until December
31, 2029. As of the preparation date of the financial statements, the Company’s management has not identified any circumstances
indicating that an outflow of economic benefits from the Company will be required to settle the liabilities.
In 2023, Storent Holding AS provided a guarantee for Luminor Lizingas UAB in connection with all active lease agreements between
Storent UAB and Luminor Lizingas UAB. The amount of the secured claim is EUR 1 719 376, and the guarantee is valid until
December 31, 2029. As of the preparation date of the financial statements, the Company’s management has not identified any
circumstances indicating that an outflow of economic benefits from the Company will be required to settle the liabilities.
27. Going concern of the Company and liquidity risk management
The Company concluded the reporting year with a profit of EUR 3 196 392 (2023: profit EUR 2 752 461). At the end of the reporting
year, the Company’s current liabilities exceeded its current assets by EUR 11 645 408 (as of 31.12.2023, current assets exceeded
current liabilities by EUR 935 976). This excess is mainly related to the redemption term of the bonds with ISIN code LV0000850089
at the end of 2025. As a result of the Company's new securities issuance in spring 2025 (see Note 29), and the funds raised will be
used for new investments, further mergers and acquisitions, as well as for refinancing its liabilities. The Company’s management
has not identified any events or circumstances that might raise significant doubts about the Company’s ability to continue as a going
concern.
28. Reorganization
On March 1, 2024, based on the reorganization agreement, the capital shares of five subsidiaries were transferred from Storent
Investments to Storent Holding, increasing the share capital of Storent Holding to EUR 33 500 000. Storent Investments was
excluded from the Storent Group, and the new name of the company is SM Investments SIA (Reg. No. 40103834303).
As a result of the reorganization, the following assets and liabilities of the consolidated subsidiaries were assumed in accordance
with their carrying values as of the acquisition date. The profit of the consolidated subsidiaries for the reporting year was added to
the Company's retained earnings, and the receivables and payables were mutually offset.
- As a result of the reorganization, Storent Holding AS wrote off its investment in SIA SM Investment in the amount of EUR
18 000 000, acquiring investments in five Storent Group companies amounting to EUR 41 000 000, with an impact on the
Company’s balance sheet reflected in the “Investments in subsidiaries” line in the amount of EUR 23 000 000. Please see
Note 12.
- At the time of reorganization, SM Investments SIA had liabilities to Storent Holding AS: EUR 733 746 in trade payables
and EUR 9 727 900 in loans, which were mutually offset, reducing the amounts in Storent Holding AS's “Loans to related
parties” and “Trade payables to related parties” lines.
- With the asset pool of the reorganized company SM Investments SIA , a capital contribution of EUR 15 350 000 was made
to the share capital of Storent Holding AS, increasing the share capital of Storent Holding AS to EUR 33 500 000.
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
38
28. Reorganization (cont.)
Impact of the Reorganization on Specific Items of the Company:
SM Investments
balances before
reorganization
Elimination of
intercompany
balances
Impact of reorganization
on the Company's balance
sheet
Loans to related companies
Storent Holding Finland OY
4 100 000 4 100 000
Storent Oy
600 000 600 000
4 700 000 4 700 000
Borrowings from related companies
Storent Holdings SIA
(9 727 900) 9 727 900 -
Storent SIA
(4 580 000) (4 580 000)
Storent UAB
(3 775 000) (3 775 000)
(18 082 900) (8 355 000)
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
39
28. Reorganization (cont.)
SIA SM Investments
balances before
reorganization
Elimination of
intercompany
balances and
decrease of
investments
Impact of reorganization
on the Company's balance
sheet
NON-CURRENT ASSETS
Intangible assets
Development of intangible assets 402 600 - 402 600
Licenses and similar rights 42 091 - 42 091
Other intangible investments 2 591 528 - 2 591 528
TOTAL
3 036 219 - 3 036 219
Property, plant and equipment
-
Other fixed assets 34 683 - 34 683
TOTAL
34 683 - 34 683
Other non-current assets -
Investments in subsidiaries 45 200 688 (22 200 688) 23 000 000
Loans to related parties 4 100 000 (9 727 900) (5 627 900)
Other loans 600 000 - 600 000
TOTAL 49 900 688 (31 928 588) 17 972 100
TOTAL NON-CURRENT ASSETS
52 971 590 (31 928 588) 21 043 002
CURRENT ASSETS
Trade and other receivables
Trade receivables from related parties 1 780 554 (733 746) 1 046 808
Deferred expenses 94 777 - 94 777
TOTAL
1 875 331 (733 746) 1 141 585
Cash and cash equivalents 1 428 - 1 428
TOTAL CURRENT ASSETS 1 876 759 (733 746) 1 143 013
TOTAL ASSETS 54 848 349 (32 662 334) 22 186 015
EQUITY
Share capital (33 222 278) 17 872 278 (15 350 000)
Restructuring reserve - 4 200 688 4 200 688
Previous reporting periods retained earnings
(784 052) 127 722 (656 330)
TOTAL EQUITY
(34 006 330) 22 200 688 (11 805 642)
-
LIABILITIES
Non-current liabilities
Lease liabilities (1 430) - (1 430)
Borrowings from related parties (13 502 900) 9 727 900 (3 775 000)
Current liabilities
Lease liabilities (5 954) - (5 954)
Other borrowings (430 354) - (430 354)
Borrowings from related parties (4 580 000) - (4 580 000)
Trade payables (1 062 210) - (1 062 210)
Trade payables from related parties (1 259 171) 733 746 (525 425)
TOTAL LIABILITIES (20 842 019) 10 461 646 (10 380 373)
TOTAL EQUITY AND LIABILITIES
(54 848 349) 32 662 334 (22 186 015)
STORENT HOLDING AS Separate Annual Report 2024
Registered address: 15A Matrozu street, Riga, LV-1048
Registration number: 40203174397
40
29. Post balance sheet events
Non-adjusting events
In April 2025, Storent Holding AS announced a new bond issuance of 35 million euros. The company raised 23 million euros through
the bond issuance, which, considering the current geopolitical uncertainty, can be considered an excellent result. The funds will be
used for new investments, future mergers and acquisitions, as well as the refinancing of its obligations. The company is actively
exploring ways for further growth in all countries, investing in its fleet, and pursuing mergers and acquisitions. As one of the potential
capital increase options, the company owners are considering an IPO.
The group has signed a memorandum of understanding with a potential acquisition target company based in Texas, United States.
If the due diligence process is satisfactory, the group plans to acquire 70% of the target company's shares. The remaining 30% of
the shares will be retained equally by two existing shareholders, each holding 15% of the shares. These shareholders will continue
to actively participate in the company's operations. The group's goal is to provide its expertise, particularly in information technology
and business development, to support the target company's continuous growth and strategic development.
From the end of the reporting period until the date of signing these separate financial statements, there have been no other events
that would require adjustments or explanations in these separate financial statements.
These separate financial statements were signed on April 30, 2025 on the Company’s behalf by:
Andris Pavlovs
Member of the Board
Marina Grigore
Chief Accountant
The document is signed electronically.
* * *