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JOINT-STOCK COMPANY
STORENT HOLDING
(REGISTRATION NUMBER 40203174397)
CONSOLIDATED ANNUAL REPORT 2024
PREPARED IN ACCORDANCE WITH THE
IFRS ACCOUNTING STANDARDS
AS ADOPTED BY THE EUROPEAN UNION
AND INDEPENDENT AUDITORS’ REPORT
Riga, 2025
* This version of consolidated financial statements is a translation from the original, which was prepared in the Latvian language. All
possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of
interpretation of information, the original language version of consolidated financial statements takes precedence over this translation.
STORENT HOLDING AS Сonsolidated 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 7
Consolidated financial statements
Consolidated statement of comprehensive income 8
Consolidated statement of financial position 9
Consolidated statement of cash flows 11
Consolidated statement of changes in equity 12
Notes to the consolidated financial statements 13
Independent auditors’ report 62
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
3
General information
Name of the Group’s Parent company
Storent Holding (previously until 05.03.2024 – Storent Holdings)
Legal status of the Group’s Parent company
Joint-stock company (previously until 05.03.2024 – limited liability
company)
The Group Parent company’s registration
number, place and date
40203174397
Riga, 11 October 2018
Registered address of the Group’s Parent
company
15a Matrozu Street, Riga, LV-1048,
Latvia
Shareholders of the Group’s Parent company
Supremo SIA (Latvia) 50%, Andris Pavlovs
EEKI SIA (Latvia) 50%, Eri Esta
Members of the Board
Andris Pavlovs, Chairman 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
Misels Zavadskis, Chairman of the Supervisory Board (from
27.11.2024)
Eri 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, Chairperson 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)
Group’s type of operations
Renting and leasing of construction machinery and equipment
Group’s NACE code
77.32 (2.0 rev) Rental and leasing of construction and civil engineering
machinery and equipment
Independent auditor and sworn auditor name
and address
KPMG Baltics SIA
Roberta Hirša street 1, Riga
Latvia, LV – 1045
License No. 55
Armine Movsisjana
Latvian Sworn Auditor
Certificate No. 178
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
4
Management report
The Group’s type of operations
Storent Group’s first entity was founded in Latvia in 2008 with the primary goal of establishing itself as the most efficient and innovative
construction equipment rental company in the Baltics and the Nordic countries. Currently, the Group is operating in Europe with 32 rental
depos over five countries.
The Group’s objective is to provide customers with rental equipment solutions through innovative digital tools, team expertise and excellent
quality service in all five operational countries. Online sales channel with advanced IT solutions ensures an efficient rental process with
competitive pricing. A team of experts gives the best quality service and therefore guarantees long-term collaboration with partners and
clients.
Storent Holding AS (hereinafter – the Group’s Parent company or Storent Holding) was established on 11 October 2018. In March of 2024
the shares of SIA “Storent” (Latvia), Storent OÜ (Estonia), UAB “Storent” (Lithuania), Storent Holding Finland Oy (Finland), and Storent
AB (Sweden) previously held by sub-holding company Storent Investments were invested into Storent Holdings as contributions in kind
and all other assets, including intangible assets, and liabilities of Storent Investments, except for its investment in subsidiary registered in
Kaliningrad, were contributed into Storent Holding AS as well. The remaining Storent Investments AS legal entity containing only the
investment in Storent OOO, a company registered in the Kaliningrad region, Russia, was sold to third parties and excluded from the
Storent Holding Group. As a result of this reorganization, the share capital of Storent Holdings was increased to 33.5 million euros.
Additionally, the corporate name of Storent Holdings was changed to Storent Holding and its corporate form was altered from a limited
liability company (sabiedrība ar ierobežotu atbildību or SIA) to a joint-stock company (akciju sabiedrība or AS). The new structure of the
Storent Group is illustrated below.
Development of the Group and results of financial operations in the reporting year
In 2024, Group operating activity net revenue reached nearly 45,3 million euro (in 2023: 42,7), representing a 6% increase, compared to
the previous year. EBITDA reached 11,4 million euro according to IFRS and 13,3 million euro adjusted (alternative performance measure
(APM) excluding the accounting effects related to the revaluation reserve). Although sales volumes increased, adjusted EBITDA did not
show growth, primarily due to a 29% increase in personnel expenses. In 2023, the Group revalued its property, plant and equipment to
fair value. In accordance with IAS 16, revalued assets must subsequently be carried at their revalued amounts, and depreciation must be
calculated based on those revalued amounts. As a result of applying this standard, the Group’s statement of profit or loss reflects
revaluation-related adjustments in two-line items: 1,9 million euro represents additional depreciation recognised in accordance with the
standard for the disposed revalued assets and 1,4 million euro increase in depreciation expense is recognised due to the higher carrying
amount of assets following revaluation. Overall impact of revaluation reserve loss for the year is 3,3 million euro. Losses arising from the
impact of the revaluation reserve, in the amount of EUR 3,3 million, are presented as expenses in the Consolidated statement of
comprehensive income. However, they do not affect retained earnings, as they are fully offset by the previously recognised revaluation
reserve and reflected as a reduction of the revaluation reserve and increase of retained earnings in the statement of changes in equity
(see Consolidated statement of changes in equity).
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
5
While the company's operational profitability is strong, as indicated by EBITDA, fleet investment-related costs are having a significant
impact on EBIT and EBT. It is expected that in the coming periods the investments will continue to produce strong underlying performance
and are crucial for long-term growth. Storent invested nearly 24 million euros in the replacement and expansion of its fleet (including lease
contracts). A substantial portion of these investments was directed towards key product groups: telescopic handlers and forklifts,
earthmoving equipment, aerial lifts and working platforms, generators, ground tightening equipment and others. Currently, 32% of the fleet
is newer than two years.
Storent Holding
financial indicators,
thousands of euro
2024 acc IFRS
2024 APM
2023 acc IFRS
Change acc
IFRS
%
Change vs
APM, %
Net revenue
45 254
-
45 254
42 667
6.06%
6.06%
Total revenue
45 276
(1 874)
47 191
43 753
3.57%
7.86%
EBITDA
11 442
(1 874)
13 316
13 713
-16.56%
-2,89%
EBITDA %
25%
-
28%
31%
Net result
(3 012)
(3 306)
294
4 781
-163%
-93,85%
Net result %
(6,65%)
-
0,6%
10.9%
Throughout 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 large scale. The implementation required substantial
time and financial resources to optimize workflows and ensure continuous efficiency improvements for employees. The new system
automates routine tasks, allowing employees to focus on business priorities, ultimately driving increased profitability. This optimization
enables the company to achieve greater efficiency with fewer resources. The Group remains committed to investing in digital tools and
technologies. The new web version for clients, set to launch in 2025, will provide an enhanced online experience, offering more features
and options than the current platform.
Storent DNA is built on high achievement. To foster a high-performance culture across the company, Storent introduced Star Program, a
remuneration system, which applies to most positions across the company and ensures top industry earnings for high performers by
evaluating individual results and rewarding teamwork when financial targets are met. The program is designed to retain and attract the
best talent in the industry—those who are proactive, result oriented and eager to develop.
In the Baltic region, Storent remains a key partner in the largest construction projects while maintaining strong cooperation with the military
sector. In the Nordics, the company continues to focus on its expertise in telehandlers and lifting solutions. Staying aligned with its strategy,
the company prioritizes the use of its own rental equipment, reducing reliance on split-rent and improving overall results across all regions.
In 2024, Storent successfully completed its bond issue program, raising 10 million euros. The funds from this bond issue were utilized in
expanding and renewing our fleet. This equipment was selected through close collaboration among country managers, taking into account
each market's unique characteristics, customer needs, and future strategies. We renewed a diverse range of lifts and earthmoving
equipment, and made significant investments in the telescopic handler segment.
The Group’s consolidated balance sheet has a stable structure consisting of 44% shareholders equity, 28% long term liabilities and 28%
short term liabilities. Non-current assets constitute 90% of the total assets. The Group’s business peculiarity historically was always having
a working capital deficit due to large amount of liabilities to finance investments in rental equipment. The Group considers this peculiarity
and strategizes accordingly. In the reporting year the Group has doubled funds in total bank account balance at the end of the reporting
period. This amount is sufficient to ensure the Group’s operational activities and have a reserve in advance. Following table shows main
historical balance sheet ratios:
Thousands of euros
31.12.2024
31.12.2023
Shareholder equity
51 006
58 023
Total assets
115 765
96 006
Shareholder equity to Assets
44%
60%
Net debt
52 562
28 726
EBITDA based on IFRS measures
11 442
13 713
Effect of revaluations*
1 874
-
EBITDA APM for covenants
13 316
13 713
Net debt/EBITDA APM for covenants
3.95
2.09
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
6
*According to Storent Holding AS General Term and Conditions of the Notes point 16.2. ““EBITDA” means net profit of the Group for the
Relevant Period calculated according to the most recent Financial Reports: (c) before taking into account any exceptional items which are
not in line with the ordinary course of business and any non-cash items (such as e.g., asset revaluation or write-down)”. Please also see
discussion on APMs in the consolidated financial statements.
In the Baltic region, Storent remains a key partner in the largest construction projects while maintaining strong cooperation with the military
sector. In the Nordics, the company continues to focus on its expertise in telehandlers and lifting solutions. Staying aligned with its strategy,
the company prioritizes the use of its own rental equipment, reducing reliance on split-rent and improving overall results across all regions.
In 2025 planned sales increase of 10-15% and EBITDA growth of 15-25%, which management expects to achieve in existing markets and
potential targets.
The future development of the Group
The Storent Group is gearing up for expansion, planning to grow its fleet and open new rental depots. An additional up to €20 million
investment is set to be made before the start of the high season. At the beginning of 2025, the Group opened a new rental depot in
Kaunas, Lithuania, marking its 30th location, along with another new depot in Gulbene, Latvia. Storent sees the highest potential for growth
in the Baltic region; however, Nordic markets are also showing positive trends after a period of recession.
Alongside expansion, Storent is heavily investing in its team, implementing extensive training programs across key areas such as sales,
product knowledge, management, and repair & maintenance. Additionally, Storent is developing a digital platform to centralize training
materials, ensuring continuous learning opportunities for all employees. These initiatives ensure that employees are equipped with the
necessary expertise to drive growth and operational excellence.
As the development of the construction market has a big impact on the Group, the management is closely monitoring the situation and
adjusting strategies in each country, where its subsidiaries operate. In addition to that, the Group is using other market opportunities to
ensure optimal business returns, such as the military sector, events and farming. The focus of the Storent Group in 2025 is increasing the
market share and improving the Group’s profitability. After careful evaluation of the market trends and the Group management’s strategies,
the Group launched its next bond issue in April of 2025 raising total amount of 23 million euros.
Please see Note 35 for the management consideration of the Group’s ability to continue as a going concern.
Financial risk management
The Group’s key principles of financial risk management are laid out in Note 33.
Conditions and events after the end of the reporting year
In April 2025, Storent Holding AS announced a new bond issue of EUR 35 million, that was the third bond issue for the Group. As a result
of the big investor interest, through issuance of bonds the Group raised total amount of 23 million EUR in April 2025, which we consider
to be an excellent result given the current geopolitical sentiment globally and in the Baltics. The Group will use the proceeds for new
investments, further mergers and acquisition and to refinance its liabilities.
Storent Holding is looking for further growth in all countries using investments in rental fleet and continuing to look for Merger and
Acquisition deals. Shareholders of the Group are looking for capital increase and considering an initial public offering (IPO) to be one of
the options. The Group has signed a letter of intent with a potential acquisition target in Texas, the United States, and, subject to
satisfactory due diligence, plans to acquire a 70% stake in the target company. It is envisaged that the two existing shareholders of the
target company will each retain a 15% stake, together holding 30% of the remaining shares, and will continue contributing to the business
operations of the target company, while the Group will leverage its expertise particularly in IT and business development.
During the period between the last day of the reporting year and the date of signing of these consolidated financial statements, there have
been no other events requiring adjustment of or disclosure in these consolidated financial statements or notes thereto.
On behalf of the Group, the management report was signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
Consolidated annual report is approved in shareholders meeting on ___ May 2025
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
7
Statement of management’s responsibility
The Group’s management confirms that the consolidated financial statements have been prepared in accordance with the applicable
legislation requirements and present a true and fair view of the Group’s financial position as at 31 December 2024 and as at 31 December
2023 and its financial performance and cash flows for the years 2024 and 2023 then ended. The management report contains a clear
summary of the Group’s business development and financial performance. The consolidated financial statements have been prepared
according to the IFRS Accounting Standards as adopted by the European Union. During the preparation of the Group’s consolidated
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.
The Group’s management is responsible for maintaining appropriate accounting records that would provide a true and fair presentation of
the Group’s financial position at a particular date and financial performance and cash flows and enable the management to prepare the
consolidated financial statements according to the IFRS Accounting Standards as adopted by the European Union.
On behalf of the Group, this statement of management’s responsibility was signed on May ___, 2025 by:
This document is electronically signed with a secure electronic signature and contains a time stamp
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
8
Consolidated statement of comprehensive income
Notes
2024
2024
2024
2023
Non-IFRS APM:
IFRS
IFRS
PPE
results of
measure
measure
revaluation
operations before
reported
reported
effects**
revaluation
restated*
effects**
EUR
EUR
EUR
EUR
Net revenue
3
45 253 919
-
45 253 919
42 667 128
Other operating income
4
62 345
(1 874 244)
1 936 589
1 086 126
Cost of materials and services
5
(15 474 257)
-
(15 474 257)
(15 499 946)
Personnel costs
11
(11 399 901)
-
(11 399 901)
(8 830 068)
Other operating expenses
6
(6 736 887)
-
(6 736 887)
(6 185 693)
Impairement gain / (loss) on trade receivables and
cotract asset
17
(263 466)
-
(263 466)
475 170
EBITDA***
11 441 753
(1 874 244)
13 315 997
13 712 717
Depreciation and amotrization
7
(9 403 131)
(1 431 781)
(7 971 350)
(6 135 910)
Finance income
8
394 930
-
394 930
680 403
Finance expenses
9
(4 811 764)
-
(4 811 764)
(2 751 468)
Profit / (loss) before income tax**
(2 378 212)
(3 306 025)
927 813
5 505 742
Income tax income / (expenses)
10
(745 577)
-
(745 577)
(690 570)
Deferred income tax
10
111 891
-
111 891
(211 891)
Profit/(loss) from continuing operations**
(3 011 898)
(3 306 025)
294 127
4 603 281
Profit/(loss) from discontinuing operation, net of tax
-
-
-
177 782
Profit / (loss) for the year**
(3 011 898)
(3 306 025)
294 127
4 781 063
Items that may be reclasified subsequently to profit or loss
Exchange differences on foreign currency operations
78 993
-
78 993
(47 192)
Revaluation of property, plant and equipment
13
-
-
-
32 629 762
Other comprehensive income/(loss) for the year
78 993
-
78 993
32 582 570
Total comprehensive income/(loss) for the year*
(2 932 905)
(3 306 025)
373 120
The notes on pages 13 to 61 are an integral part of these consolidated financial statements.
On behalf of the Group these consolidated financial statements were signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board Baiba Onkele, Board member
This document is electronically signed with a secure electronic signature and contains a time stamp.
37 363 633
*Please see Note 13.
**To provide enhanced transparency and facilitate a clearer understanding of the impact of the revaluation of property, plant and equipment
(PPE) in accordance with IAS 16, the Group has elected to present alternative (non-IFRS) performance measure (APM) Results of
operations before revaluation effects: The accounting impact on the consolidated statement of comprehensive income arising from the
revaluation of PPE, includes additional depreciation of revalued PPE of EUR 1 431 781 calculated in 2024 and the increased cost of
previously revalued items of PPE that were disposed in 2024 of EUR 1 874 244 EUR. The measure is provided solely for illustrative and
analytical purposes (including the Group’s loan covenant compliance tests). While the revaluation affects negatively the current year
profitability of the Group reducing it by EUR 3 306 025, the Group’s retained earnings are not affected, as the effect is fully offset by the
reclass of previously recognised revaluation reserve to retained earnings in the statement of financial position.
***EBITDA is measured as profit/(loss) before income taxes, finance income, finance expenses and depreciation and amortization.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
9
Consolidated statement of financial position
ASSETS
Note
31.12.2024
31.12.2023
restated*
NON-CURRENT ASSETS
EUR
EUR
Intangible assets
Licences and similar rights
32 570
44 084
Computer software
4 731 877
2 364 665
Intangible assets in progress
372 450
252 950
Goodwill
10 987 122
10 987 122
TOTAL Intangible assets
12
16 124 019
13 648 821
Property, plat and equipment
Land and buildibgs
167 675
178 335
Machinery and equipment
43 098 192
45 608 657
Other fixed assets
452 967
300 582
Construction of property, plant and equipment
214 644
706 589
TOTAL Property, plant and equipment
13
43 933 478
46 794 163
Right of use assets (Property, plat and equipment under lease and loan agreements)
Right of use assets (Property, plat and equipment
under lease and loan agreements)
14
41 278 780
23 400 089
Other non-current assets
Loans to related parties
31(b)
2 924 211
3 000 000
TOTAL Other non-current assets
2 924 211
3 000 000
TOTAL NON- CURRENT ASSETS
104 260 488
86 843 073
CURRENT ASSETS
Inventories
15
846 694
804 899
Non-current assets held for sale
16
-
188 820
Trade and other receivables
Trade receivables
17
7 309 631
5 768 478
Contract assets
18
1 143
1 143
Other receivables
19
387 753
362 880
Deferred expenses
20
270 997
320 117
TOTAL Receivables
7 969 524
6 452 618
Cash and cash equivalents
21
2 688 030
1 717 088
TOTAL CURRENT ASSETS
11 504 248
9 163 425
TOTAL ASSETS
115 764 736
96 006 498
*Please see Note 13.
The notes on pages 13 to 61 are an integral part of these consolidated financial statements.
On behalf of the Group these consolidated financial statements were signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
This document is electronically signed with a secure electronic signature and contains a time stamp.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
10
Consolidated statement of financial position
EQUITY AND LIABILITIES
Note
31.12.2024
31.12.2023
restated*
EQUITY
EUR
EUR
Share capital
22
33 500 000
18 150 000
Reserves:
Revaluatuon reserve
13
29 323 737
32 629 762
Reorganization reserve
22
(15 350 000)
-
Foreign currency translation reserve
-
(78 993)
Other reserves
26 774
26 774
Retained earnings:
Retained earnings/ (accumulated losses)
3 505 376
7 294 973
TOTAL EQUITY
51 005 887
58 022 516
CREDITORS
Long-term liabilities
Issued bonds
24
9 710 617
14 609 965
Lease liabilities
25
20 428 978
10 071 222
Other borrowing
26
2 040 727
-
Deferred income
28
185 821
280 577
Deferred income tax liabilities
10
100 000
211 891
TOTAL Long-term liabilities
32 466 143
25 173 655
Short-term liabilities
Issued bonds
24
15 066 250
41 250
Borrowings from related parties
31(d)
-
901 717
Lease liabilities
25
7 135 266
4 141 824
Other borrowing
26
868 597
676 832
Liabilities directly associated with the assets held for sale
16
-
88 820
Contract liabilities
18
360 139
459 935
Trade payables
5 837 969
3 882 760
Corporate income tax
11 824
36 835
Taxes and mandatory state social insurance contributions
27
799 651
541 407
Deferred income
28
94 457
94 457
Other provisions
23
138 880
310 616
Other liabilities
29
458 586
418 728
Accured liabilities
30
1 521 087
1 215 146
TOTAL Short-term liabilities
32 292 706
12 810 327
TOTAL LIABILITIES
64 758 849
37 983 982
TOTAL EQUITY ND LIABILITIES
115 764 736
96 006 498
*Please see Note 13.
The notes on pages 13 to 61 are an integral part of these consolidated financial statements.
On behalf of the Group these consolidated financial statements were signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
This document is electronically signed with a secure electronic signature and contains a time stamp.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
11
Consolidated statement of cash flows
Notes
2024
2023
Cash flows from operating activities
EUR
EUR
Profit (Loss) for the year
(3 011 898)
4 781 063
Adjustments:
Income tax expenses
633 686
902 461
Amortisation of intagible assets and depreciation of fixed
assets, plant and equipment
12,13,14
9 403 132
6 135 910
Net result on diposal of property, plant and equipment
861 571
(140 970)
Interest expenses
9
4 472 247
2 386 048
Interest income
8
(394 930)
(219 486)
Provision decrease
(178 003)
181 660
Cash flows from operating activities before changes in
working capital
11 785 805
14 026 686
Receivables (increase)/ decrease
(1 595 091)
1 695 074
Inventories decrease / (increase)
450 150
379 818
Payables (decrease) / increase
2 152 810
(1 377 454)
Gross cash flows from operating activities
12 793 674
14 724 124
Interest paid
(4 477 478)
(2 241 914)
Corporate income tax paid
(558 697)
(654 266)
Net cash flows from operating activities
7 757 499
11 827 944
Cash flows from investing activities
Purchase of intangible assets and property, plant and equipment
(11 433 955)
(3 359 948)
Proceeds from sale of property, plant and equipment
2 338 616
1 513 895
Loans granted
2 017 900
-
Loans repaid
(1 547 181)
(3 000 000)
Net cash flows from investing activities
(8 624 620)
(4 846 053)
Cash flows from financing activities
Proceeds from bonds
24
10 000 000
15 000 000
Proceeds from other borrowings
26
4 009 910
-
Repayment of bonds
-
(4 870 500)
Repayment of borrowings from related parties
31 (d)
(901 717)
-
Repayment of other borrowings
26
(1 646 961)
(6 879 077)
Repayment of lease liabilities
25
(5 717 227)
(6 744 616)
Paid dividends
(3 905 942)
(2 398 470)
Net cash flows from financing activities
1 838 063
(5 892 663)
Foreign currency exchange
-
(47 192)
Net cash flows for the years
970 942
1 042 036
Cash and cash equivalents at the beginning of the reporting year
1 717 088
675 052
Cash at the end of the reporting year
21
2 688 030
1 717 088
The notes on pages 13 to 61 are an integral part of these consolidated financial statements.
On behalf of the Group these consolidated financial statements were signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
This document is electronically signed with a secure electronic signature and contains a time stamp.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
12
Consolidated statement of changes in equity
Foreign
Revaluation
Retained
currency
Reorganization
Other
Total
Share capital
reserve**
earnings /
translation
reserve***
reserves*
(restated)**
(restated)
(losses)
reserve
EUR
EUR
EUR
EUR
EUR
EUR
EUR
Balance at 31 December 2022
18 150 000
(31 801)
-
-
26 774
4 912 380
23 057 353
-
-
-
-
-
4 781 063
4 781 063
-
(47 192)
32 629 762
-
-
-
32 582 570
-
(47 192)
32 629 762
-
-
4 781 063
37 363 633
-
-
-
-
-
-
-
Dividends paid
-
-
-
-
-
(2 398 470)
(2 398 470)
18 150 000
(78 993)
32 629 762
-
26 774
7 294 973
58 022 516
-
-
-
-
-
(3 011 898)
(3 011 898)
Other comprehensive icome
-
78 993
-
-
-
-
78 993
Total comprehensive loss
-
78 993
-
-
-
(3 011 898)
(2 932 905)
Revaluation transfer (Note 13)
-
-
(3 306 025)
-
-
3 306 025
-
-
-
-
-
-
-
-
Reorganization result (Note 22)
15 350 000
-
-
(15 350 000)
-
(177 781)
(177 781)
Dividends paid (Note 31c)
-
-
-
-
-
(3 905 943)
(3 905 943)
Balance at 31 December 2024
33 500 000
-
29 323 737
(15 350 000)
26 774
3 505 376
51 005 887
Transactions with owners of the
Company:
Loss for the year
Profit for the year
Other comprehensive icome /
(expenses) (restated)
Transactions with owners of the
Company:
Balance at 31 December 2023
(restated)
Total comprehensive income
(restated)
* One of the Group’s subsidiaries has an obligation to allocate certain percentage from financial year’s profit to reserves.
** Please see Note 13.
*** Please see Note 22.
The notes on pages 13 to 61 are an integral part of these consolidated financial statements.
On behalf of the Group these consolidated financial statements were signed on May ___, 2025 by:
Andris Pavlovs, Chairman of the Board
Baiba Onkele, Board member
This document is electronically signed with a secure electronic signature and contains a time stamp.
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
Notes to the consolidated financial statements
1. General information
Storent Holding AS (hereinafter – the Group’s Parent company or Storent Holding AS or 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 the
Group’s Parent company is Joint-stock company (until 05.03.2024 – limited liability company). Registered address of the
Group’s Parent company is 15A Matrozu street, Riga, Latvia. Starting from 28 December 2022, the shareholders of the
Group’s Parent company are Supremo LTD and EEKI LTD (Latvia), none of which has been identified as an ultimate
controlling party. In March 2024, the Company name has changed to “Storent Holding” and the Company’s legal form has
changed to Joint-stock company.
The Group’s Parent company’s and its subsidiaries’s (hereinafter – the Group) main operations relate to the rental of industrial
equipment.
2. Summary of significant accounting policies
a)
Basis of preparation
The consolidated 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 E U. The material accounting policies applied in the preparation of these consolidated financial statements are
set out below.
The consolidated financial statements have been prepared on the historical cost basis, except for Property, plant and
equipment – Machinery and equipment and Right of use assets – Machinery and equipment, which are carried at revalued
amounts. Income statement classified by expense type. Statement of cash flows is prepared using the indirect method.
The accompanying consolidated financial statements are presented in the official currency of the Republic of Latvia, the euro
(hereinafter – EUR).
These Consolidated Financial Statements are authorized for issue by the Company’s Management Board on May ____, 2025,
and are subject to the approval of the shareholders. The shareholders have the right to reject these Consolidated Financial
Statements prepared and issued by the Management Board and the right to request that new Consolidated Financial
Statements are prepared and issued.
b)
Consolidation
As at 31 December 2024, the Group’s Parent company had direct and indirect control over the following subsidiaries
(hereinafter – Subsidiaries):
Date of
incorporation /
Share of
Name
Country
Type of business
acquisition
interest
Storent SIA
Latvia
Rental of industrial equipment
17 April 2008
100%
Storent UAB
Lithuania
Rental of industrial equipment
27 November 2008
100%
Storent OU
Estonia
Rental of industrial equipment
7 July 2009
100%
Storent Holding Finland Oy
Finland
Rental of industrial equipment
4 September 2012
100%
Storent AB
Sweden
Rental of industrial equipment
15 January 2013
100%
Storent Oy*
Finland
Rental of industrial equipment
21 December 2016
100%
*indirect shareholding
During 2023, the subsidiary SEL Investments SIA was merged with Storent Investments AS, and indirect subsidiaries Selectia
SIA and Selectia Plus SIA were merged with Storent SIA. Both mergers have been finished as of 30 November 2023 with no
impact on consolidated financial statements for 2023.
In the beginning of March 2024, the Storent Holding Group underwent a legal reorganization process, which has resulted in
the transfer of the shares of five subsidiaries from Storent Investments to Storent Holding, the increase of share capital of
Storent Holding to EUR 33 500 000, the change in the corporate form to a joint stock company, the change in the corporate
name of Storent Holdings SIA to Storent Holding AS and disposal of the indirect equity interest in Storent OOO.
13
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
14
2. Summary of significant accounting policies (cont.)
(b) Consolidation (cont.)
The separate financial statements of the subsidiaries have been consolidated into the Group’s consolidated financial
statements, consolidating the respective assets, liabilities, revenue and expense items. The subsidiaries controlled by the
Group’s Parent company are included in the consolidation. Control is achieved when the Group:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses
control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of comprehensive income and other comprehensive income from the date the Group
Parent company gains control until the date when the Group Parent company ceases to control the subsidiary. The Group
Parent company’s and its subsidiaries’ financial years are equal and represent the calendar year. For the purposes of
preparing the consolidated financial statements uniform accounting policies have been applied.
The consolidated financial statements include all assets, liabilities, revenue, expenses, gains, losses and cash flows of Storent
Holding AS and its subsidiaries Storent SIA, Storent UAB, Storent OÜ, Storent Holding Finland Oy, Storent AB and Storent
Oy in the manner as if Storent Holding AS and its subsidiaries were a single entity.
Upon consolidation inter-company unrealized profit, inter-company transactions, balances, inter-company interest in entities
and other transactions between group companies are eliminated. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of impairment.
c) Foreign currency transactions
The monetary unit used in the consolidated financial statements is the official currency of the European Union – euro (EUR),
which is Group’s Parent company’s and some of the subsidiaries functional and presentation currency. The functional currency
of Storent AB is Swedish krone.
All transactions in foreign currency are converted to EUR based on the European Central Bank reference exchange rate on
trade date. On the balance sheet date, foreign currency monetary assets and liabilities are translated at the European Central
Bank reference exchange rate as at 31 December.
European Central Bank reference exchange rates:
31.12.2024
31.12.2023
EUR
EUR
1 USD
0.96255
0.90498
1 GBP
1.20601
1.15068
1 SEK
0.08726
0.08716
d) Consolidation of foreign subsidiaries
Consolidating foreign subsidiaries into the consolidated financial statements, the Group’s Parent company translated the
monetary and non-monetary assets and liabilities at the European Central Bank reference exchange rate ruling at the closing
balance sheet date, and revenue and expense items of the foreign subsidiaries at the reference exchange rates at the dates
of the transactions. Exchange differences arising on recognizing asset and liability items, translating at exchange rates, are
recognized in other comprehensive income and accumulated in equity.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
15
2. Summary of significant accounting policies (cont.)
e) Use of judgements, estimates and assumptions
Preparation of the consolidated financial statements according to the IFRS Accounting Standards requires the Group’s
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities. The determination of estimates is based on comprehensive information, current and expected
economic conditions available to the management. Actual results could differ from those estimates.
The following are the critical judgments and key estimates concerning the future, and other key sources of estimation
uncertainty, which exist at the reporting date of the financial statements that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities during the next reporting period:
Note 12 – Recoverable value of goodwill and other non-current non-financial assets;
The Group’s management reviews the carrying amounts of intangible assets, including goodwill, and property, plant and equipment,
and assesses whether indications exist that the assets’ recoverable amounts are lower than their carrying amounts. The Group’s
management calculates and records an impairment loss on intangible assets and fixed assets based on the estimates related to the
expected future use, planned liquidation or sale of the assets. Taking into consideration the Group’s planned level of activities and
the estimated value in use of the assets, the Group’s management considers that no significant adjustments to the carrying values
of intangible assets and fixed assets are necessary as of 31 December 2024.
Note 13 – Fair value of machinery and equipment
As at 31 December 2023 The Group has changed its accounting policy to measure its machinery and equipment at fair value. These
assets primarily include specialized machinery and equipment used in the Group’s economic activities. The fair value measurements
are based, where available, on market data inputs obtained from reputable sources and independent appraiser. The Group has,
generally, used two methods to estimate the fair value of the individual assets – for equipment with individual serial numbers the
Market approach was used, while for non-serial equipment the Depreciated Replacement Cost Method was used. In 2024 error in
the estimate of fair value of property, plant and equipment as at 31 December 2023 resulting from the Group management not using
all available information on market transactions in determining the fair values was discovered. Effects of correction of error are
described in Note 13.
Note 13 – Useful lives of property, plant and equipment
Starting from 1 January 2023 prospectively, the management of the Group has changed the accounting estimate of fixed assets
depreciation by introducing residual value at the end of the useful life (previously residual value was presumed to be zero). Residual
value is estimated as a certain percentage from the acquisition value of the particular fixed asset and is based on the management’s
historical experience in sales of used fixed assets. In 2024 Group reviewed useful lives for the most significant product groups
revalued as of 31 December 2023.
f) Cash Flow Statement and Significant Judgments
The Group prepares its consolidated statement of cash using the indirect method. Cash flows are classified into operating,
investing, and financing activities based on the nature of the underlying transactions. Management has made the following
significant judgments in the preparation of the cash flow statement:
Classification of Interest and Dividends: Management has determined that interest paid is classified as a operating activity,
and interest received is classified as an investing activity, reflecting the nature of the underlying transactions and the
Group’s financing structure. Dividends received are classified as investing activities, while dividends paid are classified as
financing activities. This classification was based on the Group’s business model and industry practice.
Presentation of Cash and Cash Equivalents: Management has exercised judgment in determining the composition of cash
and cash equivalents, including deposits with original maturities of three months or less, which are subject to an insignificant
risk of changes in value. Bank overdrafts that form an integral part of the Group’s cash management are included in cash
and cash equivalents for the purpose of the cash flow statement.
Treatment of Foreign Currency Cash Flows: Cash flows arising from transactions in foreign currencies are translated using
the exchange rates at the dates of the cash flows. Management has judged that the effects of exchange rate changes on
cash and cash equivalents are presented separately in the cash flow statement to provide more relevant information about
cash movements.
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
g)
Fair value
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The objective of a fair value measurement is to estimate the price at which an orderly
transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under
current market conditions. For fair value calculation the Group determines the following:
-
the particular asset or liability that is the subject of the measurement (consistently with its unit of account);
-
for a non-financial asset, the valuation premise that is appropriate for the measurement (consistently with its highest and
best use);
-
the principal (or most advantageous) market for the asset or liability;
-
market approach is the valuation technique(s) the Group uses for the measurement – it uses prices and other
relevant information generated by market transactions involving identical or comparable (similar) assets, liabilities,
Where the fair value of a financial instrument at initial recognition differs from the transaction price, the difference is recognized
or a group of assets and liabilities (e.g., a business).
as follows:
- if the fair value is evidenced by a quoted price in an active market for an identical asset or liability (Level 1 input) or based
on observable market data (Level 2 input), the difference is recognized immediately in profit or loss.
- if the fair value is not based on observable inputs (Level 3 inputs), the initial difference is deferred and recognized in profit
or loss over the life of the instrument, or when observable market inputs become available, or when the instrument is
derecognized.
h)
Business combinations
According to IFRS 3 Business is an integrated set of activities and assets that is capable of being conducted and managed
for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or
generating other income from ordinary activities. A business combination is defined as a transaction or other event in which
an acquirer (an investor entity) obtains control of one or more businesses. Identifying a business combination transaction
requires the determination of whether what is acquired constitutes a ‘business’ as defined in IFRS 3, and control has been
obtained. On business combinations:
-
identifiable assets and liabilities acquired are measured at fair value;
-
goodwill recognized as an asset and gain on bargain purchase as an income;
-
transactions costs are expensed when incurred;
-
deferred tax on initial temporary differences recognized as assets and liabilities;
-
contingent consideration recognized at fair value at acquisition date, subsequent changes to the profit or loss if not
-
initially classified as equity.
i)
Segment information
Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. An operating
segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses
(including revenues and expenses relating to transactions with other components of the Group), is a component of the Group whose
operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is available. Segment information
is presented for the Group’s operating segments, which are determined by geographical split. Operating segments are managed
separately and they are separately reported in internal management reporting to the Council and the Board.
16
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
j)
Revenue recognition
The Group recognises revenues according to IFRS 15 “Revenues from contracts with customers”, using the 5-step model.
The model consists of:
1. Determination of contractual relations;
2. Determination of contract performance obligation;
3. Determination of transaction price;
4. Attribution of transaction price to the performance obligation;
5. Recognition of income, when the Group 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 Group may identify the rights of each party in relation to deliverable goods or services;
-
The Group may identify settlement procedures for the goods or services;
-
The contract has commercial nature;
There is high possibility, that the Group will charge remuneration due to it in exchange for goods or services that
will be transferred to the customer.
Determination of contract performance obligation.
The performance obligation exists, if there are distinct goods or services transferred to the customer or a series of distinct goods or
services that are substantially the same and that have the same pattern of transfer to the customer. Group has considerate following
factors as to whether a promise to transfer goods or services to the customer is not separately identifiable:
-
Group does provide a significant service of integrating the goods or services with other goods or services promised
in the contract;
-
the goods or services are highly interrelated or highly interdependent.
Determination of transaction price
The transaction price is the amount to which Group expects to be entitled in exchange for the transfer of goods and services.
When making this determination, Group will consider past customary business practices. Where a contract contains elements
of variable consideration, the entity will estimate the amount of variable consideration to which it will be entitled under the
contract. Variable consideration can arise, for example, as a result of discounts, rebates, performance bonuses.
Attribution of the transaction price to the performance obligation
Generally, the contract with the customer includes a specified transaction price for each performance obligation. If applicable,
the Group uses the adjusted market assessment method for determination of the market price. A discount is applied
proportionally for each performance obligation, based on the relative goods or services sales prices. Any overall discount
compared to the aggregate of standalone selling prices is allocated between performance obligations on a relative standalone
selling price basis. In certain circumstances, it may be appropriate to allocate such a discount to some but not all of the
performance obligations.
Customers can earn loyalty points that are redeemable against any future transactions of the Group’s products. The points
accumulate and expire after one year. The Group recognizes this as a separate performance obligation and allocates a part
of the transactions price applying the same principles as described above. The amount allocated to the loyalty points is initially
deferred and recognised as revenue when loyalty points are redeemed or on expi ry.
Recognition of revenue, when the Group has fulfilled the performance obligation
Transport and related services revenue
Revenue is recognised over time as the services are provided, that is based on criteria that the customer simultaneously
receives and consumes all of the benefits provided by the Group and, generally, invoiced on a monthly basis.
Fulfilment of performance obligations for transport and related services is measured based on the output method –
performance to date, and there is no significant judgement applied to determine the fulfilment of the performance obligations.
Revenue from sale of inventories and property, plant and equipment used for renting
Revenue is recognised at a point in time when the corresponding asset is delivered to and accepted by the customer, thus,
transferring the control and fulfilling the performance obligation, and, generally, invoiced at that point in time.
Contract assets and liabilities
Contracts with customers are presented in the Group’s statement of financial position as a receivable. Invoices according the
contract are generated at least once per month. Invoices are usually payable within 15-45 days. A contract liability is presented
in the statement of financial position where a customer has paid an amount of consideration prior to the Group performing by
transferring the related good or service to the customer.
17
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
k)
Employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected
to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
l)
Income tax
The corporate income tax consists of the income tax calculated for the reporting year and deferred income tax. It is recognised
in comprehensive income.
Current tax
Corporate income tax for the reporting year (Lithuania)
The corporate income tax for the reporting year has been calculated, by applying the corporate income tax rate of 15% to the
taxable income for the tax year.
Corporate income tax for the reporting year (Estonia and Latvia)
The net profit of Group entities located in Latvia and Estonia is not subject to corporate income tax; however, income tax is
levied on all dividends paid by these companies. Corporate income tax in Latvia and Estonia is calculated at the profit
distribution (20/80 from net amount to be paid to shareholders). Corporate income tax will be recognized as tax payable at
the period when shareholders decide to distribute profit.
Corporate income tax for the reporting year (Finland)
The corporate income tax for the reporting year has been calculated, by applying the corporate income tax rate of 20% to the
taxable income for the tax year.
Corporate income tax for the reporting year (Sweden)
The corporate income tax for the reporting year has been calculated, by applying the corporate income tax rate of 20.6% to
the taxable income for the tax year.
Deferred tax
Deferred income tax arising due to temporary differences between the tax bases of assets and liabilities and their carrying
amounts in these consolidated financial statements has been calculated, using the liability method for all countries the Group
operates. Deferred income tax assets and liabilities are determined using the tax rates that are expected to apply when the
related temporary differences reverse. The key temporary differences result from different depreciation tax rates applied under
tax and accounting legislation, recognized revaluation reserve and tax losses carried forward.
A deferred tax asset shall be recognized for the carry forward of unused tax losses and unused tax credits to the extent that
it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be
utilized. When considering whether a deferred tax asset can be recognized the management uses their judgment in estimating
whether there will be sufficient taxable profits in the future and about their timing and the overall future tax planning strategy.
The Group has evaluated the expected timing of reversal of taxable temporary differences and concluded that these are
mostly expected to be set-off using the unused tax losses carried forward. As the remaining amount of taxable temporary
differences is assessed as not material, it is not presented separately.
Deferred income tax and profit distribution in (Latvia and Estonia)
Specific accounting for deferred tax due to tax regimes have been applied in the respect of Latvia and Estonia. According to
legislation requirements in these countries corporate income tax is applicable to distributed profits. In case of reinvestment of
profit, corporate income tax shall not be applied.
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 and Estonia, the applicable rate for
undistributed profits is 0%.
As a parent controls the dividend policy of its subsidiaries, it is able to control the timing of the reversal of temporary differences
associated with these investments including the temporary differences arising from undistributed profits. Therefore, in the
consolidated financial statements the Group could recognize deferred tax assets and liabilities in the respect of its investments
in subsidiaries using tax rate applicable to distributed profits. In cases the parent has determined that subsidiary’s profits will
not be distributed in the foreseeable future the parent does not recognize a deferred tax assets and liabilities. As at 31
December 2024, the parent company has determined that a certain amount of the subsidiary’s in Latvia profits will be
distributed in the beginning of 2025, while the majority of retained earnings will be used for reinvestment considering significant
growth plans of the Group. As a result, the Group has recognized deferred tax liability in the amount of EUR 100 000.
18
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
m)
Taxes other than Income tax
The Company recognizes taxes other than income tax on an accrual basis when the taxable transaction or event occurs.
These taxes include, but are not limited to, value-added tax (VAT), excise duties, and payroll-related taxes and contributions.
VAT and sales taxes are recognized at the time the transaction subject to taxation occurs. The Company collects VAT from
its customers and records recoverable VAT from its suppliers as an asset. VAT payable is recorded as a current liability until
it is settled with the relevant tax authorities.
Excise duties are recognized in accordance with applicable regulatory requirements, with liabilities recorded until the taxes
are paid or otherwise discharged.
Payroll taxes (including employee income taxes and social security contributions) are recognized when the corresponding
salary or wage is earned, with the Company's obligations recorded as liabilities in the balance sheet.
All taxes other than income tax are presented separately as liabilities or assets in the balance sheet, depending on whether
they are payable or recoverable. If taxes are prepaid or refundable, they are recorded as current assets until the refund is
received. The Company collects and deducts VAT in accordance with applicable legislation. VAT recoverable is presented as
an asset in the balance sheet until it is validated and reimbursed by the relevant authorities. Tax expenses are recognized in
the profit and loss statement in the period in which they are incurred, except where they relate directly to the acquisition or
construction of qualifying assets, in which case such taxes may be capitalized as part of the cost of the asset.
n)
Finance income and finance costs
The Group’s finance income and finance costs include:
-
Interest income;
-
Interest expense;
-
the foreign currency gain or loss on financial assets and financial liabilities;
Interest income or expense is recognised using the effective interest method. The ‘effective interest rate’ is the rate that exactly
discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
-
the gross carrying amount of the financial asset; or
-
the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset
(when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become
credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the
amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts
to the gross basis.
Finance costs are recognized in the period in which they are incurred. Finance costs are generally measured based on the
effective interest rate (EIR) method. The effective interest rate is the rate that exactly discounts estimated future cash
payments or receipts over the life of the financial instrument (such as a loan or bond) to the net carrying amount of the liability.
19
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
20
2. Summary of significant accounting policies (cont.)
o) Intangible assets
Goodwill
The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of
the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs
are recognised in comprehensive income as incurred. Goodwill is measured as the excess of the sum of the consideration
transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held
equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed. Goodwill is disclosed in intangible assets section.
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less
accumulated impairment losses, if any. Impairment test is performed annually or more frequently if events or changes in
circumstances indicate that it might be impaired. For the purpose of impairment testing, recoverable amount - value in use -
is determined by discounting the future cash flows generated from the continuing use of assets and was based on the following
key assumptions: Cash flows were projected based on financial budgets approved by the management covering a five-year
period. Each of the Group’s subsidiaries was determined to be a separate cash-generating unit (“CGU”), while consideration
was given to the practice to relocate fleet (mostly owned by Latvian subsidiary) to other geographical locations. Cash flows
were calculated separately for each CGU, key assumptions for calculations are the same for all CGU: five-year business plan
for each CGU, discount factor, which is based on WACC calculation, and Group total interest-bearing debt was divided
between each CGU according to fleet proportion. The five-year business plan is based on the following assumptions: Group’s
amortisation and depreciation costs, IT costs, management fee, insurance costs and interest expenses are allocated to
individual budget of each CGU according to fleet proportion allocated. Fleet proportion was calculated as a percent from total
Group fleet according to fleet location to the date, when impairment test was performed, and adjusted for expected changes
in fleet location based on business plan assumptions. By using the same fleet proportion all Group’s liabilities for equipment
purchase are allocated in impairment calculation. Any loss from goodwill impairment is recognized in consolidated statement
of comprehensive income. Please, also refer to Note 12.
Other intangible assets
Other intangible assets primarily comprise capitalized costs of internally developed software. Other intangible assets are
measured at historical cost amortized on a straight-line basis over the useful life of the assets. If some events or a change in
conditions indicates that the carrying value of an intangible asset may not be recoverable, the value of the respective intangible
asset is reviewed for impairment. Impairment loss is recognized if the carrying value of the intangible assets exceeds its
recoverable amount.
Development costs of intangible assets
Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically,
and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to
complete development and to use or sell the asset. Otherwise, such expenditure is treated as research costs and recognised
in comprehensive income as incurred. In the reporting period, the Group did not incur any research costs.
Amortisation
Amortisation is calculated based on the cost of intangible assets less their estimated residual values, which, generally, are
insignificant, using the straight-line method over their estimated useful lives, and is recognised in comprehensive income.
Goodwill is not amortised. Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted, if appropriate, to reflect the Group’s management current view on their remaining useful lives in the light of changes
in technology. Starting in 2024, the Group began using a newly developed software solution, designed specifically to meet
the Group’s operational requirements. The software is classified as an intangible asset and is amortised on a straight-line
basis over its estimated useful life of 10 years. The amortisation period reflects the software’s technological sustainability, its
strategic importance to the Group’s operations, and management’s assessment that no significant replacement or modification
will be required within the next 10 years.
The estimated useful lives of other intangible assets for current and comparative periods are as follows:
Trademarks and domains
5 years
Software licenses
3-10 years
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
21
2. Summary of significant accounting policies (cont.)
p) Property, plant and equipment
The acquisition costs include all expenditures attributable to binging the asset to working condition. In addition to direct
purchasing expenses, it also includes other expenses related to the acquisition, such as transportations and assembling costs.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure
will flow to the Group.
Until 30.12.2023 Property plant and equipment, including machinery and equipment is stated at historical cost less
accumulated depreciation and impairment.
On 31.12.2023 the Group management has changed accounting policy in respect of machinery and equipment to carry such
assets at revalued amounts being the fair value at the date of revaluation, less any accumulated depreciation and accumulated
impairment losses. Any revaluation increase arising on the revaluation of such assets is credited to the revaluation or fair
value reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an
expense, in which case the increase is credited to statement of comprehensive income to the extent of the decrease previously
expensed. A decrease in carrying amount arising on the revaluation of such assets is charged as an expense to the extent
that it exceeds the balance, if any, held in the revaluation or fair value reserve relating to a previous revaluation of that asset.
Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which
would be determined using fair values at the reporting date. The management of the Group believes that such change in the
accounting policy will more appropriately reflect the Group’s statement of financial position. Please refer to Note 13 for further
information regarding the revaluation process.
Depreciation is calculated based on the cost of items of property, plant and equipment less their estimated residual value
using the straight-line method over their estimated useful lives and is recognised in comprehensive income. 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 is depreciated
separately.
Starting from 1 January 2023 prospectively, the management of the Group has changed the accounting estimate of fixed
assets depreciation by introducing residual value at the end of the useful life (previously residual value was presumed to be
zero). Residual value is estimated as a certain percentage from the acquisition value of the particular fixed asset and is based
on the management’s historical experience in sales of used fixed assets. The management of the Group believes that such
change in the depreciation estimate will more appropriately reflect the Group’s statement of financial position and financial
results. The residual value of property, plant and equipment for current period is determined as follows:
Machinery and equipment
0% - 35%
Other
0% - 20%
Depreciation is calculated using the straight-line method. The estimated useful lives of property, plant and equipment for
current and comparative periods are as follows:
Machinery and equipment
4 - 24 years
Other
2 - 5 years
In 2024 Group reviewed depreciation periods for the most significant product groups revalued as of 31 December 2023, the
useful lives are estimated as follows: 12 years for machinery and telescopic handlers, 15 years for lifts, and 24 years for
scaffolding. Each fixed asset group was evaluated separately. These useful lives reflect the Group’s accumulated operational
experience and expected economic benefit from the assets over their service periods.
Depreciation methods, useful lives and scrap values are reviewed at each reporting date and adjusted, if appropriate, to reflect
the Group’s management current view on their remaining useful lives in the light of changes in technology, the remaining
prospective economic utilization of the assets and their physical condition. The Group has fixed assets that are fully amortized
and still are in use.
Depreciation on revalued assets is recognised in profit or loss. As the revalued assets are depreciated, relevant portion of the
revaluation reserve is transferred directly to retained earnings.
Construction in progress represents property, plant and equipment under construction and is stated at historical cost. This
includes the cost of construction and other directly attributable expenses. Construction in progress is not depreciated as long
as the respective assets are not completed and put into operation.
Leasehold improvements are amortised over the shorter of the useful life of the improvement and the term of the lease
agreement.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. On sale or retirement
of a revalued asset, the attributable revaluation surplus remaining in the revaluation reserve is transferred directly to retained
earnings.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
22
2. Summary of significant accounting policies (cont.)
q) Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Group assesses the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash
generating unit to which the asset belongs. Each Group’s subsidiary was determined as separate CGU.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in consolidated statement of comprehensive income.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to
the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in
prior years.
r) Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred.
After initial measurement, borrowings are carried at amortized cost using the effective interest rate method. The amortized
value is calculated including any acquisition related discount or premiums and payments that are an integral part of the
effective interest rate and transaction costs. Amortized cost is calculated by taking into account any loan or borrowing issue
costs, and any discount or premium related to loans or borrowings.
Borrowing Costs
All borrowing costs are recognized as expenses in the statement of profit or loss in the period in which they are incurred. The
Company does not apply a capitalization policy for borrowing costs related to qualifying assets.
s) Inventories
Inventories are stated at the lower of cost and net realizable value.
Costs incurred in bringing the inventories to their present location and condition is measured for as follows:
- Consumables and finished goods are measured at cost of purchase applying “first in first out” (FIFO) method;
Net realizable value is the estimated selling price in the ordinary course of business, less all estimated costs of completion
and costs necessary to make the sale, as well as assesses the physical condition of inventories during the annual stock count. Net
realizable value is stated as cost less allowances.
t) Non-current assets and disposal groups classified as held for sale
Non-current assets and disposal groups that will be recovered through sale rather than through continuing use are classified
as non-current assets and disposal groups classified as held for sale. An asset or a disposal group held for sale is measured
at the lower of its previous carrying value and fair value less costs to sell.
The conditions that must be met before a non-current asset or a disposal group can be classified as held for sale or discounted
operations are as follows:
• The non-current asset or disposal group must be available for immediate sale in its present condition subject only to
terms that are usual and customary for sale of such assets or disposal groups; and
• Its sale must be highly probable, i.e.
- management must be commited to a plan to sell the non-current assets or disposal group;
- an active program to locate a buyer and complete the plan must be initiated;
- the non-current assets or disposal group must be actively marked for sale at a reasonable price in relation to its
current fair value;
- the sale should be expected to qualify for recognition as a completed sale within one year from date of classification;
- actions required to complete the plan should indicate that it is unlikely that the plan be changed significantly or be
withdrawn.
Non-current assets that are classified as held for sale are measured at the lower of carrying amount and fair value less costs
to sell.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
23
2. Summary of significant accounting policies (cont.)
At the end of the reporting year 2022, the Group management had committed to a plan to sell a subsidiary company. This
subsidiary was presented as a disposal group held for sale as at 31.12.2023. Expected fair value less costs to sell is lower
than the net carrying amount of the disposal group’s assets and liabilities. Remeasurement loss on a reclassification of
disposal group as held for sale is allocated first to impairment loss on goodwill, and then to the remaining assets. Please see
Note 16.
u) Cash and cash equivalents
Cash and cash equivalents include cash in bank and in hand, deposits held at call with banks with maturities of three months
or less.
v) Contingent liabilities and assets
The Group does not recognize any contingent liabilities in these financial statements. Contingent liabilities are disclosed,
unless the probability that an outflow of resources will be required is remote. No contingent assets are recognized by the
Group, they are disclosed if it is probable, that the economic benefits related to the transaction will flow to the Group.
w) Provisions
A provision is recognized if the Group has a present obligation (legal or constructive) as a result of a past event, and it is
probable that an outflow of resources embodying economic benefits will be required from the Group to settle the obligation,
and a reliable estimate can be made of the amount of the obligation. If the Group expects that the expenditure required to
settle the provision will be reimbursed by another party partly or fully, e.g., under the terms of an insurance contract, the
reimbursement is recognized as a separate asset when and only when it is virtually clear that the reimbursement will be
received. In the consolidated statement of comprehensive income, the expense relating to a provision may be presented net
of the amount recognized for a reimbursement. Where the effect of the time value of money is material, the provisions are
calculated by discounting the future expected cash outflows, using a pre-tax discount rate that reflects current market
assessment of the time value of money and the risks specific to the liability. If discounting is used, increase in provisions is
gradually recognized as borrowing costs.
x) Trade and Other Payables
Trade and other payables are initially recognized at fair value and subsequently measured at amortized cost using the effective
interest method, unless the impact of discounting is immaterial. Trade and other payables represent liabilities for goods and
services provided to the Group prior to the end of the reporting period that are unpaid at the reporting date.
The obligations are generally unsecured and are usually settled within the normal credit terms of suppliers. Trade and other
payables are classified as current liabilities unless the Group has an unconditional right to defer settlement for at least twelve
months after the reporting date.
y) 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 Group becomes party to a contract that is a
financial instrument. On initial recognition, the Group classifies and measures a financial asset at amortised cost if it meets
both of the following conditions and is not designated as at FVTPL:
• 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 Group 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 Trade receivables and
Other receivables. These assets are subsequently measured at amortised cost using the effective interest method. The
amortised cost is reduced by impairment losses. 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 Group 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 aris ing
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
24
2. Summary of significant accounting policies (cont.)
y) Financial assets and financial liabilities (cont.)
• the Group 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.
Impairment of financial assets
The Group applies the simplified approach under IFRS 9. The Group always recognises lifetime ECL (expected credit losses)
for trade receivables and contract assets. Lifetime ECL represents 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 Group’s historical credit loss experience in each geographical location of
operations separately over a two-year period, adjusted for factors that are specific to the debtors (please see also Note 17).
General economic conditions and an assessment of both the current as well as the forecast direction of conditions at the
reporting date, including time value of money are not incorporated into the calculation.
The Group 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 Group in full, without recourse by the Group 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.
Factoring
The Group has entered into certain factoring contracts, by which it sells the receivables to a factor and receives a part of the
amount due immediately and the remainder when the customer settles its liability towards the factor. When the Group sells
the receivables to the factor, it derecognizes the corresponding financial assets and recognizes a new receivable due from
the factor. The Group’s factoring contracts are considered as factoring without rights of regress. The proceeds received from
the factor are presented in the Statement of cash flows as cash flows from operating activities.
Financial liabilities
Recognition, classification and subsequent measurement
A financial liability is recognised in the statement of financial position when the Group becomes party to a contract that is a
financial instrument.
All of the Group’s financial liabilities are classified as measured at amortised cost. 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.
Please refer to relevant Notes.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group 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.
When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The
sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
25
2. Summary of significant accounting policies (cont.)
z) Leases
The Group as lessor
Leases, for which the Group is a lessor, are classified as finance or operating leases. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases
are classified as operating leases. The Group, as a lessor, has not classified any lease as a financial lease.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct
costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised on a straight-line basis over the lease term. The Group as a lessor, generally, concludes short-term operating
lease contracts with no non-cancellable period.
The Group as lessee
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group 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). For these leases, the Group 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. Group lease payments are based on
concluded financial lease agreements with fixed lease payment schedule.
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.
The Group 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, except for right-of-use assets for equipment and
machinery, which are measured at revalued amount being the fair value at the date of revaluation, less any accumulated
depreciation and accumulated impairment losses, same as similar fixed assets. See also Note 2. (n).
Right-of-use assets are depreciated over the period of the lease term or the useful life of the underlying asset if it is longer
and the asset’s ownership is transferred to the Group after the end of the lease term.
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
aa) Related party transaction
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.
bb) Common control transactions
Common control transactions are transactions between entities that are under the control of the same parent company or the
same group of owners. Such transactions are not accounted for under the provisions of IFRS 3 “Business Combinations”, as
they fall outside the scope of that standard.
The Company accounts for such transactions based on an accounting policy that reflects the economic substance of the
transaction. Typically, such transactions are accounted for using the book value method, meaning that the acquired assets
and liabilities are recognized at their carrying amounts as recorded in the transferring entity’s financial statements on the date
of the transaction.
Income and expenses related to these transactions are not recognized in the statement of profit or loss unless they arise from
actual exchanges of goods or services. Any differences arising from such transactions are recognized in equity under the
heading “Unrealized gains or losses from transactions under common control”.
Reorganization
During the reporting year, a group restructuring was carried out under common control, whereby several subsidiaries were
transferred as a non-cash contribution to the share capital of the parent company. As the transaction occurred between entities
under common control, it was not recognised in the statement of profit or loss. This transaction had no impact on the Group’s
consolidated results, assets, liabilities or cash flows as the Group has chosen to carry over subsidiary values used in previous
consolidations.
cc) Dividends
Dividends are recognized as a liability in the period in which the distribution is approved by the shareholders in accordance
with the Company's Articles of Association and applicable laws. A liability for dividends is recognized only when the dividend
has been appropriately authorized and is no longer at the discretion of the Company. Dividend distributions are recognized
directly in equity and are not recognized through the statement of profit or loss.
dd) Post balance sheet events
Only such post balance sheet events adjust amounts recognized in the consolidated financial statement, which provides
additional information on the conditions that existed at balance sheet date (adjusting events). If post balance sheet events
are not adjusting, they are disclosed in the consolidated financial statements only if they are material.
26
STORENT HOLDING AS
Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
2. Summary of significant accounting policies (cont.)
ee) IFRS Accounting Standards changes
New standards and amendments to standards, including any consequential amendments to other standards, effective for
annual periods beginning on 1 January 2024, have not had a material impact on these consolidated financial statements.
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 Group has not early adopted the new or amended standards in preparing these consolidated financial
statements.
The following new and amended standards effective for annual periods beginning after 1 January 2024 are not expected to
have a significant impact on the Group’s consolidated 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
IFRS Accounting Standards currently adopted by the EU do not differ materially from those adopted 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 Group anticipates that the adoption of these new standards and amendments to the existing standards will have no
material impact on the consolidated financial statements of the Group in the period of initial application, unless stated
otherwise.
27
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
28
3. Net revenue and operating segments
2024
2023
2023
Discontinued*
Net revenue by products and services
EUR
EUR
EUR
Rental revenue – own equipment
22 027 118
21 712 188
707 477
Rental revenue – sub-lease of right-of-use assets (see also Note 14)
6 984 424
4 706 655
-
Rental revenue – equipment under split rent arrangements (see also
Note 14)
8 136 542
6 907 316
15 439
TOTAL Rental income:
37 148 084
33 326 159
722 916
Transport and related services revenue
7 727 582
7 607 979
43 019
Revenue from sale of inventories
415 700
1 785 341
9 705
Cash discounts to customers
(37 447)
(52 351)
-
TOTAL Revenue from contracts with customers:
8 105 835
9 340 969
52 724
TOTAL:
45 253 919
42 667 128
775 640
*Please see Note 16
Operating segments
Segment information is presented for the Group’s operating segments, which are determined by geographical split. The Group has
disclosed the items and amounts by operating segment as reported in internal management reporting to the Council and the Board.
2024
2023
Net revenue per geographical location
EUR
EUR
Latvia
17 352 234
16 550 030
Lithuania
9 446 113
10 141 307
Estonia
5 996 854
4 248 294
TOTAL Baltic (Latvia, Estonia and Lithuania):
32 795 201
30 939 631
Finland
10 070 126
9 064 359
Sweden
2 388 592
2 663 138
TOTAL Nordic (Finland and Sweden):
12 458 718
11 727 497
Russia, Kaliningrad (discontinued)
-
775 640
TOTAL:
45 253 919
43 442 768
The Group defines operating result as net revenues and other operating income less cost of materials and services, personnel costs,
other operating expenses, depreciation and amortization and impairment gain/(loss).
2024
2023
Operating result per geographical location
EUR
EUR
Baltic (Latvia, Estonia and Lithuania)
3 916 409
7 554 632
Nordic (Finland and Sweden)
(1 600 049)
(121 390)
Elimination of inter-segment operating result
(277 737)
143 565
Finance income
394 930
680 403
Finance expenses
(4 811 764)
(2 751 468)
Consolidated profit/(loss) before income tax from continuing
operations:
(2 378 212)
5 505 742
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
29
3. Net revenue and operating segments (cont.)
Property, plant and equipment, right of use assets and intangible assets are disclosed both on individual geographical location level and
on an aggregated basis, in line with internal management reporting to the Council and the Board.
Property, plant and equipment and right of use assets per geographical location, net
31.12.2024
31.12.2023
book value
EUR
EUR
Finland
18 338 462
16 686 365
Sweden
3 679 684
2 372 474
TOTAL Nordic (Finland and Sweden):
22 018 146
19 058 839
Latvia
33 238 707
26 758 008
Lithuania
17 252 392
15 520 849
Estonia
12 703 013
8 856 556
TOTAL Baltic (Latvia, Estonia and Lithuania):
63 194 112
51 135 413
TOTAL:
85 212 258
70 194 252
Intangible assets (including goodwill) and right of use assets
31.12.2024
31.12.2023
per geographical location, net book value
EUR
EUR
Finland
2 127 401
1 654 139
Sweden
221 814
89 887
TOTAL Nordic (Finland and Sweden):
2 349 215
1 744 026
Latvia
2 815 465
1 827 017
Lithuania
9 684 597
9 233 099
Estonia
1 274 742
844 679
TOTAL Baltic (Latvia, Estonia and Lithuania):
13 774 804
11 904 795
TOTAL:
16 124 019
13 648 821
TOTAL NON-CURRENT NON-FINANCIAL ASSETS:
101 336 277
83 843 073
4. Other operating income
2024
2023
2023
Discontinued*
By type
EUR
EUR
EUR
Insurance reimbursements received
299 764
206 397
-
Cost reimbursement
144 852
88 639
-
Recognized deferred income (see also Note 28)
94 756
48 609
-
Other income
15 693
8 222
3 867
Gains/(losses) on sale of property, plant and equipment
(492 720)
734 259
72 368
used for renting, net*
TOTAL:
62 345
1 086 126
76 235
*Please see Note 16
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
30
4. Other operating income (cont.)
*Storent SIA and Storent Oy, on an ongoing basis, performs optimization of the rental equipment fleet by selling equipment, which is no
longer in demand in rental market.
2024
2023
2023
Discontinued*
EUR
EUR
EUR
Gains / (losses) on sale of property, plant and equipment used for renting, net calculation:
Gross income from sale of property, plant and equipment used for renting
2 338 616
1 140 031
410 928
Cost of sold property, plant and equipment used for renting
(2 831 336)
(405 772)
(338 560)
TOTAL Gains / (losses) on sale of property, plant and equipment used
for renting, net:
(492 720)
734 259
72 368
Net gains are presented under Other operating income, while Net losses are presented under Other operating expenses.
*Please see Note 16
5. Cost of materials and services
a) Costs of raw materials and ancillary materials
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Cost of materials
320 553
858 026
7 252
Renting equipment adjustments as a result of stock counts
51 115
63
-
TOTAL:
371 668
858 089
7 252
b) Other external costs
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Equipment rent related costs (see also Note 14)
6 348 891
5 568 417
11 883
Transport and assembly services
5 457 647
5 868 476
35 830
Repairs and maintenance services
3 296 051
3 204 964
62 042
TOTAL:
15 102 589
14 641 857
109 755
TOTAL:
15 474 257
15 499 946
117 007
*Please see Note 16
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
31
6. Other operating expenses
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Rent of offices, areas and maintenance costs
2 669 301
2 460 606
51 123
IT expenses
822 127
739 858
5 292
Other administrative expenses
772 690
584 570
11 457
Administration transport costs
604 229
478 097
8 470
Marketing expenses
463 572
393 691
6 120
Insurance costs
372 034
361 553
170
Remuneration to contractors
319 604
336 070
-
Written-off doubtful debts
340 889
275 191
10 132
Legal services
112 090
206 626
-
Communication expenses
94 538
87 932
2 344
Consulting and other services**
165 813
261 499
-
TOTAL:
6 736 887
6 185 693
95 108
*Please see Note 16.
**including fees to independent auditor KPMG Baltics SIA:
2024
2023
EUR
EUR
Statutory audit of financial statements
118 039
117 705
TOTAL:
118 039
117 705
7. Depreciation and amortization
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Depreciation of property, plant and equipment used for renting
3 650 616
2 528 910
87 671
Depreciation of property, plant and equipment used for own
needs
251 348
234 319
6 062
Rights of use assets amortization
5 213 828
2 568 153
-
Amortization of intangible assets
287 339
804 528
543
TOTAL:
9 403 131
6 135 910
94 276
*Please see Note 16.
8. Finance income
2024
2023
EUR
EUR
Interest income calculated using the effective interest method
394 930
219 486
Discount for fully repaid loan before the stated maturity
-
460 917
TOTAL:
394 930
680 403
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
32
9. Finance expenses
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Interest on borrowings** calculated using the effective
108 740
574 199
-
interest method
Interest on leases
1 537 275
676 735
-
Interest on bonds** calculated using the effective interest
2 817 821
1 063 826
-
method
Interest on factoring***
8 411
5 806
-
Foreign exchange losses
1 598
141 299
14 612
Other expenses
337 919
289 603
-
TOTAL:
4 811 764
2 751 468
14 612
*Please see Note 16.
**Interest expenses presented above are incurred by financial instruments presented in the Group’s financial liabilities at amortized
cost in accordance with IFRS 9.
***In 2014 Group has signed factoring contract with Nordea Bank AB, which improved liquidity of the Group. The management of the
Group treats this contract as factoring without rights of regress. In 2024, the maturity of this contract has been prolonged till 31.03.2026.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
33
10. Income tax and deferred income tax assets / liabilities
2024
2023
2023
Discontinued *
EUR
EUR
EUR
Corporate income tax calculated for the year
(745 577)
(690 570)
(93 622)
Deferred income tax changes due to temporary differences
111 891
(211 891)
-
Corporate income tax recognized in consolidated statement of
comprehensive income:
(633 686)
(902 461)
(93 622)
*Please see Note 16.
The Group’s reconciliation of the effective tax rate is based on its domestic tax rate, with a reconciling item in respect of tax rates applied
by Group companies in other jurisdictions. The reconciliation of the effective tax rate is based on an applicable tax rate that provides the
most meaningful information to users.
Reconciliation of the actual corporate income tax with calculated theoretical tax:
2024
2023
EUR
EUR
Profit / (loss) before income tax, subject to
corporate income tax
(2 378 212)
5 505 742
The calculated theoretical corporate income tax –
20,0%
(475 643)
20,0%
1 101 148
at 20%
Effect of tax rates in foreign jurisdictions
(0,61%)
(14 428)
(0,48%)
26 459
Permanent differences:
Impact of profit distribution
(23,37%)
(781 188)
8,71%
(479 694)
Impact of revaluation reserve change
32,85%
661 205
Non-deductible expenses and other
permanent differences
8,98%
213 493
(2,30%)
126 723
Unrecognized
temporary
differences
(tax
43,32%
1 030 247
(2,32%)
127 825
losses carried forward)
The actual corporate income tax for the reporting
year:
26,65%
633 686
(16,39%)
902 461
Deferred income tax:
The Group management has determined that a part of eligible subsidiary’s profits in Latvia will be distributed in the first quarter of 2025
while for the remaining part there is no Group management’s decision on distribution in the foreseeable future, and, thus, the Group has
recognized related deferred tax liabilities only to the extent profit distribution is known. The recognized deferred tax liabilities as at 31
December 2024 amount to EUR 100 000 (31.12.2023: EUR 211 891) and unrecognized deferred tax liabilities as at 31 December 2024
amount to EUR 739 610 (31.12.2023: EUR 1 583 684).
The unused tax losses, for which deferred tax asset is recognized only to the extent of taxable temporary differences, as at 31 December
2024 consist of EUR 6 202 485 (31.12.2023: EUR 4 566 527) that expire from 2028 to 2034 and EUR 8 335 655 (31.12.2023: EUR 7 321
821) that, under certain conditions, do not expire. There are no other material deductible temporary differences and unused tax credits for
which no deferred tax asset is recognised.
The Group’s management has prepared a business plan for the next five-years. Based on the five‑year business plan for Finland, Sweden
and Lithuania the management think that the next five-years’ taxable profit will cover part of the previous tax losses. As a result, the
Group’s management decided to recognize deferred tax assets only in the amount equal to the deferred tax liabilities arising from taxable
temporary differences that are expected to reverse in future reporting periods.
STORENT HOLDING AS Сonsolidated Annual Report 2024
Registered address: 15A Matrozu Street, Riga, LV-1048
Registration number: 40203174397
34
10. Income tax income and deferred income tax assets / liabilities (cont.)
Movement in deferred tax
balances
Balance at 31 December 2024
2024
Currency