22. Investments in associates
In 2014 a limited liability company of Aluprof USA LLC with its registered office in New York was established. The shareholders of the company are the Aluprof System USA Inc. subsidiary with its registered office in the USA, and the American partners. The company share capital is USD 220,000, whereas the Group, through its subsidiary Aluprof System USA, Inc., took up 45.5% of shares in the company of the initial value of USD 100,100.
The company was involved in the distribution of aluminium systems. The company establishment was an element of the Group strategy consisting in increasing export sales within the whole sales of the Group, including through the establishment of companies on the markets to which products are exported, which allows the Group to better adjust its commercial offer to the specific nature of the particular markets and meet their technical and legal requirements more precisely. In 2021, a decision was made with regard to a change in the model of the Aluminium Systems Segment presence on the USA market and closure of the operations of Aluprof USA LLC.
In the Group financial statements, the company is recognised using the equity method. The Group presents the company’s share in net operating profit, as the nature of the investment complies with its business. The Group plans to complete the company winding-up process in 2023.
Interests in associates
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| Interests in associates | 1,673 | 1,267 |
| Total | 1,673 | 1,267 |
Basic financial data of Aluprof USA LLC
| STATEMENT OF PROFIT OR LOSS | 2022 | 2021 |
|---|---|---|
| Operating income | 2,210 | 7,933 |
| Operating costs | (436) | (8,584) |
| Result on operating activities | 1,774 | (651) |
| Financial revenue | 0 | 0 |
| Finance costs | 0 | 0 |
| Result before tax | 1,774 | (651) |
| Income tax | 0 | 0 |
| Net result on continued operations | 1,774 | (651) |
The Group’s share in Aluprof USA LLC net profit for 2022 amounts to PLN 807,000 (45.5%*1774). In 2021: loss of PLN (296,000) (45.5%*651).
| ASSETS | 31.12.2022 | 31.12.2021 |
|---|---|---|
| I. Non-current assets | 0 | 4 |
| Property, plant and equipment | 0 | 4 |
| II. Current assets | 3,677 | 3,808 |
| Trade and other receivables | 3,065 | 3,321 |
| Cash and cash equivalents | 612 | 487 |
| Total assets | 3,677 | 3,812 |
| EQUITY/LIABILITIES | 31.12.2022 | 31.12.2021 |
| I. Equity | 3,677 | 2,797 |
| Share capital | 893 | 893 |
| Retained earnings | 2,784 | 1,904 |
| II. Long-term liabilities | 0 | 0 |
| III. Short-term liabilities | 0 | 1,015 |
| Trade payables and other liabilities | 0 | 1,015 |
| Total equity/liabilities | 3,677 | 3,812 |