However, independent auditors had comments to the travel organizer regarding last year’s financial results report, and the Bank of Lithuania (LB), which carries out market supervision, also calls the indicated lower income “unusual practice”.
As the company reported on the Nasdaq exchange in mid-June, Novaturas received 17.3 million in May. euro income.
However, exactly one month later, when publishing the financial report for June, the tour operator also corrected the income for May – the report stated that the correct amount is 14.1 million. euros.
At the same time, the company announced the results for the months of January-June of this year – 86.8 million were recorded during this period. revenues of EUR 102.5 million at the same time last year. euros.
According to Novaturas itself, there was a technical error in the calculations, and currently the financial results for both the May and January-June periods presented in the reports are correct.
“It is worth noting that certain revisions of income, when comparing preliminarily announced and final results, is a fairly common practice,” Novaturas told Eltai.
“When presenting the results for July and the total revenue for this year, the numbers are already presented correctly. This means that until the specified period 2024 revenue is higher than the published preliminary results for each month. A more detailed review will take place during the presentation of the results of the first half of this year,” the agency added.
It is true that the auditors who expressed a conditional opinion had comments on the last year’s Novaturo financial results report.
Their conclusion stated that the audit “identified significant differences” between reported and upfront payments, which the audit showed were lower.
“Identified differences related to the balances of the Group and the Company respectively amounted to 746 thousand. euros and 652 thousand EUR: approved advance payments were lower than those submitted on December 31, 2023. In the financial statements of the Group and the Company. (…) In addition, no reconciliation letters were received for the advance payments of the Group and the Company, which in 2023 December 31 amounted to 566 thousand, respectively. euros and 557 thousand euros”, the conclusion states.
According to audited data, in 2023 “Novaturo” group announces that it has recorded 208.3 mln. euro income.
According to the Bank of Lithuania (LB), which supervises financial market participants, the companies are indicated “significantly” – that is, more than 10 percent. – lower than actual income is not a common practice.
“This certainly raises questions for both oversight and investors. Therefore, we contacted the company on the issue of revenue recognition back in May, we hope that in the near future the company itself will publicly explain significant changes in revenue recognition to investors,” said Aurelija Gasiūnienė, coordinator of LB Kapital’s market supervision department, to Eltai.
Novaturas plans to present such a broader overview to investors on Friday.
“We will be in contact with both the company and its auditor. Our goal is for investors to be properly informed about the company’s activities”, A. Gasiūnienė assured.
In May, Novaturas also changed its financial director – he became Vaidrius Verikas, who later resigned after almost two months of work – on July 19.
According to the company, this change is “in no way related” to the error.
As V. Verikas himself assures, the former financial director of Novature left his position as a personal decision, having moved to work for a company in the technology sector. V. Verikas also calls the suspicions that the company decided to fire the former manager responsible for finances due to a possible mistake “conspiracy theories”.
“I am fully aware of why (an error occurred in reporting May earnings – ELTA) but it would be unethical for me to comment on that company’s results.” (…) A manual error occurred when data from one month fell into the next,” V. Verikas told Elta.
After evaluating the price changes of the Novaturo Group shares published on the Nasdaq exchange, it can be seen that the value of the listed shares has been decreasing quite consistently since mid-February of this year – February 12. the price of the share reached almost 3.48 euros, when on July 23 according to the data, it remained within the limits of almost EUR 1.98 per share.
According to the Central Bank, such a drop could be explained by the publicly announced performance results of the company – the change of the company’s major shareholders, the change of managers, the impact of the pandemic, financial results, conditional auditor’s report and others.
Last year, the net profit of “Novaturas” amounted to almost 3.7 million. euros. In 2022, the tour operator received almost 196.7 million. EUR income, while the company did not receive a profit – it suffered EUR 605,000. euro loss.
Novaturo Group is a local capital chartered flight travel organizer in the Baltic States.
In 2023, the group announces that it served 259 thousand. passengers in Lithuania, Latvia, Estonia.
2024-08-23 14:08:27