0
This document is a translation of the original document written in Polish. In case of any
discrepancies, doubts, or interpretation issues, the Polish version shall prevail and be considered
binding.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
1
Table of contents
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period
ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Introduction to the consolidated financial statements of PragmaGO S.A. as of and for the period
December 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Notes to the consolidated annual financial statements of PragmaGO S.A. as of and for the period
ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
2
CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP FOR
THE 12 MONTHS ENDED DECEMBER 31, 2024
Consolidated annual statement of profit or loss and other comprehensive income
for the period
Specification Note
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data*)
TOTAL NET SALES REVEUE
1
112 977
77 920
Revenues from factoring, including:
-
58 351
45 159
Interest income from financial instruments
measured at amortized cost
- 36 664 21 601
Income from loans, including:
-
50 636
27 395
Interest income from financial instruments
measured at amortized cost
- 46 542 23 855
Other revenues
-
3 990
5 366
OPERATING EXPENSES
2
(41 887)
(32 660)
Depreciation - (3 302) (1 925)
Remuneration and employee benefits - (17 848) (14 437)
External services - (12 033) (8 865)
Other core expenses - (8 704) (7 433)
PROFIT (LOSS) FROM SALES
-
71 090
45 260
Other operating income - 1 726 468
Other operating expenses - (1 595) (730)
Result of provisions for expected credit losses 8 (18 954) (13 224)
OPERATING PROFIT (LOSS)
-
52 268
31 774
Financial income - 82 2 045
Financial expenses 3 (37 086) (21 592)
Exchange position result - (94) (851)
PROFIT (LOSS) BEFORE TAX
-
15 170
11 376
Income tax 4 (4 088) (4 412)
NET PROFIT (LOSS) FROM CONTINUING
OPERATIONS
-
11 082
6 964
Other comprehensive income
-
(77)
-
COMPREHENSIVE INCOME FOR THE REPORTING
PERIOD
-
11 005
6 964
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
3
Specification Note
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data*)
NET PROFIT (LOSS) FROM CONTINUING
OPERATIONSATTRIBUTABLE TO:
-
11 082
6 964
Shareholders of the Parent Company
-
11 052
6 964
Non-controlling interests
-
30
-
COMPREHENSIVE INCOME FOR THE REPORTING
PERIOD
ATTRIBUTABLE TO:
-
11 005
6 964
Shareholders of the Parent Company
-
10 981
6 964
Non-controlling interests
-
24
-
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in Consolidated Financial
Statements."
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
4
Consolidated annual statement of financial position
Specification Note
31.12.2024
31.12.2023
(restated data)*
01.01.2023
(data
restated)*
FIXED ASSETS
-
101 652
55 101
40 895
Property, plant and
equipment
5 3 283 2 816 2 927
Intangible assets
6
41 319
28 304
19 260
Goodwill
7
28 492
4 917
4 917
Factoring
8
530
1 089
-
Loans
8
26 311
17 592
12 788
Deferred tax assets
4
1 717
383
1 003
CURRENT ASSETS
-
458 401
304 934
216 609
Trade receivables
9
1 129
2 079
1 474
Other current assets
9
1 269
1 031
1 216
Factoring
8
233 950
161 319
136 141
Loans
8
211 099
129 782
64 912
Prepayments and accruals
11
1 339
1 281
Cash and cash equivalents
10
9 615
9 442
11 885
TOTAL ASSETS:
-
560 053
360 035
257 504
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
5
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in the consolidated financial
statements".
Specification
Note
31.12.2024
31.12.2023
(data restated)*
01.01.2023
(restated data)*
TOTAL EQUITY
-
143 588
112 919
105 949
Equity attributable to
shareholders of the Parent
Company
-
142 334
112 919
105 955
Share capital
12
6 891
6 891
5 934
Treasury shares
-
(468)
(468)
(468)
Share premium
-
94 784
94 784
81 393
Retained earnings reserve
-
25 743
18 254
12 239
Other reserves - 18 434 - 14 348
Retained earnings, including:
-
(3 050)
(6 542)
(7 491)
Net profit (loss) of the period
-
11 052
6 964 5 361
Equity attributable to non-
controlling interests
-
1 254
-
(6)
LONG-TERM LIABILITIES
-
279 455
184 638
107 085
Long-term provisions
-
49
15
7
Long-term loans and
borrowings liabilities
13
11 060 17 353
14 897
Long-term bonds liabilities
14
264 399
165 414
90 052
Long-term lease liabilities
15
2 033
1 856
2 129
Earn-out liabilities
16
1 914
-
-
SHORT-TERM LIABILITIES
-
137 010
62 478
44 470
Short-term loans and
borrowings liabilities
13
65 601
26 204
23 334
Short-term bonds liabilities
14
52 089
20 780
11 187
Short-term lease liabilities
15
1 141
881
753
Trade payables
16
4 878
3 015 1 883
Current income tax liabilities
16
731
204
260
Other liabilities and accruals
16
9 532
9 204
5 648
Deferred income 17 3 038 2 190 1 405
TOTAL EQUITY AND
LIABILITIES:
-
560 053
360 035
257 504
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
6
Consolidated annual statement of cash flows
(indirect method)
Specification Note
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data*)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax
-
15 170
11 376
Total adjustments:
-
(73 977)
(76 844)
Depreciation
-
3 302
1 925
Foreign exchange gains (losses)
-
564
(1 384)
Interest and profit sharing (dividends) - 29 945 19 332
Result of provisions for expected credit losses
-
18 954
12 106
Adjustments for non-cash changes
18
(413)
(1 711)
Change in balance due to factoring receivables
18
(16 472) (28 317)
Change in balance due to loans granted
18
(102 389)
(79 729)
Change in provisions
-
(7)
8
Change in trade receivables - 833 (420)
Change in short-term liabilities, except for financial
liabilities
-
488 6 195
Change in prepayments and accrued income - (3 899) (659)
Income tax paid - (4 882) (4 190)
Other - - -
Net cash flows from operating activities
-
(58 807)
(65 468)
CASH FLOWS FROM INVESTING ACTIVITIES
Expenses for acquisition of intangible assets
-
(11 229)
(10 044)
Expenses for acquisition of property, plant and
equipment
- (76) (63)
Proceeds from sale of property, plant and
equipment and others
- - 32
Expenses for acquisition of control in subsidiary
less cash acquired
7 (27 047) (1 162)
Net cash flows from investing activities
-
(38 352)
(11 237)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank credits and loans
18
135 479
121 785
Bank credits and loans repayments
18
(153 484)
(115 616)
Buy-backs and lease repayments
18
(965)
(1 024)
Proceeds from issuance of shares -
18 434
-
Proceeds from bond issuance
18
216 895 97 000
Bond redemption outflows
18
(90 000)
(10 000)
Interest paid on bonds
18
(24 855) (14 616)
Interest paid on loans, credits, leases
18
(4 172) (3 267)
Net cash flows from financing activities
-
97 332
74 262
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended
December 31, 2024
7
Specification Note
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data*)
TOTAL NET CASH FLOWS
-
173
(2 443)
BALANCE SHEET CHANGE IN CASH
-
173
(2 443)
CASH AT BEGINNING OF PERIOD
-
9 442
11 885
CASH AT THE END OF THE PERIOD, INCLUDING:
-
9 615
9 442
Restricted
10
2 864
2 167
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in Consolidated Financial
Statements."
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended December 31, 2024
8
Consolidated annual statement of changes in equity
Specification Share capital Treasury shares Share premium
Retained
earnings reserve
Other reserves
Retained
earnings,
including:
Profits (losses)
of the current
period and
previous years
Foreign
exchange
differences on
translation of
subsidiaries
Changes in equity from 01.01.2024 to 31.12.2024
Balance as of 01.01.2024
6 891
(468)
94 784
18 254
-
(4 169)
(4 169)
-
Impact of data restatement
-
-
-
-
-
(2 373)
(2 373)
-
As of 01.01.2024 (restated
data)*
6 891
(468)
94 784
18 254
-
(6 542)
(6 542)
-
Distribution of the result of
the year 2023
- - - 7 489 -
(7 489)
(7 489) -
Payments from capital
increase - issuance of series
K shares
- - - - 18 434
-
-
-
Acquisition of a subsidiary
with minority interests
- - - - -
-
- -
Comprehensive income for
the period from 01.01 to
31.12.2024, including:
-
-
-
-
-
10 981
11 052
(71)
Net profit (loss) for the
period 01.01.2024-
31.12.2024
- - - - -
11 052
11 052 -
Other comprehensive
income for the period
01.01.2024-31.12.2024
- - - - -
(71)
- (71)
Balance as of 31.12.2024
6 891
(468)
94 784
25 743
18 434
(3 050)
(2 979)
(71)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended December 31, 2024
9
Equity attributable to
shareholders of the Parent
Company
Equity attributable to
non-controlling
interests
Total equity
Balance as of 01.01.2024
115 292
-
115 292
Impact of data restatement (2 373)
-
(2 373)
As of 01.01.2024 (restated data)*.
112 919
-
112 919
Distribution of the result of the year 2023 - -
-
Payments from capital increase - issuance of series K shares 18 434
-
18 434
Acquisition of a subsidiary with minority interests - 1 230
1 230
Comprehensive income for the period from 01.01 to 31.12.2024,
including:
10 981
24
11 005
Net profit (loss) for the period 01.01.2024-31.12.2024
11 052
30
11 082
Other comprehensive income for the period 01.01.2024-31.12.2024
(71)
(6)
(77)
Balance as of 31.12.2024
142 334
1 254
143 588
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the period ended December 31, 2024
10
Specification
Share
capital
Treasury
shares
Share
premium
Retained
earnings
reserve
Other
reserves
Retained
earnings
Equity
attributable to
shareholders of
the Parent
Company
Equity
attributable
to non-
controlling
interests
Total equity
Changes in equity from 01.01.2023 to 31.12.2023
Balance as of 01.01.2023
5 934
(468)
81 393
12 239
14 348
(6 050)
107 396
(6)
107 390
Impact of data
restatement
-
-
-
-
-
(1 441)
(1 441)
-
(1 441)
As of 01.01.2023 (restated
data)*
5 934
(468)
81 393
12 239
14 348
(7 491)
105 955
(6)
105 949
Distribution of the result
of the year 2022
- - - 6 015 - (6 015) - - -
Payments from capital
increase - issue of series I
shares
512 - 7 162 - (7 674) - - - -
Payments from capital
increase - issue of series
J shares
445 - 6 229 - (6 674) - - - -
Adjustment for
acquisition of subsidiaries
- - - - - - - 6 6
Comprehensive income
for the period from 01.01
to 31.12.2023.
- - - - - 6 964 6 964 - 6 964
As of 31.12.2023 (restated
data)*
6 891
(468)
94 784
18 254
-
(6 542)
112 919
-
112 919
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in Consolidated Financial Statements."
11
INTRODUCTION TO THE CONSOLIDATED FINANCIAL STATEMENTS
of PragmaGO S.A. PREPARED AS OF AND FOR THE 12-MONTH
PERIOD ENDED DECEMBER 31 2024
I. BASIC INFORMATION ABOUT THE CAPITAL GROUP AND THE PARENT COMPANY
1. Basic information about the Parent Company
Name:
PragmaGO S.A.
Address:
40-584 Katowice, 72 Brynowska St.
Headquarters:
Poland
Phone:
32 44 20 200
Fax:
32 42 20 240
Court of Registration:
District Court in Katowice
VIII Commercial Division of the National Court Register
REGON:
277573126
TAX ID:
634-24-27-710
KRS:
0000267847
Country of registration:
Poland
Email address:
biuro@pragmago.pl
Website address:
https://pragmago.pl/
https://inwestor.pragmago.pl/
The Parent Company's core business is providing financing in the form of factoring and loans to the micro,
small and medium enterprise sector. The Parent Company and its subsidiaries provide services in Poland.
Factoring
The factoring service provided by the Parent Company consists in the purchase by the factor (the Issuer)
of the factoring company's (factoring clients) outstanding receivables owed to them by third parties
(factoring debtors). A company using factoring receives funds resulting from its factoring transaction faster
than the original due date specified in the transaction. After the factoring customer submits an invoice, the
factor transfers to it, in the form of an advance payment, a predetermined percentage of the receivable in
question (usually 80-90% of the value of the invoice). The remaining value of the invoice (less the factor's
remuneration) is transferred by the factor to the client after the factoring debtor makes payment . Thus,
factoring allows a company to shorten the receivables turnover cycle and thus improve liquidity.
Factoring products offered include:
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
12
● Invoice financing - financing of unmatured customer receivables with a limit from PLN 10 thousand
to PLN 250 thousand (limit per single factor),
● Online factoring - financing of the customer's unmatured receivables with a limit from PLN 50
thousand to PLN 10 million (limit per single factor),
● Online factoring pre-financing (advances) - the product consists of providing customers who carry
out regular factoring turnover with PragmaGO with additional financing in the form of an advance
against future factoring settlements, from which the advance will then be repaid.
Loans
In the loan segment, financing is provided in the form of deferred payment and revenue advances.
Deferred Payment (Buy Now Pay Later B2B) is a loan for financing business purchases with a limit of up to
PLN 50,000, where the customer in the basic model can defer payment for goods for 30 or 60 days. If
payment is not made by the declared date, the payment is automatically deferred, and the outstanding
balance, including the commission, is spread over 6 equal monthly instalments. The buyer makes the
purchase within the allocated limit, and the funds are transferred directly to the seller's account. Financing
is granted on the basis of information obtained from external databases and information about the
customer's activity as a buyer on the Partner's platform (for example, Allegro) and, in the case of entities
that are additionally sellers, also data about them as sellers.
Business loan (income advance, from Merchant Cash Advance) - a loan for any purpose offered in the
partner channel for an amount from PLN 3,000 to PLN 200,000 under automatic decisions, which can be
increased for manual decisions to PLN 300 - 350,000. This product comes in two versions, depending on
the method and repayment schedule. There are MCAs with daily repayments, which are automatically
deducted by the partner (e.g., payment service provider - PSP) from the borrowers' cash flow, or MCAs with
monthly instalments, which are repaid traditionally by the borrower or alternatively through automatic
deductions from cash flow or through recurring payments. Financing is offered for a period of 6 to 24
months.
The duration of the Parent Company's operations is indefinite.
The Parent Company operates based on its Articles of Association and the provisions of the Commercial
Companies Code.
As of 2021, the majority shareholder of PragmaGO S.A. is Polish Enterprise Funds SCA.
From June 14, 2007 to September 8, 2021, the Parent's shares were listed on the regulated market of the
Warsaw Stock Exchange.
As of September 9, 2021, the Parent Company's shares were delisted from the Warsaw Stock Exchange at
the Parent Company's request.
Share capital of the Parent Company
As of December 31, 2024, the Parent's share capital amounted to PLN 6,891,041.00, divided into 6,891,041
shares with a par value of PLN 1 each, and remained unchanged from the end of the previous reporting
period ended September 30, 2024.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
13
Management Board and Supervisory Board of the Parent Company
The composition of the Parent Company's Board of Directors as of December 31, 2024 was as follows:
CEO
Tomasz Boduszek
Vice President
Jacek Obrocki
Vice President
Danuta Czapeczko
Vice President
Lukasz Ramczewski
Compared to the previous reporting period ended September 30, 2024 and up to the date of publication,
there were no changes in the Management Board of PragmaGO S.A. Parent Company.
The composition of the Parent Company's Supervisory Board both as of December 31, 2024 and at the end
of the previous reporting period, i.e. September 30, 2024, was as follows:
Chairman of the Supervisory Board
Dariusz Prończuk
Member of the Supervisory Board
Bartosz Chytła
Member of the Supervisory Board
Member of the Supervisory Board
Grzegorz Grabowicz
Agnieszka Kamola
Member of the Supervisory Board
Michal Kolmasiak
Member of the Supervisory Board
Jakub Kuberski
Member of the Supervisory Board
Piotr Lach
As of the date of publication of the report, the composition of the Supervisory Board had not changed.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
14
2. The Capital Group
As of December 31, 2024, the Group consists of:
● PRAGMAGO S.A. as the Parent Company;
● BRUTTO Sp. z o.o., based in Warsaw, as a Subsidiary, consolidated using the full method;
● PragmaGO.TECH Sp. z o.o., based in Krakow, as a Subsidiary, consolidated using the full method;
● Monevia Sp. z .o.o., based in Bydgoszcz, as a Subsidiary, consolidated using the full method;
● Telecredit IFN S.A., based in Bucharest, as a Subsidiary, consolidated using the full method;
The ultimate Parent Company is Polish Enterprise Funds SCA, based in Luxembourg. The ultimate Parent
Company is Enterprise Investors Corporation, headquartered in New York, USA.
The Parent Company held as of December 31, 2024:
● 2,924 shares in BRUTTO SP. Z O.O. with a nominal value of PLN 100 each, which constitutes 100% of the
shares of BRUTTO Sp. z o.o.
● 520 shares in PragmaGO.TECH Sp. z o.o. with a nominal value of PLN 50 each, representing 100% of the
shares of PragmaGO.TECH Sp. z o.o.
● 17,000 shares in Monevia Sp. z .o.o. with a nominal value of PLN 500 each, representing 100% of the
shares of Monevia Sp. z o.o.
● 2,719,439 shares in TELECREDIT IFN SA with a nominal value of RON 1 each , representing an 89% stake
in the Company.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
15
The composition of the Group changed during the period covered by these financial statements:
● On February 5, 2024, the Parent Company acquired 100% of the shares of Monevia Sp. z .o.o.,
thereby acquiring over it.
● On September 19, 2024, the Parent Company's Board of Directors entered into an agreement to
purchase 89% of the shares in TELECREDIT IFN SA (Omnicredit.ro), based in Bucharest, Romania
("Telecredit"). Following the fulfillment of the conditions precedent to the finalization of the
agreement, control of Telecredit was acquired on December 5, 2024.
The Parent Company consolidates subsidiaries using the full method.
II. INFORMATION ON THE PRINCIPLES ADOPTED IN PREPARING THE CONSOLIDATED
ANNUAL FINANCIAL STATEMENTS PREPARED AS OF AND FOR THE PERIOD ENDED
December 31, 2024
1. Basis of preparation of the financial statements
The Parent Company of PragmaGO S.A. prepares its financial statements in accordance with the
International Financial Reporting Standards approved by the European Commission.
The consolidated financial statements of the Group cover the year ended December 31, 2024 and include
comparative data as of and for the year ended December 31, 2023. Financial data are presented in
thousands of zlotys (PLN thousands), unless otherwise indicated.
2. Statement of compliance
These consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards approved by the European Union (IFRS) and other applicable regulations, and, to the
extent not regulated by the above standards, in accordance with the requirements of the Accounting Act
of September 29, 1994 (Journal of Laws 2023, item 120) and implementing regulations issued thereunder,
as well as requirements relating to issuers of securities admitted or sought to be admitted to trading on the
official stock exchange listing market.
IFRS includes all International Accounting Standards (IAS), International Financial Reporting Standards
(IFRS) and related Interpretations of the International Financial Reporting Interpretations Committee (IFRIC)
in addition to Standards and Interpretations that are pending approval by the European Union, and
Standards and Interpretations that have been approved by the European Union but have not yet come into
force.
These consolidated financial statements include selected explanatory notes that are material from the
perspective of the Group's results and financial position during the reporting period. Each material category
of similar items is presented separately by the Group. Items that are different in type or function are
presented separately by the Group unless they are immaterial.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
16
These consolidated financial statements were approved by the Parent Company's Board of Directors on
April 24, 2025.
3. Going concern
The financial statements have been prepared on the assumption that the Group companies will continue as
going concerns for at least twelve months from the balance sheet date. As of the date of preparation of
these financial statements, the Parent Company's Management Board does not identify any circumstances
indicating a threat to the Group companies' ability to continue as going concerns.
4. Functional currency and presentation currency of financial statements
The functional currency of the Group and the presentation currency of these financial statements is the
Polish zloty. These financial statements are presented in thousands of zlotys, unless otherwise indicated.
Figures have been rounded off to the nearest thousand.
The results and financial position of Group companies whose functional currency is different from the
presentation currency are translated into the presentation currency as follows:
● The assets and liabilities of each statement of financial position presented (i.e., including
comparative data) are translated at the closing rate in effect on the date of the statement of
financial position;
● income and expenses recognized in each statement of profit or loss and other comprehensive
income (i.e., including comparative data) are translated at an exchange rate that is the arithmetic
mean of the average exchange rates of the National Bank of Poland at the end of each month of
the period that includes the financial statements;
● and all exchange differences arising are recognized in other comprehensive income.
Functional Currency
Company
Polish zloty (PLN)
PragmaGO S.A.
Monevia Sp. z .o.o.
PragmaGO.TECH Sp. z o.o.
BRUTTO Sp. z o.o.
Romanian Leu (RON)
Telecredit IFN SA
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
17
III. New standards and interpretations and amendments to published standards
Standards and interpretations that have been approved by the European Union
Standards and
interpretations
Description of changes
The beginning of the period
validities
Impact on the report
Group's financials in the period
their initial
applications
Amendments
to IAS 1,
Classification
Liabilities for
short and
long-term
The amendments to IAS 1 clarify the
presentation of liabilities as long-
and short-term and
also address
the classification of liabilities when
an entity is required to meet certain
contractual requirements known as
covenants. Consequently, the
revised IAS 1 standard states that
liabilities are classified as either
short-term or long-term depending
on the rights that exist at the end of
the reporting period. Neither the
entity's expectations nor events
after the reporting date (for
example, covenants in loan
agreements that the entity must
comply with only after the balance
sheet date) affect the classification.
January 1
2024
The application of the
amended standard did not
have a significant impact on
the financial statements.
Amendments
to IFRS 16
Leases
The amendment to IFRS 16 "Leases"
supplements the requirements for
subsequent measurement of the
lease liability for sale and leaseback
transactions when the criteria of
IFRS 15 are met and the transaction
should be recognized as a sale.
The amendment requires the seller-
lessee to subsequently measure
lease obligations arising from a
sale-
leaseback in such a way that
no gain or loss related to the
retained right-of-
use is recognized.
The new requirement is particularly
relevant when the sale-leaseback
includes variable lease payments
that do not depend on an index or
rate, as these payments are
excluded from "lease payments"
under IFRS 16.
January 1
2024
The application of the
amended standard did not
have a significant impact on
the financial statements.
Amendments
to IAS 7
Report on
Amendments to IAS 7 "Statement of
Cash Flows" and IFRS 7 "Financial
Instruments: Disclosures" introduce
January 1
2024
The application of the
amended standard did not
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
18
flows
cash and
IFRS 7
Instruments
Financial
Disclosures -
Arrangements
for
funding
suppliers
disclosure requirements for
accounts payable financing
arrangements with suppliers (so-
called reverse factoring). The
amendments require specific
disclosures for such agreements to
enable users of financial
statements to assess the impact of
these agreemen
ts on liabilities and
cash flows and an entity's exposure
to liquidity risk. These amendments
are intended to increase the
transparency of disclosures about
accounts payable financing
arrangements, but do not affect
recognition and measurement
principles.
have a significant impact on
the financial statements.
Standards and interpretations that are not in force and have not been previously applied by the Group
Standards and
interpretations
Description of changes
The beginning of the period
validities
Impact on the report
Group's financials in the period
their initial
applications
Amendments
to IAS 21
Impact of
changes
exchange rates
Foreign
currencies -
Lack of
convertibility
The amendments require disclosures
that allow users of the financial
statements to understand the effects
of currency non-
convertibility and
clarify how currency convertibility
should be assessed.
January 1
2025
The application of the
amended standard will not
have a significant impact on
the financial statements.
Annual
Improvements
to IFRS, Part 11
The annual improvements make
minor changes to IFRS 1 First-time
Adoption of IFRS, IFRS 7 Financial
Instruments -
Disclosures, IFRS 9
Financial Instruments, IFRS 10
Consolidated Financial Statements
and Agriculture and IAS 7 Statement
of Cash Flows.
January 1
2026
The Group is in the process of
analyzing the impact of the
amendments to the standards
on the financial statements.
IFRS 18
Presentation
and
disclosures in
reports
Financial
In April 2024, the Council issued a
new standard, IFRS 18 - Presentation
and Disclosures in Financial
Statements. The standard is intended
to replace IAS 1 -
Presentation of
Financial Statements and will be
effective as of January 1 , 2027.
Changes to the superseded standard
mainly address three issuances
: the
statement of profit or loss, required
January 1
2027
The Group is in the process of
preparing to implement the
changes to its financial
statements in accordance
with the standard. No is
planned for early
implementation.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
19
disclosures about performance
measures, and issuances
related to
the aggregation and disaggregation
of information contained in financial
statements.
The
published standard will be
effective for financial statements for
periods beginning on or after January
1, 2027. As of the date of these
{consolidated} financial statements,
the amendments have not yet been
approved by the European Union
IFRS 19
Subsidiaries
without public
accountability:
disclosure of
information
IFRS 19 allows qualifying subsidiaries
to apply IFRS with limited disclosures.
The application of IFRS 19 is intended
to reduce the cost of preparing
subsidiaries' financial statements
while preserving the usefulness of
the information for users of their
financial
statements. An entity is
eligible to apply the standard if it has
no public liability and its ultimate or
intermediate parent prepares
consolidated financial statements
available for public use that comply
with IFRS.
January 1
2027
The application of the
standard will not have a
significant impact on the
financial statements.
Amendments
to IFRS 9, IFRS
7 -
classification
and
measurement
of financial
instruments
In May 2024, the IASB issued
amendments to IFRS 9 and IFRS 7
aimed at:
a) Clarifying the date on which certain
financial assets and liabilities are
recognized and cease to be
recognized, with an exemption for
certain financial liabilities settled
through an electronic funds transfer
system;
b) Clarify and add further guidance on
assessing whether a financial asset
meets the SPPI criteria;
c)
Adding new disclosures for certain
instruments whose contractual terms
may alter cash flows; and
d)
updates disclosures on equity
instruments measured at fair value
through other comprehensive
income (FVOCI).
January 1
2026
The Group is in the process of
analyzing the impact of the
amendments to the standards
on the financial statements.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
20
As of the date of these consolidated financial statements, these amendments have not yet been approved by the
European Union.
Standards and
interpretations
Description of changes
The beginning of the
period
validities
Impact on the report
Group's financials in the
period
their initial
applications
IFRS 14
"Regulatory
Defferal Accounts"
The standard allows entities that prepare
their financial statements in accordance
with IFRS for the first time (on or after
January 1, 2016) to recognize amounts
arising from price-
regulated activities in
accordance with their existing
accounting policies
. In order to improve
comparability, with entities that already
apply IFRS and do not report such
amounts, according to published IFRS 14,
amounts arising from price-regulated
activities should be presented as a
separate line item in both the statement
of
financial position and the income
statement and statement of other
comprehensive income.
By a decision of the
European Union, IFRS
14 will not be
approved.
The Group does not include
standards that have not been
approved by the European
Union.
Amendments to
IFRS 10 and IAS 28
regarding the sale
or contribution of
assets between
investor and its
affiliates or joint
ventures
The amendments resolve a current
inconsistency between IFRS 10 and IAS
28. Accounting treatment depends on
whether non-
cash assets sold or
contributed to an affiliate or joint venture
constitute a "business" (business).
If the non-monetary assets constitute a
"business," the investor reports the full
profit or loss on the transaction. If, on the
other hand, the assets do not meet the
definition of a business, the investor
recognizes a gain or loss from only to the
extent
of the portion representing the
interests of other investors.
The changes were published on
September 11, 2014.
As of the date of
these consolidated
financial statements,
approval of this
amendment is
deferred by the
European Union.
The application of the
standard will not have a
significant impact on the
financial statements.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
21
Contracts relating
to electricity
dependent on
natural factors:
Amendments to
IFRS 9 and IFRS 7
In December 2024, the Council published
amendments to help companies better
recognize the financial effects of
contracts relating to natural-dependent
electricity, which often take the form of
power purchase agreements (PPAs). The
current guidelines may not fully capture
the impact of these contracts on
company performance. To enable
companies to better reflect these
contracts in their financial statements,
the Board has amended IFRS 9 Financial
Instruments and IFRS 7 Financial
Instruments: Disclosures. These
amendments include:
a) Clarify the application of the "own use"
criterion;
b)
allowing hedge accounting when
these contracts are used as hedging
instruments;
c)
Adding new disclosures to enable
stakeholders to understand the impact of
these agreements on financial results
and cash flows.
As of the date of
these consolidated
financial statements,
these amendments
have not yet been
approved by the
European Union.
The application of the
amended standard will not
have a significant impact on
the financial statements.
Implementation of other standards and interpretations
The effective dates are those derived from the content of the standards promulgated by the International
Financial Reporting Council. The application dates of the standards in the European Union may differ from
the application dates derived from the content of the standards and are announced at the time of approval
for application by the European Union. As of the date of approval of these consolidated financial statements
for publication, the Parent Company's Management Board does not expect the introduction of the remaining
standards and interpretations to have a significant impact on the accounting principles (policies) applied by
the Group.
IV. SIGNIFICANT ACCOUNTING POLICIES
In accordance with the amendments to IAS 1, "Presentation of Financial Statements," the Group has
disclosed as part of these consolidated financial statements a description of the accounting policies that
the Group considers relevant to the consolidated statements. In preparing the annual consolidated financial
statements, the Group has applied the same accounting policies consistently, except for court costs and
related revenue recognition, as explained below.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
22
Comparability of financial data and restatement of data
The comparative figures presented in these consolidated financial statements have been restated and
present data for 2023, adjusted for the effect of the matters described below.
Recognition of court costs and revenues
The Group incurs court costs related to the enforcement of disputed claims, such as court fees on lawsuits,
enforcement costs, attorney fees and others. If a claim for payment is successful, these costs are
reimbursed by the defendant. To date, the Group has recognized paid court costs as ‘Prepayments and
accruals’ and recognized them in expenses when the case is settled together with the net revenue awarded.
At the same time, an allowance was created based on an estimate of expected recoverable values. In 2024,
the Group changed its approach regarding the recognition of legal costs charged to the income statement
to the cash method and the way they are presented. After the change, incurred court costs are reported
under , ‘Other core expenses’.
If the court costs are recovered, they are recognised in ‘Total sales revenue’.
In terms of the statement of financial position, the change affected accrued expenses, profit or loss and
retained earnings, and resulted in a decrease in the balance sheet total. The items ‘Prepayments and
accruals ‘ and ‘Retained earnings’ were adjusted accordingly. The change in accounting policy introduced
is due to alignment with market practices and contributes to more accurate reflection of costs incurred in
the financial statements.
In the statement of profit or loss and other comprehensive income, ‘Other operating expenses’ and
‘Provision for expected credit losses’ (reversal of expected credit losses recognised on assets reported under
‘Prepayments and accruals’) have been adjusted. The presentation of recovered amounts in the statement
of profit and loss has also been changed, where under the previous approach recovered amounts were
settled against ‘Prepayments and accruals’.
The change in approach is due to the adjustment of the accounting policy to market practice.
Recognition of the result of provisions for impairment of financial assets as a separate line item in the
statement of cash flows
The item ‘Adjustments for non-cash changes’ was adjusted and, due to materiality, the change in provisions
for impairment of factoring and loan receivables was recognized as part of a separate line
in the consolidated statement of cash flows, ‘Result of provisions for expected credit losses’.
Change in the presentation of external services costs
In order to better reflect the economic content and increase the usefulness of the data presented, the Group
has changed the presentation of external services previously presented under "Other core expenses" by
listing them to a separate "External services" item. Data on the statement of profit or loss and other
comprehensive income presented in the published consolidated financial statements for the period from
January 1, 2023 to December 31, 2023 have been brought to comparability.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
23
Income tax adjustment for 2023
An adjustment was made to the value of current income tax resulting from the erroneous settlement of bad
debt relief. As a result of the change, the item ‘Income tax liabilities’ has been adjusted in correspondence
with ‘Income tax’.
Impact of the changes on the comparative figures in the annual consolidated
statements
The effect of the above-described adjustments on the consolidated statement of profit or loss and other
comprehensive income, statement of financial position and statement of cash flows for the comparative
period included in these consolidated financial statements is presented in Note 27.
1. Property, plant and equipment
Property, plant and equipment include assets that:
● The Group maintains for use in the process of providing services, for use by others under a lease
agreement or for administrative purposes, and
● As expected, they will be used for more than one year.
The initial value of an item of property, plant and equipment that meets the conditions for recognition on
the balance sheet is the cost, i.e. the amount of cash or cash equivalents paid or the fair value of other
goods transferred for the acquisition of the asset at the time of its acquisition or manufacture. The cost of
a fixed asset consists of:
● Purchase price including import charges and non-refundable taxes less trade discounts and
rebates;
● all costs directly related to bringing the asset to the location and condition necessary to make it fit
for use as intended by management.
The carrying amount of fixed assets is the historical cost less accumulated depreciation and impairment
provisions.
The correctness of the applied depreciation rates is periodically verified (once a year), resulting in an
adjustment of depreciation provisions from the beginning of the fiscal year in which the change occurred.
The Group uses the following economic useful lives of fixed assets:
● Rights of use - buildings and structures - up to 7 years;
● Investments in third-party fixed assets - 10 years;
● Technical equipment and machinery - from 3 to 10 years;
● Rights of use - means of transportation - 5 years;
● Other fixed assets - 5 years.
2. Intangible assets
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
24
Intangible assets include non-monetary assets without physical form that are identifiable, i.e., separable,
i.e., capable of being separated or set apart from the Group's assets, transferred, licensed or put to use for
a fee to third parties, either individually or together with a related contract, asset or liability, or arise from
contractual or other legal titles, regardless of whether they are transferable or separable from the Group or
other titles or liabilities. Intangible assets are recognized if it is probable that they will result in future
economic benefits that can be associated with these assets and their value can be reliably measured. The
Group recognizes in intangible assets expenditures incurred for development work, provided the following
conditions are met:
(a) it is technically possible to complete the intangible asset so that it is suitable for use or sale;
(b) The Group has the intention to complete the intangible asset and use or sell it;
(c) The Group has the ability to use or sell the intangible asset;
(d) the intangible asset will generate probable future economic benefits;
(e) The Group has available adequate technical, financial and other resources to complete the development
and use or sell the intangible asset;
(f) it is possible to reliably determine the expenditures incurred during development work, which can be
attribute to this intangible asset.
Intangible assets are initially recognized at cost. Intangible assets that are recognized as a result of a
business combination are initially recognized at fair value at the time of the business combination
transaction. After initial recognition, intangible assets are measured at initial value less accumulated
amortization and impairment provisions. Intangible assets with finite useful lives are amortized using the
straight-line method when they are available for use, i.e. when the intangible asset is in the location and
condition that will enable it to be used in the manner intended by management of the Parent Company over
a period corresponding to its estimated economic useful life. The Group uses the following economic useful
lives for intangible assets:
● ERP systems 2-15 years
● Other intangible assets 2-5 years
The correctness of the applied amortization periods and rates is reviewed periodically, at least at the end of
the fiscal year, and any adjustment of amortization provisions is made from the beginning of the period in
which the change occurred. Intangible assets with an indefinite useful life are not amortized, and are subject
to annual impairment tests.
3. Goodwill
Goodwill represents the positive difference between the purchase price of the shares (acquisition of the
entity) and the value of the net fair values of the assets, liabilities and contingent liabilities assigned to them,
determined as of the date of acquisition of control, which is reported in the consolidated statements as a
separate intangible asset with respect to the interest held. The purchase price takes into account the fair
value of the consideration transferred as of the date of acquisition and the contingent liability known as
"earn-out". The earn-out liability is measured at fair value as of the acquisition date, which is determined
based on the expected value of future payments including discounting (if material). After initial recognition
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
25
and until settlement, redemption or expiration, a contingent liability arising in a business combination to
which IFRS 3 applies is measured at fair value, with changes recognized in profit or loss.
Goodwill is not amortized. Instead, goodwill is tested for impairment every year, which is described in detail
within Note 7. If it is impaired, provisions are made against other operating expenses.
4. Consolidation principles adopted
The financial statements of subsidiaries are prepared as of the same reporting date as the Parent Company
and these consolidated financial statements of the Group and using the same accounting policies in all
material respects.
The consolidated financial statements combine the items of assets, liabilities, equity, income
and expenses of the Parent Company and its subsidiaries, excluding the balances of internal settlements
and the value of transactions between Group companies, including any unrealized gains or losses and the
carrying amount of the Parent Company's investment in each subsidiary and that portion of each
subsidiary's equity that corresponds to the Parent Company's share.
PragmaGO S.A. controls an investee if:
● Has authority over the entity,
● is subject to exposure to variable financial performance or has the right to variable financial
performance,
● has the ability to influence the amount of those financial results by exercising authority over that
entity.
If the facts and circumstances indicate that there has been a change in one or more of the three elements
of control listed above, PragmaGO S.A. reassesses whether it exercises control over the entity. If PragmaGO
S.A. does not hold a majority of the voting rights in the investee, it considers other facts and circumstances
in determining whether it exercises power over the entity in accordance with IFRS 10.
5. Group as lessee
A lease is defined as an agreement or part of an agreement that transfers the right to control the Utilization
an identified asset (the underlying asset) for a given period in exchange for consideration. For short-term
leases, the Group applies the simplifications provided for in IFRS 16 "Leases." For this purpose, three main
aspects are analyzed:
● whether the contract is for an identified asset that is either explicitly stated in the contract or
implicitly stated when the asset is made available to the Group,
● whether the Group has the right to receive substantially all of the economic benefits of the asset
over its useful life to the extent specified in the contract,
● Whether the Group has the right to direct the Utilization the identified asset throughout its useful
life.
At the commencement date of the lease and where the definition of a lease is met, the Group recognizes
the right-of-use asset in the appropriate group of property, plant and equipment and the liability in "Lease
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
26
financial liabilities." The right-of-use asset is initially measured at cost consisting of the initial value of the
lease liability, the initial direct costs incurred by the Group as lessee and lease payments made on or before
the commencement date, less lease incentives.
The Group amortizes rights of use on a straight-line basis from the earlier of the commencement date to
the end of the right of use or the end of the lease term. If there are indications to do so, the rights of use are
tested for impairment in accordance with IAS 36.
At the commencement date, the Group measures the lease liability at the present value of the lease
payments outstanding using the lease interest rate if it can be readily determined. Otherwise, the lessee's
marginal interest rate is used. Lease payments included in the value of the lease liability consist of fixed
lease payments, variable lease payments dependent on an index or rate, amounts expected to be paid as
guaranteed residual value and payments under call options if their exercise is reasonably certain.
After the lease commencement date, the Group measures the right-of-use asset at cost less accumulated
depreciation (amortization) and accumulated impairment provisions and adjusted for any revaluation of the
lease liability. In subsequent periods, the lease liability is reduced by repayments made and increased by
accrued interest and revalued on a carrying value basis to reflect any reassessment or modification of the
lease or to reflect updated substantially fixed lease payments.
6. Financial assets
Financial assets include: factoring receivables, loan receivables, trade receivables, cash, contractual rights
to receive cash, contractual right to exchange financial assets with another entity on potentially favorable
terms.
The Group recognizes a financial asset when it becomes a party to a financial instrument, i.e. when it
acquires the asset.
The classification is made at initial recognition and depends on the entity's model for managing financial
instruments and the characteristics of the contractual cash flows from these instruments.
Under IFRS 9, financial assets upon initial recognition are classified into the following measurement
categories:
1. financial assets measured at amortized cost,
2. financial assets at fair value through other comprehensive income,
3. financial assets at fair value through profit or loss.
The Group classifies financial assets as measured at amortized cost if:
● is held in accordance with a business model that seeks to hold financial assets to earn contractual
cash flows ; and
● the terms of the contract for the financial asset give rise to cash flows on specified dates that are
only repayment of principal and interest on the outstanding principal (the financial asset meets the
SPPI criterion).
The business model refers to how the Group manages financial assets to generate cash flow. That is, the
business model determines whether cash flow will come from obtaining contractual cash flow, from selling
financial assets or from both. The business model is determined based on qualitative and quantitative
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
27
criteria. The Group has one business model, i.e., a model that involves holding assets to obtain contractual
cash flows. In this model, the sale of assets is incidental and can be implemented if the level of credit risk
increases.
When assessing whether contractual cash flows represent only principal and interest payments (SPPI
criterion), the Group analyzes the instrument's contractual cash flows. This analysis includes an assessment
of whether the contract contains any provisions that could alter the timing of contractual payments or their
amount in such a way that, from an economic standpoint, they do not represent only principal and interest
payments on the unpaid portion of principal.
Acquired factoring receivables and loan receivables meet the SPPI criterion and are assets held to maturity.
The Group presents them as financial assets measured at amortized cost. Financial assets are entered in
the books on the date of the contract at the fair value of the expenses incurred or other assets transferred
in exchange. The calculation of the effective interest rate includes commissions paid by the Group, which
are an integral part of the effective interest rate and are presented in the consolidated statement of profit
or loss and comprehensive income as a deduction from income. Interest accrued using the effective interest
rate is recognized in interest income on financial instruments measured at amortized cost. The carrying
amount of receivables is reduced by provisions for expected credit losses, and the amount of the allowance
is charged to the statement of profit or loss and comprehensive income.
As of the balance sheet date, financial assets denominated in foreign currency are valued at the average
exchange rate of the National Bank of Poland as of the balance sheet date.
During the reporting period, the Group did not reclassify financial assets, and there was no derecognition /
discontinuation of financial assets in the books, except for the sale of receivables described under Note 8.
7. Provisions for expected credit losses
The Group uses a model based on the concept of "Expected Credit Loss" ("ECL") for estimating provisions
for factoring ("Factoring") and loan receivables ("Loans").
Under IFRS 9, provisions are designated in the following categories:
● Stage 1 - contains exposures for which the risk has not materially increased since the initial
recognition of the exposure and, therefore, the calculation of expected credit losses here takes place
over a 12-month horizon,
● Stage 2 - includes exposures for which a significant deterioration in credit quality has been identified
as of the reporting date compared to the date of initial recognition of the exposure - the calculation
of expected credit losses is made over a lifetime horizon (lifetime),
● Stage 3 - contains exposures for which an indication of impairment has been established.
The leading premise for impairment (default) is a delay in repayment exceeding 90 days, assuming a
materiality threshold of PLN 10. In addition, there may be other prerequisites for qualifying a debtor in this
category, such as termination of a contract, declaration of bankruptcy of the debtor, or the Group becoming
aware that the debtor has filed for bankruptcy or other restructuring proceedings.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
28
A premise indicating a significant increase in the risk of an exposure and thus assignment to stage 2 is a
delay in repayment of disbursed financing exceeding 30 days. An additional indication may be the analyst's
individual determination of material exposures as part of the individual analysis based on financial data of
the entity and market information on its payment morality, taking into account the Group's collateral for
receivables.
The risk analysis is done on a per-contract basis. This is justified by the broad product offering, where on a
single client the Group may have exposures on various products that differ significantly in their settlement
method (in particular, in the case of factoring, where the source of repayment is the recipient, or in the case
of certain loan products, where the Group has the option of directly soliciting payments from payment
operators that cooperate with the client). The materiality threshold is calculated in total to all analyzed
amounts in a given product or product group characterized by the same method of settlement.
For the purpose of estimating provisions for expected credit losses, the Company uses the classification of
receivables into Stages, according to the following rules:
1) Stage 1 - unmatured installments and installments with late payments of up to 30 days (DPD <31);
2) Stage 2 - installments with late payments from 31 to 90 days (DPD>30 and DPD<91);
3) Stage 3 - installments classified as default, on which there were more than 91 days of delay
(DPD>90).
Estimation of expected credit loss is based on the same calculation formula in each of the stages. Depending
on the assigned stage and segment, appropriate values of credit risk parameters are mapped.
=
Where:
● - The value of the allowance for expected credit losses,
● - probability of default, the value of the PD parameter assigned for the relevant stage (for
exposures residing in Stage 3, a value of 100% is assigned),
● - the estimated loss on the exposure at the time of default, the value of the LGD parameter
determined for the relevant stage (for exposures residing in Stage 4, a value of 100% is
assigned),
● - Exposure value at risk of default, which is the value of the matured amount of financing
or trade receivables,
● - The value of the individual write-offs established.
Provisions for factoring receivables
Probability of default (PD)
Estimation of the PD parameter is performed by product group within factoring, and is updated monthly.
For exposures within Stage 1, the calculation of the probability of default is based on the determination of
the weighted average of the repayment parameters over the past 3 months.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
29
=
(
,
)
Where:
●
repayment_t - weighted average of the last 3 months of repayments in relation to the amount of
financing due (or the amount of trade receivables, respectively) in a given month.
The calculation of the PD parameter in Stage 2 is based on the PD value from Stage 1, taking into account
the weight of financing amounts (or the weight of trade receivables amounts, respectively) in each stage of
the analysis.
=
_
(
+
100%
60
(
30
)
)
Where:
- the amount of financing or the amount of trade receivables, respectively, on a given day
of delay ,
• _ - The sum of financing amounts (or the sum of trade receivables, respectively) from
all periods subject to analysis,
• - The number of the day of delay, takes values from 31,
• - the maximum day of delay for which the analysis is conducted, assumes a maximum of 90
DPD,
•
- PD value for stage 1 stage.
For exposures in Stage 3, a PD of 100% is assumed.
Estimated loss on exposure at default (LGD)
The LGD parameter in the factoring model is estimated in three variants 3M/36M, 6M/36M and 12M/36M
corresponding to the effectiveness of recovery in 3, 6 and 12 months over a 36-month horizon.
= min(
, 100%)
Where:
•
- The weighted average of repayments over the past 3 months in relation to the
maturing amount of financing in a given month (or the maturing amount of trade receivables,
respectively).
•
- The weighted average of repayments over the past 36 months in relation to
the maturing amount of financing in a given month (or the maturing amount of trade receivables,
respectively).
The value of the LAG in a given horizon is determined as the inverse of the average collection efficiency of
12 months with elimination of the extremes (min, max).
3|36 = 100% (
, … ,
)
Similarly, the values of 6|36 and12|36 are determined, where instead of the value of
the
variable, the values for 6 and 12 months are used, respectively.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
30
For the purpose of estimating provisions for expected credit losses in Stages 1 and 2 for trade receivables,
the determined LGD value is discounted based on a rate corresponding to the cost of capital taking into
account the actual distribution of repayments.
=
= _3|36
_3|36 = 100% (
(
100% 3
|
36
)
)
Where:
●
- Percentage of repayments observed in a given month , value broken
down by principal and interest portion and determined for the entire portfolio regardless of segment,
● - discount factor based on the average cost of debt and the month number ,
● -month of observation, takes values from 4,
● - maximum number of months of observation.
The discounted values of6|36 and12|36 are used to determine the LGD value used to
estimate the value of expected credit losses for receivables in Stage 3.
=
_3|36 +
_6|36
+
_12|36
(
)1
•
- Share of the amount of financing (or the amount of trade receivables, respectively) delayed by
91-180 days
•
- The share of the amount of financing (or the amount of trade receivables, respectively) delayed
by 181-365 days
•
- Share of the amount of financing (or the amount of trade receivables, respectively) delayed by
366 - 1095 days
For receivables overdue for more than 1096 days, the Group assumes an LGD of 100%.
Exposure value at risk of default (EAD)
The value of the exposure used to estimate reserves corresponds to the amount of financing or the amount
of trade receivables, respectively.
= _ (1 )
= _(1 )
Where:
● - nominal value of collateral that meets the requirements for reducing the basis for
calculating provisions. Collaterals include mortgages, pledges, guarantees and sureties. If the
amount of collateral exceeds the value of a given exposure, the amount of financing (or the amount
of trade receivables, respectively) is taken.
● (1 ) - Recoverable value applied to different types of collateral:
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
31
o BGK guarantee - 80% of financing amounts,
o Insurance - 90% of the financing amounts,
o Mortgage - 66% of the value of the property less previous mortgage entries, not more than
the amount of financing (trade receivables.
Provisions for loan receivables
Probability of default (PD)
For loans, the PD parameter is estimated on historical data for products or product groups with similar
characteristics. The study period includes observations from at least 2 years of product history. In the case
of a shorter product history, attachment to another product with similar specifications is used.
Overdue on a loan in a given period is defined as the number of days elapsed from the due date specified in
the schedule for the most overdue installment. The object of the entire loan (tranche) is analyzed. A
migration matrix with a 12-month observation window is used to identify loans that have reached 90+
overdue (default). The value approach was used, specifically, the initial balance of the loan at amortized cost
was used in the model.
The model checks for overdue at the beginning and at the end of the observation window, and then
dictionaryizes to DPD categories 0-5, 6-30, 31-60, 61-90, 91+. The 0-5 range additionally takes into account
the risk ranks used by the Company (A-E), which significantly affect the probability of debtor default. The
resulting set consisting of 12-month observation windows was transformed into 24- and 36-month PDs
using matrix multiplication. Observations marked in the system as frauds were excluded from the modeling.
The PD indicators are scaled by a macroeconomic coefficient based on the Vasick model, which is based on
GDP dynamics.
Estimated loss on exposure at default (LGD)
To calculate the LGD, recoveries are used based on the available repayment history in the product. If the
history is short, it is possible to group products or use expert analysis.
Each month, the population going into default is analyzed, and then the payoffs in subsequent months are
observed.
Recoveries in a given month are used to calculate the Recovery Rate (RR), which is the quotient of the sum
of recoveries from all products in a given month to the EAD (the balance at the time of entry into the
stage_3). Recoveries are discounted at the effective interest rate specific to the contract or contracts within
the homogeneous group, For trade receivables, discounting is done at the risk-free rate (WIBOR 3M). For
each month in the defaulter, a separate value of the LGD parameter is determined, taking into account
payments observed only in later months.
When estimating the LAG curve depending on the number of months in default (MID), balance amortization
over time (i.e., prior repayments before reaching a given MID) is taken into account. There are no heals on
the portfolio, the only heal is a full repayment, which is reflected in the payment analysis.
Exposure value at risk of default (EAD)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
32
Exposure to credit risk (EAD) is calculated as the balance at the end of the month, taking the carrying value
at adjusted cost, The monthly amortization of the balance is calculated based on the number of days
remaining on the repayment schedule. The average EAD for the first, second and third years is then
calculated. The balance amortization is assumed to be delayed by three periods, reflecting the fact that in
most cases between the cessation of repayments and reaching default (90 DPD), the exposure will not
settle its obligations. A Discount Factor is calculated for each year, based on the effective interest rate of
the loan. The assumed discounting period is 0.5 years for the first year and 1.5 years for the second year.
The period is adjusted according to maturity (e.g., for an exposure maturing in 9 months, the ECL value is
calculated using the average balance over 9 months and discounted by a period of 4.5 months), Defaulter
loans are not amortized or discounted. The basis for estimating the value of the allowance is the balance at
adjusted cost, For exposures over 1 year, an analogous component is added for the second year and then
for subsequent years.
ECL model
Annual PD is assigned to each exposure, respectively, according to its membership in the DPD 0-5, 6-30,
31-60, 61-90, 91+, where the first group is by rank. LAG is determined according to the length of time the
exposure has been in default, based on the determined LAG curve Annual PD is scaled by the number of
days remaining to repayment, based on the end of the schedule (which reflects the shortened period in
which the exposure can default).
For past due payments that have not yet reached default, the annual PD ratio is scaled using a multiplier of
0.25 (within 3 months the exposure will pay off or enter default). Loans marked as fraud in the Company's
system are assigned to ECL at the full balance amount. At the same time, such exposures did not participate
in the modeling of PD and LGD parameters, which makes there consistency between the population on
which the parameters are estimated and used. The ECL level is calculated by multiplying all the components
listed for a given loan or receivable.
Individual method
For all individually significant exposures (i.e., greater than PLN 500 thousand) that are impaired as of the
balance sheet date, the Group determines the value of the impairment allowance on an individual basis.
Individual assessment consists of individual verification of the occurrence of impairment of credit exposures
and the forecast of future cash flows including those resulting from the assumption of collateral or from
other sources of repayment. The individual assessment is performed and updated every 3 months.
8. Cash and cash equivalents
Cash includes cash on hand and in bank accounts. Cash equivalents are short-term, highly liquid
investments (with an original maturity of three months or less from the date of acquisition) that are readily
convertible to specific amounts of cash and subject to insignificant risk of changes in value.
The balance of cash and cash equivalents, as shown in the cash flow statement, consists of cash and cash
equivalents, as defined above, less outstanding overdrafts, if they are an integral part of cash management.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
33
9. Equity
Shareholders' equity is recognized in the books of account by its types and in accordance with the rules set
forth in the laws and articles of association of the Parent Company. Share capital is recognized at par value,
in the amount consistent with the Parent Company's Articles of Association and entry in the National Court
Register.
Retained earnings include:
● amounts arising from profit distribution;
● transfer of revaluation reserve (the difference between fair value and purchase price, net of deferred
taxes, of assets measured at fair value through other comprehensive income is transferred to
revaluation reserve);
● retained earnings;
● financial result of the current year;
● dividend advances paid, and
● The effects of prior period errors.
Included under a separate equity item are exchange rate differences on translation of foreign operations.
10. Non-controlling interests
Non-controlling interests are that portion of a subsidiary's net financial results attributable to equity
interests that do not belong, directly or indirectly through other subsidiaries, to the Parent Company.
11. External financing expenses
Borrowing expenses are recognized as expenses in the period in which they are incurred.
12. Liabilities
Bond liabilities are valued at amortized cost using the effective interest rate method. The Group uses
simplified methods to measure other liabilities financial liabilities (including bank loans and borrowings),
trade payables and other liabilities, which are measured at initial recognition and in the period after initial
recognition (including the balance sheet date) at the amount payable.
Liabilities are broken down into long-term and short-term portions. A liability is classified as current when:
a) is expected to be settled in the course of the entity's normal operating cycle;
b) is in possession of the commitment primarily for marketing;
c) the liability is due within twelve months of the end of the reporting period; or
d) does not have an unconditional right to defer the maturity of the liability for at least twelve months
after the end of the reporting period. The terms of the liability, which could, at the free choice of the
other party, lead to the settlement of the liability through the issuance of equity instruments, do not
affect its classification.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
34
Other liabilities are classified as long-term liabilities.
If, in the event of a breach of the terms of long-term financing agreements on or before the end date of the
reporting period, the liability becomes payable on demand, the liability is classified as SHORT-TERM
LIABILITIES, even if the lender has agreed after the end of the reporting period and before the financial
statements are approved for publication to waive the demand for repayment despite the breach. The liability
is classified by the entity as current because at the end of the reporting period the entity does not have an
unconditional right to defer repayment of the liability, at least for a period of twelve months after that date
of the financial statements for publication.
13. Revenue
The consolidated statements of profit or loss and comprehensive income include all interest income on
financial instruments measured at amortized cost using the effective interest method, on financial assets
measured at fair value through other comprehensive income and at fair value through profit or loss.
The effective interest rate is the rate that discounts estimated future cash receipts and payments made
over the expected period until the expiration of the financial instrument, but does not take into account
expected credit losses (except for so-called POCI assets). The calculation of the effective interest rate
includes brokerage commissions paid by the Group directly attributable to income and any other premiums
and discounts that are an integral part of the effective interest rate.
Revenue from commissions and fees not accounted for using the effective interest rate method is
recognized by the Group on a one-time basis or accrued over time using the straight-line method. Revenue
is recognized to reflect the transfer of promised services to the customer in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those services. The Group takes
into account the terms of the contract and all relevant facts and circumstances.
Revenues recognized over time include, in particular, those related to the granting of a limit in a factoring
agreement, commissions received on factoring receivables, increased factoring commissions (in case of late
payment), remuneration in reverse factoring, servicing and financing commissions after the due date.
Commission and interest income on loans is accounted for at the effective interest rate except for the
commissions indicated below which are accounted for on a one-time basis.
Among other things, factoring revenues relating to advance commissions, administrative fees (relating to
annexes, settlements, repayment agreements, among others), commissions for increasing the contract
limit, for delays, for exceeding the amount and/or concentration limit, minimum commissions, and loan
revenues relating to collection commissions due to their nature are recognized on a one-time basis.
Sales revenues are reduced by Intermediary costs for obtaining contracts and/or customers, which are
deferred in accordance with the revenue to which they relate.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
35
Other operating income includes operating income not directly related to the PragmaGO Group's statutory
activities. In particular, these are revenues from portfolio servicing, accounting services, IT support, and re-
invoiced services.
14. Operating expenses
Operating expenses include depreciation and amortization, services provided by external parties,
remuneration and employee benefits, taxes and fees, and other operating expenses. Costs are charged to
the income statement in the period to which they relate. Litigation costs are accounted for as incurred and
are presented within other operating expenses. Costs that relate to more than one period are subject to
accrual.
15. Income tax
Current income tax is the amount determined under tax laws, which is calculated on the taxable income for
the period.
Current income tax is recognized as a liability at the amount that has not been paid. If the amount paid to
date for current income tax exceeds the amount to be paid, the excess is recognized as a receivable.
Income tax is a charge to gross profit.
Deferred tax assets are recognized in connection with the existence of deductible temporary differences,
unused tax losses and unused tax credits. Deferred tax liabilities are recognized due to the existence of
positive temporary differences.
Deductible temporary differences result in amounts that reduce the tax base in future periods when the
carrying amount of an asset is realized or a liability is settled. Deductible temporary differences arise when
the carrying amount of an asset is less than its tax base or the carrying amount of a liability is greater than
its tax base. Negative temporary differences may also arise in connection with items not recognized in the
books as assets or liabilities.
Positive temporary differences give rise to amounts that increase the tax base in future periods when the
carrying amount of an asset is realized or a liability is settled. Positive temporary differences arise when the
carrying amount of an asset is greater than its tax base or the carrying amount of a liability is less than its
tax base. Positive temporary differences may also arise in connection with items not recognized in the books
as assets or liabilities.
The tax value is determined in accordance with the expected Utilization assets or settlement of liabilities.
The amount of deferred tax assets and liabilities is determined at each reporting date taking into account
the income tax rates in effect in the year in which the tax liability arises, using for this purpose the rates
resulting from promulgated legislation.
Deferred tax assets are recognized up to the amount to which it is probable that taxable income will be
realized to allow the deduction of deductible temporary differences (analysis for the amount of Deferred tax
assets that will be realized is performed at each reporting date).
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
36
Deferred tax assets and liabilities are not discounted. Deferred tax assets and liabilities relating to operations
accounted for directly with other comprehensive income are also recognized in other comprehensive
income. Deferred tax assets and liabilities are treated as non-current in their entirety. Deferred tax assets
and liabilities are offset if there is an enforceable legal title to offset the recognized amounts. Legal title is
presumed to exist if the recognized amounts relate to the same taxpayer (including a tax capital group),
except for amounts relating to items taxed in a lump sum or in a similar manner, if tax regulations do not
provide for their deduction from tax determined on a general basis.
16. Operating segments
The Group has an internal reporting system for management and budgetary purposes on the basis of the
financial products offered, and applies a reporting division into "Factoring" and "Loans" segments. The
reporting segments identified at the Group level are the same as the operating segments.
The management model in the area of budgeting and monitoring segment performance includes all
components of the statement of profit or loss and other comprehensive income up to the level of gross
profit. Revenues generated by the segment's operations, as well as operating and other expenses related to
the segment's operations, have been allocated to individual segments by directly assigning cost categories
or apportioning expenses according to appropriate allocation keys in accordance with the adopted allocation
model. General and administrative expenses that do not directly relate to any of the segments, but are
related to the Group's operations are shown as unallocated expenses. Assets are allocated to operating
segments except:
● "Property, plant and equipment."
● "Goodwill;
● "Deferred tax assets";
● "Other current assets";
● "Cash and cash equivalents" and
● "Prepayments and accruals."
Assets not directly related to any of the segments are presented under unallocated activities. "Bonds
liabilities," "Lease financing liabilities," and "Loans and advances" are divided and allocated to segments
according to the structure of the assets they finance. "Provisions," "Trade payables," "Income tax payables,"
"Other liabilities and Prepayments and accruals" not directly related to any of the segments are shown under
unallocated operations. The accounting principles adopted are uniform for all segments and applied to the
Group. There were no transactions between segments that should be eliminated.
The "Factoring" segment includes services for the SME and microenterprise sector related to the provision
of financing through digital factoring, nano factoring and reverse factoring.
The "Loans" segment includes "BNPL" deferred payment financing services for the e-commerce sector and
revenue advance - Merchant Cash Advance in an embedded finance model through integration with
Partners' systems, as well as installment loans, targeted loans and tax and Social Security financing for
business customers.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
37
The statement of profit or loss and other comprehensive income and assets and liabilities by operating
segment are presented in Note 21.
17. Statement of cash flows
In the statement of cash flows, the Group's expenditures and receipts from financial assets used in its core
business are presented in operating activities as a change in condition, and in the statement of other
comprehensive income, the income from these assets is presented in the core business, as they serve the
Group's statutory activities.
18. Professional judgment, estimates and assumptions
The preparation of financial statements in accordance with IFRS requires the Parent Company's
Management Board to make professional judgments, estimates and assumptions that affect the policies
adopted and the values presented of assets, capitals and liabilities, revenues and expenses reported in
subsequent periods. Estimates and related assumptions are based on historical experience and various
other factors that are considered reasonable under the circumstances, and their results provide a basis for
professional judgment as to the carrying value of assets and liabilities that is not directly derived from other
sources. The actual value may differ from the estimated value. Estimated values and related assumptions
are subject to ongoing review. A change in accounting estimates is recognized in the period in which they
are changed, if it applies only to that period, or in the current and future periods, if the changes apply to
both the current and future periods.
Professional judgments made by the Parent Company's management in applying IFRS that have a material
impact on the financial statements, as well as estimates that create a significant risk of material changes in
future years, are presented in Notes 4, 5, 6, 7 and 8 to the consolidated annual financial statements.
Professional judgment is particularly concerned with, determining the economic useful lives of tangible and
intangible assets, creating provisions for impairment and for expected losses of financial assets, and
verifying the carrying value of deferred tax assets.
Position
Value of the item to
which the estimate
applies
Note no. Assumptions made and calculation of estimates
31.12.2024
31.12.2023
Property, plant
and
equipment
3 283 2 816 5
Depreciation rates
Depreciation rates are determined on the basis of the
expected economic useful life of property, plant and
equipment and intangible assets. The Group revises
annually the adopted economic useful lives based on
current estimates.
Impairment of property, plant and equipment, intangible
assets
At each balance sheet date, the Group evaluates whether
there are indications that any of its property, plant and
equipment and intangible assets may be impaired. If such
indications are found, the Group estimates the
Intangible
assets
41 319 28 304 6
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
38
recoverable amount of that asset. For intangible assets
with an indefinite useful life, they are tested annually. The
recoverable amount is the higher of the asset's fair value
less costs to sell and value in use. If it is not possible to
estimate the recoverable amount of an individual asset,
the recoverable amount of the cash-generating unit to
which the asset belongs (the asset's cash-generating
unit) is determined. The carrying amount of an asset or
intangible asset is reduced to the recoverable amount if
the carrying amount exceeds the estimated recoverable
amount.
Goodwill 28 492 4 917 7
Impairment of goodwill
At least at each balance sheet date, or more frequently if,
in the judgment of the Parent Company's management,
there are indications of possible impairment, the Group
tests goodwill for impairment.
The Group formally estimates the recoverable amount of
all cash-generating units to which goodwill relates based
on projected future cash flows. The projected future cash
flows are an estimate and result from the budget
developed by the Parent Company's Management Board.
Future cash flows are discounted using the weighted
average cost of capital. In addition, the Parent Company's
Management Board adopts, based on its best judgment
and expectations, an assumed level of growth to
calculate the residual value. When the carrying amount of
an asset exceeds its recoverable amount, the asset is
considered impaired and a write-down is made to its
recoverable amount. The recoverable amount is the fair
value of the cash-generating unit in question, less costs
of disposal, or the cash-generating unit's value in use,
whichever is higher.
Deferred tax
asset
1 717 383 4
Recoverability of deferred tax assets
The Group recognizes a deferred tax asset based on the
assumption that tax profit will be achieved in the future
to allow its use. Deterioration of the tax results obtained
in the future could make this assumption unreasonable.
The Group's management, while working on the 2025
budget and medium-term plans, does not assume any
deterioration in future tax results.
Financial
assets
471 890 390 782 8
Parameter PD, LGD, EAD
Details of the assumptions used to estimate the
provisions for expected credit losses are included in Note
IV.9.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
39
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS of the
PragmaGO S.A. GROUP PREPARED AS OF AND FOR THE 12-MONTH PERIOD
ENDED DECEMBER 31, 2024
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS CONSOLIDATED FINANCIAL STATEMENT
List of notes:
Number Name
1
Total net revenues
2
Operating expenses
3
Financial expenses
4
Income tax - current and deferred
5
Property, plant and equipment
6
Intangible assets
7
Goodwill
8
Financial assets
9
Receivables
10
Cash
11
Prepayments and accruals
12
Share capital
13
Liabilities from loans and borrowings
14
Bonds liabilities
15
Lease liabilities
16
Trade and other payables
17
Deferred income
18
Reconciliations of changes in liabilities and other items reported in the statement of cash flows
19
Guarantees, sureties and contingent liabilities
20
Financial instruments
21
Operating segments
22
Average employment in FTEs in the Group
23
Ownership of shares of the Parent Company by Management Board and controlling the Parent
Company
24
Remuneration of key personnel of the Group and the Supervisory Board
25
Remuneration of the entity authorized to audit financial statements
26
Group transactions and balances with related parties
27
Impact of the changes on the comparative figures in the consolidated financial statements
28
Fair value
29
Events after the balance sheet date
30
Other disclosures required by law - financial liability forecasts
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
40
1. Total net revenue
1.1 - Total net revenue
01.01.2024
31.12.2024
01.01.2023
31.12.2023
(restated data)*
Factoring income, including:
58 351
45 159
Interest income from financial instruments
measured at amortized cost, including:
36 664 21 601
Intermediary costs (4 087)
(3 533)
Flat fees and subscription fees 9 724 12 069
Initial and revolving fees for granted limits, for
increase of limits
6 169 6 333
Monitoring and collection fees, for delays
2 394
2 337
Other
3 400
2 819
Income from loans, including:
50 636
27 395
Interest income from financial instruments
measured at amortized cost, including:
46 542 23 855
Intermediary costs
(10 074)
(3 885)
Monitoring and collection fees
3 583
3 536
Other
511
4
Other revenue, including:
3 990
5 366
Pragma Faktor portfolio servicing revenue
1 463
3 568
Other
2 527
1 798
TOTAL:
112 977
77 920
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in the consolidated financial
statements".
Intermediary costs
Intermediary costs as direct transaction costs of financial instruments are recognized together with
revenues and are subject to accrual according to the revenues to which they relate - at the effective rate
or on a straight-line basis, as appropriate
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
41
2. Operating expenses
2.1 - Operating expenses for the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Depreciation 3 302 1 925
Remuneration and employee benefits 17 848 14 437
External services 12 033 8 865
Consumption of materials and energy 626 511
Taxes and fees 2 497 1 882
Other operating expenses 5 581 5 040
TOTAL:
41 887
32 660
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in the consolidated financial
statements".
3. Financial expenses
3.1 - Financial expenses for the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Interest on bonds
26 133
15 524
Interest on bank loans and borrowings
4 744
3 658
Interest on leases
259
150
Bond valuation
121
-
Costs of issuing bonds
2 638
1 614
Costs of early redemption of bonds
692
-
Other
2 499
646
TOTAL:
37 086
21 592
4. Income tax - current and deferred
4.1 - Income tax for the period
01.01.2024
31.12.2024
01.01.2023
31.12.2023
(restated data)*
Current income tax
5 422
3 792
Deferred income tax
(1 334)
620
TOTAL:
4 088
4 412
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in the consolidated financial
statements".
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
42
4.2 - Reconciliation of effective tax rate
01.01.2024
31.12.2024
01.01.2023
31.12.2023
(data
restated)*
Gross profit before tax
15 170
11 376
Income tax at Poland's statutory tax rate of 19% (2 882) (2 161)
Impact of tax rate in foreign jurisdictions 10 -
Impact of permanent differences between gross
profit and taxable income for income tax purposes,
including
:
(1 216)
(2 251)
Non-deductible provisions for credit losses on
factoring and loans exposures
(2 132) (1 638)
Sale of receivables
794
(279)
Utilization of tax losses
263
90
Non-deductible expenses
(202)
(424)
Other
61
-
Income tax reported in the statement of profit or loss
and other comprehensive income
(4 088)
(4 412)
Effective tax rate
27%
39%
4.3 - Change in deferred tax assets during
the period
01.01.2024
31.12.2024
01.01.2023
31.12.2023
Balance as of the beginning of the period 6 328 4 570
Recognition 3 990 1 758
Increase due to acquisition of control of a
subsidiary
156 -
Utilization
-
-
Reversal
(289)
-
TOTAL:
10 185
6 328
4.4 - Change in deferred tax liability during
the period
01.01.2024
31.12.2024
01.01.2023
31.12.2023
Balance as of the beginning of the period 5 945 3 567
Recognition 2 755 2 378
Utilization - -
Reversal (232) -
TOTAL:
8 468
5 945
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
43
4.5 - Net deferred tax assets and liabilities in
the period
01.01.2024
31.12.2024
01.01.2023
31.12.2023
Net deferred tax assets 1 717 383
Net deferred tax liability - -
4.6 - Deferred income tax
Deferred tax assets
Balance as of
Balance as of
Tax impact
Tax impact
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Valuation of financial liabilities
557
375
(182)
82
Provisions
331
49
(282)
104
Deferred income
6 296
3 687
(2 609)
(1 503)
Provisions for receivables
2 259
1 528
(731)
(443)
Difference in tax and carrying value of
fixed assets
426 520 94 28
Annual VAT adjustment
117
-
(117)
58
Other
199
169
(30)
(84)
TOTAL DEFERRED TAX ASSETS:
10 185
6 328
(3 857)
(1 758)
Deferred income tax liability
Balance as of
Balance as of
Tax impact
Tax impact
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Valuation of financial investments 478 180 298 24
Bad debt relief 1 705 894 811 894
Profit of the acquired company - 232 (232) -
Difference in tax and carrying value of
fixed assets
3 809 3 029 780 638
Accrued expenses 2 424 1 385 1 039 597
Other 52 225 (173) 225
TOTAL DEFERRED TAX LIABILITY:
8 468
5 945
2 523
2 378
Reconciliation of the effective tax rate
Beginning in December 2024, the consolidation includes a subsidiary based in Romania, where the
applicable tax rate is 16%.
Non-deductible provisions for credit losses on factoring and loans exposures
Pursuant to the Law on Corporate Income Tax of March 7, 2025 (Journal of Laws 2025, item 278), the value
of receivables that are written off, time-barred or written off as uncollectible is included in tax expenses
in the portion on which the provisions made were previously included in tax deductible expenses. The
value of provisions for expected credit losses on factoring and lending exposures on financing amounts
not previously included in tax deductible expenses is not tax deductible, it represents permanent
differences and causes a discrepancy in the effective tax rate compared to the applicable 19% rate.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
44
Unrecognized deferred tax
Due to the Parent Company's control over the timing of settlement of temporary differences relating to
goodwill and its knowledge that these differences will not be reversed in the foreseeable future, no
deferred tax was recognized on this account.
Tax risk
Regulations on value-added tax, corporate income tax and social security burdens are subject to frequent
changes in both Poland and Romania, where the Group operates. These frequent changes result in a lack
of appropriate reference points, inconsistent interpretations and few established precedents to apply. The
current regulations also contain ambiguities that cause differences of opinion as to the legal interpretation
of tax laws, both between state authorities and state bodies and companies.
Tax settlements and other areas of operations may be subject to audits by authorities with the authority
to impose penalties and fines with interest, and any additional tax liabilities resulting from an audit must
be paid with high interest. These conditions make tax risks in Poland and selected other countries where
the Group operates greater than in countries with more mature tax systems.
Consequently, the amounts presented and disclosed in the financial statements may change in the future
as a result of a final decision by a tax audit authority.
5. Property, plant and equipment
5.1 - Property, plant and equipment
Balance as of
Balance as of
31.12.2024
31.12.2023
Rights of use - buildings and structures 874 1 015
Technical equipment and machinery 147 158
Rights of use - means of transport 2 216 1 625
Other fixed assets 6 6
Investments in third-party fixed assets 40 12
TOTAL:
3 283
2 816
5.2 - Property, plant
and equipment during
the reporting period
Rights of use
- buildings
and
structures
Technical
equipment
and
machinery
Rights of use
-Means of
transport
Other
fixed
assets
Investments
in third-
party fixed
assets
Total
Gross carrying
amount as of
01.01.2024
2 100 663 2 320 394 70 5 547
Increases due to
acquisition of control
of subsidiary
379 28 477 16 8 908
Direct acquisitions
-
78
-
4
21
103
Additions to Rights of
use
- - 648 - - 648
Decreases due to
sale/liquidation
- (34) (251) - - (285)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
45
5.2 - Property, plant
and equipment during
the reporting period
Rights of use
- buildings
and
structures
Technical
equipment
and
machinery
Rights of use
-Means of
transport
Other
fixed
assets
Investments
in third-
party fixed
assets
Total
Exchange differences
on translation of
subsidiary data
(3) - (1) (1) - (5)
Gross carrying
amount as of
31.12.2024
2 476
735
3 193
413
99
6 916
Property, plant and
equipment in the
reporting period
Rights of
use
- buildings
and
structures
Technical
equipment
and machinery
Rights of use
- means of
transport
Other
fixed
assets
Investments in
third-party fixed
assets
Total
Gross carrying
amount as of
01.01.2023
1 444 637 2 335 394 70 4 880
Direct acquisitions - 63 - - - 63
Adoption in Rights of
use
- - 223 - - 223
Change in lease
payments
656 - - - - 656
Decreases due to
sale/liquidation
- (37) (238) - - (275)
Gross carrying
amount as of
31.12.2023
2 100
663
2 320
394
70
5 547
5.3 - Property, plant
and equipment
depreciation
Rights of use
- buildings
and
structures
Technical
equipment
and
machinery
Rights of use
- means of
transport
Other
fixed
assets
Investments
in third-
party fixed
assets
Total
Depreciation value as
of 01.01.2024
1 085 505 695 388 58 2 731
Depreciation for the
period
522 99 433 8 10 1 072
Decreases due to
sale/liquidation
- (31) (150) - (11) (192)
Other
(reclassification)
- 15 - 15 - 30
Exchange differences
on translation of
subsidiary data
(5) - (1) (4) 2 (8)
Depreciation value as
of 31.12.2024
1 602
588
977
407
59
3 633
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
46
Property, plant and
equipment
depreciation
Rights of use
- buildings
and
structures
Technical
equipment
and
machinery
Rights of use
- means of
transport
Other
fixed
assets
Investments
in third-
party fixed
assets
Total
Depreciation value as
of 01.01.2023
578 439 499 386 51 1 953
Depreciation for the
period
507 100 307 2 7 923
Decreases due to
sale/liquidation
- (34) (111) - - (145)
Depreciation value as
of 31.12.2023
1 085
505
695
388
58
2 731
6. Intangible assets
6.1 - Intangible assets
Balance as of Balance as of
31.12.2024 31.12.2023
ERP system
35 573
21 547
Computer systems under development
5 746
6 757
TOTAL:
41 319
28 304
6.2 - Intangible assets during
the reporting period
ERP system
Intangible
assets under
development
Costs of
completed
development
work
Total
Gross carrying amount as of
01.01.2024
26 202 6 757 311 33 270
Increases due to acquisition of
control of subsidiary
3 066 950 - 4 016
Acquisitions/expenditures
made
32
11 203
- 11 235
Acceptance for use
13 164
(13 164)
-
-
Reductions
(519)
-
-
(519)
Exchange differences on
translation of subsidiary data
(15) - - (15)
Gross carrying amount as of
31.12.2024
41 930
5 746
311
47 987
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
47
Intangible assets in the
reporting period
ERP system
Intangible assets
under
development
Costs of
completed
development
work
Total
Gross carrying amount as of
01.01.2023
20 729 2 186 311 23 226
Acquisitions/expenditures
made
- 10 044 - 10 044
Acceptance for use 5 473 (5 473) - -
Gross carrying amount as of
31.12.2023
26 202
6 757
311
33 270
6.3 - Intangible assets
depreciation
ERP system
Costs of completed
development work
Total
Depreciation value as of
01.01.2024
4 655 311 4 966
Decreases due to liquidation (517) - (517)
Increase in depreciation for the
period
2 230 - 2 230
Exchange differences on
translation of subsidiary data
(11) - (11)
Depreciation value as of
31.12.2024
6 357
311
6 668
Intangible assets depreciation ERP system
Costs of completed
development work
Total
Depreciation value as of
01.01.2023
3 655 311 3 966
Increase in depreciation for the
period
1 000 - 1 000
Depreciation value as of
31.12.2023
4 655
311
4 966
Intangible assets held by the Group represent assets with finite useful lives and are amortized on a
straight-line basis.
7. Goodwill
7.1 - Goodwill Headquarters
Balance as of
Balance as of
31.12.2024
31.12.2023
BRUTTO Sp. z o.o. Warsaw 3 056 3 056
PragmaGO.TECH Sp. z o.o. Krakow 1 861 1 861
Monevia Sp. z o.o. Bydgoszcz 6 365 -
Telecredit IFN SA Bucharest 17 210 -
TOTAL GOODWILL:
-
28 492
4 917
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
48
7.2 - Goodwill - changes in balance during the
period
Balance as of
Balance as of
31.12.2024
31.12.2023
Balance at beginning of period 4 917 4 917
Increases during the period, including: 23 575 -
Acquisition of control over a subsidiary - Monevia 6 365 -
Acquisition of control over a subsidiary - Telecredit
IFN
17 210 -
TOTAL GOODWILL:
28 492
4 917
Godwill BRUTTO Sp. z o.o.
The goodwill BRUTTO Sp. z o.o. was created in connection with the acquisition of 2,103 shares in 2021 and
a capital increase of 804 new shares acquired in exchange for a cash contribution of PLN 600,000.00. In
2023. The Parent Company purchased the remaining shares in Brutto Sp. z o.o. and, in accordance with
the settlement agreement of July 31, 2023, became a 100% shareholder, in exchange for the amount of
additional consideration totaling PLN 1,150,562.00. As of the date of acquisition of control, the acquired
assets and liabilities were fully identified and valued.
Taking control of Monevia Sp. z o.o.
On February 5, 2024, the Parent acquired 100% of shares in Monevia Sp. z o.o., based in Bydgoszcz.
The core business of this company is providing financing in the form of factoring. The purpose of the
acquisition of the stake is to strengthen the Group's position in the micro factoring sector for small and
micro enterprises. As of December 31, 2024, the purchase price allocation process has been completed. In
the second quarter of 2024, in the interim period, the value of the acquired net assets was adjusted by a
deferred tax adjustment of PLN 33 thousand.
The value of identifiable assets and liabilities of the Monevia Company as of the date of acquisition of
control is as follows:
Assets
as of the date of acquisition
FIXED ASSETS
4 241
Property, plant and equipment
516
Intangible assets
3 588
Deferred tax assets
137
CURRENT ASSETS
28 532
Trade receivables and other current assets
39
Factoring
21 434
Prepayments and accruals
83
Cash and cash equivalents
6 976
TOTAL ASSETS:
32 773
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
49
Capitals and liabilities
as of the date of acquisition
EQUITY
4 987
Share capital
8 500
Retained earnings, including: (3 513)
Net profit of the period
82
LONG-TERM LIABILITIES
1 390
Liabilities on long-term loans and credits
1 009
Lease liabilities
381
SHORT-TERM LIABILITIES
26 396
Reserves 40
Liabilities on short-term loans and borrowings
19 182
Current bonds liabilities
6 136
Lease liabilities
50
Trade payables
465
Other liabilities and accruals
523
TOTAL EQUITY AND LIABILITIES:
32 773
Settlement of the acquisition of control of Monevia Sp. z o.o.
Value
Fair value of remuneration transferred
11 319
Net assets at the time of acquisition of control
(4 987)
Net asset value adjustment
33
Goodwill
6 365
Expenditure on acquisition of control in a subsidiary less cash acquired as
shown in the statement of cash flows
(4 343)
Fair value of remuneration (11 319)
Cash of Monevia Sp. z o.o. at the time of acquisition of control
6 976
The value of revenues and net income of the subsidiary Monevia:
For the period from the
acquisition of control
to the balance sheet
date
01.01.2024-31.12.2024
(niebadane)
Revenue
9 637
10 421
Net result
1 590
1 673
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
50
Taking control of Telecredit IFN SA
On December 5, 2024, following the fulfillment of conditions precedent, the Parent acquired control of
Telecredit, based in Bucharest, Romania. The Parent Company holds shares representing 89% of the share
capital. This company has the status of a financial institution and its primary business is providing
financing in the form of factoring and loans. As of December 31, 2024, the purchase price allocation
process has not yet been completed by the Group. The Group plans to make a final settlement of the
acquisition within 12 months from the merger date. The purpose of the share purchase is to expand
overseas in accordance with the Group's long-term development plan. According to the agreement, the
purchase price amounted to EUR 5,785 thousand, with the stipulation that this price may be changed up
to a maximum amount of EUR 6,230 thousand, provided that Telecredit's financial results for 2025 show
a net profit as specified in the Sale Agreement. As part of the settlement of the acquisition, a contingent
earn-out liability amounting to EUR 445 thousand corresponding to the maximum level of additional
consideration was recognized.
The goodwill recognized reflects the possibility of expansion in the Romanian market in line with the
Group's development plans. Prospects are focused on the factoring market, where dynamic development
of the market for financial services in this area in Romania, as well as embeded finance products, is evident.
The value of the identifiable assets and liabilities of Telecredit IFN SA as of the date of acquisition of control
is as follows:
Assets
as of the date of acquisition
FIXED ASSETS
897
Property, plant and equipment
392
Intangible assets
428
Loans
58
Deferred tax assets
19
CURRENT ASSETS
43 341
Trade receivables and other current assets
82
Loans
797
Factoring
39 912
Prepayments and accruals
10
Cash and cash equivalents
2 540
TOTAL ASSETS:
44 238
Equity and liabilities
as of the date of acquisition
EQUITY
11 177
Share capital
2 642
Issue capital
24
Other reserves
815
Retained earnings, including:
7 696
Net profit of the period
5 298
LONG-TERM LIABILITIES
11 553
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
51
Equity and liabilities
as of the date of acquisition
Liabilities on long-term loans and credits
11 280
Lease liabilities
273
SHORT-TERM LIABILITIES
21 508
Liabilities on short-term loans and borrowings
19 662
Lease liabilities
122
Trade payables
176
Income tax liabilities
111
Other liabilities and accruals
540
Short-term reserves
897
TOTAL EQUITY AND LIABILITIES:
44 238
Settlement of the acquisition of control of Telecredit IFN
SA
Value
Fair value of remuneration transferred, including:
A
27 158
The value of the basic salary
25 244
Contingent remuneration (earn-out)
1 914
Net assets at the time of acquisition of control
B
11 177
Shareholding %
C
89
Net asset value attributable to
per shareholders of the Parent Company
D = B * C% 9 948
Goodwill
E = A - D
17 210
Non-controlling interests
F = B * (1-C%)
1 229
Expenditure on acquisition of control in a subsidiary less cash acquired as
shown in the statement of cash flows
22 704
Fair value of remuneration
27 158
Adjustment for unpaid installment according to acquisition agreement
(1 914)
Telecredit IFN SA cash and cash equivalents at the time of acquisition of
control
(2 540)
The value of revenues and net income of the subsidiary Telecredit IFN SA:
For the period from the
acquisition of control
to the balance sheet
date
01.01.2024-31.12.2024
(niebadane)
Revenue
1 484
14 908
Net result
275
5 574
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
52
Goodwill impairment provisions
As of December 31, 2024 and December 31, 2023, there were no indications of impairment and the
recognition of provisions .
Impairment
In accordance with IAS 36, the Parent Company's Management Board performed a goodwill impairment
test as of 31.12.2024. The valuation was based on five-year financial forecasts prepared for the operating
activities of subsidiaries and the cost of capital adequate to the risk for the company being valued. The
goodwill impairment test was prepared based on the income approach.
Future flows were estimated using assumptions made by the Parent Company's management in line with
the Group's budget. The detailed projection period covered 5 years, i.e., the period 2025 - 2029. Goodwill
impairment tests were prepared based on the FCFE (free cash flow to equity) income method.
The discount rate was estimated using the WACC approach, i.e. the weighted average cost of capital.
Basic assumptions used to determine fair value as of 31.12.2024:
● Average change in sales revenue over the detailed projection period - 1.8% year-on-year,
● Detailed forecast period - 2025 - 2029
● Discount rate - 17.52%
● Real growth rate of FCFE after 2029 - 1-3.5%
Telecredit IFN Monevia
PragmaGO
Tech
Brutto
Average change in sales revenue
over the detailed projection period
19% 15% (3%) 21%
Detailed forecast period (years) 5 5 5 5
Discount rate 17,52% 17,52% 17,52% 17,52%
FCFE's real growth rate after 2029 3,5% 3,5% 1,0% 3,5%
The results of the tests performed indicate that no impairment has occurred. Therefore, there are no
provisions for write-downs of the carrying value.
Sensitivity analysis
The key assumptions with the greatest impact on the recoverable amount are the budget assumptions for
net income, the growth rate after the forecast period and the discount rate. The results of the sensitivity
analyses conducted for the key assumptions and their impact on recoverable value are presented below.
In the analyzed ranges of variability of the assumptions made in relation to the base scenario, the
recoverable value did not fall below the book value.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
53
a. Growth rate after the forecast period
Baseline scenario:
+ 100 bps
- 100 bps
(PLN
thousands)
%
(PLN
thousands)
%
Telecredit IFN
3 667
7,0
(3 179)
(6,0)
Monevia
1 364
7,2
(1 182)
(6,2)
PragmaGO.tech
94
3,7
(83)
(3,3)
Brutto
656
5,2
(569)
(4,5)
TOTAL:
5 781
-
(5 013)
-
b. Discount rate (WACC)
Baseline scenario:
+ 100 bps
- 100 bps
(PLN
thousands)
%
(PLN
thousands)
%
Telecredit IFN
(4 818)
(9,1)
5 615
10,7
Monevia
(1 767)
(9,3)
2 062
10,9
PragmaGO.tech
(150)
(6,2)
169
6,6
Brutto
(923)
(7,3)
1 067
8,4
TOTAL:
(7 658)
-
8 913
-
In the case of the growth rate after the forecast period, its decrease by 100 bps results in a decrease in
the recoverable value by PLN (5,013) thousand, and its increase by 100 bps results in an increase in value
by PLN 5,781 thousand.
In the case of the discount rate, its decrease by 100 bps results in an increase in the recoverable value by
PLN 8,913 thousand, and its increase by 100 bps results in a decrease in value by PLN (7,658) thousand.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
54
8. Financial assets
8.1 - Short- and long-term
financial assets as of
31.12.2024 31.12.2023
Specification Gross value
Provisions for
expected credit
losses
Carrying value Gross value
Provisions for
expected credit
losses
Carrying value
Loans 254 220 (16 810) 237 410 170 567 (23 193) 147 374
Factoring 252 880 (18 400) 234 480 183 237 (20 829) 162 408
TOTAL:
507 100
(35 210)
471 890
353 804
(44 022)
309 782
Increases in financial assets due to acquisition of
control of a subsidiary
Gross value
Provisions for expected credit
losses
Carrying value
Loans
1 896
(1 041)
855
Factoring
65 421
(4 075)
61 346
TOTAL:
67 317
(5 116)
62 201
Increases in financial assets due to acquisition of control of subsidiaries
In the period covered by this report, the Group gained control over Monevia by acquiring a factoring portfolio with a net value of PLN 21,434 thousand, and over
Telecredit by increasing financial assets related to factoring by PLN 39,912 thousand and those related to loans by PLN 855 thousand.
Sale of non-performing portfolio
During the period covered by this report, the Group sold a non-performing loan and factoring portfolio to an unrelated receivables fund with a total net value of
PLN 3,262 thousand for a price of PLN 3,972 thousand. In connection with the sale, provisions of PLN 27,712 thousand were derecognized. As a result of the
agreement, risks, benefits and control were transferred, so these assets were derecognized. This transaction does not represent a change in the Group's business
model, in which the basic premise is to hold financial assets to maturity.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
55
Loans
Factoring
Total
Gross value
22 682
8 292
30 974
Derecognition of expected credit
losses provisions
(19 591) (8 121) (27 712)
Net amount:
3 091
171
3 262
Selling price 3 764 208 3 972
Result on sales
673
37
710
8.2 - Provisions for short-term and long-
term financial assets - changes in the
period
01.01.2024
01.01.2023
31.12.2024 31.12.2023
Provisions at the beginning of the period (44 022) (31 916)
Recognition of provisions
(37 051) (18 600)
Reversal of provisions
18 078 5 501
Derecognition of provisions related to the
sale of receivables
27 712 993
Utilization provisions
54
-
Foreign exchange differences on translation
19
-
PERIOD-END PROVISIONS:
(35 210)
(44 022)
Provisions for expected credit losses
The methodology for calculating and recognizing individual and statistical provisions is described within the
description of Significant Accounting Policies of the consolidated annual financial statements published on
April 25, 2024. There were no changes in the method of calculating provisions in the periods for which this
report was prepared.
31.12.2024 Gross
provisions for expected
credit losses
net amount
factoring receivables
252 880
(18 400)
234 480
stage 1 208 665 (257) 208 408
stage 2 3 838 (400) 3 438
stage 3 40 377 (17 743) 22 634
loan receivables
254 220
(16 810)
237 410
stage 1 232 755 (4 113) 228 642
stage 2 3 971 (666) 3 305
stage 3 17 494 (12 031) 5 463
total receivables
507 100
(35 210)
471 890
stage 1 441 420 (4 370) 437 050
stage 2 7 809 (1 066) 6 743
stage 3 57 871 (29 774) 28 097
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
56
31.12.2023 Gross
provisions for expected
credit losses
net amount
factoring receivables
183 237
(20 829)
162 408
stage 1 142 826 (387) 142 439
stage 2 4 301 (255) 4 046
stage 3 36 110 (20 187) 15 923
loan receivables
170 567
(23 193)
147 374
stage 1 142 211 (2 339) 139 872
stage 2 3 388 (383) 3 005
stage 3
24 968
(20 471)
4 497
total receivables
353 804
(44 022)
309 782
stage 1 285 037 (2 726) 282 311
stage 2 7 689 (638) 7 051
stage 3 61 078 (40 658) 20 420
Financial assets measured at
amortized cost 31.12.2024 -
factoring
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2024
142 826 4 301 36 110 183 237
Transfer to stage 2 stage
(218)
218
-
-
Transfer to stage 3 stage
(6 571)
(1 903)
8 474
-
Increases due to acquisition of
control of a subsidiary
59 513 302 1 531 61 346
Increases - granting 1 888 368 3 488 11 733 1 903 589
Decreases due to repayment (1 874 676) (2 569) (9 170) (1 886 415)
Decreases due to sales - - (8 292) (8 292)
Other changes (including
prepayments and accruals and
foreign exchange differences)
(577) - (9) (586)
Gross carrying amount per
December 31, 2024
208 665
3 838
40 377
252 880
Financial assets measured at
amortized cost
31.12.2024 - loans
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2024
142 211 3 388 24 968 170 567
Transfer to stage 2 (369) 369 - -
Transfer to stage 3
(7 000)
(297)
7 297
-
Increases due to acquisition of
control of a subsidiary
852 - 3 855
Increases - granting 515 353 3 384 7 908 526 645
Decreases due to repayment (406 672) (2 872) - (409 544)
Decreases due to sales - - (22 682) (22 682)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
57
Financial assets measured at
amortized cost
31.12.2024 - loans
stage 1 stage 2 stage 3 Total
Other changes (including
prepayments and accruals and
foreign exchange differences)
(11 621) (1) - (11 617)
Gross carrying amount per
December 31, 2024
232 755
3 971
17 494
254 220
Financial assets measured at
amortized cost
31.12.2023 - factoring
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2023
116 396 5 958 32 565 154 919
Transfer to stage 2
-
-
-
Transfer to stage 3
(2 762)
(2 834)
5 596
-
Increases - granting*
1 525 520
4
6 863
1 536 683
Reductions due to repayment**
(1 495 809)
(3 123)
(5 776)
(1 504 708)
Decreases due to sales
-
-
(3 138)
(3 138)
Other changes (including
prepayments and accruals and
exchange differences)**
(519) - - (519)
Gross carrying amount per
December 31, 2023
142 826
4 301
36 110
183 237
Financial assets measured at
amortized cost
31.12.2023 - loans
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2023
74 031 2 541 14 266 90 838
Transfer to stage 2
(1 124)
1 124
-
-
Transfer to stage 3
(5 834)
(2 512)
8 346
-
Increases - granting*
307 867
3 011
6 312
317 190
Reductions due to repayment**
(226 978)
(776)
(3 956)
(231 710)
Other changes (including
prepayments and accruals and
exchange differences)**
(5 751) - - (5 751)
Gross carrying amount per
December 31, 2023
142 211
3 388
24 968
170 567
* Changed the presentation within the notes on movements in gross financial assets within the Increases-granting line separated the
value of receivables granted, during 2024, which moved to Stage 2 and Stage 3.
** The presentation within the notes on movements in gross financial assets has been changed. "Other changes (including
Prepayments and accruals and exchange differences)" relating to the change in deferred income and deferred expenses presented
net of the asset was excluded as a separate line.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
58
Increases from granting and transfers
The changes in the gross carrying value of factoring receivables and loans relating to transfers shown in
the table include receivables that were in the portfolio on the opening balance sheet and have been
transferred to a further stages. On the other hand, the increase due to granting shows the value of financing
granted and trade receivables during the year, respectively, which was classified into stage 1, 2 or 3,
respectively, at the end of the balance sheet period.
Change in provisions for expected
credit losses 31.12.2024 - factoring
stage 1 stage 2 stage 3 Total
Gross provisions as of January 1,
2024
(387) (255) (20 187) (20 829)
Provisions due to change in balance
159
38
(11 541)
(11 344)
Provisions due to changes in credit
risk
(31) (183) 5 855 5 641
Decreases due to sales - - 8 121 8 121
Foreign exchange differences on
translation of subsidiary data
2 - 9 11
Value of provisions as of December
31, 2024
(257) (400) (17 743) (18 400)
Change in provisions for expected
credit losses 31.12.2024 - loans
stage 1 stage 2 stage 3 Total
Value of provisions as of
January 1, 2024
(2 339) (383) (20 471) (23 193)
Provisions due to change in balance
(1 617)
(142)
(12 600)
(14 359)
Provisions due to changes in credit
risk
(158) (141) 1 442 1 143
Decreases due to sales
-
-
19 591
19 591
Foreign exchange differences on
translation of subsidiary data
1 - 7 8
Value of provisions as of December
31, 2024
(4 113) (666) (12 031) (16 810)
Change in provisions for expected
credit losses 31.12.2023 - factoring
stage 1 stage 2 stage 3 Total
Value of provisions for
January 1, 2023
(498) (475) (17 805) (18 778)
Provisions due to change in balance 1 178 1 200 1 379
Provisions due to changes in credit
risk
110 42 (3 582) (3 430)
Value of provisions as of December
31, 2023
(387) (255) (20 187) (20 829)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
59
Change in provisions for expected
credit losses 31.12.2023 - loans
stage 1 stage 2 stage 3 Total
Value of provisions for
January 1, 2023
(1 569) (316) (11 253) (13 138)
Provisions due to change in balance (1 713) (56) (6 401) (8 170)
Provisions due to changes in credit
risk
943 (11) (2 817) (1 885)
Value of provisions as of December
31, 2023
(2 339) (383) (20 471) (23 193)
Collaterals of financial assets
PragmaGO Group S.A. used the following collateral for financing receivables in 2024:
● Mortgages securing receivables from factoring, reverse factoring and loans,
● Factoring receivables insurance provided by the specialized insurance company Alianz (formerly: Euler
Hermes) and Kuke,
● Bank guarantee for factoring and reverse factoring receivables provided by Bank Gospodarstwa
Krajowego.
For collateral from mortgages, the Company assumes a potential recovery from the collateral of 66% of the
value of the property less prior mortgage entries. Factoring receivables insurance covers 80-90% of the
nominal value of the covered receivables, with the advance financing of such receivables under factoring
at 80-85% (the remainder is settled with the customer upon repayment by the payer), so the insurance
value is higher than or equal to the financing level. The BGK guarantee covers 80% of the nominal value of
receivables financed under factoring (at 80-85% financing level) and 80% of receivables financed under
reverse factoring.
The value of the portfolio that the company excluded from the allowance for expected losses due to its
provisions as of December 31, 2024 was:
Collaterals 31.12.2024 31.12.2023
Mortgages
17 944
12 007
Insurance
96 739
75 953
Guarantees
2 253
7 531
The value of receivables covered by provisions in the amount of PLN 37,708 thousand as of December 31,
2024 (PLN 14,818 thousand as of December 31, 2023) is still subject to collection efforts.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
60
9. Receivables
9.1 - Accounts
receivable
31.12.2024 31.12.2023
Specification Gross Value
Revaluation
provisions
Carrying
value
Gross Value
Revaluation
provisions
Carrying
value
Trade receivables 1 257 (127) 1 130 2 150 (71) 2 079
Other receivables
and current assets
1 291 (23) 1 268 1 054 (23) 1 031
TOTAL:
2 548
(150)
2 398
3 204
(94)
3 110
9.2 - Provisions for receivables - changes in the
period
Balance as of Balance as of
31.12.2024 31.12.2023
Balance at beginning of period
(94)
(23)
Recognition
(56)
(71)
Reversal
-
-
Utilization
-
-
TOTAL:
(150)
(94)
10. Cash
10 - Cash
Balance as of
Balance as of
31.12.2024
31.12.2023
Cash on hand 2 7
Cash in bank accounts, including: 9 613 9 435
Split payment - restricted funds 2 864 2 167
TOTAL:
9 615
9 442
11. Prepayments and accruals
11 - Prepayments and accruals and prepayments
Balance as of
Balance as of
31.12.2024
31.12.2023
(restated data)*
Insurance 411 284
Prospectus costs 156 201
Licenses (with a useful life of up to 12 months) 245 391
Other prepayments and accruals 527 405
TOTAL:
1 339
1 281
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
61
12. Share capital
12.1 - Share capital of the Parent Company
Number of shares
as of
Number of shares
as of
31.12.2024
(in thousands)
31.12.2023
(in thousands)
A series shares
703
703
B series shares
1 200
1 200
C series shares
663
663
D series shares
186
186
E series shares
1 658
1 658
F series shares
155
155
G series shares
35
35
H series shares
1 334
1 334
Series I shares
512
512
J series shares
445
445
TOTAL:
6 891
6 891
Share capital
As of December 31, 2024, the Parent Company's share capital amounted to PLN 6,891 thousand and was
divided into 6,891 thousand shares. The shareholder structure, share of capital and share of votes did not
change during 2023 and 2024.
The share capital as of December 31, 2023 and 2022 is fully paid up. 703,324 shares are preferred voting (2
votes per share).
Increase capital
The increase in the other reserves item in the amount of PLN 18,434 thousand compared to December 31,
2023 is due to a capital increase related to the issuance of shares:
● K series in the amount of 1,180,129 units, which as of December 31, 2024 was not registered with
the National Court Register.
The registration, and thus the increase in share capital, took place after the balance sheet date on January
9, 2025.
Treasury shares
The entity holds 27,440 treasury shares worth PLN 468 thousand, which were acquired for redemption.
Equity management
The Group defines its capital as equity from the statement of financial position.
The main objective of the Group's capital management is to ensure the Group's ability to continue as a going
concern and maintain safe capital ratios that optimally support the Group's operations and enhance
shareholder value. The Parent Company complies with the requirements of the Commercial Companies
Code regarding the amount and nature of equity capital. The Parent Company manages its capital structure
and makes changes to it as a result of changes in economic conditions and as the Group grows. In order to
maintain or adjust the capital structure, the Company may return capital to shareholders or issue new
shares. The current capital management policy is to accumulate profits and not pay dividends.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
62
The Group takes measures to maintain an appropriate balance between equity and external financing. In
particular, it seeks to optimize its capital structure in a way that enables it to implement its growth strategy,
while adhering to the financial covenants required by external financing agreements set at a net debt-to-
equity ratio below 400%. The Group defines net debt as: long-term and short-term borrowings, bonds and
leases, less cash and short-term deposits.
The Group's net debt ratio was as follows:
12.2 - Net debt ratio
31.12.2024
31.12.2023
Cash and cash equivalents
9 615
9 442
Liabilities from loans and borrowings (76 661) (43 557)
Bonds liabilities
(316 488)
(186 194)
Lease liabilities
(3 174)
(2 737)
Net debt (386 708) (223 046)
Equity
143 597
112 919
Net debt to equity ratio 269% 198%
Maximum level of net debt 400% 400%
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
63
12.3 - Largest shareholders
of the Parent Company as
of December 31, 2024 and
December 31, 2023
Number of shares
(in thousands)
Number of votes
(in thousands)
Nominal value of
shares (PLN)
Value of shares held
(in thousands)
Share in the share
capital
Share of votes in
the total number
Polish Enterprise Funds SCA
6 373
7 076
1,00
6 373
92,48%
93,18%
NPL NOVA S.A.
447
447
1,00
447
6,49%
5,89%
Others
71
71
1,00
71
1,03%
0,93%
TOTAL:
6 891
7 594
-
6 891
100,00%
100,00%
13. Liabilities from loans and borrowings
13.1 - Liabilities on account of loans and borrowings at the end of the reporting
period
Balance as of
31.12.2024
Balance as of
31.12.2023
Long-term bank loans, including:
-
5 353
Capital
-
5 353
Interest
-
-
Long-term loans, including:
11 060
12 000
Capital
11 060
12 000
Interest
-
-
TOTAL LOANS AND LONG-TERM BORROWINGS:
11 060
17 353
Short-term bank loans, including: 39 338 22 756
Capital 39 304 22 640
Interest 34 116
Short-term loans included: 26 263 3 448
Capital 25 784 3 080
Interest 479 368
TOTAL LOANS AND SHORT-TERM BORROWINGS:
65 601
26 204
TOTAL:
76 661
43 557
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
64
13.2 - Liabilities on account of loans and borrowings at the end of the period
Loans and
advances at the
end of the period -
as of 31.12.2024
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
Multi-
product/multi-
target
line/contract
2 000 (4) (4) -
PLN/
EUR
Interest rate per
annum at an
interest rate equal
to the reference
rate+ margin
Credit in the
form of a
multi-
purpose
credit limit,
final
repayment
date
30.04.2026
A blank promissory note with a
promissory note declaration, a
financial pledge on funds
accumulated in all of the Borrower's
accounts held with the bank, a
statement of submission to
execution under Article 777 § 1(5) of
the CCP
Revolving credit 29 900 29 546 29 546 - PLN
Interest rate per
annum at variable
prime rate +
margin
13.11.2025
Financial pledge on rights to funds
from all PLN bank accounts at the
bank, excluding the VAT account,
statement of submission to
execution under Article 777 § 1 item 5
of the CCP
Overdraft facility 40 000 1 100 1 100 - PLN
Interest rate per
annum at variable
base rate+ margin
02.08.2025
Blank promissory note with a
promissory note declaration issued
by the Borrower, power of attorney to
dispose of funds in bank accounts
belonging to the Borrower,
maintained at the Bank, registered
pledge on a separate set of current
and future receivables
Credit*. 5 341 5 282 5 282 - EUR
Interest rate per
annum at interest
rate equal to the
25.05.2025
registered pledge on receivables
under factoring agreements, blank
promissory note with a promissory
note declaration, submission of a
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
65
Loans and
advances at the
end of the period -
as of 31.12.2024
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
reference rate +
margin
statement of voluntary submission to
execution
Loan 12 000 12 294 12 294 - PLN
variable interest
rate according to
the prime rate
WIBOR 3M +
margin
30.06.2025
Blank promissory note with a
promissory note declaration
Loan 2 500 2 577 2 577 - PLN
variable interest
rate according to
the prime rate
WIBOR 3M +
margin
31.12.2025
Blank promissory note with a
promissory note declaration
Loan 2 500 2 521 2 521 - PLN fixed interest rate 30.06.2025
Blank promissory note with a
promissory note declaration
Loan 180 180 180 - PLN fixed interest rate 30.06.2025
Blank promissory note with a
promissory note declaration
Loan 200 200 200 - PLN fixed interest rate 26.11.2025
Blank promissory note with a
promissory note declaration
Loan 300 300 300 - PLN fixed interest rate 26.11.2025
Blank promissory note with a
promissory note declaration
Loan 550 550 - 550 PLN
variable interest
rate WIBOR 3M +
margin
indefinitely pledge of factoring portfolio and cash
Loan 1 300 1 327 1 327 - PLN fixed interest rate 29.09.2025 -
Loan
235
243
243
-
PLN
fixed interest rate
23.02.2025
-
Credit card 10 2 1 - PLN fixed interest rate - -
Loan
344
346
346
-
RON
fixed interest rate
17.12.2025
-
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
66
Loans and
advances at the
end of the period -
as of 31.12.2024
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
Loan
189
190
190
-
RON
fixed interest rate
09.02.2025
-
Loan 215 216 216 - RON fixed interest rate 09.02.2025 -
Loan
258
260
260
-
RON
fixed interest rate
10.06.2025
-
Loan
1 282
1 292
1 292
-
EUR
fixed interest rate
28.02.2025
promissory note
Loan
427
431
431
-
EUR
fixed interest rate
28.02.2025
promissory note
Loan 155 156 156 - RON fixed interest rate 19.05.2025 -
Loan
214
215
215
-
EUR
fixed interest rate
03.12.2025
-
Loan 85 86 86 - EUR fixed interest rate 11.12.2025 -
Loan
687
694
694
-
RON
fixed interest rate
20.12.2025
promissory note
Loan 214 215 215 - EUR fixed interest rate 15.03.2025 -
Loan
171
172
172
-
EUR
fixed interest rate
20.03.2025
-
Loan 431 431 431 - EUR fixed interest rate 14.03.2025 -
Loan
107
108
108
-
EUR
fixed interest rate
25.06.2025
-
Loan 855 862 862 - EUR fixed interest rate 10.07.2025 promissory note
Loan
427
431
431
-
EUR
fixed interest rate
15.07.2025
-
Loan
85
86
86
-
EUR
fixed interest rate
04.07.2025
-
Loan
427
431
431
-
EUR
fixed interest rate
19.09.2025
-
Loan 17 089 10 510 - 10 510 EUR
Variable interest
rate at ESTR +
margin
indefinitely
Mortgage on receivables, mortgage
on bank accounts, shareholder
guarantees
Overdraft facility 3 436 3 411 3 411 - RON
Variable interest
rate according to
ROBOR 3M +
margin
07.03.2025
Mortgage on receivables, mortgage
on bank account, surety of minority
shareholders
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
67
* The loan amount includes the value of the loan received in EUR. As of 31.12.2024, the balance of the used loan in foreign currency is EUR 1,250 thousand. After conversion into PLN according to the
exchange rate as of 31.12.2024, the balance amounted to PLN 5,341 thousand. The balance of the loan according to PLN takes into account the value of the loan commission and accrued interest.
Loans and
advances at the
end of the period -
as of 31.12.2024
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
TOTAL:
124 114
76 661
65 601
11 060
-
-
-
-
Loans and
advances at the
end of the period
- as of
31.12.2023
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
Multi-
product/multi-
target
line/contract
2 000 - - -
PLN/
EUR
Interest rate per
annum at an
interest rate equal
to the reference
rate+ margin
Credit in the
form of a
multi-
purpose
credit limit,
final
repayment
date
30.04.2026
Blank promissory note with a
promissory note declaration, joint
contractual mortgage up to the
amount of PLN 3 million, assignment
of cash receivables under the
insurance contract for the object of
collateral, financial pledge on cash
accumulated on all the Borrower's
accounts held with the bank
Overdraft facility 5 900 30 30 - PLN
Interest rate on
the Loan at a
floating interest
rate per annum
equal to the
reference rate +
margin.
05.06.2024
A blank promissory note with a
promissory note declaration, a
financial pledge on funds
accumulated in all of the Borrower's
accounts held with the bank, a
statement of submission to
execution under Article 777 § 1(5) of
the CCP
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
68
Loans and
advances at the
end of the period
- as of
31.12.2023
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
Overdraft facility 15 000 12 000 12 000 - PLN
Interest rate per
annum at variable
prime rate +
margin
15.11.2024
Financial pledge on rights to funds
from all PLN bank accounts at the
bank, excluding the VAT account,
statement of submission to
execution under Article 777 § 1 item 5
of the CCP
Revolving credit 15 000 (97) (97) - PLN
Interest rate per
annum at variable
base rate+ margin
02.08.2024
Blank promissory note with a
promissory note declaration from
Borrower, power of attorney to
dispose of funds on bank accounts
belonging to the Borrower, held at
the Bank, registered pledge on a
separate set of current and future
receivables
Credit*. 16 305 16 176 10 823 5 353 EUR
Interest rate per
annum at an
interest rate equal
to the reference
rate + margin
25.05.2025
registered pledge on receivables
under factoring agreements, blank
promissory note with a promissory
note declaration, submission of a
statement of voluntary submission to
execution
Loan 12 000 12 292 292 12 000 PLN
variable interest
rate according to
the prime rate
WIBOR 3M +
margin
30.06.2025
Blank promissory note with a
promissory note declaration
Loan 2 500 2 576 2 576 - PLN
variable interest
rate according to
the prime rate
31.12.2024
Blank promissory note with a
promissory note declaration
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
69
* The loan amount includes the value of the loan received in EUR. As of 31.12.2023, the balance of the used loan in foreign currency is EUR 3,750 thousand. After conversion into PLN according to the
exchange rate as of 29.12.2023, the balance amounted to PLN 16,305 thousand. The balance of the loan according to PLN includes the value of the loan commission and interest.
Loans and
advances at the
end of the period
- as of
31.12.2023
Value of the loan
PLN
balance
Due up to 1
year
Required
more than 1
year
Currency
Interest rate
Repayment
date
Security
WIBOR 3M +
margin
Loan 580 580 580 - PLN fixed interest rate 26.10.2024
Blank promissory note with a
promissory note declaration
TOTAL:
69 285
43 557
26 204
17 353
-
-
-
-
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
70
Impact of IBOR reform
In the second half of 2022, the National Working Group on Reference Rate Reform (NGR) was
established to prepare a "roadmap" and timetable for the smooth and safe implementation of the
various elements of the process leading to the replacement of the WIBOR interest rate reference index
with a new reference index (hereinafter WIBOR reform). In October 2023, the NGR Steering Committee
announced the deadline for completing the transition from WIBOR to the new reference index at the
end of 2027, and on December 10, 2024, it designated the WIRF- (POLSTR) index as the successor to
WIBOR.
The Group has financial liabilities bearing interest at a floating rate based on WIBOR 3M quotes. The
key risk for the Group in connection with the IBOR reform is the risk associated with the uncertainty
of how the contracts will transition to alternative reference rates, which could lead to an adverse
change in the risk profile of these contracts. To the best of the Group's knowledge, the Group does
not expect a material impact of the IBOR reform on its financial obligations, but it cannot clearly
determine the impact of the reform, as not all systemic and regulatory Reversals
and regulatory Reversals related to the reform have been worked out. The Group is taking steps to
ensure that it is prepared to change the reference rates in the financial instruments it has entered
into in the event that the WIBOR rate is no longer published. In particular, the Group continuously
monitors regulatory changes in reference rates to ensure transition to an alternative reference rate
when it replaces the WIBOR reference rate, and includes appropriate clauses in signed financial
contracts.
Covenants
The Group has financing agreements that contain both financial and non-financial covenants, the
breach of which, if any, could result in an earlier repayment of financial obligations than shown within
Note 20. Financial covenants include, among others, maintaining the net financial debt to equity ratio
at no more than 400%, maintaining the bank account receipts specified in the agreement. Non-
financial indicators relate in particular to compliance with legal and regulatory requirements. There
were no violations of financial and non-financial covenants on loans and advances as of the balance
sheet date. Contractual covenants are subject to periodic review and monitored by Management to
ensure compliance with financing agreements.
13.4 - Value of financial assets covered
by collateral
Balance as of
Balance as of
31.12.2024
31.12.2023
Registered pledge on factoring
portfolio
56 942 26 437
Registered pledge on loan portfolio
48 000
18 000
Pledge on cash of bank accounts
4 981
4 764
13.3 - Credits and loans - additional
information
Balance as of
Balance as of
31.12.2024
31.12.2023
Additional credit limit available to the
Parent Company under concluded
agreements
47 972 25 967
Cash 9 615 9 442
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
71
14. Bonds liabilities
14.1 - Bonds liabilities Balance as of 31.12.2024
Bonds liabilities Nominal value
Value at amortized
cost
Includes:
Interest on
bonds
Redemption date
TOTAL:
320 100
316 488
3 327
-
A1 Series
16 000
16 217
212
12.05.2025
A2 series
17 000
17 313
413
01.10.2025
T series
16 000
15 895
38
23.12.2025
U series
10 000
9 860
51
13.06.2026
B1 series
12 779
12 748
224
28.10.2026
V series
12 000
11 918
98
05.03.2026
C1 Series
20 000
19 853
214
27.11.2026
C2 series
25 000
24 990
505
25.01.2027
C3 series
25 000
24 495
75
21.03.2027
EUR1* series
14 956
14 795
254
16.04.2027
C4 series
30 000
29 288
45
28.06.2027
C5 series
35 000
34 742
616
30.07.2027
C6 series
30 000
29 368
222
02.09.2027
D1EUR** series
21 365
20 991
244
06.02.2028
D2 series
35 000
34 015
116
18.12.2028
* The nominal value of EUR1 series bonds in EUR is EUR 3,500 thousand. After conversion to PLN at the exchange rate as of 31.12.2024,
the nominal value is PLN 14,956 thousand.
**The nominal value of series D1EUR bonds in EUR is EUR 5,000 thousand. After conversion to PLN at the exchange rate as of
31.12.2024, the nominal value is PLN 21,365 thousand.
Non-current bond liabilities Nominal value
Value at amortized
cost without interest
Interest on
bonds
Redemption date
TOTAL:
271 100
264 399
-
-
U series 10 000 9 809 - 13.06.2026
B1 series 12 779 12 524 - 28.10.2026
V series 12 000 11 820 - 05.03.2026
C1 Series 20 000 19 639 - 27.11.2026
C2 series 25 000 24 485 - 25.01.2027
C3 series 25 000 24 420 - 21.03.2027
EUR1 series 14 956 14 541 - 16.04.2027
C4 series 30 000 29 243 - 28.06.2027
C5 series 35 000 34 126 - 30.07.2027
C6 series 30 000 29 146 - 02.09.2027
D1EUR series 21 365 20 747 - 06.02.2028
D2 series 35 000 33 899 - 18.12.2028
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
72
Short-term bond liabilities Nominal value
Value at amortized
cost without interest
Interest on
bonds
Redemption date
TOTAL:
49 000
48 762
3 327
-
A1 Series 16 000 16 005 212 12.05.2025
A2 series 17 000 16 900 413 01.10.2025
T series 16 000 15 857 38 23.12.2025
U series
-
-
51
-
B1 series - - 224 -
V series - - 98 -
C1 Series
-
-
214
-
C2 series - - 505 -
C3 series - - 75 -
EUR1 series - - 254 -
C4 series - - 45 -
C5 series - - 616 -
C6 series
-
-
222
-
D1EUR series - - 244 -
D2 series - - 116 -
Bond redemptions
In the period from January 1 to December 31, 2024, the Parent Company's issued series of bonds were
timely redeemed:
● S with a nominal value of PLN 7,000 thousand according to the redemption date specified in the terms of
issue on June 18, 2024.
● R with a nominal value of PLN 12,000 thousand according to the redemption date specified in the terms
of issue on November 10, 2024.
The Parent Company's bonds of the series were also redeemed early:
● B2 with a maturity date of January 27, 2025 on July 19, 2024 at a nominal value of PLN 20,000 thousand,
● B3 with a maturity date of April 25, 2025 on August 7, 2024 at a nominal value of PLN 25,000 thousand,
● B4 with a maturity expiring on September 27, 2025 on September 23, 2024 at a nominal value of PLN
20,000 thousand.
In addition, Monevia Sp. z o.o., a subsidiary of Monevia Sp. z o.o., early redeemed series EH bonds with a
nominal value of PLN 6,000 thousand as of February 27, 2024.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
73
Bond issuances
During the period from January 1 to December 31, 2024, the Group carried out the following series bond
issuances:
● Series C2 was issued on January 25, 2024 at a nominal value of PLN 25,000 thousand with a variable
interest rate based on WIBOR 3M + 5.15 p.p. and a maturity date of January 25, 2027,
● Series C3 was issued on March 6, 2024 at a nominal value of PLN 25,000 thousand, with a variable interest
rate based on WIBOR 3M + 5.00 p.p. and a maturity date of March 21, 2027,
● The EUR1 series was issued on April 16, 2024 at a nominal value of EUR 3,500 thousand with a floating
interest rate based on EURIBOR 3M + 5.00 p.p. and a maturity date of April 16, 2027.
● Series C4 was issued on June 11, 2024 at a nominal value of PLN 30,000 thousand with a variable interest
rate based on WIBOR 3M + 4.80 p.p. and a maturity date of June 28, 2027,
● Series C5 was issued on July 11, 2024 at a nominal value of 35,000 thousand zlotys with a variable interest
rate based on WIBOR 3M + 4.50 p.p. and a maturity date of July 30, 2027,
● Series C6 was issued on August 14, 2024 at a nominal value of PLN 30,000 thousand with a variable
interest rate based on WIBOR 3M + 3.50 p.p. and a maturity date of September 2, 2027,
● Series D1EUR was issued on October 21, 2024 at a nominal value of EUR 5,000 thousand with a floating
interest rate based on EURIBOR 3M + 4.50 p.p. and a maturity date of February 6, 2028,
● Series D2 was issued on December 3, 2024 at a nominal value of 35,000 thousand zlotys with a variable
interest rate based on WIBOR 3M + 3.50 p.p. and a maturity date of December 18, 2028.
New Bond Issuance Program
On June 7, 2024, the Board of Directors of PragmaGO S.A. adopted a resolution to establish the Fifth Bond
Issuance Program with an aggregate nominal value of no more than PLN 500 million under the
prospectus.
Issuances and redemptions after the balance sheet date
Subsequent to the end of the reporting period, the Parent Company issued the following bonds:
● Series D3 was issued on April 4, 2025 at a nominal value of PLN 50,000 thousand with a variable
interest rate based on WIBOR 3M + margin and a maturity date of April 4, 2029.
There were no bond redemptions after the balance sheet date up to the date of approval of this report.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
74
14.2 - Bonds liabilities
Balance as of 31.12.2023
Bonds liabilities Nominal value
Value at amortized
cost
Includes:
Interest on
bonds
Redemption date
TOTAL:
187 779
186 194
1 913
-
R series
12 000
11 997
98
10.11.2024
S series
7 000
6 983
15
18.06.2024
A1 Series
16 000
16 184
210
12.05.2025
A2 series
17 000
16 805
-
01.10.2025
T series
16 000
15 793
38
23.12.2025
U series
10 000
9 772
52
13.06.2026
B1 series
12 779
12 597
216
28.10.2026
B2 Series
20 000
20 025
422
27.01.2025
B3 Series
25 000
24 985
520
25.04.2025
B4 series
20 000
19 576
30
27.09.2025
V series
12 000
11 799
98
05.03.2026
C1 Series
20 000
19 678
214
27.11.2026
Long-term bond liabilities Nominal value
Value at amortized
cost without interest
Interest on
bonds
Redemption date
TOTAL:
168 779
165 414
-
-
A1 Series
16 000
15 974
-
12.05.2025
A2 series
17 000
16 805
-
01.10.2025
T series
16 000
15 755
-
23.12.2025
U series
10 000
9 720
-
13.06.2026
B1 series
12 779
12 381
-
28.10.2026
B2 Series
20 000
19 603
-
27.01.2025
B3 Series
25 000
24 465
-
25.04.2025
B4 series
20 000
19 546
-
27.09.2025
V series
12 000
11 701
-
05.03.2026
C1 Series
20 000
19 464
-
27.11.2026
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
75
Short-term bond liabilities Nominal value
Value at amortized
cost without interest
Interest on
bonds
Redemption date
TOTAL:
19 000
18 867
1 913
-
R series 12 000 11 899 98 10.11.2024
S series 7 000 6 968 15 18.06.2024
A1 Series - - 210 -
A2 series
-
-
-
-
T series - - 38 -
U series - - 52 -
B1 series
-
-
216
-
B2 Series - - 422 -
B3 Series - - 520 -
B4 series - - 30 -
V series - - 98 -
C1 Series - - 214 -
14.3 - Collaterals of issued bonds on assets
Balance as of
Balance as of
31.12.2024
31.12.2023
Pledge of loan and factoring receivables
164 943
109 115
Pledge of cash in bank accounts
36
452
15. Lease liabilities
15.1 - Lease liabilities
Balance as of
Balance as of
31.12.2024
31.12.2023
Long-term
2 033
1 856
Short-term
1 141
881
Lease liabilities relate to passenger cars and a leased building that houses the Parent Company's
headquarters at 72 Brynowska Street in Katowice and the headquarters of its subsidiary Telecredit. The
buildings are used under a lease agreement, which meets the criteria for recognition as a lease under IFRS
16 "Leases."
14.2 - Future minimum lease
payments and interest under
finance leases
31.12.2024
31.12.2023
Charges Interest Charges Interest
Up to 1 year
1 141
166
881
162
One to five years
2 033
172
1 856
153
Over 5 years - - - -
TOTAL:
3 174
338
2 737
315
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
76
16. Trade and other payables
16.1 - Trade and other payables
Balance as of Balance as of
31.12.2024
31.12.2023*
(restated data)
Earn-out liabilities 1 914 -
Total long-term liabilities:
1 914
-
Trade payables 4 878 3 015
Current income tax liabilities 731 204
Liabilities for other taxes, duties and social security 2 412 1 100
Amounts to be reimbursed** 2 784 3 278
Financing liabilities 1 374 3 828
Provisions for liabilities 680 406
Provisions for unused leave 455 427
Provisions for bonuses of the Board of Directors 533 -
Accruals and other liabilities 1 295 165
Total SHORT-TERM LIABILITIES:
15 141
12 423
TOTAL:
17 055
12 423
*Financial data restated in accordance with Note 27, "Effect of Changes Made to Comparative Data in Consolidated Financial
Statements."
** Payments received from assignment against collateral, settled on an ongoing basis with original creditors.
Earn-out liabilities
As of the date of acquiring control of the subsidiary, the Group recognized a liability for the contingent
purchase price for the shares of Telecredit IFN SA, according to the agreement, the Parent Company will be
obligated to pay an additional purchase price in case the 2025 results reach the assumed level. As expected
by the Parent Company's Management Board, a liability of EUR 445 thousand corresponding to the
maximum level of additional consideration was recognized on the basis of the prepared budget. The liability
is scheduled for settlement in the second half of 2026.
17. Deferred income
17.1 - Deferred income
Balance as of Balance as of
31.12.2024
31.12.2023
Accounting for bad debt relief
2 967
2 094
Grant income
71
96
TOTAL:
3 038
2 190
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
77
18. Reconciliations of changes in liabilities and other items reported in the
statement of cash flows
18.1 - Reconciliations of changes in liabilities with
flows from financing activities
Bonds
Credits and
loans
Leasing TOTAL
As of 01.01.2024
186 194
43 557
2 737
232 488
Changes due to flows from financing activities
Proceeds from loans and borrowings
-
135 479
-
135 479
Repayment of loans and credits
-
(152 456)
-
(152 456)
Proceeds from bond issuance
216 895
-
-
216 895
Bond redemption outflows
(90 000)
-
-
(90 000)
Interest paid on bonds
(24 855)
-
-
(24 855)
Interest paid on loans, borrowings and leases
-
(3 910)
(262)
(4 172)
Foreign exchange differences realized
-
(1 028)
-
(1 028)
Lease buyouts and repayments
-
-
(965)
(965)
Total changes from cash flows from financing
activities
102 040
(21 915)
(1 227)
78 898
Changes due to valuation
(437)
869
-
432
Increases due to acquisition of control in
subsidiary
6 136 53 133 826 58 095
Accrued interest
26 133
3 550
262
29 945
Lease increases
-
-
453
453
Other changes (including accrued expenses)
(3 578)
(533)
123
(3 988)
As of 31.12.2024
316 488
76 661
3 174
396 323
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
78
18.2 - Reconciliations of changes in liabilities with
flows from financing activities
Bonds
Credits and
loans
Leasing TOTAL
As of 01.01.2023
101 239
38 231
2 882
142 352
Changes due to flows from financing activities
Proceeds from loans and borrowings - 121 785 - 121 785
Repayment of loans and credits - (115 254) - (115 254)
Proceeds from bond issuance
97 000
-
-
97 000
Bond redemption outflows (10 000) - - (10 000)
Interest paid on bonds (14 616) - (14 616)
Interest paid on loans, borrowings and leases
-
(3 117)
(150)
(3 267)
Foreign exchange differences realized - (362) - (362)
Lease buyouts and repayments - - (735) (735)
Total changes from cash flows from financing
activities
72 384
3 052
(885)
74 551
Changes due to valuation
(1 809)
(1 384)
-
(3 193)
Accrued interest
15 524
3 658
150
19 332
Lease increases
-
-
590
590
Other changes (including accrued expenses)
(1 144)
-
-
(1 144)
Balance as of 31.12.2023
186 194
43 557
2 737
232 488
18.3 - Adjustments for non-cash changes
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Result from bond valuation (437) (1 809)
Result of provisions for expected credit losses 24 98
TOTAL:
(413)
(1 711)
*Financial data restated in accordance with Note 27, "Effect of Changes Made to Comparative Data in Consolidated
Financial Statements."
18.4 - Change in balance due to factoring
receivables
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Change in factoring receivables
(72 072)
(26 267)
Value of financial assets - factoring - acquisition of
control of a subsidiary
61 -
Result of provisions for expected credit losses 2 429 (2 050)
Utilization of provisions for expected credit losses (54) -
Sale of receivables (derecognition of provisions) (8 121) -
TOTAL:
(16 472)
(28 317)
18.5 - Change in balance due to loans granted
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Change in loans
(90 036)
(69 674)
Result of provisions for expected credit losses
6
(10 055)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
79
18.5 - Change in balance due to loans granted
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Value of financial assets - loans - acquisition of
control of a subsidiary
855 -
Sale of receivables (derecognition of provisions)
(19 591)
-
TOTAL:
(102 389)
(79 729)
18.6 - Change in prepayments and accruals
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Change in prepayments and accruals (58) (300)
Change in deferred income
848
785
Change due to acquisition of control of a subsidiary
(804)
-
Change in prepayments and accruals related to
bonds
(3 885) (1 144)
TOTAL:
(3 899)
(659)
*Financial data restated in accordance with Note 27, "Effect of Changes Made to Comparative Data in Consolidated
Financial Statements."
19. Guarantees, warranties and contingent liabilities
19.1 - Guarantees and sureties received
Balance as of
Balance as of
31.12.2024 31.12.2023
From related parties
-
3 000
NPL NOVA S.A. loan repayment
guarantee
- 3 000
TOTAL:
-
3 000
19.2 - Guarantees and warranties granted
Balance as of Balance as of
31.12.2024 31.12.2023
For related parties
1 899
124
Loan repayment guarantee for Pragma
Faktor sp. z o.o.
121 124
Loan repayment guarantee for Telecredit
IFN SA
1 778 -
TOTAL:
1 899
124
Loan repayment guarantee - Pragma Faktor
The surety relates to liabilities under a loan granted to Pragma Faktor by a third party, based on which
Pragma Faktor's factoring portfolio was built, which is managed by PragmaGO S.A. for a fee. Due to the fact
that Pragma Faktor's portfolio is managed by PragmaGO S.A., including the management of the portfolio's
credit risk, the Group controls on an ongoing basis the risk of non-payment of the risk of the aforementioned
loan secured by the factoring portfolio. As of the balance sheet date and as of the date of signing of this
Financial Statement, the Group does not identify any risks of liabilities arising from the surety.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
80
Loan repayment guarantee - TELECREDIT
The surety relates to liabilities under a loan granted to TELECREDIT by a third party. The Group controls the
risk of non-payment of the risk of the aforementioned loan on an ongoing basis, and as of the balance sheet
date and as of the date of signing this Financial Statement, the Group does not identify any risks of liabilities
arising from the surety.
20. Financial instruments
20.1 - Financial instruments by category
Balance as of
Balance as of
31.12.2024
31.12.2023
Financial assets, including:
483 903
322 334
Loans and factoring measured at amortized cost 471 890 309 782
Own receivables valued in nominal terms 1 129 2 079
Other current assets measured at nominal value 1 269 1 035
Cash 9 615 9 442
Financial liabilities, including:
403 115
235 503
Liabilities measured at outstanding value (nominal
plus interest)
81 749 46 294
Liabilities measured at amortized cost 316 488 186 194
Trade payables measured in nominal terms 4 878 3 015
On the asset side, the Group has financial assets such as factoring receivables, loans receivable, trade
receivables, short-term deposits and cash. These assets are financed by financial instruments used by the
Group, such as corporate bonds, bank loans, borrowings and trade payables, among others. The main
purpose of these financial instruments is to raise funds for the Group's operations.
The main risks to which the Group is exposed are credit risk, market risk (interest rate risk, foreign exchange
risk) and liquidity risk, and their detailed descriptions and impact on the Group's operations are described in
the Management Report on Group Operations. The Board of Directors is responsible for establishing and
overseeing the Group's risk management, including identifying and analyzing the risks to which the Group
is exposed, setting appropriate limits and controls for them, as well as monitoring risks and the degree of
compliance with limits. Risk management policies and procedures are reviewed regularly to take into
account changes in market conditions and changes in the Group's business.
Credit risk
Credit risk is the risk of incurring a financial loss when a customer or the other party to a financial instrument
fails to meet its contractual obligations. The credit risk to which the Group is exposed is primarily related to
its financing in the form of factoring and loans, and to a lesser extent to trade receivables.
Credit risk also manifests itself in the form of impairment of factoring and loan receivables as a result of
deterioration of the debtor's credit rating, and has been accounted for through the recognition of provisions
for expected credit losses estimated in accordance with the methodology described in Section 8 of
Significant Accounting Policies in the annual Consolidated Financial Statements.
For both factoring and lending services, the Company uses a number of solutions and tools to minimize the
credit risk associated with its financing.
In factoring, agreements with recourse are used, which allows the Group to pursue claims against the factor
in the event of non-payment by the factoring debtor. In addition, factoring agreements use collateral in the
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
81
form of insurance contracts, BGK guarantees and mortgage collateral, which provides the Group with
independent sources of repayment of factoring receivables.
Loans are a financial instrument with a higher credit risk than factoring, they are granted for longer periods
than factoring and most of them are not secured in kind, but thanks to the Issuer's deep integration with
partners who offer the Issuer's loans in their ecosystems, the Company obtains unique data on potential
customers so it can actively manage the risk in question. Among other things, the Issuer gets access to a
potential customer's two-year (continuously updated) financial history, so it can select the appropriate level
of debt limit. Loan repayments can be made automatically from a given customer's turnover, without the
customer's intervention.
An element of credit risk is concentration risk, which is managed by appropriate dispersion of customers
and debtors, as well as by using in-kind collateral for its receivables. Data on portfolio structure,
concentration, and insurance coverage can be found in the Group's Management Report and below.
Concentration risk is minimized by diversifying the portfolio and is assessed by both customer and debtor
(in the case of factoring). As of the date of these consolidated annual financial statements, the Group does
not have any individual exposures whose default could materially reduce the Group's liquidity.
Credit risk is minimized by verifying customers before granting financing on the basis of creditworthiness
assessment using advanced economic and statistical tools and adjusting the offered limit accordingly.
Factoring and loan receivables are regularly monitored for timely repayment.
The materiality of the above risk is assessed by the Parent Company's Management Board as high, and the
probability of materialization of the above risk is assessed as medium.
Credit risk is managed through the Utilization the following tools:
● Risk management policies by factoring products, lending products, and traditional and digital sales
channels, which includes guidelines for calculating creditworthiness, credit competence, rules for granting
factoring and lending limits, collateral, risk concentration rules, among others;
● Credit classification, based on external and internal risk classification systems,
● Insurance of receivables purchased under insured factoring and reverse factoring with insurance
companies,
● Utilization other contractual and in-kind collateral.
Interest rate risk
The Group is exposed to the risk of changes in interest rates, as it finances a significant part of its operations
with financial instruments (bonds and bank loans), the cost of which is determined by the amount of variable
market interest rates - mainly WIBOR 3M.
Assets with variable interest rates make up only a trace portion of the Group's financing portfolio. At the
same time, when providing factoring and loan financing, the Group has a policy that gives the possibility to
change the price terms of the contract depending on changes in reference rates.
Exposure to interest rate risk and sensitivity analysis for financial assets and liabilities are presented in Note
20.3. The materiality of interest rate risk is assessed by the Parent Company's Management Board as
medium. The probability of materialization of the above risk is assessed by the Management Board as
medium.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
82
Currency risk
The Group seeks to minimize foreign exchange risk by matching liability exposures to the value of
receivables denominated in the same foreign currency. The Group currently has significant foreign currency
exposures in the euro and the Romanian leu (Note 20.4).
Liquidity risk
Due to the financing of operations with external capital to a significant extent, the Group is exposed to a
medium degree to liquidity risk, understood as the risk of encountering difficulties in raising funds to meet
obligations under financial instruments. In addition to own funds, sources of financing include funds raised
through bond issuances, bank loans, borrowings and leasing agreements. Despite the increase in the value
of the ratio of net interest debt to equity in the period of 2024 for the Group (269% - 31.12.2024, 182% -
31.12.2023).
As of the date of publication of these financial statements, the Group has the ability to pay its obligations
on time. This is due to the following factors mitigating this risk:
● the average turnover cycle of factoring receivables is short and was 36 days (as of December 31, 2024,
as of December 31, 2023 it was 33 days). This allows for quick conversion of financial assets into cash at fair
value and immediate settlement of financial liabilities,
● The risk of financial liabilities coming to immediate maturity or having to cash out faster than indicated
in Note 20.2 is of limited materiality, as the Group has a diversified financing structure. The Group finances
its operations through issued corporate bonds with maturities of 2 to 4 years and through loans and
borrowings with a financing period of 1 to 2 years.
On the asset side, the main source of liquidity risk is the risk of non-payment of loan and factoring
receivables. Market liquidity risk is a type of risk, the symptom of which is the total or partial inability to
liquidate the assets held or the possibility of selling these assets only at an unfavourable price. Liquidity risk
is mitigated by high asset turnover.
If the Group's financial situation deteriorates, resulting in insufficient funds to repay the debt on time or in
violation of specific contractual provisions or the terms and conditions of the bond issue, bondholders or
financial institutions may place the debt to immediate maturity. Excessive indebtedness or the market
situation may further limit the availability of additional external financing needed for the Issuer's growth and
the achievement of its strategic goals. The Group identifies specific risks for each type of financing it uses
in conducting its core operations.
The described risks are minimized through active management of the Group's receivables and liabilities, so
that each time, in advance, the Group has available cash in an amount that allows it to settle its maturing
obligations. In addition, the bonds issued by the Parent Company to date have original maturities of 2 to 4
years, and the maturities of individual bond series vary. As a result, in the event that it is not possible to
issue another series of bonds, the Parent Company is able to plan in advance to replace some of its existing
sources of financing with new ones (bank financing or off-balance sheet financing) or, if necessary, to plan
a temporary reduction of its operations (reduce its working debt portfolio) and adjust its scale to the volume
of available financing.
The Group's objective of liquidity risk management is to shape the structure of its balance sheet and off-
balance sheet liabilities in such a way as to ensure constant liquidity while taking into account the
optimization of Financial expenses. The Group evaluates the level of liquidity based on:
● Statement of the mismatch between the maturity of assets and liabilities (liquidity gap analysis),
● flow of funds analysis,
● Ratio analysis based on liquidity ratios and asset turnover ratios.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
83
The Group mitigates liquidity risk through ongoing monitoring of accounts receivable and accounts payable,
as well as control of cash balances and credit limits available for use, which allows it to respond in a timely
manner should unforeseen circumstances arise. The Group does not expect that the expected cash flows
included in the maturity analysis may occur significantly earlier or in significantly different amounts.
20.2 - Financial
instruments - liquidity
risk at date
31.12.2024 31.12.2023
Specification
Due up to 1
year
Due in one
year
up to 5
years
Required
above
5 years
Required
up to 1 year
Due in one
year
up to 5
years
Required
above
5 years
Fixed interest rate:
456 197
28 755
-
310 016
18 681
-
Receivables
444 802
26 841
-
290 456
18 681
-
Loans granted 210 852 26 311 - 129 137 17 592 -
Factoring
233 950
530
-
161 319
1 089
-
Liabilities
11 395
1 914
-
19 560
-
-
Credits and loans
received
11 - - 580 - -
Earn-out liability
-
1 914
-
-
-
-
Bonds
-
-
-
18 980
-
-
Variable interest rate:
107 683
277 492
-
28 950
184 623
-
Receivables
247
-
-
645
-
-
Loans granted
247
-
-
645
-
-
Liabilities
107 436
277 492
-
28 305
184 623
-
Credits and loans
received
54 206 11 060 - 25 624 17 353 -
Bonds
52 089
264 399
-
1 800
165 414
-
Lease liabilities
1 141
2 033
-
881
1 856
-
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
84
20.3 - Financial instruments - interest rate risk
The Group is exposed to interest rate risk, as it borrows funds bearing interest at variable rates - mainly
WIBOR 3M, ROBOR 3M and €STR. Similar is the case with some of the Group's loans.
In the factoring portfolio, on the other hand, the Group's remuneration is set at fixed rates. The Group,
managing the risk of changes in interest rates, has guaranteed itself in its contracts with customers the
possibility of increasing the level of remuneration in a situation where interest rates increase in relation to
the date of a given contract and a new level of remuneration is set.
The sensitivity analysis below shows the impact of changes in the interest rate by 50 basis points up or
down on an annual basis on the Group's financial results. The calculation presented below was applied to
financial instruments with variable interest rates.
Financial instruments by
category as of
December 31, 2024
Principal receivables
(PLN)
Impact on the Group's
financial result at a
variable rate of %
By 0.5% in plus (PLN)
Impact on the Group's
financial result at a
variable rate of %
by 0.5% in minus (PLN)
Loans granted
247
1
(1)
Credits and loans
received
(65 266) (326) 326
Bonds issued (316 488) (1 582) 1 582
Lease liabilities (3 174) (16) 16
TOTAL:
(384 681)
(1 923)
1 923
Financial instruments by
category as of
December 31, 2023
Principal receivables
(PLN)
Impact on the Group's
financial result at a
variable rate of %
By 0.5% in plus (PLN)
Impact on the Group's
financial result at a
variable rate of %
by 0.5% in minus (PLN)
Loans granted 620 3 (3)
Credits and loans
received
(42 835) (214) 214
Bonds issued (168 779) (844) 844
Lease liabilities
(2 737)
(14)
14
TOTAL:
(213 731)
(1 069)
1 069
20.4 - Financial instruments - currency risk
The Group is exposed to foreign currency risk due to having factoring receivables and financial liabilities in
foreign currency.
As a hedge against foreign currency risk, the Group finances receivables in foreign currency with a loan in
the same currency, and has a reserved option in most contracts to charge the resulting exchange rate
differences to counterparties. The Group also has a dual-currency financing limit available.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
85
Financial instruments
by category as of
December 31, 2024
Principal
receivables
(EUR)
Conversion of the
value in EUR to PLN
according to the
exchange rate on
31.12.2024
The impact on the
Group's financial
result when the
currency
exchange rate
changes by PLN
0.10 in plus
The impact on the
Group's financial
result when the
currency exchange
rate changes by PLN
0.10 in minus
Loans granted
4
17
-
-
Factoring provided
6 157
26 348
616
(616)
Credits and loans
received
(4 803) (20 552) (480) 480
Bonds
(8 500)
(36 372)
(850)
850
Lease liabilities
(89)
(382)
(9)
8
TOTAL:
(7 231)
(30 941)
(723)
722
Financial instruments
by category as of
December 31, 2024
Principal
receivables
(RON)
Conversion of the
value in RON to PLN
according to the
exchange rate on
31.12.2024
The impact on the
Group's financial
result when the
currency
exchange rate
changes by PLN
0.10 in plus
The impact on the
Group's financial
result when the
currency exchange
rate changes by PLN
0.10 in minus
Loans granted
913
785
91
(91)
Factoring provided
49 916
42 873
4 992
(4 992)
Credits and loans
received
(6 139) (5 273) (614) 614
TOTAL:
44 690
38 385
4 469
(4 469)
Financial instruments
by category as of
December 31, 2023
Principal
receivables
(EUR)
Conversion of the
value in EUR to
PLN according to
the exchange rate
on 31.12.2023
Impact on the
Group's financial
result when the
currency
exchange rate
changes
by PLN 0.10 in plus
Effect on the
Group's financial
result with a
change in the
currency
exchange rate
by PLN 0.10 in
minus
Loans granted
18
78
2
(2)
Factoring provided
7 499
32 606
750
(750)
Credits and loans
received
(3 750) (16 305) (375) 375
TOTAL:
3 767
16 379
377
(377)
20.5 - Liquidity risk management
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
86
Responsibility for liquidity risk management rests with the Parent Company's Management Board, which
has implemented an appropriate liquidity management system for the Group. The system is used to manage
short, medium and long-term financing and liquidity management requirements.
The Group's liquidity risk management takes the form of maintaining adequate levels of reserve capital,
reserve credit lines, continuous monitoring of projected and actual cash flows, and matching maturity
profiles of financial assets and liabilities.
This note below provides information on the maturity dates of the Group's main assets (receivables portfolio)
and its liabilities. The Issuer, as part of its liquidity risk management, analyzes the liquidity gap, plans in
advance the repayment of financial liabilities (sources, alternative scenarios), and constantly works to
diversify its funding sources. Due to the nature of the Group's business (the vast majority of assets are
current in nature and rotate in cash about 5 times a year, the Parent Company finances itself mainly with
long-term debt) there is constantly an excess of assets maturing in the current period over liabilities
maturing therein. Regardless, monetizing assets to repay financial liabilities is not the Group's baseline, but
an alternative repayment scenario. The baseline option is to use cash on hand, available lines of credit (the
level of available funds the Group presented in Note 13.3), as well as new bond issuances (the level of
financial debt on this account is described in Item 14). Taking into account the aforementioned
circumstances, the Group does not see any significant threats to financial liquidity.
Exposures to credit risk related to balance sheet
assets 31.12.2024
474 288
Factoring 234 480
Loans 237 410
Own receivables valued in nominal terms 1 129
Other current assets measured in nominal terms 1 269
Fair value
The carrying value of financial assets represents the Group's maximum exposure to credit risk. Due to the
short-term nature of the assets, their fair value approximates their book value.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
87
Exposures - gross value
31.12.2024
Undue
Overdue
Revaluation
provisions
Up to 30 days
31 - 90 days
91 - 180 days
181-365 days
over 365 days
Total
Factoring
192 074
17 210
3 830
4 905
10 347
24 514
252 880
(18 400)
Loans
229 977
3 027
3 721
5 688
8 875
2 932
254 220
(16 810)
Own receivables valued in
nominal terms
659 450 2 - - 145 1 256
(127)
Other current assets
measured in nominal
terms
1 064 2 4 7 18 197 1 292
(23)
TOTAL:
423 774
20 689
7 557
10 600
19 240
27 788
509 648
(35 360)
Exposures - net value 31.12.2024
0-30 days
31 - 90 days
over 90 days
Total
Factoring
208 378
3 441
22 661
234 480
Loans
228 892
3 055
5 463
237 410
Own receivables valued in
nominal terms
662 449 18 1 129
Other current assets measured
in nominal terms
1 043 6 220 1 269
TOTAL:
438 975
6 951
28 362
474 288
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
88
Age analysis of the Group's forward
financial assets as of December 31,
2024
Maturity date
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years Total
Factoring 124 355 60 577 6 612 530 - - 192 074
Loans 27 966 39 563 136 137 26 311 - - 229 977
Own receivables valued in nominal
terms
494 165 - - - - 659
Other current assets measured in
nominal terms
1 064 - - - - - 1 064
TOTAL:
153 879
100 305
142 749
26 841
-
-
423 774
Age analysis of the Group's
financial and other liabilities as of
December 31, 2024
Undue
Overdue
Total
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years
Credits and loans
76 661
-
-
-
-
-
-
76 661
Bonds
316 488
-
-
-
-
-
-
316 488
Leasing
3 174
-
-
-
-
-
-
3 174
Trade payables
4 846
30
-
1
1
-
-
4 878
Earn-out liabilities
1 914
-
-
-
-
-
-
1 914
Other liabilities and accruals
measured in nominal terms
9 354 - 6 56 116 - - 9 532
TOTAL:
412 437
30
6
57
117
-
-
412 647
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
89
Age analysis of the Group's undue
financial and other liabilities as of
December 31, 2024
Maturity date
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years Total
Credits and loans 2 385 7 906 55 310 11 060 - - 76 661
Bonds 1 396 1 932 48 761 209 753 54 646 - 316 488
Leasing 87 206 848 1 599 434 - 3 174
Trade payables 4 209 637 - - - - 4 846
Earn-out liabilities - - - 1 914 - - 1 914
Other liabilities and accruals
measured in nominal terms
9 189 165 - - - - 9 354
TOTAL:
17 266
10 846
104 919
224 326
55 080
-
412 437
Exposures to credit risk related to balance sheet assets 31.12.2023
312 892
Factoring
162 408
Loans
147 374
Own receivables valued in nominal terms
2 079
Other current assets measured in nominal terms
1 031
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
90
Exposures - gross
value 31.12.2023
Undue
Overdue
Revaluation
provisions
Up to 30 days
31 - 90 days
91 - 180 days
181-365 days
over 365 days
Total
Factoring
122 477
20 349
4 301
4 042
4 001
28 067
183 237
(20 829)
Loans
137 936
4 275
3 388
4 754
7 138
13 076
170 567
(23 193)
Own receivables
valued in nominal
terms
1 716 288 1 - - 145
2 150
(71)
Other current assets
measured in nominal
terms
851 5 3 6 11 178
1 054
(23)
TOTAL:
262 980
24 917
7 693
8 802
11 150
41 466
357 008
(44 116)
Exposures - net value 31.12.2023
0-30 days
31 - 90 days
over 90 days
Total
Factoring 142 439 4 046 15 923 162 408
Loans 139 872 3 005 4 497 147 374
Own receivables valued in
nominal terms
2 004 1 74 2 079
Other current assets measured
in nominal terms
835 3 193 1 031
TOTAL:
285 150
7 055
20 687
312 892
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
91
Age analysis of the Group's forward
financial assets as of December 31,
2023
Maturity date
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years Total
Factoring 69 593 46 272 5 523 559 530 - 122 477
Loans 20 970 24 803 74 571 17 462 130 - 137 936
Own receivables valued in nominal
terms
71 1 645 - - - - 1 716
Other current assets measured in
nominal terms
851 - - - - - 851
TOTAL:
91 485
72 720
80 094
18 021
660
-
262 980
Age analysis of the Group's
financial and other liabilities as of
December 31, 2023
Undue
Overdue
Total
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years
Credits and loans 43 557 - - - - - - 43 557
Bonds 186 194 - - - - - - 186 194
Leasing
2 737
-
-
-
-
-
-
2 737
Trade payables
2 906
101
8
-
-
-
-
3 015
Other liabilities and accruals
measured in nominal terms
9 071 3 12 61 57 - - 9 204
TOTAL:
244 465
104
20
61
57
-
-
244 707
Age analysis of the Group's undue
financial and other liabilities as of
December 31, 2023
Maturity date
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years Total
Credits and loans*
368
2 990
22 846
17 353
-
-
43 557
Bonds
1 158
755
18 867
165 414
-
-
186 194
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended December 31, 2024
92
Age analysis of the Group's undue
financial and other liabilities as of
December 31, 2023
Maturity date
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years Total
Leasing
147
127
607
1 495
361
-
2 737
Trade payables
2 574
332
-
-
-
-
2 906
Other liabilities and accruals
measured in nominal terms
9 071 - - - - - 9 071
TOTAL:
13 318
4 204
42 320
184 262
361
-
244 465
* The Group adjusted the value of term loan liabilities against the value in the published financial statements prepared as of December 31, 2023 by PLN 2,874 thousand - reclassifying the value from 91-365
days to 31-90 days.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
93
21. Operating segments
21.1 - Operating segments - statement of earnings
or loss and other comprehensive income
01.01.2024 - 31.12.2024
Factoring
Loans
Unassigned
TOTAL
TOTAL SALES REVENUE
59 763
53 052
162
112 977
Factoring income, including:
58 351
-
-
58 351
Interest income from financial instruments measured
at amortized cost
36 664 - - 36 664
Income from loans, including:
-
50 636
-
50 636
Interest income from financial instruments measured
at amortized cost
- 46 542 - 46 542
Other revenue
1 412
2 416
162
3 990
OPERATING EXPENSES
(21 253)
(12 576)
(8 058)
(41 887)
Depreciation
-
-
(3 302)
(3 302)
Remuneration and employee benefits
(11 695)
(6 153)
-
(17 848)
External services
(5 272)
(2 957)
(3 804)
(12 033)
Other core expenses
(4 286)
(3 466)
(952)
(8 704)
PROFIT (LOSS) FROM SALES
38 510
40 476
(7 896)
71 090
Other operating income
-
-
1 726
1 726
Other operating expenses
(37)
(673)
(884)
(1 594)
Result of provisions for expected credit losses
(5 738)
(13 216)
-
(18 954)
OPERATING PROFIT (LOSS)
32 735
26 587
(7 054)
52 268
Financial income
-
-
82
82
Financial expenses
(20 170)
(16 768)
(148)
(37 086)
Exchange position result
-
-
(94)
(94)
PROFIT (LOSS) BEFORE TAX
12 565
9 819
(7 214)
15 170
Income tax
-
-
(4 088)
(4 088)
NET PROFIT (LOSS)
-
-
-
11 082
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
94
21.2 - Operating segments - statement of profit
or loss and other comprehensive income
01.01.2023 - 31.12.2023
(restated data)*
Factoring
Loans
Unassigned
TOTAL
TOTAL SALES REVENUE
48 751
29 048
121
77 920
Factoring income, including:
45 159
-
-
45 159
Interest income from financial instruments
measured at amortized cost
21 601 - - 21 601
Income from loans, including:
-
27 395
-
27 395
Interest income from financial instruments
measured at amortized cost
- 23 855 - 23 855
Other revenue
3 592
1 653
121
5 366
OPERATING EXPENSES
(17 941)
(6 383)
(8 336)
(32 660)
Depreciation
-
-
(1 925)
(1 925)
Remuneration and employee benefits
(11 274)
(3 163)
-
(14 437)
External services
(2 874)
(1 882)
(4 109)
(8 865)
Other core expenses
(3 793)
(1 338)
(2 302)
(7 433)
PROFIT (LOSS) FROM SALES
30 810
22 665
(8 215)
45 260
Other operating income
-
-
468
468
Other operating expenses
(363)
-
(367)
(730)
Result of provisions for expected credit losses
(3 514)
(10 145)
435
(13 224)
OPERATING PROFIT (LOSS)
26 933
12 520
(7 679)
31 774
Financial income
-
-
2 045
2 045
Financial expenses
(11 923)
(7 409)
(2 260)
(21 592)
Exchange position result
-
-
(851)
(851)
PROFIT (LOSS) BEFORE TAX
15 010
5 111
(8 745)
11 376
Income tax
-
-
(4 412)
(4 412)
NET PROFIT (LOSS)
-
-
-
6 964
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in Consolidated Financial
Statements."
Operating segments - assets and liabilities
Balance as of 31.12.2024
Factoring
Loans
Unassigned
TOTAL
Total segment assets 258 870 241 150 60 033
560 053
Total segment liabilities
(220 590)
(185 871)
(10 004)
(416 465)
Operating segments - assets and liabilities
Balance as of 31.12.2023
(restated data)*
Factoring Loans Unassigned TOTAL
Total segment assets
164 179
150 834
45 022
360 035
Total segment liabilities
(146 456)
(88 708)
(11 952)
(247 116)
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
95
22. Average employment in FTEs in the Group
22.1 - Average employment in FTEs in the Group during the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
White-collar workers 119 96
Total average number of FTEs
119
96
23. Ownership of shares of the Parent Company by persons managing and
controlling the Parent Company
23.1 - Parent Company shares held by Board Members directly
Name Function
Number of shares
held
(in thousands)
Shareholding
Share in the total
number of votes
at the AGM
Tomasz Boduszek CEO 19 0,28% 0,25%
Jacek Obrocki Vice President 19 0,28% 0,25%
Danuta Czapeczko Vice President 3 0,04% 0,04%
Members of the Management Board do not hold stock options in the Parent Company.
Members of the Parent's Supervisory Board do not directly hold shares or stock options in the Parent.
24. Remuneration of key personnel of the Group and the Supervisory Board
of PragmaGO received during the period
24.1 - Remuneration of key personnel of the Capital
Group
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Basic salary
1 710
1 618
Bonuses received and other variable remuneration
components
1 115 320
Provision for bonuses
535
-
TOTAL:
3 360
1 938
24.2 - Remuneration of members of the Supervisory
Board received during the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Supervisory Board 240 240
25. Remuneration of the audit company
25.1 - Remuneration of the audit company
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Audit and review of separate and consolidated
financial statements
434 201
Other attestation services
-
38
TOTAL:
434
239
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
96
26. Transactions and balances in the Group with related parties
26.1 - Transactions and balances with related parties as of and for
the period ending 31.12.2024
Other related parties
Revenue
2 913
Expenses
2 503
Trade and other short-term receivables
313
Factoring receivables
12 832
Loan receivables
1 115
Loans payable
2 577
Trade and other short-term liabilities
735
Revenues with related parties mainly relate to services performed by PragmaGO S.A. for Pragma
Faktor, which include portfolio servicing and factoring revenues for financing provided, as well as
accounting service revenues. Other titles of revenue from related parties on a stand-alone basis are
immaterial.
Expenses from related parties relate to the re-invoicing of insurance, scoring and collection costs
from Pragma Faktor, the lease of the building in which the Parent Company's headquarters is located
from NPL Nova, and legal fees by Pragma Adwokaci.
Factoring receivables relate to financing in the form of advance factoring provided to Pragma Faktor.
Additional information on loans to related parties:
Related party
The value
of the loan
granted
Balance at
the end of
the period
interest rate on
loans
loan collateral
Additional
information
Pragma
Faktor Sp. z
o.o.
1 100 1 115 8%
Two blank promissory notes
issued by the Borrower with
a promissory note
declaration
Element of
service
cooperation
Loans to related parties are not subject to provisions.
Additional information on loans received of related parties:
Related party
The value
of the loan
received
Balance at
the end of
the period
interest rate on
loans
loan collateral
Additional
information
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
97
NPL Nova
S.A.
2 500 2 577
WIBOR 3M +
margin
Blank promissory note
issued by the Borrower with
a promissory note
declaration
-
All transactions carried out by the Parent Company with related parties were on terms that did not
deviate from market terms.
An individual assessment was carried out for the aforementioned receivables and no indication of
impairment was found.
The Parent Company of PragmaGO S.A. is:
Polish Enterprise Funds SCA
Subsidiaries of the Company
BRUTTO Sp. z o.o.
PragmaGO.TECH sp. z o.o.
Monevia sp z. o.o.
Telecredit IFN S.A.
Other Companies that are related parties (personal relationships) with which the company had
transactions in the period 01.01-31.12.2024 are:
Pragma Faktor sp. z o.o.
NPL NOVA S.A.
Pragma Adwokaci limited partnership
Aseo Paper Sp. z o.o.
26.2 - Transactions and balances with related parties as of and for the
period ending 31.12.2023
Other related parties
Revenue
6 311
Expenses
3 579
Trade and other short-term receivables
1 596
Factoring receivables
14 317
Loan receivables
1 100
Loans payable
2 576
Trade and other short-term liabilities
1 318
Revenues with related parties mainly relate to services performed by PragmaGO S.A. for Pragma
Faktor, which include portfolio servicing and factoring revenues for financing provided and
accounting service revenues. Other titles of revenues from related parties on a stand-alone basis are
immaterial
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
98
Expenses from related parties relate to the re-invoicing of insurance, scoring and collection costs
from Pragma Faktor, the lease of the building in which the Parent Company's headquarters is located
from NPL Nova, and legal fees by Pragma Adwokaci.
Factoring receivables relate to financing in the form of advance factoring provided to Pragma
Faktor.
Additional information on loans to related parties:
Related party
The value
of the loan
granted
Balance at
the end of
the period
interest rate on
loans
loan collateral
Additional
information
Pragma
Faktor Sp. z
o.o.
1 100 1 100 8%
Two blank promissory notes
issued by the Borrower with
a promissory note
declaration
Element of
cooperation
Loans granted to related parties are not subject to provisions.
Additional information on loans received of related parties:
Related party
The value
of the loan
received
Balance at
the end of
the period
interest rate on
loans
loan collateral
Additional
information
NPL Nova
S.A.
2 500 2 576
WIBOR 3M +
margin
Blank promissory note
issued by the Borrower with
a promissory note
declaration
-
26.3 - Transactions and balances with
the Management Board and Supervisory
Board
31.12.2024
31.12.2023
Management
Supervisory
Board
Management
Supervisory
Board
SHORT-TERM LIABILITIES
2
-
12
-
Loans received during the period
500
-
1 280
-
Balance at the end of the period due to
loans received by the Parent Company
- - - -
Interest paid on loans received
17
-
78
48
Value of bonds held
61
-
68
-
All transactions conducted with related parties by the Parent Company were on terms that did not
deviate from market terms.
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
99
27. Impact of the changes on the comparative figures in the consolidated
financial statements
Consolidated statement of profit or loss and other comprehensive income for the
period
Specification
Before
adjustment for
the period:
01.01.2023 -
31.12.2023
(data previously
reported)
Correction
After adjustment
for the period:
01.01.2023 -
31.12.2023
(restated data)
Descript
ion of
the
correcti
on
TOTAL SALES REVENUE
77 453
467
77 920
2
Factoring income, including:
44 692
467
45 159
2
Interest income from financial instruments
measured at amortized cost
21 601 - 21 601 -
Income from loans, including:
27 395
-
27 395
-
Interest income from financial instruments
measured at amortized cost
23 855 - 23 855 -
Other revenue
5 366
-
5 366
-
OPERATING EXPENSES
(31 045)
(1 615)
(32 660)
1, 2, 3
Depreciation
(1 925)
-
(1 925)
-
Remuneration and employee benefits
(14 437)
-
(14 437)
-
External services
-
(8 865)
(8 865)
3
Other core expenses
(14 683)
7 250
(7 433)
1, 2, 3
PROFIT (LOSS) FROM SALES
46 408
(1 148)
45 260
1
Other operating income
468
-
468
-
Other operating expenses
(730)
-
(730)
-
Result of provisions for expected credit losses
(13 584)
360
(13 224)
1
OPERATING PROFIT (LOSS)
32 562
(788)
31 774
1
Financial income
2 045
-
2 045
-
Financial expenses
(21 592)
-
(21 592)
-
Exchange position result
(851)
-
(851)
-
PROFIT (LOSS) BEFORE TAX
12 164
(788)
11 376
1
Income tax
(4 268)
(144)
(4 412)
5
NET PROFIT (LOSS)
7 896
(932)
6 964
1
Other comprehensive income
-
-
-
-
COMPREHENSIVE INCOME FOR THE REPORTING
PERIOD
7 896
(932)
6 964
1
Attributable to non-controlling interests
-
-
-
-
Attributable to shareholders of the Parent
Company
7 896 (932) 6 964 1
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
100
Consolidated annual statement of financial position
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)
Description
of the
adjustment
FIXED ASSETS
55 101
-
55 101
-
Property, plant and
equipment
2 816 - 2 816 -
Intangible assets 28 304 - 28 304 -
Goodwill 4 917 - 4 917 -
Factoring 1 089 - 1 089 -
Loans 17 592 - 17 592 -
Deferred tax assets 383 - 383 -
CURRENT ASSETS
307 163
(2 229)
304 934
1
Trade receivables 2 079 - 2 079 -
Other current assets 1 031 - 1 031 -
Factoring 161 319 - 161 319 -
Loans 129 782 - 129 782 -
Prepayments and
accruals
3 510 (2 229) 1 281 1
Cash and cash
equivalents
9 442 - 9 442 -
TOTAL ASSETS:
362 264
(2 229)
360 035
1
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)
Description
of the
adjustment
EQUITY
115 292
(2 373)
112 919
1
Equity attributable to
shareholders of the
Parent Company
115 292
(2 373)
112 919
1
Share capital
6 891
-
6 891
-
Treasury shares
(468)
-
(468)
-
Share premium
94 784
-
94 784
-
Retained earnings
reserve
18 254
-
18 254
-
Other reserves
-
-
-
-
Retained earnings,
including:
(4 169)
(2 373) (6 542)
1, 5
Net profit (loss) for the
period
7 896
(932)
6 964
1, 5
Equity attributable to
non-controlling
interests
-
-
-
LONG-TERM
LIABILITIES
184 638
-
184 638
-
Long-term provisions
15
-
15
-
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
101
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)
Description
of the
adjustment
Non-current loans and
borrowings liabilities
17 353
-
17 353
-
Non-current bonds
liabilities
165 414
-
165 414
-
Lease liabilities
1 856
-
1 856
-
SHORT-TERM
LIABILITIES
62 334
144
62 478
5
Short-term loans and
borrowings liabilities
26 204
-
26 204
-
Current bonds liabilities
20 780
-
20 780
-
Lease liabilities
881
-
881
-
Trade payables
3 015
-
3 015
-
Current income tax
liabilities
60
144 204
5
Other liabilities and
accruals
9 204
-
9 204
-
Deferred income
2 190
-
2 190
-
TOTAL EQUITY AND
LIABILITIES:
362 264
(2 229)
360 035
1, 5
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
102
Consolidated annual statement of financial position
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)
Description
of the
adjustment
FIXED ASSETS
40 895
-
40 895
-
Property, plant and
equipment
2 927 - 2 927 -
Intangible assets 19 260 - 19 260 -
Goodwill 4 917 - 4 917 -
Factoring - - - -
Loans 12 788 - 12 788 -
Deferred tax assets 1 003 - 1 003 -
CURRENT ASSETS
218 050
(1 441)
216 609
1
Trade receivables 1 474 - 1 474 -
Other current assets 1 216 - 1 216 -
Factoring 136 141 - 136 141 -
Loans 64 912 - 64 912 -
Prepayments and
accruals
2 422 (1 441) 981 1
Cash and cash
equivalents
11 885 - 11 885 -
TOTAL ASSETS:
258 945
(1 441)
257 504
1
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)
Description
of the
adjustment
EQUITY
107 390
(1 441)
105 949
1
Equity attributable to
shareholders of the
Parent Company
107 396
(1 441)
105 955
1
Share capital
5 934
-
5 934
-
Treasury shares
(468)
-
(468)
-
Share premium
81 393
-
81 393
-
Retained earnings
reserve
12 239
-
12 239
-
Other reserves
14 348
-
14 348
-
Retained earnings,
including:
(6 050)
(1 441) (7 491)
1
Net profit (loss) for the
period
6 126
(765) 5 361
1
Equity attributable to
non-controlling
interests
(6)
-
(6)
-
LONG-TERM
LIABILITIES
107 085
-
107 085
-
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
103
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)
Description
of the
adjustment
Long-term provisions
7
-
7
-
Non-current loans and
borrowings liabilities
14 897
-
14 897
-
Non-current bonds
liabilities
90 052
-
90 052
-
Lease liabilities
2 129
-
2 129
-
SHORT-TERM
LIABILITIES
44 470
-
44 470
-
Short-term loans and
borrowings liabilities
23 334
-
23 334
-
Current bonds liabilities
11 187
-
11 187
-
Lease liabilities
753
-
753
-
Trade payables
1 883
-
1 883
-
Current income tax
liabilities
260
-
260
-
Other liabilities and
accruals
5 648
-
5 648
-
Deferred income
1 405
-
1 405
-
TOTAL EQUITY AND
LIABILITIES:
258 945
(1 441)
257 504
1
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
104
Consolidated annual statement of cash flows (indirect method)
Specification
Before
adjustment for
the period:
01.01.2023 -
31.12.2023
(data
previously
reported)
Adjustment
After
adjustment for
the period:
01.01.2023 -
31.12.2023
(restated data)
Description
of the
Adjustment
CASH FLOWS FROM OPERATING ACTIVITIES
Gross profit (loss)
12 164
(788)
11 376
1
Total adjustments:
(77 632)
788
(76 844)
1
Depreciation
1 925
-
1 925
-
Foreign exchange gains (losses)
(1 384)
-
(1 384)
-
Interest and profit sharing (dividends)
19 332
-
19 332
-
Result of provisions for expected credit
losses
- 12 106 12 106 4
Adjustments for changes 10 395 (12 106) (1 711) 4
Change in balance due to factoring
receivables
(28 317) - (28 317) -
Change in balance due to loans
granted
(79 729) - (79 729) -
Change in provisions
8
-
8
-
Change in receivables
(420)
-
(420)
-
Change in short-term liabilities, except
for financial liabilities
6 195 - 6 195 -
Change in prepayments and accruals
(1 447)
788
(659)
1
Income tax paid
(4 190)
-
(4 190)
-
Other - - - -
Net cash flows from operating
activities
(65 468)
-
(65 468)
-
CASH FLOWS FROM INVESTING ACTIVITIES
Expenses for acquisition of intangible
assets
(10 044) - (10 044)
Expenses for acquisition of property,
plant and equipment
(63) - (63) -
Proceeds from sale of property, plant
and equipment
32 - 32 -
Expenses for acquisition of control in
subsidiary less cash acquired
- - - -
Net cash flows from investing activities
(1 162)
-
(1 162)
-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank credits and loans 121 785 - 121 785 -
Bank credits and loans repayments (115 616) - (115 616) -
Buy-backs and lease repayments (1 024) - (1 024) -
Proceeds from bond issuance 97 000 - 97 000 -
Bond redemption (10 000) - (10 000) -
Consolidated annual financial statements of the PragmaGO S.A. Group as of and for the 12-month period ended
December 31, 2024
105
Specification
Before
adjustment for
the period:
01.01.2023 -
31.12.2023
(data
previously
reported)
Adjustment
After
adjustment for
the period:
01.01.2023 -
31.12.2023
(restated data)
Description
of the
Adjustment
Interest paid on bonds (14 616) - (14 616) -
Interest paid on loans, credits, leases (3 267) - (3 267) -
Net cash flows from financing activities
74 262
-
74 262
-
TOTAL NET CASH FLOWS
(2 443)
-
(2 443)
-
BALANCE SHEET CHANGE IN CASH
(2 443)
-
(2 443)
-
CASH AT BEGINNING OF PERIOD
11 885
-
11 885
-
CASH AT THE END OF THE PERIOD,
INCLUDING:
9 442
-
9 442
-
Restricted
2 167
-
2 167
-
Changes made:
1) Adjustment for court costs on a cash basis.
2) Adjustment for the presentation of court costs.
3) Presentation of External services in a separate line item within the statement of profit or loss and
comprehensive income.
4) Recognition of the result from changes in provisions for financial assets in a separate line item
within the statement of cash flows.
5) Income tax adjustment for 2023.
A detailed description of the adjustments is presented in Section IV.1 of the Introduction to the annual
consolidated financial statements.
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December
31, 2024
106
28. Fair value
28.1 - Fair value of instruments that are not
measured at fair value
31.12.2024
31.12.2023
Book value
Fair value
Book value
Fair value
Financial assets
482 634
482 634
321 303
321 303
Cash and cash equivalents
9 615
9 615
9 442
9 442
Factoring receivables 234 480 234 480 162 408 162 408
Loan receivables 237 410 237 410 147 374 147 374
Trade receivables 1 129 1 129 2 079 2 079
Financial liabilities
403 115
411 218
235 503
237 560
Bank credits and loans 76 661 76 661 43 557 43 557
Earn-out liabilities
1 914
1 914
-
-
Lease liabilities
3 174 3 174 2 737 2 737
Variable rate bond liabilities* 316 488 324 591 167 214 169 631
Fixed rate bond liabilities
-
-
18 980
18 620
Trade payables
4 878 4 878 3 015 3 015
* The fair value amount as of 31.12.2024 takes into account the value of the EUR1 and D1EUR series bonds in the conversion
of the listing at the exchange rate as of 31.12.2024.
The fair value of variable rate bond liabilities as of December 31, 2024 includes the face value of series D2 bonds in the
amount of PLN 35 million, due to the start of listing in the next reporting period, i.e. January 10, 2025
The fair values of financial assets and financial liabilities were defined as the price that would be
received for the sale of an asset or paid for the transfer of a liability in a transaction conducted on
normal terms between market participants as of the valuation date. The fair values of cash and short-
term deposits, trade receivables, factoring receivables, loans receivable and other receivables, loan
payable, trade payables and other short-term liabilities approximate the carrying values, mainly due
to the short maturity and maturity of these instruments.
Based on the methods used to determine fair value, the Company classifies financial assets and
liabilities into the following categories:
● Level 1: quoted prices in active markets for the same instrument (without modification);
● Level 2: quoted prices in active markets for similar instruments or other valuation methods for
which all relevant inputs are based on observable market data;
● Level 3: valuation methods for which at least one relevant input is not based on observable market
data.
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December 31, 2024
107
28.2 - Fair value
31.12.2024
31.12.2023
Including:
Level 1
Level 2
Level 3
Including:
Level 1
Level 2
Level 3
Financial assets
482 634
9 615
-
473 019
321 303
9 442
-
311 861
Cash and cash equivalents 9 615 9 615 - - 9 442 9 442 - -
Factoring receivables 234 480 - - 234 480 162 408 - - 162 408
Loan receivables 237 410 - - 237 410 147 374 - - 147 374
Trade receivables 1 129 - - 1 129 2 079 - - 2 079
Financial liabilities
411 218
324 591
-
86 627
237 560
188 251
-
49 309
Bank credits and loans 76 661 - - 76 661 43 557 - - 43 557
Earn-out liabilities
1 914
-
-
1 914
-
-
-
-
Lease liabilities 3 174 - - 3 174 2 737 - - 2 737
Variable rate bond liabilities 324 591 324 591 - - 169 631 169 631 - -
Fixed rate bond liabilities - - - - 18 620 18 620 - -
Trade payables 4 878 - - 4 878 3 015 - - 3 015
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December 31,
2024
108
29. Events after the balance sheet date
1 On January 8, 2025, the Management Board of the Warsaw Stock Exchange adopted Resolution No.
22/2025 to list 350,000 series D2 bearer bonds with a par value of PLN 100 each, issued by the Parent
Company PragmaGO S.A., as of January 10, 2025, on the primary market.
2 On January 9, 2025, the District Court of Katowice-East in Katowice registered an increase in the share
capital of the Parent of PragmaGO S.A. by PLN 1,180,129.00. The Issuer's share capital was increased through
the issuance of 1,180,129 series K bearer shares. After registration of the increase, the Company's share
capital amounts to PLN 8,071,170.00 and is divided into 8,071,170 shares with a par value of PLN 1.00 per
share.
3 On January 31, 2025, the Parent Company PragmaGO S.A. was deleted from the MIP register, where it was
disclosed under number MIP157/2022. The deletion from the MIP register took place at the request of the
Parent Company.
4 On March 20, 2025, the Parent Company's Management Board adopted a resolution on the issuance and
setting the final terms and conditions of the Series D3 Bonds. The total par value of the Bonds will be PLN
40 million, and if the Parent's Board decides to increase the number of Bonds in the offering - PLN 50 million.
The issue price of the Bonds is equal to the nominal value.
5 The Management Board of the Parent Company PragmaGO S.A. announced that on March 20, 2025.
entered into an agreement with CK Legal Chabasiewicz Kowalska i Wspólnicy Spółka Komandytowo -
Akcyjna, seated in Krakow ("Pledge Administrator") acting as a pledge administrator on its own behalf, but
for the benefit of bondholders entitled under the series D3 bonds issued by the Issuer as part of the Fifth
Public Bond Issuance Program ("Series D3 Bonds"), a registered pledge agreement on a set of variable rights
(the "Set Pledge Agreement") and a registered pledge agreement on receivables from a bank account, in
order to secure the receivables of bondholders entitled under the Series D3 Bonds. The registered pledge
on the set of variable composition rights, which is the subject of the Set Pledge Agreement, will be
established up to the highest security amount of PLN 60 million.
6 On April 4, 2025, the Management Board of PragmaGO S.A. passed a resolution to determine the final
number of Series D3 Bonds offered under the Program at 500,000 Bonds with a total nominal value of PLN
50 million.
7. On April 12, 2025, the Management Board of PragmaGO S.A. z announced the completion of the
subscription for the series D3 secured bearer bonds issued pursuant to the Board's resolution of March 20,
2025.
30. Other disclosures required by law - financial liability forecasts
Forecasts of financial liabilities
In accordance with the requirements of Article 35 (1b) of the Bond Law of January 15, 2015. (Journal of Laws
2024, item 708), the Issuer Parent Company will provide an explanation between financial liability forecasts.
Forecast of financial liabilities as of December 31, 2024 (unaudited):
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December 31,
2024
109
Balance sheet item
Unit value
(PLN million)
Share in liabilities
(unit)
Consolidated
value (PLN
million)
Share of
liabilities
(consolidated)
Total liabilities
493,4
100,0%
493,4
100,0%
Liabilities from loans and
borrowings
118,8 24,1% 118,8 24,1%
Bonds liabilities 213,0 43,2% 213,0 43,2%
Lease liabilities 2,3 0,5% 2,3 0,5%
Actual level of financial liabilities as of December 31, 2024:
Balance sheet item
Unit value
(PLN million)
Share in liabilities
(unit)
Consolidated
value (PLN
million)
Share of
liabilities
(consolidated)
Total liabilities 530,9 100,0% 560,5 100,0%
Liabilities from loans and
borrowings
54,5 10,3% 76,7 13,7%
Bonds liabilities
316,5
59,6%
316,5
56,5%
Lease liabilities
2,2
0,4%
3,2
0,6%
Variances:
Balance sheet item
Unit value
(PLN million)
Share in liabilities
(unit)
Consolidated
value (PLN
million)
Share of
liabilities
(consolidated)
Total liabilities 37,5 - 67,1 -
Liabilities from loans and
borrowings
(64,3) (13,8%) (42,1) (10,4%)
Bonds liabilities
103,5
16,4%
103,5
13,3%
Lease liabilities
(0,1)
(0,1%)
0,9
0,1%
In accordance with the requirements of Article 35 (1b) of the Bond Law of January 15, 2015. (Journal of Laws
2024, item 708), the Issuer Parent Company provides an explanation between forecasts of financial liabilities
and their realization:
Total financial liabilities at the standalone level amounted to PLN 373 million, higher than forecast by PLN
39 million (7.9%). The higher level of liabilities was a result of the need to finance larger assets and the
acquisition of shares in two entities acquired in 2024. At the consolidated level, total liabilities amounted to
PLN 396 million and were higher than forecast by PLN 62 million (12.6%). The overshoot is a result of the
aforementioned larger portfolio and the inclusion in the consolidation of expenses for taking control of
Monevia and Telecredit in 2024. In addition, the value of financial liabilities outside the Telecredit Company
Group amounted to PLN 20.5 million as of December 31, 2024, and the value of liabilities outside the Monevia
Company Group amounted to PLN 2.1 million. As a result, the debt ratio was 70.3% at the standalone level
(with forecasts of 67.8%), and 70.8% at the consolidated level. The debt structure assumed a 63.8% share
of bonds in financial liabilities, and ultimately amounted to 84.8% at the unit level and 79.8% at the
consolidated level. The higher-than-assumed share of bonds in financing was due to the Parent Company's
Management Board's decision to issue bonds with a higher value than assumed in the budget as a result of
the very good situation on the capital market and high demand for bonds, which translated into competitive
financing conditions.
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December 31,
2024
110
● At the same time, the level of debt utilization under available borrowings was at a lower-than-budgeted
level by PLN (64.3) million at the Parent Company level and by PLN (42.1) million at the consolidated level
due to the coverage of financing needs by bond issuances,
● The level of lease liabilities at both the consolidated and stand-alone levels showed no significant
deviation from the budgeted level.
Consolidated annual financial statements of PragmaGO S.A. prepared as of and for the periods ended December 31,
2024
111
Yours Sincerely,
Management Board of
PragmaGO S.A.
CEO Tomasz Boduszek
Vice President Jacek Obrocki
Vice President Danuta Czapeczko
Vice President Lukasz Ramczewski
Katowice, April 24, 2025
