Consolidated condensed interim management report as of and for the periods ended June 30, 2024
Thi
s 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
1
Table of contents
Separate annual financial statements of PragmaGO S.A. as of and for the period ended December
31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Introduction to the separate financial statements of PragmaGO S.A. prepared as of and for the
period December 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Notes to the annual financial statements of PragmaGO S.A. prepared as of the period ended
December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
2
SEPARATE ANNUAL FINANCIAL STATEMENTS of PragmaGO
S.A. PREPARED AS OF AND FOR THE PERIOD ENDED
December 31, 2024.
Separate annual statement of profit or loss and other comprehensive income for
the period
Specification
Not
e
01.01.2024 01.01.2023
31.12.2024
31.12.2023
(restated data*)
TOTAL NET SALES REVENUE
1
102 450
77 988
Revenues from factoring, including:
-
48 517
45 159
Interest income from financial instruments
measured at amortized cost
- 27 124 21 601
Income from loans, including:
-
49 933
27 444
Interest income from financial instruments
measured at amortized cost
- 45 840 23 904
Other revenuues
-
4 000
5 385
OPERATING EXPENSES
2
(36 629)
(33 181)
Depreciation
-
(2 853)
(2 061)
Remuneration and employee benefits
-
(15 363)
(14 399)
External services
-
(10 650)
(9 493)
Other core expenses
-
(7 763)
(7 228)
PROFIT (LOSS) FROM SALES
-
65 821
44 807
Other operating income
-
1 411
453
Other operating expenses
-
(1 283)
(672)
Result of provisions for expected credit losses
8
(18 823)
(13 224)
OPERATING PROFIT (LOSS)
-
47 126
31 364
Financial income
-
67
2 045
Financial costs
3
(35 729)
(21 589)
Exchange position result
-
(5)
(851)
PROFIT (LOSS) BEFORE TAX
-
11 459
10 969
Income tax
4
(3 615)
(4 413)
NET PROFIT (LOSS) FROM CONTINUING
OPERATIONS
-
7 844
6 556
Other comprehensive income
-
-
-
COMPREHENSIVE INCOME FOR THE REPORTING
PERIOD
-
7 844
6 556
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in the Separate Financial
Statements."
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
3
Separate annual statement of financial position
Specification Note
31.12.2024
31.12.2023
(restated data)*
01.01.2023
(data
restated)*
FIXED ASSETS
-
112 716
55 424
41 207
Property, plant and
equipment
5 2 309 2 816 2 927
Intangible assets
6
37 381
28 304
19 260
Stocks and shares
7
43 717
5 240
5 229
Factoring
8
530
1 089
-
Loans
8
26 253
17 592
12 788
Deferred tax assets
4
1 526
383
1 003
CURRENT ASSETS
-
418 741
305 228
217 224
Trade receivables
1 117
2 028
1 364
Other current assets
1 127
994
1 186
Factoring
8
188 566
161 319
136 142
Loans
8
220 741
130 239
65 702
Prepayments and accruals
11
1 207
1 256
961
Cash and cash equivalents
10
5 983
9 392
11 869
TOTAL ASSETS:
-
530 457
360 652
258 431
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
4
Specification
Note
31.12.2024
31.12.2023
(data
restated)*
01.01.2023
(restated data)*
TOTAL EQUITY
-
139 731
113 453
106 897
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:
-
(5 653)
(6 008)
(6 549)
Net profit (loss) of the period
-
7 844
6 556
5 553
LONG-TERM LIABILITIES
-
267 636
184 638
107 005
Long-term provisions
-
26
15
7
Long-term loans and
borrowings liabilities
13
- 17 353
14 817
Long-term bonds liabilities
14
264 399
165 414
90 052
Long-term lease liabilities
15
1 297
1 856
2 129
Earn-out liabiliites 16 1 914 - -
SHORT-TERM LIABILITIES
-
123 090
62 561
44 529
Short-term loans and
borrowings liabilities
13
54 448
26 204
23 325
Short-term bonds liabilities
14
52 089
20 780
11 187
Short-term lease liabilities
15
943
881
753
Trade payables
16
4 578
3 336 2 251
Current income tax liabilities
16
455
204
231
Other liabilities and accruals
16
7 549
8 966
5 377
Deferred income 17 3 038 2 190 1 405
TOTAL EQUITY AND
LIABILITIES:
-
530 457
360 652
258 431
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
5
Separate 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
-
11 459
10 969
Total adjustments:
-
(96 239)
(76 423)
Depreciation - 2 853
2 061
Foreign exchange gains (losses) - 829
(1 384)
Interest and profit sharing (dividends) - 31 413
19 332
Result of provisions for expected credit losses - (8 888)
12
Adjustments for non-cash changes 18 (720)
(1 711)
Change in balance due to factoring receivables 18 (24 180)
(28 317)
Change in balance due to loans granted 18 (92 783)
(79 396)
Change in provisions - 11
8
Change in trade receivables - 778
(472)
Change in short-term liabilities, except for financial
liabilities
-
1 646 6 166
Change in prepayments and accrued income
18
(2 681)
(654)
Income tax paid
-
(4 514)
(4 162)
Other
-
-
-
Net cash flows from operating activities
-
(84 780)
(65 454)
CASH FLOWS FROM INVESTING ACTIVITIES
Expenses for acquisition of intangible assets
-
(10 934)
(10 182)
Expenses for acquisition of property, plant and
equipment
- (47) (63)
Proceeds from sale of property, plant and
equipment and others
- 32
Expenses for acquisition of shares and stocks
7
(38 477)
(1 161)
Net cash flows from investing activities
-
(49 458)
(11 374)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank credits and loans
18
135 882
121 785
Bank credits and loans repayments
18
(125 448)
(115 527)
Buy-backs and lease repayments
18
(880)
(1 024)
Proceeds from issuance of shares
-
18 434
-
Proceeds from bond issuance
18
216 895
97 000
Bond redemption outflows
18
(84 000)
(10 000)
Interest paid on bonds
18
(24 653)
(14 616)
Interest paid on loans, credits, leases
18
(5 401)
(3 267)
Net cash flows from financing activities
-
130 829
74 351
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
6
Specification Note
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data*)
TOTAL NET CASH FLOWSS
-
(3 409)
(2 477)
BALANCE SHEET CHANGE IN CASH
-
(3 409)
(2 477)
CASH AT BEGINNING OF PERIOD
-
9 392
11 869
CASH AT THE END OF THE PERIOD, INCLUDING:
-
5 987
9 392
Restricted
10
2 778 2 167
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial
statements".
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
7
Separate annual statement of changes in equity
Specification Share capital Treasury shares Share premium
Retained
earnings reserve
Other reserves
Retained
earnings
Total equity
Changes in equity from 01.01.2024 to 31.12.2024.
Balance as of 01.01.2024
6 891
(468)
94 784
18 254
-
(3 635)
115 826
Impact of data restatement
-
-
-
-
-
(2 373)
(2 373)
As of 01.01.2024 (restated data)*.
6 891
(468)
94 784
18 254
-
(6 008)
113 453
Distribution of the result of the
year 2023
- - - 7 489 - (7 489)
-
Payments from capital increase -
issuance of series K shares
- - - - 18 434 -
18 434
Comprehensive income for the
period from 01.01 to 31.12.2024
- - - - - 7 844
7 844
Balance as of 31.12.2024
6 891
(468)
94 784
25 743
18 434
(5 653)
139 731
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
8
Specification Share capital Treasury shares Share premium
Retained
earnings reserve
Other reserves
Retained
earnings
Total quity
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
(5 108)
108 338
Impact of data restatement
-
-
-
-
-
(1 441)
(1 441)
As of 01.01.2023 (restated
data)*.
5 934
(468)
81 393
12 239
14 348
(6 549)
106 897
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) - -
Comprehensive income for the
period from 01.01 to 31.12.2023
- - - - - 6 556 6 556
Balance as of 31.12.2023
(restated data)*
6 891
(468)
94 784
18 254
-
(6 008)
113 453
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in the Separate Financial Statements."
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
9
INTRODUCTION TO THE SEPARATE ANNUAL FINANCIAL
STATEMENTS of PragmaGO S.A. PREPARED AS OF AND FOR
THE PERIOD ENDED DECEMBER 31 2024
I. Basic information about the Unit
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 Unit's core business is providing financing in the form of factoring and loans to the micro, small
and medium-sized enterprise sector. The Unit provides services in Poland.
Factoring
The factoring service provided by the Entity consists in the purchase by the factor (the Issuer) of the
factor's (factoring customers') 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 a factoring customer submits an invoice,
the factoring company 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 fee) is transferred by the factor to the client after the factoring debtor makes
payment. Factoring, therefore, allows a company to shorten the receivables turnover cycle and thus
improve liquidity.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
10
Factoring products offered include:
● 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 the payment is not made within the declared period, the payment is automatically postponed,
and the outstanding balance, including commission, is spread over 6 equal monthly installments. 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 installments, 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 Unit's operations is indefinite.
The Company operates on the basis of 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 Unit's shares were listed on the regulated market of
the Warsaw Stock Exchange.
As of September 9, 2021, the Entity's shares were delisted from the WSE at the Entity's request
Warsaw.
1. Share capital of the Entity
As of December 31, 2024, the Company'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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
11
2. Management and Supervisory Board of the Entity
The composition of the Unit's Management Board as of December 31, 2024 was as follows:
CEO
Tomasz Boduszek
Vice President
Jacek Obrocki
Vice President
Danuta Czapeczko
Vice President
Lukasz Ramczewski
There were no changes in the Management Board of PragmaGO S.A. compared to the previous
reporting period ended September 30, 2024 and up to the date of publication.
The composition of the Unit'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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
12
3. the Capital Group formed by the Unit
The PragmaGO Group, of which the Company is the Parent Company as of December 31, 2024,
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.
PragmaGO 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
13
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
gaining control over it.
● On September 19, 2024, the Parent's Management Board entered into an agreement to purchase 89%
of the shares in TELECREDIT IFN SA based in Bucharest, Romania ("Telecredit"). Following the
fulfilment of the conditions precedent to the finalization of the agreement, control of Telecredit was
acquired on December 5, 2024.
The Parent Company prepares consolidated financial statements in which it recognizes subsidiaries
using the full method.
II. INFORMATION ON PRINCIPLES ADOPTED IN PREPARING THE SEPARATE
ANNUAL FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED
DECEMBER 31, 2024
1. Basis of preparation of the financial statements
PragmaGO S.A. prepares financial statements in accordance with International Financial Reporting
Standards approved by the European Commission.
The separate financial statements cover the year ended December 31, 2024 and include comparative
data as of and for the year ended December 31, 2023. Financial data is presented in thousands of
zlotys (PLN thousands), unless otherwise indicated.
2. Statement of compliance
These separate 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, as
amended) 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
14
These separate financial statements include selected explanatory notes that are material from the
perspective of the Entity's results and financial position during the reporting period. The Entity
presents each material category of similar items separately. Items that are dissimilar in type or
function are presented separately by the Entity unless they are immaterial.
These separate financial statements were approved by the Company's Management Board on April
24, 2025.
3. Going concern
The financial statements have been prepared on the assumption that the Company will continue as
a going concern for at least twelve months from the balance sheet date. As of the date of preparation
of these financial statements, the Company's Management Board does not identify any
circumstances indicating a threat to the Company's going concern.
4. Functional currency and presentation currency of financial statements
The functional currency of the Entity 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.
III. NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED
STANDARDS
Standards and interpretations that have been approved by the European Union
Standards
standards and
interpretations
Description of changes
The beginning of the
period
validities
Impact on the report
financials of the Unit
during 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
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- 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 of loan
January 1
2024
The application of the
amended standard did
not have a significant
impact on the financial
statements.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
15
agreements that the entity must
comply with only after the
balance sheet date) affect the
classification.
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
flows
cash and
IFRS 7
Instruments
Financial
Disclosures -
Arrangements
for
funding
suppliers
Amendments to IAS 7
"Statement of Cash Flows" and
IFRS 7 "Financial Instruments:
Disclosures" introduce disclosure
requirements for accounts
payable financing arrangements
with suppliers (so-
called reverse
factoring). The amendments
require the disclosure
of specific
information regarding contracts
of this type to enable users of
financial statements to assess
the impact of these contracts 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.
January 1
2024
The application of the
amended standard did
not have a significant
impact on the financial
statements.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
16
Standards and interpretations that are not in force and have not been previously applied by the
Entity
Standards and
interpretations
Description of changes
The beginning of
the period
Obligations
Impact on the report
financials of the
during 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 entity 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 issues: the
statemen
t of profit or loss,
required disclosures about
performance measures, and
issues 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 separate
financial
statements, the amendments
have not yet been approved by
the European Union.
January 1
2027
The entity is in the
process of preparing to
implement the
amendments to the
financial statements in
accordance with the
standard. There is no
planned early
implementation.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
17
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 f
inancial
statements. An entity qualifies
for the standard if it is not
publicly accountable and its
ultimate or intermediate parent
prepares separate
financial
statements available for public
use that comply with IFRS.
January 1
2027
The application of the
standard did 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 when
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 entity is in the
process of analyzing the
impact of the
amendments to the
standards on the financial
statements.
As of the date of these separate financial statements, these amendments have not yet been
approved by the European Union.
Standards and
interpretations
Description of changes
The beginning of the period
Obligations
Impact on the report
financials of the Unit
during their
initial
applications
IFRS 14
"Regulatory
The standard allows entities
that prepare their financial
statements in accordance
By a decision of the
European Union, IFRS 14
will not be approved.
The application of the
standard will not have a
significant impact on
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
18
Defferal
Accounts"
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. To improve
comparability, with entities
that already apply IFRS and
do not report
such amounts,
under published IFRS 14,
amounts arising from
regulated price 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.
the financial
statements.
Amendments
to IFRS 10
and IAS 28 on
the sale or
contribution of
assets
between an
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-
monetary assets sold or
contributed to an associate or
joint venture constitute a
"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
separate financial
statements, approval of
this amendment is
deferred by the European
Union.
The entity is in the
process of analyzing
the impact of the
amendments to the
standards on the
financial statements.
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
As of the date of these
separate 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
19
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.
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 resulting 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 separate financial statements for publication, the Company's Management Board does not
expect the introduction of the other standards and interpretations to have a significant impact on the
Company's accounting principles (policies).
IV. SIGNIFICANT ACCOUNTING POLICIES
In accordance with the amendments to IAS 1, "Presentation of Financial Statements," the Entity has
disclosed as part of these separate financial statements a description of the accounting policies that
the Entity considers relevant to the separate statements. In preparing the annual separate financial
statements, the Entity has applied the same accounting policies consistently throughout the periods
presented, except for court costs and related revenue recognition, as explained below.
Comparability of financial data and restatement of data
The comparative figures presented in these separate 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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
20
The entity 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. Until now, the Entity has recognized paid court costs as
‘Prepayments and accruals’ and recognized them as 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 entity changed its approach as to 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.
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 included as part of a separate line in
the separate statement of cash flows ‘Result of provision 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 entity has changed the presentation of external services previously presented under "Other core
expenses" by listing them to a separate item "External services". Data on the statement of profit or
loss and other comprehensive income presented in the published separate financial statements for
the period from January 1, 2023 to December 31, 2023 have been brought to comparability.
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’ in correspondence with
‘Income tax’ was adjusted.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
21
Impact of changes on comparative figures in annual separate financial statements
The effect of the above-described adjustments on the separate statements of profit or loss and other
comprehensive income, statements of financial position and statements of cash flows for the
comparative period included in these separate financial statements is presented in Note 27.
1. Property, plant and equipment
Property, plant and equipment include assets that:
● The entity 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 reviewed periodically (once a year), resulting in
an adjustment of depreciation provisions from the beginning of the fiscal year in which the change
occurred. The entity uses the following economic useful lives of fixed assets:
● Use rights - 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
Intangible assets include non-monetary assets without physical form, which are identifiable, i.e.,
separable, i.e., capable of being separated, i.e., excluded or set apart from the assets of the Entity,
transferred, licensed or put to use for a fee to third parties, either individually or together with a related
contract, asset or liability, or arises from contractual or other legal titles, regardless of whether they
are transferable or separable from the Entity 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. An entity recognizes in intangible assets
expenditures incurred for development work, provided the following conditions are met:
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
22
(a) it is technically possible to complete the intangible asset so that it is suitable for use or sale;
(b) The entity has the intention to complete the intangible asset and use or sell it;
(c) The entity has the ability to use or sell the intangible asset;
(d) the intangible asset will generate probable future economic benefits;
(e) The entity 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 attributable
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 a definite useful life 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 to be used in the manner intended by the Entity's management over a period
corresponding to the estimated economic useful life. The entity 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. Stocks and shares
The entity recognizes shares and in subsidiaries, associates and jointly controlled entities in the
separate financial statements, not classified as held for sale (or not included in a disposal group
classified as held for sale in accordance with IFRS 5), are recognized at cost with provisions for
impairment. At the end of the reporting period, the Company assesses whether there is any indication
that any asset or cash generating unit (CGU) may have been impaired.
If indications of impairment of shares are identified, an impairment test is performed. If there is an
impairment, provisions are charged to other operating expenses.
4. Entity 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 entity applies the simplifications provided by 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 Entity,
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
23
● Whether the entity 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 Entity has the right to direct the Utilization the identified asset throughout its
useful life.
At the commencement date of the lease and when the definition of a lease is met, the Entity
recognizes the right-of-use asset in the appropriate group of property, plant and equipment and the
liability in "Lease 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 Entity as lessee and lease
payments made at or before the commencement date, less lease incentives.
The entity amortizes rights to use on a straight-line basis from the earlier of the commencement date
to the end of the right's useful life 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 entity 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 entity 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 based on a carrying value
measurement to reflect any reassessment or modification of the lease or to reflect updated
substantially fixed lease payments.
5. 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.
An entity recognizes a financial asset when it becomes a party to a financial instrument, that is, 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.
An entity classifies financial assets as measured at amortized cost if:
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
24
● 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 an Entity 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 criteria. The entity 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 possible in the event
of an increase in the level of credit risk.
When assessing whether contractual cash flows represent only principal and interest payments (SPPI
criterion), the entity analyzes the instrument's contractual cash flows. This analysis includes an
assessment of whether the contract contains any provisions that could change the timing of
contractual payments or their amount in such a way that, from an economic perspective, 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 entity 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 Entity, which are an integral part of the effective interest rate and are presented in the
separate statements of profit or loss and comprehensive income as a reduction of 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 Entity 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.
6. Provisions for expected credit losses
The entity 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,
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
25
● 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 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 Unit
becoming aware that the debtor has filed for bankruptcy or other restructuring proceedings.
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 significant exposures as part of the individual analysis, based on
the entity's financial data and market information about its payment morality, taking into account the
entity's collateral for receivables.
Risk analysis is carried out per contract. This is justified by the broad product offering, where on a
single customer the Entity may have exposures on various products that differ significantly in the
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 Entity has the option of directly obtaining
payments from payment operators who cooperate with the customer). 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),
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
26
● - 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.
=
(
,
)
Where:
●
recoverability_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 last 3 months in relation to the
maturing amount of financing in a given month (or the maturing amount of trade receivables,
respectively).
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
27
- The weighted average of repayments over the past 36 months with respect
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 of6|36 and12|36 are determined, where instead of the value of
the
variable, the values for 6 and 12 months are used, respectively.
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 Unit takes the value of LGD equal to
100%.
Exposure value at risk of default (EAD)
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
28
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:
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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
29
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)
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 be in default. 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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
30
For all individually significant exposures (i.e., higher than PLN 500 thousand) that are impaired as of
the balance sheet date, the entity determines the value of the impairment allowance as part of the
individual assessment.
The 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.
7. 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.
8. Equity
Shareholders' equity is recognized in the books of account by its types and in accordance with the
rules set forth by law and the provisions of the Company's Articles of Association. Share capital is
reported at its nominal value, in accordance with the Unit's Articles of Association and the 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.
9. External financing costs
Borrowing costs are recognized as expenses in the period in which they are incurred.
10. Liabilities
Bond liabilities are measured at amortized cost using the effective interest rate method. The entity
uses simplified methods to measure other 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
31
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.
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 current
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.
11. Revenue
The separate 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 Entity 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 The
entity recognizes revenue on a one-time basis or on a straight-line basis. 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 entity 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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
32
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 quota 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.
Other operating income includes operating income not directly related to PragmaGO's statutory
activities. In particular, these are revenues from portfolio servicing, accounting services, IT support,
and re-invoiced services.
12. 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.
13. 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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
33
when the carrying amount of an asset is higher than its tax base or the carrying amount of a liability
is lower 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).
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, with
the exception of 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.
14. Operating segments
The Entity has implemented an internal reporting system for management and budgetary purposes
on the basis of the financial products offered and has divided reporting into "Factoring" and "Loans"
segments. The reporting segments identified at the Entity 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 entity's operations are shown as
unallocated expenses. Assets are allocated to operating segments except:
● "Property, plant and equipment."
● "Stocks and Shares;
● "Deferred tax assets";
● "Other current assets";
● "Cash and cash equivalents" and
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
34
● "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 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 Entity. 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.
The statement of profit or loss and other comprehensive income and assets and liabilities by operating
segment are presented in Note 21.
15. Statement of cash flows
In the statement of cash flows, the entity presents expenditures and proceeds from financial assets
used in its core business as a change in condition in its operating activities, and in the statement of
other comprehensive income, proceeds from these assets are presented in the core business, as they
serve the entity's statutory activities.
16. Professional judgment, estimates and assumptions
The preparation of financial statements in accordance with IFRS requires the Entity's management to
make professional judgments, estimates and assumptions that affect the policies adopted and the
presented values 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 Entity's management in the application of 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, 8 of the separate annual financial
statements.
Professional judgment is particularly concerned with, determining the economic useful lives of
tangible and intangible assets, verifying indications of impairment of shares, creating provisions for
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
35
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
2 309 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 entity 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 Entity assesses whether
there are indications that any of the property, plant and
equipment and intangible assets may be impaired. If such
indications are found, the Entity estimates the
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.
Intangible
assets
37 381 28 304 6
Stocks and
shares
43 717 5 240 7
Impairment of stocks and shares
At least at each balance sheet date, or more frequently if,
in the judgment of the entity's management, there are
indications of possible impairment, the entity tests its
investments in stocks and shares for impairment.
The entity formally estimates the recoverable amount of
cash-generating units for which indications of
impairment have been identified 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
income tax
asset
1 526 383 4
Recoverability of deferred tax assets
The entity 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 Entity's management, while working on the 2025
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
36
budget and medium-term plans, does not assume any
deterioration of the tax results obtained in the future.
Financial
assets
436 090 310 239 8
Parameter PD, LGD, EAD
Details of the assumptions used to estimate the
provisions for expected credit losses are included in Note
IV.5.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
37
NOTES TO THE SEPARATE ANNUAL FINANCIAL STATEMENTS of PragmaGO S.A.
PREPARED AS OF AND FOR THE PERIOD ENDED DECEMBER 31, 2024
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT
List of notes:
Number Name
1
Total net revenue
2
Operating expenses
3
Financial costs
4
Income tax - current and deferred
5
Property, plant and equipment
6
Intangible assets
7
Stocks and shares
8
Financial assets
9
Receivables
10
Cash
11
Prepayments and accruals
12
Share capital
13
Liabilities from loans and borrowings
14
Bonds liablities
15
Lease liablities
16
Trade and other payables
17
Deferred income
18
Reconciliations of changes in liabilities reported in the statement of cash flows
19
Guarantees, warranties and liabilities
20
Financial instruments
21
Operating segments
22
Average employment in FTEs at the Unit
23
Ownership of shares in the Unit by persons managing and controlling the Unit
24
Remuneration of key personnel Unit and Supervisory Board
25
Remuneration of the entity authorized to audit financial statements
26
Transactions and balances with related parties
27
Effect of changes introduced on comparative data in the separate financial statements
28
Fair value
29
Events after the balance sheet date
30
Other disclosures required by law - financial liability forecasts
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
38
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:
48 517
45 164
Interest income from financial instruments
measured at amortized cost, including:
27 124 21 601
Intermediary costs (3 663) (3 533)
Flat fees and subscription fees 9 724 12 069
Initial and revolving fees for granted limits, for
increase of limits
6 130 6 333
Monitoring and collection fees, for delays
2 254
2 337
Other
3 285
2 819
Income from loans, including:
49 933
27 444
Interest income from financial instruments
measured at amortized cost, including:
45 840 23 904
Intermediary costs
(10 074)
(3 885)
Monitoring and collection fees
3 583
3 536
Other
510
4
Other revenue, including:
4 000
5 385
Pragma Faktor portfolio servicing revenue
1 412
3 568
Other
2 588
1 817
TOTAL:
102 450
77 988
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
39
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 2 853 2 061
Remuneration and employee benefits 15 363 14 399
External services 10 650 9 493
Consumption of materials and energy 430 437
Taxes and fees 2 361 1 807
Other operating expenses 4 972 4 984
TOTAL:
36 629
33 181
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate 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
26 067
15 524
Interest on bank loans and borrowings
5 133
3 657
Costs of issuing bonds
2 638
1 612
Interest on leases
213
150
Bond valuation
121
-
Costs of early redemption of bonds
692
-
Other
865
646
TOTAL:
35 729
21 589
4. Income tax - current and deferred
4.1 - Income tax for the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Current income tax
4 758
3 793
Deferred income tax
(1 143)
620
TOTAL:
3 615
4 413
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
4.2 - Reconciliation of effective tax rate
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Gross profit before tax
11 459
10 969
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
40
4.2 - Reconciliation of effective tax rate
01.01.2024
01.01.2023
31.12.2024
31.12.2023
(restated data)*
Income tax at Poland's statutory tax rate of
19%
(2 177) (2 084)
Impact of permanent differences between
gross profit and taxable income for income tax
purposes, including:
(1 438)
(2 339)
Non-deductible provisions for credit losses on
factoring and loans exposures
(1 798) (1 638)
Sale of receivables 794 (279)
Other (434) (412)
Income tax reported in the statement of profit
or loss and other comprehensive income
(3 615)
(4 413)
Effective tax rate
32%
40%
4.3 - Change in deferred tax assets during the
period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Balance at beginning of period 6 328 4 570
Recognition 3 666 1 758
Reversal - -
TOTAL:
9 994
6 328
4.4 - Change in deferred tax liability during
the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Balance at beginning of period
5 945
3 567
Recognition
2 755
2 378
Reversal
(232)
-
TOTAL:
8 468
5 945
4.5 - Net deferred tax assets and liabilities in
the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Net deferred tax assets
1 526
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 550 375 (175) 82
Provisions 294 49 (245) 104
Deferred income 6 296 3 687 (2 609) (1 503)
Provisions for receivables 2 215 1 528 (687) (443)
Difference in tax and carrying value of
fixed assets
426 520 94 28
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
41
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
Annual VAT adjustment
117
-
(117)
58
Sales adjustments
70
-
(70)
-
Other
26
169
143
(84)
TOTAL DEFERRED TAX ASSETS:
9 994
6 328
(3 666)
(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 1 705 894 894
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
Unrecognized deferred tax
Due to the Company's control over the timing of settlement of temporary differences relating to the value
of shares and its knowledge that these differences will not be subject to reversal in the foreseeable time
range, no deferred tax has been recognized on this account.
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 income is not tax deductible, it represents permanent differences and
causes a discrepancy in the effective tax rate compared to the applicable 19% rate.
Tax risk
Regulations on value-added tax, corporate income tax and social security burdens are subject to frequent
change 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 bodies and state bodies
and companies.
Tax settlements and other areas of activity may be subject to audits by the authorities, who are authorized
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 risk in Poland higher than in countries with more mature
tax systems.
Consequently, the amounts presented and disclosed in the financial statements may change
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
42
in the future as a result of a final decision of the tax inspection 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
508
1 015
Technical equipment and machinery
122
158
Rights of use - means of transport
1 669
1 625
Other fixed assets
4
6
Investments in third-party fixed assets
6
12
TOTAL:
2 309
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
Investment
s in third-
party fixed
assets
Total
Gross carrying amount
as of 01.01.2024
2 100 629 2 320 394 70 5 513
Direct acquisitions -
47
-
-
-
47
Additions to Rights of
use
-
-
453
-
-
453
Decreases due to
sale/liquidation
-
(34)
(251)
-
-
(285)
Gross carrying amount
as of 31.12.2024
2 100
642
2 522
394
70
5 728
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
Investment
s in third-
party fixed
assets
Total
Gross carrying amount
as of 01.01.2023
1 444 603 2 335 394 70 4 846
Direct acquisitions
-
63
-
-
-
63
Additions to 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
629
2 320
394
70
5 513
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
43
5.3 - Property, plant
and equipment
depreciation
Use rights -
buildings
and
structures
Technical
equipment
and
machinery
Rights of
use -
means of
transport
Other fixed
assets
Investment
s in third-
party fixed
assets
Total
Depreciation value as
of 01.01.2024
1 085 471 695 388 58 2 697
Depreciation for the
period
507 80 308 2 6 903
Decreases due to
sale/liquidation
- (31) (150) - - (181)
Depreciation value as
of 31.12.2024
1 592
520
853
390
64
3 419
Property, plant and
equipment
depreciation
Use rights -
buildings
and
structures
Technical
equipment
and
machinery
Rights of
use -
means of
transport
Other fixed
assets
Investment
s in third-
party fixed
assets
Total
Depreciation value as
of 01.01.2023
578 405 499 386 51 1 919
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
471
695
388
58
2 697
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
44
6. Intangible assets
6.1 - Intangible assets
Balance as of Balance as of
31.12.2024 31.12.2023
ERP system
32 794
21 547
Computer systems under development
4 587
6 757
TOTAL:
37 381
28 304
6.2 - Intangible assets during the reporting period ERP system
Intangible
assets
in progress
Total
Gross carrying amount as of 01.01.2024 26 423 6 757 33 180
Acquisition 32 10 994 11 026
Acceptance for use 13 164 (13 164) -
Gross carrying amount as of 31.12.2024
39 619
4 587
44 206
Intangible assets in the period
reported
ERP system
Intangible
assets
in progress
Total
Gross carrying amount as of 01.01.2023 20 812 2 186 22 998
Acquisition 138 10 044 10 182
Acceptance for use 5 473 (5 473) -
Gross carrying amount as of 31.12.2023
26 423
6 757
33 180
6.3 - Intangible assets depreciation ERP system Total
Depreciation value as of 01.01.2024
4 876
4 876
Depreciation for the period
1 949
1 949
Depreciation value as of 31.12.2024
6 825
6 825
Intangible assets depreciation ERP system Total
Depreciation value as of 01.01.2023
3 738
3 738
Depreciation for the period
1 138
1 138
Depreciation value as of 31.12.2023
4 876
4 876
Intangible assets held by the Entity are assets with a definite useful life and are amortized using the straight-
line method.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
45
7. Stocks and shares
7.1 - Stocks and shares Headquarters
Balance as of Balance as of
31.12.2024
31.12.2023
BRUTTO Sp. z o.o.
Warsaw
3 408
3 408
PragmaGO.TECH Sp. z
o.o.
Krakow 1 832 1 832
Monevia Sp. z o.o. Bydgoszcz 11 319 -
Telecredit IFN S.A. Bucharest 27 158
TOTAL SHARES AND
STOCKS:
-
43 717
5 240
7.2 - Stocks and shares - changes in balance
during the period
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Balance at beginning of period
5 240
5 229
Increases during the period
38 477
11
SHARES AT THE END OF THE PERIOD:
43 717
5 240
Acquisition of Monevia shares
On February 5, 2024, the entity acquired 100% of the shares of Monevia Sp. z .o.o..
Settlement of share acquisition BRUTTO Sp. z o.o.
In 2023, the Company, as a result of the settlement agreement entered into on July 31, 2023. PragmaGO
S.A. settled in full with the Sellers and Platforms for all liabilities from the acquisition of shares in Brutto Sp.
o.o., including the earn-out contingent liability. Under this agreement, the remaining 1,700 shares were also
acquired, so that PragmaGO S.A. held 100% of the capital as of December 31, 2023 and December 31, 2024.
Acquisition of Telecredit shares
On December 5, 2024, upon fulfillment of the conditions precedent to the share purchase agreement in
Telecredit, the Entity took control of this entity by acquiring shares representing 89% of the share capital.
Pursuant to the agreement, the purchase price totaled 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 Sales 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.
Impairment of shares
As of December 31, 2024 and December 31, 2023, there were no indications of impairment of shares.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
46
As of 31.12.2024
Unit name Core business
Headquarter
s
Number of
shares
Nominal
value of
shares /
stocks (PLN)
Value of
shares /
stocks (PLN)
Percentage of
shares and
voting rights
held by the
Company
Number of
shares /
stocks held
by the
Company
Nominal value of
shares held by the
Company (PLN)
BRUTTO Sp. z o.o.
activities of
internet portals
Warsaw 2 924 100 292 400 100% 2 924 292 400
PragmaGO.TECH Sp. z
o.o.
software
services
Krakow 520 50 26 000 100% 520 26 000
Monevia Sp. z o.o.
factoring
services
Bydgoszcz 17 000 500 8 500 000 100% 17 000 8 500 000
Telecredit IFN S.A.
factoring
services
Bucharest 3 055 549* 0,86** 2 642 440 89% 2 719 439 2 351 772
* The value of Telecredit IFN's equity is RON 3,056 thousand and has been translated at the exchange rate on the date of acquisition of control, i.e. 0.8648 PLN/RON.
** 1 RON converted to PLN at the rate of exchange on the date the shares were taken up
Balance as of 31.12.2023
Unit name Core business
Headquart
ers
Number of
shares
Nominal
value of
shares
(PLN)
Value of
shares (PLN)
Percentage of
shares and
voting rights
held by the
Company
Number of
shares held
by the
Company
Nominal value of
shares held by the
Company (PLN)
BRUTTO Sp. z o.o.
activities of
internet portals
Warsaw 2 924 100 292 400 100% 2 924 292 400
PragmaGO.TECH Sp. z
o.o.
software
services
Krakow 520 50 26 000 100% 520
2
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
47
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 263 807 (16 813) 246 994 171 024 (23 193) 147 831
Factoring 207 417 (18 321) 189 096 183 237 (20 829) 162 408
TOTAL:
471 224
(35 134)
436 090
354 261
(44 022)
310 239
Sale of non-performing portfolio
In the period covered by this report, the entity sold a non-performing loan and factoring portfolio to an unrelated receivables fund with a total net value of PLN
3,262 thousand at 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 Company's business model,
in which the basic assumption is to hold financial assets to maturity.
Loans
Factoring
Total
Gross value
22 682
8 292
30 974
Derecognition of expected credit losses provisions
(19 591)
(8 121)
(27 712)
Net value
3 091
171
3 262
Selling price
3 764
208
3 972
Result on sales
673
37
710
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
48
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 (34 653) (18 600)
Reversal of provisions 15 829 5 501
Derecognition of provisions related to sale of
receivables
27 712 993
PERIOD-END PROVISIONS:
(35 134)
(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 separate 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
207 417
(18 321)
189 096
stage 1
165 172
(366)
164 806
stage 2
3 480
(414)
3 066
stage 3
38 765
(17 541)
21 224
loan receivables
263 807
(16 813)
246 994
stage 1
242 615
(4 119)
238 496
stage 2
3 691
(653)
3 038
stage 3
17 501
(12 041)
5 460
total receivables
471 224
(35 134)
436 090
stage 1
407 787
(4 485)
403 302
stage 2
7 171
(1 067)
6 104
stage 3
56 266
(29 582)
26 684
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
171 024
(23 193)
147 831
stage 1 142 668 (2 339) 140 329
stage 2 3 388 (383) 3 005
stage 3 24 968 (20 471) 4 497
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
49
31.12.2023 gross
provisions for expected
credit losses
net amount
total receivables
354 261
(44 022)
310 239
stage 1
285 494
(2 726)
282 768
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 3
(6 571)
(1 783)
8 354
-
Increases - granting
1 703 974
3 488
11 733
1 719 195
Decreases due to repayment
(1 674 603)
(2 526)
(9 140)
(1 686 269)
Decreases due to sales
-
-
(8 292)
(8 292)
Other changes (including
prepayments and accruals and
exchange differences)*
(454) - - (454)
Gross carrying amount per
December 31, 2024
165 172
3 480
38 765
207 417
Financial assets measured at
amortized cost 31.12.2024 - loans
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2024
142 668 3 388 24 968 171 024
Transfer to stage 2
(338)
338
-
-
Transfer to stage 3
(7 000)
(297)
7 297
-
Increases - granting
525 409
3 384
7 904
536 697
Decreases due to repayment
(406 508)
(3 122)
14
(409 616)
Decreases due to sales
-
-
(22 682)
(22 682)
Other changes (including
prepayments and accruals and
exchange differences)*
(11 616) - - (11 616)
Gross carrying amount per
December 31, 2024
242 615
3 691
17 501
263 807
* Other changes relate to: accrued income and agency expenses and balance sheet valuations of settlements in currencies.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
50
Financial assets measured at
amortized cost 31.12.2023 -
factoring
stage 1 stage 2 stage 3 Total
Gross carrying amount per
January 1, 2023
116 397 5 958 32 565 154 920
Transfer to stage 3 (2 762) (2 834) 5 596 -
Increases - granting*
1 525 520 4 300 6 863 1 536 683
Decreases due to repayment
(1 495 810) (3 123) (5 776) (1 504 709)
Decreases due to sales - - (3 138) (3 138)
Other changes (including
prepayments and accruals and
exchange rate 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
74 821 2 541 14 266 91 628
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
Decreases due to repayment (227 311) (776) (3 956) (232 043)
Other changes (including
exchange rate differences)**
(5 751) - - (5 751)
Gross carrying amount per
December 31, 2023
142 668
3 388
24 968
171 024
* Revised the presentation within the notes on movements in gross financial assets within the Increases-grant line separated the grant
into Stage 2 and Stage 3.
** Changed presentation within notes on movements in gross financial assets on a separate line excludes "Other changes (including
foreign exchange differences)" relating to changes in deferred income and deferred expenses presented net of asset
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 stage. 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 Stages 1, 2 or 3, respectively,
at the end of the balance sheet period.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
51
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
384
199
(12 193)
(11 610)
Provisions due to changes in credit
risk
(363) (358) 6 718 5 997
Decreases due to sales
-
-
8 121
8 121
Value of provisions as of December
31, 2024
(366) (414) (17 541) (18 321)
Change in provisions for
expected credit losses 31.12.2024 –
loans
stage 1 stage 2 stage 3 Total
Gross provisions as of January 1,
2024
(2 339) (383) (20 471) (23 193)
Provisions due to change in balance
(1 609)
(142)
(12 603)
(14 354)
Provisions due to changes in credit
risk
(171) (128) 1 442 1 143
Decreases due to sales
-
-
19 591
19 591
Value of provisions as of December
31, 2024
(4 119) (653) (12 041) (16 813)
Change in provisions for expected
credit losses 31.12.2023 - factoring
stage 1 stage 2 stage 3 Total
Gross provisions as of 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)
Change in provisions for
expected credit losses 31.12.2023 -
loans
stage 1 stage 2 stage 3 Total
Gross provisions as of 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)
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
52
Collaterals of financial assets
PragmaGO 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 after deducting prior mortgage entries. Factoring receivables insurance covers 85% or
90% of the nominal value of the covered receivables, with 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 (with 80-85% financing from PragmaGO S.A.) 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 82 240 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.
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 1 135 (18) 1 117 2 046 (18) 2 028
Other receivables
and current assets
1 150 (23) 1 127 1 017 (23) 994
TOTAL:
2 285
(41)
2 244
3 063
(41)
3 022
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
53
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
(41)
(23)
Recognition
-
(18)
Reversal
-
-
Utilization
-
-
TOTAL:
(41)
(41)
10. Cash
10.1 – Cash
Balance as of
Balance as of
31.12.2024
31.12.2023
Cash on hand 1 7
Cash in bank accounts, including: 5 982 9 385
Split payment - restricted funds 2 778 2 167
TOTAL: 5 983 9 392
11. Prepayments and accruals
* Financial data restated in accordance with Note 27 "Effect of Changes to Comparative Data in the Separate Financial Statements."
11.1 - Prepayments and accruals
Balance as of
Balance as of
31.12.2024
31.12.2023
(restated data)*
Insurance
337
284
Prospectus costs
156
201
Licenses (with a useful life of up to 12 months)
245
391
Other prepayments and accruals
469
380
TOTAL:
1 207
1 256
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
54
12. Share capital
12.1 - Share capital of the 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 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 authorized 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 entity defines its equity as equity from the statement of financial position.
The main objective of the Entity's capital management is to ensure the Entity's ability to continue as a going
concern and to maintain safe capital ratios that optimally support the Entity's operating activities and
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
55
increased value for its shareholders. The Entity complies with the requirements of the Commercial
Companies Code regarding the amount and nature of equity capital. The Entity manages its capital structure
and makes changes to it as a result of changes in economic conditions and as the Entity 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.
The entity 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 allows 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 of less than 400%. The entity defines net debt as: long-term and short-term borrowings, bonds
and leases, less cash and short-term deposits.
The Unit's net debt ratio was as follows:
12.2 - Net debt ratio
31.12.2024
31.12.2023
(restated data)*
Cash and cash equivalents
5 983
9 392
Liabilities from loans and borrowings
(54 448)
(43 557)
Bonds liabilities
(316 488)
(186 194)
Lease liabilities
(2 240)
(2 737)
Net debt
(367 193)
(223 096)
Equity
139 731
113 453
Net debt to equity ratio
263%
197%
Maximum level of net debt
400%
400%
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
56
12.3 - The Company's largest
shareholders 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 of
PLN)
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 - Credits and loans 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 included: - 12 000
Capital - 12 000
Interest - -
TOTAL LOANS AND LONG-TERM BORROWINGS:
-
17 353
Short-term bank loans, including: 35 924 22 756
Capital 35 889 22 640
Interest 35 116
Short-term loans included: 18 524 3 448
Capital 18 130 3 080
Interest 394 368
TOTAL LOANS AND SHORT-TERM BORROWINGS:
54 448
26 204
TOTAL:
54 448
43 557
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
57
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
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
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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
58
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 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 2 521 2 521 - PLN
fixed interest
rate
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 450 452 452 - PLN
fixed interest
rate
31.12.2025
blank promissory note issued by the
Borrower together 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
TOTAL:
95 371
54 448
54 448
-
-
-
-
-
* The loan amount includes the value of the loan received in EUR. The balance as of 31.12.2024 of the loan used 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 5,341 thousand PLN The loan balance according to PLN includes the value of the loan commission and accrued interest.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
59
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
Line/multi-product
contract
/multi-target
2 000 - - -
PLN/
EUR
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,
contractual joint mortgage up to the
amount of PLN 3 million, assignment
of cash receivables under the
insurance contract for the subject of
the collateral, financial pledge on cash
accumulated on all of the Borrower's
accounts held with the bank, limit
repayment guarantee granted by Bank
Gospodarstwa Krajowego
Overdraft facility 5 900 30 30 - PLN
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 limit repayment guarantee
provided by Bank Gospodarstwa
Krajowego, a statement of submission
to execution under Article 777 § 1(5) of
the CCP
Revolving credit 15 000 12 000 12 000 - PLN
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
Overdraft facility 15 000 (97) (97) - PLN
Interest rate per
annum at
variable prime
rate + margin
02.08.2024
Blank promissory note with a
promissory note declaration, power of
attorney to dispose of funds on bank
accounts belonging to the Borrower,
held at the Bank, registered pledge on
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
60
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
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 issued by the
Borrower 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 from
the first day of
the quarter +
margin
30.06.2025
blank promissory note issued by the
Borrower together with a promissory
note declaration
Loan 2 500 2 576 2 576 - PLN
Variable interest
rate according to
the prime rate
WIBOR 3M from
on the first day
of the quarter +
margin
31.12.2024
blank promissory note issued by the
Borrower together with a promissory
note declaration
Loan 580 580 580 - PLN
fixed interest
rate
26.10.2024
blank promissory note issued by the
Borrower together with a promissory
note declaration
TOTAL:
69 285
43 557
26 204
17 353
-
-
-
-
*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 takes into account the value of the loan commission and accrued interest.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
61
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 Entity has financial liabilities bearing interest at a floating rate based on WIBOR 3M quotes. The key
risk for the Entity in connection with the IBOR reform is the risk associated with the uncertainty of how the
contracts will transition to alternativ
e reference rates, which could lead to an adverse change in the risk
profile of these contracts.
To the best of its knowledge, the Entity does not expect a material impact of
the IBOR reform on its financial obligations, but it cannot clearly determine it
s impact, as not all the
systemic and regulatory Reversals and regulatory Reversal
s related to the reform have been worked out.
The Entity is taking steps to ensure that it is prepared to change the benchmarks in the financial
instruments it has entered into in the event that the publication of the WIBOR rate is discontinued. In
particu
lar, the Entity 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 company 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, m
aintaining the ratio of net financial debt to equity 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 monitoring by Management to ensure
compliance with financing agreements.
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
Company under the concluded agreements
41 258 25 967
Cash
5 983
9 392
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
62
14. Bonds liaabilities
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.
13.4 - Value of financial assets pledged as
collateral for loan liabilities
Balance as of
Balance as of
31.12.2024
31.12.2023
Registered pledge on factoring portfolio 27 313 26 437
Registered pledge on loan portfolio 48 000 18 000
Pledge on cash of bank accounts 1 923 4 764
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
63
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
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 -
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
64
Bond redemptions
In the period from January 1 to December 31, 2024, the bonds of the series issued by the Unit were
redeemed on time:
● 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.
An early redemption of Series Unit bonds was also made:
● 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.
Bond issuances
During the period from January 1 to December 31, 2024, the entity 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 floating
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 Management Board 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.
Issues and redemptions after the balance sheet date
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
65
On March 20, 2025, the Management Board of PragmaGO S.A. adopted a resolution to issue Series D3
secured bonds under the Fifth Public Bond Issuance Program with a total nominal value of PLN 40 million,
or PLN 50 million if the Entity's Board decides to increase the number of Bonds on offer. On April 4, 2025,
the Management Board of PragmaGO S.A. adopted a resolution to set the final number of Series D3 bonds
offered under the Program at 500,000 with a total par value of PLN 50 million.
No bonds were redeemed after the end of the reporting period.
14.2 - Bonds liabilities
Balance as of 31.12.2023
Bonds liabilities Nominal value
Value at amortized
cost
They include:
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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
66
Non-current 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
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 the assets of the
Company
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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
67
15. Lease liabilities
15.1 - Lease liabilities
Balance as of
Balance as of
31.12.2024
31.12.2023
Long-term
1 297
1 856
Short-term
943
881
Lease liabilities relate to passenger cars and the leased building that houses the Company's headquarters
at 72 Brynowska Street in Katowice. The building is used under a lease agreement, which meets the criteria
for recognition as a lease under IFRS 16 ‘Leases’.
15.2 - Future minimum lease payments and
interest under finance leases
31.12.2024
31.12.2023
Charges
Interest
Charges
Interest
Up to 1 year
943
121
881
162
From 1 year to 5 years
1 297
138
1 856
153
Over 5 years
-
-
-
-
TOTAL:
2 240
259
2 737
315
16. Trade and other payables
16.1 - Trade and other payables
Balance as of
Balance as of
(data
restated)*
31.12.2024
31.12.2023
Earn-out liabilities 1 914 -
Total long-term liabilities:
1 914
-
Trade payables
4 578
3 336
Current income tax liabilities 445 204
Liabilities for other taxes, duties and social security
1 658
973
Amounts to be reimbursed**
2 684
3 278
Financing liabilities 1 374 3 828
Provisions for liabilities
680
406
Provisions for unused leave
455
427
Provisions for bonuses of the Management Board 533 -
Accruals and other liabilities
165
54
Total SHORT-TERM LIABILITIES:
12 572
12 506
TOTAL:
14 486
12 506
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
** Payments received for assignment as collateral, settled on an ongoing basis with original creditors.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
68
Earn-out liabilities
As of the date of acquiring control of the subsidiary, the Entity recognized a liability for the contingent
purchase price for the shares of Telecredit IFN SA, in accordance with the agreement, the Entity will be
obligated to pay the additional purchase price in case the results for 2025 reach the assumed level. In
accordance with the expectations of the Entity'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
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
Leases 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 - 135 882 - 135 882
Repayment of loans and credits - (124 427) - (124 427)
Proceeds from bond issuance 216 895 - - 216 895
Bond redemption outflows (84 000) - - (84 000)
Interest paid on bonds (24 653) - - (24 653)
Interest paid on loans, borrowings and leases - (5 188) (213) (5 401)
Foreign exchange differences realized - (1 021) - (1 021)
Lease buyouts and repayments - - (880) (880)
Total changes from cash flows from financing
activities (excluding proceeds from share
issues)
108 242
5 246
(1 093)
112 395
Changes due to valuation
(437)
829
-
392
Accrued interest
26 067
5 133
213
31 413
Lease increases
-
-
453
453
Other changes (including accrued expenses)
(3 578)
(317)
(70)
(3 965)
As of 31.12.2024
316 488
54 448
2 240
373 176
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
69
18.2 - Reconciliations of changes in liabilities with
flows from financing activities
Bonds
Credits and
loans
Leases TOTAL
As of 01.01.2023
101 239 38 142 2 882 142 263
Changes due to flows from financing activities
Proceeds from loans and borrowings - 121 785 - 121 785
Repayment of loans and credits - (115 165) - (115 165)
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 buy-outs and repayments - - (735) (735)
Total changes from cash flows from financing
activities
72 384
3 141
(885)
74 640
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
Balance as of
Balance as of
31.12.2024
31.12.2023
(restated data)*
Result from bond valuation (437) (1 809)
Decreases in property, plant and equipment 104 98
Changes due to valuation
(387)
-
TOTAL:
(720)
(1 711)
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
18.4 - Change in balance due to factoring receivables
Balance as of
Balance as of
31.12.2024
31.12.2023
Change in factoring status
(26 688)
(26 266)
Result of provisions for expected credit losses
2 508
(2 051)
TOTAL:
(24 180)
(28 317)
18.5 - Change in balance due to loans granted
Balance as of Balance as of
31.12.2024 31.12.2023
Change in loans
(99 163)
(69 341)
Result of provisions for expected credit losses
6 380
(10 055)
TOTAL:
(92 783)
(79 396)
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
70
18.6 - Change in prepayments and accruals
Balance as of
Balance as of
31.12.2024
31.12.2023
(restated data)*
Change in prepayments and accruals 49 (295)
Change in deferred income 848 785
Change in Prepayments and accruals related to
bonds
(3 578) (1 144)
TOTAL:
(2 681)
(654)
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
19. Guarantees, sureties 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 sureties 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 S.A..
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 Entity 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 this report,
the Entity does not identify any risks of default under the surety.
Loan repayment guarantee - TELECREDIT
The surety relates to liabilities under a loan granted to TELECREDIT by a third party. The entity 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 report, the entity does not identify any risks of liabilities arising from
the surety.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
71
20. Financial instruments
20.1 - Financial instruments by category
Balance as of Balance as of
31.12.2024 31.12.2023
Financial assets, including:
443 190
321 659
Loans and factoring measured at amortized cost
436 090
310 239
Own receivables valued in nominal terms
1 117
2 028
Cash
5 983
9 392
Financial liabilities, including:
379 668
235 824
Liabilities measured at outstanding value (nominal
plus interest)
58 602 46 294
Liabilities measured at amortized cost 316 488 186 194
Trade payables measured in nominal terms 4 578 3 336
On the asset side, the Entity 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
Entity, 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 Entity's operations.
The main risks to which the Entity is exposed are credit risk, market risk (interest rate risk, foreign exchange
risk) and liquidity risk, and their detailed descriptions and impact on the Entity's operations are described in
the Management Report on PragmaGO S.A.'s operations. The Management Board is responsible for
establishing and overseeing the Entity's risk management, including the identification and analysis of the
risks to which the Entity is exposed, the determination of their respective limits and controls, as well as the
monitoring of risks and the degree of compliance with the limits. Risk management policies and procedures
are subject to regular review to take into account changes in market conditions and changes in the Unit's
operations.
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 Entity 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 6 of the
Significant Accounting Policies in the annual separate 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 the case of factoring, agreements with recourse are used, which allows the Entity to pursue claims against
the factor in the event of non-payment by the factoring debtor. In addition, factoring agreements use
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
72
collateral in the form of insurance contracts, BGK guarantees and mortgage collateral, which provides the
Unit 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 the appropriate dispersion of customers
and debtors, as well as by the Utilization in-kind collateral for its receivables. Data on portfolio structure,
concentration, insurance coverage can be found in the Management Report on PragmaGO S.A. operations.
Concentration risk is minimized by diversifying the portfolio and is assessed both by client and debtor (in
the case of factoring). As of the date of these separate annual financial statements, the Entity does not
have any single exposures whose default could materially reduce the Entity'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 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
73
Interest rate risk
The entity 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 account for only a trace portion of the Entity's financial portfolio. At the
same time, the Entity, when providing financing through factoring and loans, applies a policy that gives the
possibility to change the price terms of the contract depending on changes in reference rates. However, it
should be mentioned that the Issuer may not be able, in a competitive market, to quickly and fully pass on
the higher costs of its debt financing to higher remuneration rates for its services.
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 Company's Management Board as medium. The
probability of materialization of the above risk is assessed by the Management Board as medium.
Currency risk
The Entity seeks to minimize foreign exchange risk by matching liability exposures to the value of
receivables denominated in the same foreign currency. The Entity currently has significant foreign currency
exposures in the euro and the Romanian leu (Note 20.4)
Liquidity risk
Due to the financing of its operations with external capital to a significant extent, the entity 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. Sources of financing, in addition to own funds, 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 Unit (263% - 31.12.2024, 197% -
31.12.2023)
As of the date of publication of these financial statements, the entity 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 being placed on immediate maturity or needing to cash out faster than
indicated in Note 20.2 is of limited materiality, as the Entity has a diversified financing structure. The Entity
finances its operations based on issued corporate bonds with maturities of 1 to 4 years and through loans
and borrowings with a financing period of up to one year.
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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
74
liquidate the assets held or the possibility of selling these assets only at an unfavorable price. Liquidity risk
is mitigated by high asset turnover.
In the event of a deterioration of the Entity's financial situation, which may result in insufficient funds to
repay the debt on time or a breach of specific contractual provisions or the terms and conditions of the bond
issue, bondholders or financial institutions may place the debt on immediate maturity. Excessive
indebtedness or market conditions may further limit the availability of additional external financing needed
for the Issuer's growth and the achievement of its strategic goals. The entity 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 Company's receivables and liabilities,
so that each time, in advance, the Entity has available cash in an amount that allows it to settle its maturing
obligations. In addition, the bonds issued by the Entity to date have original maturities of 2 to 4 years, and
the maturities of the various series of bonds vary. As a result, in the event of the impossibility of issuing
further series of bonds, the Entity 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 in its operations (reduce its working debt portfolio) and adjust its scale to the volume of available
financing.
The objective of liquidity risk management in the Entity is to shape such a structure of the balance sheet
and off-balance sheet liabilities that ensures constant liquidity, taking into account the optimization of
Financial expenses. The Entity 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.
The entity 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 entity does not expect that the expected cash flows
included in the maturity analysis may occur significantly earlier or in significantly different amounts.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
75
20.2 - Financial
instruments - liquidity
rate risk as at
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:
412 713
28 697
-
310 473
18 681
-
Receivables
409 060
26 783
-
290 913
18 681
-
Loans granted
220 494
26 253
-
129 594
17 592
-
Factoring
188 566
530
161 319
1 089
-
Liabilities
3 653
1 914
-
19 560
-
-
Credits and loans
received
3 653 - - 580 - -
Bonds
-
-
-
18 980
-
-
Earn-out liabillities
-
1 914
Variable interest rate:
104 074
265 696
-
28 950
184 623
-
Receivables
247
-
-
645
-
-
Loans granted
247
-
-
645
-
Liabilities
103 827
265 696
-
28 305
184 623
-
Credits and loans
received
50 795 - - 25 624 17 353 -
Bonds 52 089 264 399 - 1 800 165 414 -
Lease liabilities 943 1 297 - 881 1 856 -
20.3 - Financial instruments - interest rate risk
The Unit is exposed to interest rate risk because it borrows funds bearing interest at variable rates. This is
similar with a portion of the Unit's loans. In the factoring portfolio, on the other hand, the Unit's remuneration
is set at fixed rates. The Entity, managing the risk of interest rate changes, has guaranteed 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 the respective contract and the new level of remuneration is set. The
sensitivity analysis below shows the impact of changes in interest rates by 50 basis points up or down on
an annual basis on the entity's financial results. The calculation presented below was applied to financial
instruments with variable interest rates.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
76
Financial instruments by
category as of December 31,
2024.
Principal receivables
(PLN)
Impact on the
Company's financial
result with variable
rate of %
by 0.5% in plus (PLN)
The impact on the
Company's financial
result at a variable rate
of %
by 0.5% in minus (PLN)
Loans granted - - -
Credits and loans received (50 795) (254) 254
Bonds issued (320 100) (1 600) 1 600
Liabilities under leases
(2 240)
(11)
11
TOTAL:
(373 135)
(1 866)
1
Financial instruments by
category as of December 31,
2023.
Principal receivables
(PLN)
Impact on the
Company's financial
result with variable
rate of %
by 0.5% in plus (PLN)
The impact on the
Company'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
Liabilities under leases
(2 737)
(14)
14
TOTAL:
(213 731)
(1 069)
1 069
20.4 - Financial instruments - currency risk
The entity is exposed to foreign currency risk due to having factoring receivables in foreign currency. As a
hedge against foreign currency risk, the entity finances receivables in foreign currency with a loan in the
same currency, and has a reserved option in most agreements to charge counterparties for the resulting
exchange rate differences. The entity also has an available dual-currency financing limit.
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
Company's
financial result
when the currency
exchange rate
changes
by PLN 0.10 in plus
The impact on the
Company's
financial result
when the currency
exchange rate
changes
by PLN 0.10 in
minus
Loans granted
2 376
10 153
238
(238)
Factoring provided
6 145
26 258
614
(615)
Credits and loans
received
(1 250) (5 341) (125) 125
Bonds
(8 500)
(36 321)
(850)
850
TOTAL:
(1 229)
(5 252)
(123)
123
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
77
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.
The impact on the
Company's
financial result
when the currency
exchange rate
changes
by PLN 0.10 in plus
The impact on the
Company's
financial result
when the currency
exchange rate
changes
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
Responsibility for liquidity risk management lies with the Entity's Management Board, which has
implemented an appropriate liquidity management system for the Entity. The system is used to manage
short, medium and long-term financing and liquidity management requirements.
The Entity's liquidity risk management takes the form of maintaining adequate levels of reserve capital,
reserve lines of credit, continuous monitoring of projected and actual cash flows, and matching the maturity
profiles of financial assets and liabilities.
This note below provides information on the maturity dates of the Entity's main assets (portfolio of
receivables) and its liabilities. As part of its liquidity risk management, the Issuer analyzes the liquidity gap,
plans in advance the repayment of financial liabilities (sources, alternative scenarios), and constantly works
to diversify its sources of financing. Due to the nature of the entity's business (the vast majority of assets
are current in nature and rotate in cash about 5 times a year, the entity 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 baseline for the Entity, but an
alternative repayment scenario. The baseline option is the Utilization cash on hand, available lines of credit
(the level of available funds the Entity 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 Company does not see significant threats to its liquidity.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
78
Exposures to credit risk related to balance sheet
assets 31.12.2024.
438 334
Factoring 189 096
Loans 246 994
Own receivables valued in nominal terms 1 117
Other current assets measured in nominal terms 1 127
Fair value
The carrying value of financial assets represents the Company's maximum exposure to credit risk. Due to
the short-term nature of the assets, their fair value approximates their book value.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
79
Exposures - gross value
31.12.2024.
Undue
Overdue
Up to 30
days
31 - 90 days 91 - 180 days 181-365 days over 365 days Total
Revaluation
provisions
Factoring
151 320
13 852
3 480
4 871
9 759
24 135
207 417
(18 321)
Loans
239 621
2 994
3 691
5 688
8 850
2 963
263 807
(16 813)
Own receivables valued in
nominal terms
652 447 - - - 36 1 135
(18)
Other current assets
measured in nominal terms
922 2 4 7 18 197 1 150
(23)
TOTAL:
392 515
17 295
7 175
10 566
18 627
27 331
473 509
(35 175)
Exposures - net value
31.12.2024.
0-30 days 31 - 90 days over 90 days Total
Factoring
164 806
3 066
21 224
189 096
Loans
238 496
3 038
5 460
246 994
Own receivables valued in
nominal terms
652 447 18 1 117
Other current assets measured
in nominal terms
902 6 219 1 127
TOTAL:
404 856
6 557
26 921
438 334
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
80
Age analysis of the Company'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 81 768 60 785 8 237 530 - - 151 320
Loans 28 031 39 344 145 993 26 253 - - 239 621
Own receivables valued in nominal
terms
487 165 - - - - 652
Other current assets measured in
nominal terms
922 - - - - - 922
TOTAL:
111 208
100 294
154 230
26 783
-
-
392 515
Age analysis of the
Company's financial and
other liabilities as of
December 31, 2024.
Undue
Overdue
Tota
Up to 30 days 31 - 90 days 91 - 365 days 1 - 3 years 3-5 years over 5 years
Credits and loans 54 448 - - - - - -
54 448
Bonds 316 488 - - - - - - 316 488
Leasing
2 240
-
-
-
-
-
-
2 240
Trade payables 4 551 25 - 1 1 - - 4 578
Earn-out liabilities 1 914 - - - - - - 1 914
Other liabilities and accruals
measured in nominal terms
7 371 - 6 56 116 - - 7 549
TOTAL:
387 012
25
6
57
117
-
-
387 217
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
81
Age analysis of the Company'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 392 1 568 52 488 - - -
54 448
Bonds 1 396 1 932 48 761 209 753 54 646 - 316 488
Leasing 71 169 703 941 356 - 2 240
Trade payables 4 052 499 - - - 4 551
Earn-out liabilities - - - 1 914 - - 1 914
Other liabilities and accruals
measured in nominal terms
7 371 - - - - - 7 371
TOTAL:
13 282
4 168
101 952
212 608
55 002
-
387 012
Exposures to credit risk related to balance sheet assets 31.12.2024.
31.12.2023
Factoring
162 408
Loans
147 831
Own receivables valued in nominal terms
2 028
Other current assets measured in nominal terms 994
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
82
Exposures - gross value
31.12.2023
Undue
Overdue
Up to 30
days
31 - 90 days 91 - 180 days 181-365 days over 365 days Total
Revaluation
provisions
Factoring
122 477
20 349
4 301
4 042
4 001
28 067
183 237
(20 829)
Loans
138 393
4 275
3 388
4 754
7 138
13 076
171 024
(23 193)
Own receivables valued in
nominal terms
1 778 231 - - - 36 2 045 (17)
Other current assets
measured in nominal terms
814 5 3 6 11 178 1 017 (23)
TOTAL:
263 462
24 860
7 692
8 802
11 150
41 357
357 323
(44 062)
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
140 329
3 005
4 497
147 831
Own receivables valued in
nominal terms
2 009 - 19 2 028
Other current assets measured
in nominal terms
798 3 193 994
TOTAL:
285 575
7 054
20 632
313 261
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
83
Age analysis of the Company'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 21 427 24 803 74 571 17 462 130 - 138 393
Own receivables valued in nominal
terms
133 1 645 - - - - 1 778
Other current assets measured in
nominal terms
814 - - - - - 814
TOTAL:
91 967
72 720
80 094
18 021
660
-
263 462
Age analysis of the
Company'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
3 241
87
8
-
-
-
-
3 336
Other liabilities and accruals
measured in nominal terms
8 833 3 12 61 57 - - 8 966
TOTAL:
244 562
90
20
61
57
-
-
244 790
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
84
Age analysis of the Company'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
Leasing
147
127
607
1 495
361
-
2 737
Trade payables
2 909
332
-
-
-
-
3 241
Other liabilities and accruals
measured in nominal terms
8 833 - - - - - 8 833
TOTAL:
13 415
4 204
42 320
184 262
361
-
244 562
* The company 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
85
21. Operating segments
21.1 - Operating segments - statement of profit or loss and
other comprehensive income
01.01.2024 - 31.12.2024
Factoring Loans Unassigned TOTAL
TOTAL NET SALES REVENUE
49 929
52 349
172
102 450
Factoring income, including:
48 517
-
-
48 517
Interest income from financial instruments measured at
amortized cost
27 124 - - 27 124
Income from loans, including:
-
49 933
-
49 933
Interest income from financial instruments measured at
amortized cost
- 45 840 - 45 840
Other revenue
1 412
2 416
172
4 000
OPERATING EXPENSES
(16 786)
(12 752)
(7 091)
(36 629)
Depreciation - - (2 853) (2 853)
Remuneration and employee benefits (9 235) (6 128) - (15 363)
External services (3 977) (3 199) (3 474) (10 650)
Other core expenses (3 574) (3 425) (764) (7 763)
PROFIT (LOSS) FROM SALES
33 143
39 597
(6 919)
65 821
Other operating income - - 1 411 1 411
Other operating expenses (37) (673) (573) (1 283)
Result of provisions for expected credit losses (5 612) (13 211) - (18 823)
OPERATING PROFIT (LOSS)
27 494
25 713
(6 081)
47 126
Financial income - - 67 67
Financial expenses (18 823) (16 762) (144) (35 729)
Exchange position result - - (5) (5)
PROFIT (LOSS) BEFORE TAX
8 671
8 951
(6 163)
11 459
Income tax - - (3 615) (3 615)
NET PROFIT (LOSS)
-
-
-
7 844
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
86
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 NET SALES REVENUE
48 727
29 097
164
77 988
Factoring income, including:
45 159
-
-
45 159
Interest income from financial instruments measured at
amortized cost
21 601 - - 21 601
Income from loans, including:
-
27 444
-
27 444
Interest income from financial instruments measured at
amortized cost
- 23 904 - 23 904
Other revenue
3 568
1 653
164
5 385
OPERATING EXPENSES
(19 709)
(7 334)
(6 138)
(33 181)
Depreciation
-
-
(2 061)
(2 061)
Remuneration and employee benefits
(11 274)
(3 125)
-
(14 399)
External services
(3 825)
(2 053)
(3 615)
(9 493)
Other core expenses
(4 610)
(2 156)
(462)
(7 228)
PROFIT (LOSS) FROM SALES
28 018
21 763
(5 974)
44 807
Other operating income
-
-
453
453
Other operating expenses
(363)
-
(309)
(672)
Result of provisions for expected credit losses
(3 514)
(10 145)
435
(13 224)
OPERATING PROFIT (LOSS)
25 141
11 168
(5 395)
31 364
Financial income
-
-
2 045
2 045
Financial expenses
(11 923)
(7 408)
(2 258)
(21 589)
Exchange position result
-
-
(851)
(851)
PROFIT (LOSS) BEFORE TAX
13 218
4 210
(6 459)
10 969
Income tax
-
-
(4 413)
(4 413)
NET PROFIT (LOSS)
-
-
-
6 556
Operating segments - assets and liabilities
Balance as of 31.12.2024
Factoring
Loans
Unassigned
TOTAL
Total segment assets
228 388
251 091
50 978
530 457
Total segment liabilities
(331 038)
(52 323)
(7 365)
(390 726)
Operating segments - assets and liabilities
Balance as of 31.12.2023
(restated data)*
Factoring
Loans
Unassigned
TOTAL
Total segment assets
164 179
151 627
44 831
360 652
Total segment liabilities
(146 456)
(88 902)
(11 841)
(247 199)
* Financial data restated in accordance with Note 27 "Effect of changes made to comparative data in separate financial statements".
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
87
22. Average employment in FTEs at Unit
22.1 - Average employment in FTEs in the Unit during the period
01.01.2024 01.01.2023
31.12.2024 31.12.2023
White-collar workers
82
86
Total average number of FTEs
82
86
23. Ownership of shares of the Entity by persons managing and controlling the
Entity
23.1 - Shares of the Company held directly by Members of the Management Board
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 Unit.
Members of the Entity's Supervisory Board do not directly hold shares or stock options in the Entity.
24. Remuneration of key personnel of the Unit and the Supervisory Board received
during the period
24.1 - Remuneration of key personnel of the Unit
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Management Board of PragmaGO
2 561
1 938
Basic salary 1 492 1 618
Bonuses and more 536 320
Provisions for bonuses 533
-
TOTAL:
2 561
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 auditing company
25.1 - Remuneration of auditing company
01.01.2024
01.01.2023
31.12.2024
31.12.2023
Audit and review of the separate and consolidated
financial statements
400 201
Other attestation services
-
38
TOTAL:
400
239
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
88
26. Transactions and balances with related parties
26.1 - Transactions and balances
with related parties as of and for
the period ending 31.12.2024
Brutto
sp. z o.o.
PragmaGO.
TECH
sp. z o.o.
Monevia
sp. z o.o.
Telecredit
IFN S.A,
Other
related
parties
Revenue
53
44
1 558
75
2 913
Expenses
1 055
1 006
51
-
2 503
Purchase of tangible and
intangible assets
- 9 639 - - -
Shares and stocks
3 408
1 832
11 319
27 158
-
Trade and other short-term
receivables
5 2 - - 313
Factoring receivables - - 22 456 - 12 832
Loan receivables - - - 10 265 1 115
Loans payable 452 - - - 2 577
Trade and other payables
147 1 070 12 - 735
The company generates revenues from financing provided to its subsidiaries Monevia and Telecredit.
Revenues from other related parties primarily 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 revenues from related parties on a stand-alone basis are
immaterial.
Expenses from Brutto relate to brokerage fees, while costs from PragmaGO.TECH relate to fees for system
maintenance and servicing. Costs from other affiliates relate to re-invoices of insurance, scoring and
collection costs from Pragma Faktor, lease of the building where the Unit's headquarters is located from
NPL Nova, and legal fees by Pragma Adwokaci.
The entity purchases services from PragmaGO.TECH for extensions and improvements to the NAVI system,
which are capitalized on intangible assets
Factoring receivables from other related parties relate to financing in the form of advance factoring provided
to Pragma Faktor.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
89
Additional information on financing provided to related parties:
Related party
Balance at the
end of the period
interest rate on
loans
Additional information
Pragma Faktor Sp. z o.o. 1 115 fixed
Element of service
cooperation
Monevia Sp. z o.o.
10 265
fixed
-
Telecredit IFN SA
22 456
fixed
-
Pragma Faktor Sp. z o.o.
12 832
fixed
-
Loans to related parties are not subject to provisions.
Related party
Balance at the end
of the period
interest rate on
loans
Additional information
Pragma Faktor Sp. z o.o. 1 115 fixed
Element of service
cooperation
Monevia Sp. z o.o.
10 265
fixed
-
Telecredit IFN SA
22 456
fixed
-
Pragma Faktor Sp. z o.o.
12 832
fixed
-
All transactions carried out with related parties by the Entity were on terms that did not deviate from market
terms.
Additional information on loans received of related parties:
Related party
Balance at the
end of the period
interest rate on
loans
Additional information
NPL Nova S.A.
2 577
variables
-
BRUTTO Sp. z o.o.
452
fixed
-
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
90
The Parent Company in relation to the Company 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
BRUTTO
sp. z o.o.
PragmaGO.TECH
sp. z o.o.
Other related
parties
Revenue
89
53
6 311
Expenses
818
305
3 579
Purchase of tangible and intangible assets
-
8 816
-
Shares and stocks
3 408
1 832
-
Trade and other short-term receivables
7
2
1 596
Factoring receivables
-
-
14 317
Loan receivables
456
-
1 100
Loans payable
-
-
2 576
Trade and other SHORT-TERM LIABILITIES
194
853
1 318
26.3 - Transactions and balances with
Members of the Management Board and
Supervisory Board as of and for the period
ending 31.12.2023
31.12.2024
31.12.2023
Management
Supervisory
Board
Management
Supervisory
Board
Short-term liabiligies
2
-
12
-
Loans received during the period
500
-
1 280
-
Balance at the end of the period due to loans
received by the Unit
- - - -
Interest paid on loans received
17
-
78
48
Value of bonds held
61
-
68
-
All transactions carried out with related parties by the Company were on terms that did not deviate from
market terms
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
91
27. Effect of changes introduced on comparative data in the separate
financial statements
Separate annual statement of profit or loss and other comprehensive income for the
period
Specification
01.01.2023 -
31.12.
(data
previously
reported)
Adjustment
01.01.2023 -
31.12.
(restated data)
Description
of the
correction
TOTAL NET SALES REVENUE
77 521
467
77 988
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:
27 444
-
27 444
-
Interest income from financial
instruments measured at amortized
cost
23 904 - 23 904 -
Other revenue
5 385
-
5 385
-
OPERATING EXPENSES
(31 566)
(1 615)
(33 181)
1, 2, 3
Depreciation (2 061) - (2 061) -
Remuneration and employee benefits (14 399) - (14 399) -
External services - (9 493) (9 493) 3
Other core expenses (15 106) 7 878 (7 228) 1, 2, 3
PROFIT (LOSS) FROM SALES
45 955
(1 148)
44 807
1
Other operating income 453 - 453 -
Other operating expenses (672) - (672) -
Result of provisions for expected credit
losses
(13 584) 360 (13 224) 1
OPERATING PROFIT (LOSS)
32 152
(788)
31 364
1
Financial income
2 045
-
2 045
-
Financial expenses
(21 589)
-
(21 589)
-
Exchange position result
(851)
-
(851)
-
PROFIT (LOSS) BEFORE TAX
11 757
(788)
10 969
1
Income tax
(4 269)
(144)
(4 413)
5
NET PROFIT (LOSS)
7 488
(932)
6 556
1, 5
Other comprehensive income
-
-
-
-
COMPREHENSIVE INCOME FOR THE
REPORTING PERIOD
7 488
(932)
6 556
1, 5
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
92
Separate annual statement of financial position
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)*
Description
of the
adjustment
FIXED ASSETS
55 424
-
55 424
-
Property, plant and
equipment
2 816 - 2 816 -
Intangible assets
28 304
-
28 304
-
Stocks and shares
5 240
-
5 240
-
Factoring
1 089
-
1 089
-
Loans
17 592
-
17 592
-
Deferred tax assets
383
-
383
-
CURRENT ASSETS
307 457
(2 229)
305 228
1
Trade receivables
2 028
-
2 028
-
Other current assets
994
-
994
-
Factoring
161 319
-
161 319
-
Loans
130 239
-
130 239
-
Prepayments and accruals
3 485
(2 229)
1 256
1
Cash and cash equivalents
9 392
-
9 392
-
TOTAL ASSETS:
362 881
(2 229)
360 652
1
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)*
Description of the
adjustment
TOTAL EQUITY
115 826
(2 373)
113 453
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:
(3 635)
(2 373) (6 008)
1, 5
Net profit (loss) of the
period
7 488
(932)
6 556
1, 5
LONG-TERM
LIABILITIES
184 638
-
184 638
-
Long-term provisions
15
-
15
-
Long-term loans and
borrowings liabilities
17 353
-
17 353
-
Long-term bonds
liabilities
165 414
-
165 414
-
Long-term lease
liabilities
1 856
-
1 856
-
SHORT-TERM
LIABILITIES
62 417
144
62 561
5
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
93
Specification
31.12.2023
(data previously
reported)
Adjustment
31.12.2023
(restated data)*
Description of the
adjustment
Short-term loans and
borrowings liabilities
26 204
-
26 204
-
Short-term bonds
liabilities
20 780
-
20 780
-
Short-term lease
liabilities
881
-
881
-
Trade payables
3 336
-
3 336
-
Current income tax
liabilities
60
144 204
5
Other liabilities and
accruals
8 966
-
8 966
-
Deferred income
2 190
-
2 190
-
TOTAL EQUITY AND
LIABILITIES:
362 881
(2 229)
360 652
1
Separate annual statement of financial position
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)*
Description of
the correction
FIXED ASSETS
41 207
-
41 207
-
Property, plant and
equipment
2 927 - 2 927 -
Intangible assets 19 260 - 19 260 -
Stocks and shares 5 229 - 5 229 -
Loans 12 788 - 12 788 -
Deferred tax assets 1 003 - 1 003 -
CURRENT ASSETS
218 665
(1 441)
217 224
1
Trade receivables 1 364 - 1 364 -
Other current assets 1 186 - 1 186 -
Factoring 136 142 - 136 142 -
Loans 65 702 - 65 702 -
Prepayments and
accruals
2 402 (1 441) 961 1
Cash and cash
equivalents
11 869 - 11 869 -
TOTAL ASSETS:
259 872
(1 441)
258 431
1
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)*
Description of
the correction
TOTAL EQUITY
108 338
(1 441)
106 897
1
Share capital
5 934
-
5 934
-
Treasury shares
(468)
-
(468)
-
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
94
Specification
31.12.2022
(data previously
reported)
Adjustment
01.01.2023
(restated data)*
Description of
the correction
Share premium
81 393
-
81 393
-
Retained earnings reserve
12 239
-
12 239
-
Other reserves
14 348
-
14 348
-
Retained earnings,
including:
(5 108)
(1 441) (6 549)
1
Net profit (loss) of the
period
6 318
(765)
5 553
1
LONG-TERM LIABILITIES
107 005
-
107 005
-
Long-term provisions
7
-
7
-
Non-current loans and
borrowings liabilities
14 817
-
14 817
-
Non-SHORT-TERM
LIABILITIES from bonds
90 052
-
90 052
-
Lease liabilities
2 129
-
2 129
-
SHORT-TERM LIABILITIES
44 529
-
44 529
-
Short-term loans and
borrowings liabilities
23 325
-
23 325
-
Current bonds liabilities
11 187
-
11 187
-
Lease liabilities
753
-
753
-
Trade payables
2 251
-
2 251
-
Current income tax
liabilities
231
- 231
-
Other liabilities and
accruals
5 377
-
5 377
-
Deferred income
1 405
-
1 405
-
TOTAL EQUITY AND
LIABILITIES:
259 872
(1 441)
258 431
1
Separate annual statement of cash flows (indirect method)
Specification
Before
adjustment for
the period:
01.01.2023 -
31.12.
(data previously
reported)
Adjustm
ent
After
adjustment for
the period:
01.01.2023 -
31.12.
(restated data)
Description
of the
correction
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before tax
11 757
(788)
10 969
1
Total adjustments:
(77 211)
788
(76 423)
1
Depreciation
2 061
-
2 061
-
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
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
95
Specification
Before
adjustment for
the period:
01.01.2023 -
31.12.
(data previously
reported)
Adjustm
ent
After
adjustment for
the period:
01.01.2023 -
31.12.
(restated data)
Description
of the
correction
Adjustments for non-cash 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
(79 396) - (79 396) -
Change in provisions
8
-
8
-
Change in receivables
(472)
-
(472)
-
Change in short-term liabilities,
except for financial liabilities
6 166 - 6 166 -
Change in prepayments and accrued
income
(1 442) 788 (654) 1
Income tax paid (4 162) - (4 162) -
Other - - - -
Net cash flows from operating
activities
(65 454)
(65 454
-
CASH FLOWSS FROM INVESTING ACTIVITIES
Expenses for acquisition of intangible
assets
(10 182) - (10 182) -
Expenses for acquisition of property,
plant and equipment
(63) - (63) -
Proceeds from sale of property, plant
and equipment and others
32 - 32 -
Expenses for acquisition of shares
and stocks
(1 161) - (1 161) -
Net cash flows from investing
activities
(11 374)
-
(11 374)
-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank credits and loans
121 785
-
121 785
-
Bank credits and loans repayments
(115 527)
-
(115 527)
-
Buy-backs and lease repayments
(1 024)
-
(1 024)
-
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, credits, leases
(3 267)
-
(3 267)
-
Net cash flows from financing
activities
74 351
-
74 351
-
TOTAL NET CASH FLOWS
(2 477)
-
(2 477)
-
BALANCE SHEET CHANGE IN CASH
(2 477)
-
(2 477)
-
CASH AT BEGINNING OF PERIOD
11 869
-
11 869
-
CASH AT THE END OF THE PERIOD
9 392
-
9 392
-
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
96
1) Adjustment for the timing of recognition of court costs.
2) Adjustment for the presentation of legal expenses within the statement of profit or loss and
comprehensive income.
3) Presentation of third-party 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 Item IV of the introduction to the annual
separate financial statements.
28. Fair value
28.1 - Fair value of assets that are not
measured at fair value
31.12.2024
31.12.2023
book value
fair value
book value
fair value
Financial assets
443 190
443 190
321 659
321 659
Cash and cash equivalents 5 983 5 983 9 392 9 392
Factoring receivables 189 096 189 096 162 408 162 408
Loan receivables 246 994 246 994 147 831 147 831
Trade receivables 1 117 1 117 2 028 2 028
Financial liabilities
379 668
387 771
235 824
237 881
Bank credits and loans 54 448 54 448 43 557 43 557
Lease liabilities 2 240 2 240 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 4 578 4 578 3 336 3 336
Earn-out libilities 1 914 1 914 - -
* 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 31.12.2024 includes the nominal 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. 10.01.2025
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 llibialities approximate the carrying values, mainly due
to the short maturities and maturities 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);
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31,
2024
97
● 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.
Separate annual financial statements of PragmaGO S.A. prepared as of and for the period ended December 31, 2024
98
28.2 - Fair value
31.12.2024
31.12.2023
They
include:
Level 1 Level 2 Level 3
They
include:
Level 1 Level 2 Level 3
Financial assets
443 190
5 983
-
437 207
321 659
9 392
-
312 267
Cash and cash equivalents
5 983
5 983
-
-
9 392
9 392
-
-
Factoring receivables
189 096
-
-
189 096
162 408
-
-
162 408
Loan receivables
246 994
-
-
246 994
147 831
-
-
147 831
Trade receivables
1 117
-
-
1 117
2 028
-
-
2 028
Financial liabilities
387 771
324 591
-
63 180
237 881
188 251
-
49 630
Bank credits and loans
54 448
-
-
54 448
43 557
-
-
43 557
Lease liabilities
2 240
-
-
2 240
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
4 578
-
-
4 578
3 336
-
-
3 336
Earn-out libilities
1 914
1 914
-
-
-
-
99
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 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 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 the 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 nominal value of PLN 1.00 per share.
3 On January 31, 2025. PragmaGO S.A. was removed from the MIP register, where it was disclosed under
the number MIP157/2022. The removal from the MIP register took place at the request of the Entity.
4 On March 20, 2025, the Management Board of PragmaGO S.A. adopted a resolution on the issuance of
secured series D3 bonds under the Fifth Public Bond Issuance Program with a total nominal value of PLN
40 million, or PLN 50 million if the Entity's Board decides to increase the number of Bonds in the offering.
The Bonds will be secured by a registered pledge on a set of existing and future receivables and a registered
pledge on the Issuer's bank account.
5 On March 20, 2025, the Management Board of PragmaGO S.A. entered into a registered pledge agreement
with CK Legal Chabasiewicz Kowalska i Wspólnicy Spółka Komandytowo - Akcyjna on a set of variable rights
up to the highest security amount of PLN 60 million and a registered pledge agreement on receivables from
a bank account to secure the receivables of bondholders entitled under the Series D3 Bonds.
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 Issuing Entity provides an explanation between forecasts of financial liabilities and
realization.
Forecast of financial liabilities as of December 31, 2024 (unaudited):
Balance sheet item
Unit value (PLN million)
Share in liabilities
Total liabilities
493.4
100.0%
Liabilities from loans and borrowings
118.8
24.1%
Bonds liablities
213.0
43.2%
Lease liablities
2.3
0.5%
100
Realization of financial liabilities as of December 31, 2024
Balance sheet item
Unit value (PLN million)
Share in liabilities
Total liabilities
530.5
100.0%
Liabilities from loans and borrowings
54.4
10.3%
Bonds liabilites
316.5
59.7%
Lease liabilities
2.2
0.4%
Variances
Balance sheet item
Unit value (PLN million)
Share in liabilities
Total liabilities
37.5
-
Liabilities from loans and borrowings
(64.4)
(13.80%)
Bonds liabilities
103.5
16.6%
Lease liabilities
(0.1)
(0.1%)
Total financial liabilities at the separate level amounted to PLN 373.1 million, higher than forecast by PLN
37.5 million (11.2%). 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. The debt structure assumed a 43.2% share of bonds
in financial liabilities, and ultimately amounted to 59.7% at the separate level. The higher-than-assumed
share of bonds in financing was due to the Entity'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.
At the same time, the level of debt utilization under available borrowings was at a lower level than budgeted
by PLN (64.4) million due to the coverage of financing needs by bond issuances.
The level of lease liabilities both at the individual level showed no significant deviation from the budgeted
level.
Sincerely,
Management Board of
PragmaGO S.A.
CEO Tomasz Boduszek
Vice President Jacek Obrocki
101
Vice President Danuta Czapeczko
Vice President Lukasz Ramczewski
Katowice, April 24, 2025
