Revaluation of an asset measured at fair value through profit or loss
The Management Board of Grupa Pracuj S.A. (the “Company”) informs that in the course of preparation of the standalone and consolidated financial statements of the Company and the Capital Group of the Company (the “Group”) for year ended on 31 December 2024 (“Financial Statements for 2024”) on 11 March 2024 determined that it is necessary to update the valuation of one of financial assets measured at fair value through profit or loss, i.e. shares in Beamery Inc. (“Beamery”). As of the date of this report, the Company estimates that the fair value of shares in Beamery decreased by approx. PLN 28,6 million against the valuation as of 30 September 2024. The final value is subject to receipt of the final valuation report prepared by a professional independent entity (valuation expert) and completion of the audit of the Financial Statements for 2024.
In connection with the above, taking into the account the impact of the deferred income tax, the Company estimates that the Group's and Company’s net financial result for year ended on 31 December 2024 will be decreased by PLN 23,2 million. The value of the decrease in fair value of shares in Beamery will be recognized in financial costs for the year ending on 31 December 2024. The above will not affect Company's and Group's ongoing operations, financial results from operations of the Company and the Group, as well as Company's and Group’s cash flows.
The decrease of fair value of shares in Beamery results from the reference of the valuation to the current multipliers used for valuing companies similar to Beamery and transactions on shares of such companies. The Company measures unlisted shares based on level 3 of the fair value hierarchy, consequently, valuation inputs are not based on observable market data.
The values presented above are of an estimated nature and in connection with the audit of the Financial Statements for 2024 conducted by the audit firm, may be subject to change. The final value of the net financial result of the Company and the Group for year 2024, as well as the value of the assets of the Company and the Group as of 31 December 2024 will be presented in the Financial Statements for 2024, which are planned to be published on 27 March 2024.
The Company acquired the above-mentioned shares in Beamery in two rounds in 2016 and 2017 for PLN 4.7 million, and their fair value as at 31 December 2023 was PLN 78,3 million. The value of the shares in question is characterized by high volatility due to the valuation method applied to this type of asset. The revaluations are of an accounting nature only and have no impact on the Company's liquidity position.