The shareholders of INVL Baltic Farmland, a company that invests in agricultural land, will vote on paying a higher fee for audit services for 2022 as well as on the audit firm to conduct next year’s audit and the terms of payment for those services.
An extraordinary general meeting of INVL Baltic Farmland’s shareholders will be held on 31 October.
The investment company’s financial reports for 2022 are being audited by PricewaterhouseCoopers. It is proposed that the shareholders of INVL Baltic Farmland approve additional compensation to the audit firm for its services, but not more than EUR 6,000 (excluding VAT). Audit costs are rising due to requirements for listed companies to prepare and publish audited annual reports in the European Single Electronic Format (ESEF), which increases the amount of audit work.
If INVL Baltic Farmland’s shareholders approve, the same audit firm – PricewaterhouseCoopers – will perform the audit of the company’s annual financial reports for 2023. It would be this auditor’s last year, since under current regulations the same audit firm cannot audit a company’s activities for more than 10 years. The fee envisaged for the audit services, in addition to ESEF costs, is EUR 12,200, which would be indexed to the average annual inflation rate for April of the current year.
INVL Baltic Farmland plans revenue of EUR 718,000 this year and a consolidated net profit of EUR 646,000. The operating forecasts are based on the rental agreements that are in place and assume that during this year the value of the company’s land holdings will not change, there will be no further purchases or sales of land, and there will be no changes in provisions for receivables or impact of tenant debts on the size of the administration fee.
INVL Baltic Farmland is listed on the Nasdaq Vilnius stock exchange. Its subsidiaries own approximately 3,000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.
