Rezekne municipality's business trends

As a result of research on business trends in Rezekne municipality, Lursoft collected data on companies registered and liquidated in recent years, the financial indicators of companies registered in the region, the number of employees and attracted foreign direct investments.
The trend of recent years shows that new companies are being registered in Latvia less, while the number of liquidators has increased significantly. In the last year, 11 206 new companies were registered in Latvia, which is 2 277 enterprises or 16,891 TP1T less than a year before. The number of newly established companies has also increased, which has increased by 21,471 TP1T in 2016. The trend for the number of companies to be liquidated exceeds the number of newly registered companies is also maintained this year.
The trend to increase the number of liquidated enterprises since 2014 is also observed in Rezekne municipality. If 23 companies registered in 23 have been eliminated in 2013, they have increased to 44 in the following year, but already 88 companies have been eliminated during the previous year. In the period from 2015, the number of companies liquidated has a tendency to exceed the number of newly registered companies. For example, if 88 companies were liquidated in 2016, the newly registered company was less than 36 companies.
The most active in recent years, Rēzeknes is transported by new companies in the period 2011-2013, when even 97 new companies have started business in 2012 (only 26 companies have been liquidated in that year).

In total, 655 new companies have been registered in Rezekne since 2007, but 448 have been liquidated. This means that in fact, in these years, the number of companies registered in Rezekne municipality has increased by 207 businessmen.
In total, 1714 companies are currently registered in Rezekne municipality, of which 55.721 TP1T are farms, but 32.261 TP1T - limited liability companies.
In view of the high proportion of farms between the companies registered in Rezekne's municipality, it is not surprising that the TOP 5 of the most popular business sectors have entered the two agricultural subsectors, both mixed agriculture and cereals. As well AS THE TOP-sector head, retail trade is found, which is the most popular business sector in the country, as well as popular sectors such as freight transport and construction.
Most popular business sectors in Rezekne municipality:

• Mixed farming;
• Retail trade;
• Freight transport by road;
• Cultivation of cereals, pulses and oil seeds;
• Construction of residential and non-residential buildings.

The information gathered by Lursoft shows that 51 municipalities have managed to attract foreign direct investment. The largest of these is RSEZ SIA LEAX Rezekne, who has amended 14,12 milj.EU R in 2016 and earned 1.38 milj.EU R.
In total, foreign investors in Rezekne municipality are currently investing in the total milj.EU of 1.58 billion R, of which 0.63 milj.EU R – investors from Germany, 0.44 milj.EU R – Russia, 0.27 milj.EU R – Norway, while 0.20 milj.EU R – from Sweden.
Average turnover increased last year
Although the last year is a drop in total turnover, Lursoft data show that the average turnover per Rēzekne municipality has increased by 14.301 TP1T in 2016, reaching 29.97 thousand. EUR. From all companies who have performed in the past year with a turnover of more than 0 euros, 46,291 TP1T companies have been able to increase their turnover during the year.
The negative impact of both total turnover and the other total figures considered has been borne out by the fact that the latest accounts have not yet been submitted by all of the municipality. For example, THE report of SIA ZAAO SYSTEMS, established in 2004, is not yet available. In 2015, the company amended 3.22 milj.EU R, earned 4.17 thousand EUR and 23 persons provided with jobs. According to the Court, the information available in Lursoft shows that the company currently has secured securities, arrears, while its tax debt to this year. 7 June is 42.75 thousand EUR.
It should be noted that last year, the companies registered in Rezekne Municipality have milj.EU 122.17 MILLION R, 1.941 TP1T less than the previous year.

 
 
 
 
 
 

Since 2001, the largest company in Rēzekne municipality has consistently been RSEZ SIA VEREMS. Last year, the company's turnover increased by 7.761 TP1T, reaching 32.20 milj.EU R. thanks to investments made in previous years and accumulated experience, the company's plywood production increased last year. VEREMS the annual report presented shows that in 2016, it has posted 43.27 thousand m3 plywood, which is 14,001 TP1T more than the previous year. Similarly, shelled veneers have been produced for sales in the previous year.

Another company of Rezekne Special Economic Zone - SIA LEAX Rēzekne. Swedish LEAX Group ABthe company owned by Jānis Bolem and Henrik Sileniekam had milj.EU 14,12 MILLION R in the last year, which is 15,941 TP1T more than in 2015. It should be noted that the turnover increase has been shown by the company for all years of its operation. During the accounting year, the company invested in the purchase of turnaround and trawling machines with the aim of increasing its production capacity and improving production processes. 95,151 TP1T of LEAX Rēzekne Exports were made by exports in 2016.
Unlike the first two-place winners, SIA in third place NB & BV Transport turnover decreased last year, dropping by 7.181 TP1T. Information available in Lursoft shows that in 2016, the freight carrier has amended 4.27 milj.EU R. Note that last year SIA NB & BV Transport it has continued not only to provide international freight services but also successfully continued the activities of units established in the previous period, which are engaged in retail trade in used clothing and alcoholic beverages. AT the end of 2016 SIA NB & BV Transport there were 7 units.
Reduction of turnover is also affected IN the fourth place of the list Ludza Forestry, whose turnover decreased by 18,631 TP1T during the year. Last year, the company distorted 3.75 milj.EU R. In 1991, the forestry company established in 1991 prepared and implemented 74.4 thousand m3 of logs. It is true that, despite the company's management, it takes a stable place in the sector, last year. Ludza Forestry working with 242,50 thousand EUR losses. They were mainly influenced by a significant reduction in the market price of logs for the container assortment, the limited market market for wood assortment, as well as the weather conditions for harvesting during the largest period of the year.
Rēzekne's largest company after turnover in 2016, THE TOP 5 list is closed by another logging company – SIA PARTICLE PV compared to 2015, the turnover of the milj.EU decreased by 1.371 TP1T in the year compared to 2015, as compared to 2015. The decline in turnover in the company is explained by a reduction in the sales of timber by approximately 24,001 TP1T and a reduction of harvesting services by approximately 4.001 TP1T. Last year, the company's production costs increased by around 3.001 TP1T.
Rezeknes is led by the largest companies after turnover in 2016:

• RSEZ SIA VEREMS: 32,20 milj.EU R;
• RSEZ SIA LEAX Rēzekne: 14,12 milj.EU R;
• SIA NB & BV Transport: 4,27 milj.EU R;
• AS Ludza Forestry: 3,75 milj.EU R;
• SIA PARTICLE PV: 3,05 milj.EU R.

Total profit grows, average
Although the total profit of the companies registered in Rezekne's municipality has continued to increase last year, the average has continued to decline. If, in 2015, each company registered in Rezekne's municipality worked with an average profit of 0 euros, then the indicator slipped to 26 euros last year.
Such a trend that the overall profit is increasing, while the average is shrinking, indicates that the overall increase in the indicator is mainly due to the increase in the profit of individual large companies.
Lursoft statistics show that all companies registered in Rezekne, who have worked in 2016 with a turnover of more than 0 euros, have been growing or have reduced losses of 47,831 TP1T during the year.
According to Lursoft, in 2016, the companies registered in Rezekne municipality earned 10.39 milj.EU R, which is by 6.021 TP1T more than a year before. Since 2014, the total profit has increased by 24,131 TP1T. At the same time, the average profit has experienced considerable fall, as in 2014 each company registered in Rezekne municipality earned an average of 332 euros, but losses were already lost.

 
 
 
 
 
 
In 2016, three companies, whose names are found in the list of companies who have worked with the largest turnover last year, have been ranked at the top of the largest earners list.
The largest earner in Rezekne municipality is also in 2016 at the same time as RSEZ SIA VEREMS, which earned 6.39 milj.EU R compared to 2015, AS Latvijas Finieris the profits of the company owned have increased by 22,071 TP1T last year. Even more significant during the year, RSEZ SIA LEAX Rēzekne the profit, which increased by 31,341 TP1T, reached 1,38 milj.EU R last year.
SIA of the harvesting company in the third place of the list PARTICLE PV profits last year increased to 0.40 milj.EU R, which in the year alone is a rise of 21.041 TP1T. Although the company's profits have shown growth over the past two years, it has still not reached the level of 2010, when the company earned 0.55 milj.EU R.
By 44,511 TP1T during the year, the profit increased in the fourth place of the list SIA BASTARD. The company has reached a profit of 0.39 milj.EU R over the last year. The profits made by the company are expected to be left unallocated.
TOP 5 The largest payer list of the Rēzekne municipality is concluded by the farm NEW RIVER with a 0,18 of 0,18 milj.EU R. Compared to 2015, it has grown five times. The management report submitted states that the farm has stopped working on grain production and storage, further providing for its future to be linked only to the provision of services. The farm has sold Viļānu SIS in its owned land, which also explains the rapid growth of the farm as its gross losses were 0.1 million R in 2016, while the milj.EU profit indicator of the lion's courts has given the other operating revenue after the tax has been paid.
Rezeknes is led by major companies after profit in 2016:

• RSEZ SIA VEREMS: 6,39 milj.EU R;
• RSEZ SIA LEAX Rēzekne: 1,38 milj.EU R;
• SIA PARTICLE PV: 0,40 milj.EU R;
• SIA BASTARD: 0,39 milj.EU R;
• Farm farm NEW RIVER: 0.18 milj.EU R.

Shrinking number of employees in companies
Although the number of employees of the Rezekne municipality has increased in 2015, last year the indicator shows a drop of 5.111 TP1T. Lursoft data shows that 2 991 employees have been employed in the companies registered in Rezekne municipality in 2016. The number of employees in the year has risen only 26.601 TP1T from all companies of Rezekne, who have worked in 2016 with a turnover of more than 0 euros.
In spite of the fall in the total indicator, the average number of employees in the municipality has remained unchanged. Lursoft estimates that an average of 2 workers are employed in each Rēzekne municipality. It is as much as the country on average in one company.

 
 
 
 
 
 
The largest employer in the municipality is VEREMS, whose management recognises that there is a very low turnover of frames in the company. Last year, 333 people have worked in the company, which is less than 6 employees in comparison with 2015.
In contrast VEREMS, LEAX Rēzekne the number of employees has increased by 13 employees during the year. In 2016, 152 workers were employed.
The constant number of employees last year remained both at number three in SIA BASTARD (78 employees) and SIA NB & BV Transportwho provided 65 workers with jobs in 2016. Compared to 2015, last year less than 3 people ARE less employed Ludza forestry farm. Last year, the logging company was an employer for 70 employees.
Rezekne is led by the largest employers after the average number of employees in 2016:

• RSEZ SIA VEREMS: 333 employees;
• RSEZ SIA LEAX Rēzekne: 152 employees;
• SIA BASTARD: 78 employees;
• AS Ludza forestry farm: 70 employees;
• SIA NB & BV Transport: 65 employees.

Increased amount paid in taxes
On the basis of the information published by the State Revenue Service, Lursoft estimated that, last year, all companies registered in the country had paid 6.13 billion euros in the national budget, by 7.541 TP1T more than a year before.
As in the country as a whole, the tax amount paid by companies registered in Rezekne municipality has also increased last year. Lursoft, compiling the data of the State Revenue Service, estimated that in 2016, companies registered in Rezekne municipality had paid 8.33 milj.EU R in taxes, which is 1.961 TP1T more than a year before.
From all Rēzekne municipality companies with a turnover of more than 0 euro in 2016, the amount of the amount paid in taxes over the year of 46,801 TP1T has increased.

The largest taxpayer in Rezekne municipality has been RSEZ SIA last year VEREMS, which in the general budget of the state has paid 2.20 milj.EU IN taxes over the year compared to 2015, it is by 5.951 TP1T more.
The second largest taxpayer between companies registered in the territory of Rezekne municipality was SIA 7. ALAA, which has added 0.58 MILLION EUROS to the milj.EU general budget in tax payments as much as 2015 has been paid in taxes last year Ludza Forestry, that is, 0.43 milj.EU R, while SIA is ranked in the fourth position of the list SPRUCE M with 0,36 milj.EU R.
Producer of agricultural products specialising in dairy farming, SIA SPRUCE M In 2016, he amended 2.18 milj.EU R and concluded a year with 120,96 thousand EUR profit.
The TOP 5 list of the largest taxpayers is concluded LEAX Rēzekne, which has been paid by 0.32% OF the milj.EU social insurance contributions paid by the company during the year, and the calculated and paid income tax paid by the company, have been paid in taxes last year.
Rezeknes is led by the largest taxpayers after the total tax amount paid in 2016:

• RSEZ SIA VEREMS: 2,20 milj.EU R;
• SIA ALAA: 0,58 milj.EU R;
• AS Ludza forestry farm: 0,43 milj.EU R;
• SIA SPRUCE M: 0,36 milj.EU R;
• RSEZ SIA LEAX Rēzekne: 0,32 milj.EU R.

*Data on Rēzekne Municipalities calculated on 03.07.2017.
* * averages calculated using median median.
* * * source of information for tax on tax paid by companies - State Revenue Service.