2019

Business trends in Rezekne municipality in 2019 (info: Lursoft)

Last year, work on the organisation of the business environment has continued in Latvia, excluding companies from registers who have not carried out economic activity for a long time, and for some reason have existed without a decision-making board of directors, etc., which shows that its owners do not have the intention of developing their own business.
As a result, new records of liquidated companies have been set up in 2018. According to Lursoft research data, 10 660 new companies were registered in Latvia last year, while 20 746 were liquidated. Compared to 2017, the number of new companies grew by 4.411 TP1T, while the liquidated – by 25.891 TP1T.
Unlike the total dynamics in the country, there has been no rapid increase in the number of companies eliminated in Rezekne municipality last year. On the contrary, compared to two previous years, it has even decreased last year and the number of newly registered and liquidated enterprises in 2018 has been virtually equal. A similar situation is also shown in this year's situation as, by the time of the preparation of the study, in 2019, the same company was re-registered in Rezekne, which was eliminated during that period.
The largest number of new companies were registered in 2012 when their number was approaching 100 new companies during the year.
In total, 620 new companies have been registered in the municipality of Rezekne over the past decade, but 488 are eliminated, which means that the number of companies in the municipality has increased by 132 merchants during these years.

At present, 1695 companies have been registered in Rezekne municipality, of which 54.041 TP1T are farms, but 33.751 TP1T - limited liability companies. It should be noted that 46 companies registered in the municipality of Rēzekne currently hold an economic activity, of which 12 merchants have commenced winding-up proceedings.
By exploring which business sectors are the most popular among companies registered in Rezekne District, agriculture has developed, which has gained considerable overweight among THE TOP 5 sectors. They are followed by trade, freight transport and logging.
Most popular business sectors in Rezekne municipality:
1. Mixed farming;
2. Growing of seeds of cereals, pulses and oilseeds;
3. Retail trade;
4. Freight transport by road;
5. Harvesting.
According to Lursoft statistics, foreign investors have been invested in the equity capital of 59 companies from all companies registered in Rezekne. Among them is RSEZ SIA “LEAX Rezekne”, who last amended 19,96 milj.EU R and whose largest shareholder (93.41 TP1T) is Swedish LEAX Group AB.
The total contribution of foreign representatives to the equity capital of the companies registered in Rezekne milj.EU consists of 1.16 million R, which after accumulated direct foreign investment between all Latvian municipalities is ranked in 60 th place alongside the municipalities of Pargauja and Mālpils.
More than half, i.e. 631.23 thousand EUR from the accrued foreign direct investment were made by representatives from Germany, another 208,43 thousand EUR – from Russia and 196.42 thousand EUR – from Sweden. Overall, foreign investments in Rēzekne municipality have been invested by representatives from 17 countries in equity capital.
Step-by-step turnover
The data from the Lursoft study reveal that, last year, both total and average turnover per company in Rezekne municipality showed an increase.
During the year, the total turnover of registered companies increased by 14.051 TP1T, reaching 162.4 milj.EU R, while the average rate per company grew by 17.71 TP1T, rising to 33.71 thousand. EUR.
Following the fall in average turnover in 2017, last year, the indicator not only showed a rise, but also exceeded the 2016 result.
From all companies registered in Rezekne, who have submitted reports for 2018, 21,411 TP1T in merchant reports indicated that they had not received revenue from economic activity last year, i.e. that their turnover in 2018 was 0 euros. Meanwhile, the turnover of 51,721 TP1T companies increased during the year.

Since 2001, the company with the largest turnover in Rezekne municipality is RSEZ SIA “VEREMS”. During the year, the company increased its turnover by 14,081 TP1T, increasing to 37.42 milj.EU R. as indicated in the published management report, RSEZ SIA “VEREMS” continued to increase the production volume of plywood in 2018, marking 47.17 m3 plywood during the year, as well as producing husked veneers for sale to related companies. IN 2019, RSEZ SIA “VEREMS” is expected to maintain the production volumes achieved.
In the second place, THE turnover of RSEZ SIA “LEAX Rezekne” experienced an increase of 5.501 TP1T in 2018 and increased to 19.96 milj.EU R. last year, the company invested in the purchase of turnaround, milling and trawling machines with the aim of increasing the company's production capacity and improving production processes. The available annual report also states that RSEZ SIA “LEAX Rezekne” has started the purchase of modern equipment for the creation of a production group that will produce parts for passenger car transmissions. 95.91 TP1T of the company's revenue was created by exports in 2018.
Among THE TOP 5 companies that have entered the list, the fastest increase in turnover during the year was Sakstagala parish for the farm “HEATHER AG”. Over the year, the company's turnover doubled, increasing to 7,32 milj.EU R.
The increase in turnover, profit, number of employees and taxes paid is characterised BY THE activities of the “Ludza forestry sector” in 2018. In the last year, the company sold 98 thousand m3 of logs, harvesting and forestry services, with a turnover of 6.07 milj.EU IN THE year, which is a rise of 43.801 TP1T. After the losses of previous years, 2018 brought a profit to the company, reaching 331,78 thousand. EUR after tax. Such positive results have been mainly provided by the rapid increase in sales prices of harvesting timber assortments, as well as the acquisition of a long-term stock of resources, which increased significantly during the year, at the beginning of the year.
The TOP 5 list of the largest companies in Rezekne is concluded BY SIA “Latgales Tara Company” established in 2006, with 4.08 million R. milj.EU apgrozītiem in 2018, with a turnover of 39.231 TP1T. The annual report says that investments in new manufacturing technology have been carried out last year, as well as the technological line for the processing of thin containers is introduced in early 2019. As well as a repaired hangar, a new module house was purchased to expand the sharpening rooms, and two new saw blades were also purchased.
Rezeknes is led by the largest companies after their turnover in 2018:
1. RSEZ SIA “VEREMS”: 37,42 milj.EU R;
2. RSEZ SIA “LEAX Rezekne”: 19,96 milj.EU R;
3. Sakstagala parish ZS “HEATHER AG”: 7,32 milj.EU R;
4. AS “Ludza forestry farm”: 6,07 milj.EU R;
5. SIA “Latgales Tara Company”: 4.08 milj.EU R.
Total profit increased by 14.51 TP1T
As a result of the increase in turnover, the profits of the companies registered in Rezekne municipality have also grown. Lursoft estimated that the companies in the municipality had earned 17,51 milj.EU R in 2018, or 14,521 TP1T more than in 2017, while the average profit per company reached 374 euros last year.
With profits last year, 298 companies have worked (a year previously, 241 companies), while 29 companies registered in Rezekne municipality have exceeded 100 thousand in 2018. EUR. It should be noted that, from all companies registered in Rezekne, who have received revenue from economic activity last year and who have worked with positive results, 73.951 TP1T companies have managed to improve their profit results within a year.

AT the forefront of the largest earners, RSEZ SIA “VEREMS” is located in the municipality with 6.97 milj.EU R earned last year compared to 2017, the company's profits dropped by 13,921 TP1T in 2018. A more significant fall in profits in 2018 was affected BY RSEZ SIA “LEAX Rēzekne”, which earned 1.16 milj.EU R last year, but a year previously its profit was 2.29 milj.EU R
As a result of the doubling of turnover in 2018, the profits of the Sakstagala parish farm “HEATHER AG” have increased sharply, which has risen by 180.061 TP1T and formed 966.71 thousand. EUR after tax.
A more rapid increase in profit was in THE SIA “Baiba” registered in 1995, which after 2017 earned 131.05 thousand. EUR 6601.11 thousand last year A large profit which is expected to be left unallocated. In contrast to profit, THE turnover of SIA “Baiba” decreased by 5.741 TP1T last year, dropping up to 3.49 milj.EU R, placing the company in 8 th place between the companies registered in Rezekne and the largest turnover in 2018.
A list of the largest earners in Rezekne municipality is concluded in 2018 by the SIA “Luna Baltica”, owned by Arsenium Gerasimov, which reached 518 thousand last year. EUR profit.
Rezeknes is led by major companies after profit in 2018:
1. RSEZ SIA “VEREMS”: 6,97 milj.EU R
2. RSEZ SIA “LEAX Rezekne”: 1,16 milj.EU R;
3. Sakstagala parish ZS “HEATHER AG”: 0,97 milj.EU R;
4. SIA “Baiba”: 0,6 milj.EU R;
5. Luna Baltica: 0.52 milj.EU R.
The number of employees has continued to increase
Although the average number of employees in the municipality has remained constant in recent years and 2 workers are employed on average in each company, the total number of employees in the municipality has continued to increase.
Lursoft estimated that in 2018, companies registered in Rezekne municipality have provided 3242 employees with jobs, which is 4.411 TP1T more than a year before.
From all companies, 69 companies with jobs have provided at least 10 workers. Over the years, there have been 56 companies. According to Lursoft, the number of employees in 2018 has increased in a third of all companies that have submitted their accounts and last year.

The largest employers' list can be found in companies that have also entered the largest earner and company with the largest turnover in the lists. In particular, in the first place with 343 employees, which is 11 more than in 2017, RSEZ SIA “VEREMS” has been raised. Meanwhile, THE number of employees of RSEZ SIA “LEAX Rezekne” has increased by up to 36 employees during the year, with 224 people employed in the company last year.
One of the largest earners – SIA “Baiba” – was an employer for 90 employees in the last year (+2 compared to 2017), while the construction company SIA “ASKO AS” has employed 87 employees, 22 more than a year before. It should be noted that the number of employees was also increased BY SIA “Latgales Tara Company”, which increased by 28,811 TP1T during the year and reached 76 employees.
Rezekne is led by the largest employers after the average number of employees in 2018:
1. RSEZ SIA “VEREMS”: 343 employees;
2. RSEZ SIA “LEAX Rezekne”: 224 employees;
3. SIA “Baiba”: 90 employees;
4. SIA “ASKO AS”: 87 employees;
5. SIA “Latgales Tara Company”: 76 employees.
The amount of taxes paid increased by 19,981 TP1T
The information provided by the State Revenue Service shows that in 2018, the companies administered IN THE SRS have paid eur 7.17 billion, of which eur 2.33 billion is made up of mandatory social insurance contributions, while eur 1.24 billion – income tax. In comparison with the year, the amount of taxes paid by Latvian companies increased by 9.131 TP1T.
The total tax amount of companies registered in Rezekne's municipality has increased faster. Based on the data provided BY THE SRS, the companies registered in the municipality have paid 10,51 milj.EU R or 19,981 TP1T more than a year before.
In the last year, there were 16 companies who paid more than 100 thousand in the national general budget during the year. In THE meantime, THERE were 14 businessmen in the past.

The study data show that the amount of taxes paid has grown to all OF THE TOP 5 listed companies. For example, RSEZ SIA “VEREMS”, which paid 2.61 MILLION R in the milj.EU budget last year, grew 5.591 TP1T, while the total amount of MUNICIPAL waste collector and landfill site manager SIA “ALAAS” has increased by 23.351 TP1T, reaching 798,06 thousand. EUR, but RSEZ SIA “LEAX Rezekne” – even by 38.701 TP1T. The information provided BY THE SRS shows that the company paid 612,29 thousand in the general budget of the country during the last year. EUR. THE amount of taxes paid BY SIA “Ludza Forest Industries” increased to 471.03 thousand EUR (+25,661 TP1T), but SIA “Latgales taras company” – up to 368,32 thousand EUR (+23,591 TP1T).
The largest taxpayers of the Rezekne municipality after the total tax amount paid in 2018 in the State budget:
1. RSEZ SIA “VEREMS”: 2611,32 thousand EUR;
2. SIA “ALAAS”: 798,06 thousand EUR;
3. RSEZ SIA “LEAX Rezekne”: 612.29 thousand EUR;
4. SIA “Ludza Forestry”: 471.03 thousand EUR;
5. SIA “Latgales Tara Company”: 368.32 thousand EUR.
* data on the Rezekne District companies calculated on 17.07.2019.
* * averages calculated using median median.
* * * source of information for tax on tax paid by companies - State Revenue Service