Unaudited interim information of Invalda INVL group for 6 months of 2017
Company’s and consolidated equity capital for the 6 months of 2017 amounted to EUR 60.39 million, in the same period of 2016 it was EUR 47.51 million.
Invalda INVL, one of the Baltic region’s leading asset management groups, had equity capital of EUR 60.4 million at the end of the first half of this year, or EUR 5.21 per share. From the start of the year to the end of June the group’s net equity per share increased 14.5%. Invalda INVL earned a profit of EUR 7.7 million in the first half of the year, versus a loss of EUR 0.2 million in the same period last year.
“The results that have been achieved are due to growth in the value of all the group’s investments, and especially the shares of Šiaulių Bankas and Litagra,” said Darius Šulnis, the CEO of Invalda INVL.
In June, Invalda INVL together with the INVL Asset Management companies it owns in Lithuania and Latvia joined the United Nations-supported Principles for Responsible Investment (PRI).
The Invalda INVL group’s assets under management were EUR 545.9 million at the end of June and were up 7.3% from the start of the year, while the number of clients grew by 3% to 183,800. “In managing the assets entrusted to them in Lithuania and Latvia in the first half of the year, the group’s asset management companies earned 13.6 million euros for clients,” Darius Šulnis said.
The INVL Baltic Forests Fund I for informed investors which was launched this year has moved ahead with its activities successfully. Following the completion of the initial offer in May, the fund’s managers now are working actively to build a portfolio of forest holdings. “The team working with the forest investments knows this business very well. We view the conditions in the market as favourable for these investments and think that by exploiting them we’ll create value for the participants of this fund,” Šulnis said.
Revenue from asset management activities in the first half of the year was EUR 3.2 million, with a net profit of EUR 224 000. Invalda INVL’s investments in the asset management business totalled EUR 7.6 million at the end of the period.
Investments in controlled companies
INVL Baltic Real Estate
At the end of the first half of this year, the 32.13% equity stake that Invalda INVL held in the real estate investment company INVL Baltic Real Estate had a value of EUR 9 million, meaning a gain of EUR 1.0 million since the start of the year.
INVL Baltic Real Estate continued seeking to increase the value of its property holdings and create benefits for investors by effectively managing real estate at strategically attractive locations and exploiting its full potential. The company worked actively with the Vilnius Gates complex and in late July also signed an agreement on the sale of 3,000 square metres of office and warehouse premises on Kirtimų Street in Vilnius. The value of the transaction is EUR 1 million.
The equity value of INVL Technology, a company that invests in IT businesses, grew 0.1% in the first half of this year to EUR 19.7 million. Invalda INVL owns 13.9% of INVL Technology’s shares, which at the end of June were worth EUR 2.7 million. In the second quarter, some of the businesses the company owns, had better results than in the same period last year – investments so far in products and regional expansion have provided an opportunity for business to grow. The company continues looking for opportunities to expand its portfolio of business holdings and plans to conclude its phase of active acquisitions this year.
The value of the 36.9% stake in the agribusiness company Litagra was EUR 17.8 million at the end of the first half and grew 15.8% from the start of this year. The increase was due to the improving performance of farming production companies. “We’re happy that the company increased its investments in the dairy business even when milk prices were at a low. We see that that decision to invest in building one of the region’s biggest cattle complexes has paid off,” Darius Šulnis said.
Litagra in July this year was split into two companies: LP Grupė UAB, which is assuming the trading and grain elevator business, and Litagra UAB, which controls the feed manufacturing and farming production businesses. This reorganization was necessary for completing a transaction with Achema Group, to which the trading and elevator business is being sold.
The shareholders of Litagra in February this year signed an agreement on ceding the company’s trading business and grain elevator network in Lithuania and Latvia to Achema Group. The Litagra group, having decided to focus on production activities, will continue to run its primary crop production business. Completion of the transaction with Achema Group is planned after obtaining the approval of the Competition Council and carrying out other actions stipulated in the agreement.
The value of Invalda INVL’s 6.79% stake in Šiaulių Bankas, which is listed on the Nasdaq Vilnius exchange, rose 31.5% during the first half of this year to EUR 15.1 million. “Good results for Šiaulių Bankas’s typical operations were also reflected in the bank’s share price,” Šulnis said.
The facility management sector
The value of Invalda INVL’s 100% stakes in the facility management companies Inservis, Priemiestis and Jurita at the end of the first half of 2017 was EUR 4.9 million and was little changed from the start of the year.
The value of other investments increased during the first half of 2017 from EUR 2.4 million to EUR 3.2 million.
Invalda INVL’s net asset value at the end of the first half of 2017 was EUR 60.4 million, or 14.64% more than at the start of the year.
1. Invalda INVL Consolidated Interim Condensed Unaudited Financial Statements for 6 months of 2017.
2. Invalda INVL Consolidated Interim Report for 6 months of 2017.
3. Key information about InvaldaINVL for 6 months of 2017.
4. Confirmation of Responsible Persons.