Unaudited information of Invalda INVL group for 3 months of 2018
Company’s and consolidated equity capital for the 3 months of 2018 amounted to EUR 66.09 million, in the same period of 2017 it was EUR 54.99 million.
Invalda INVL, one of the Baltic region’s leading asset management groups, had equity of EUR 66.1 million at the end of the first quarter of 2018, or 3.3% more than at the end of 2017. Equity per share increased 3.4% to EUR 5.72. Net profit in the first quarter was EUR 0.8 million, or 65% less than in January-March 2017 (when it was EUR 2.3 million).
“We’re allocating the most resources and energy to further expanding the asset management business and to projects related with that, some of which we plan to present to investors already this year,” said Darius Šulnis, the president of Invalda INVL.
Asset management business
The Invalda INVL group had client assets of EUR 627 million under management at the end of March, or 2.6% more than at the end of 2017. Group companies’ total number of clients rose 1.2% this year through the end of March to 192 800.
“The start of 2018 was adverse for many of the world’s markets and that had a modest negative impact on results for managing some products. Uncertainty about pension reform in Lithuania and the proposed changes may negatively influence people’s inclinations toward long-term saving, which in the last decades only started to form. Such changes could possibly lead to losses in Invalda INVL’s accounts for these activities,” Darius Šulnis said.
Compared the same period of 2017, revenues from the asset management business grew 18% in the first quarter to EUR 1.8 million, with a profit of EUR 18 000 from these operations.
Investments in controlled companies and funds
INVL Baltic Real Estate
The value of Invalda INVL’s 32.1% equity stake in the real estate investment company INVL Baltic Real Estate was EUR 9.58 million at the end of March, for a loss of EUR 490 000 from the start of the year.
“In our assessment, this business is operating successfully and generating cash. Under the amended dividend policy, dividends of EUR 0.13 per share were paid out for last year, for a dividend yield of 5%. We think the share price correction and the related losses that were recognised are temporary,” Darius Šulnis said.
Invalda INVL has announced its intention to relinquish up to 22% of INVL Baltic Real Estate’s shares and retain a 10% stake.
After INVL Technology, a company that invests in IT businesses, published good annual results, the value of Invalda INVL’s 13.9% stake in the company grew EUR 237 000 from the start of the year to EUR 2.76 million. “We hope that when the investment period ends the performance of INVL Technology’s businesses will continue to improve significantly and that that will also be reflected in the company’s share price,” Darius Šulnis said.
INVL Baltic Forests Fund I
The value of the INVL Baltic Forests Fund I increased 6.1% in the first quarter. In the second quarter the investment of an additional EUR 500 000 in the fund (through the Lithuanian INVL Asset Management) was committed, which will bring INVL Asset Management’s total investment to EUR 1 million. By the end of May, the INVL Baltic Forests Fund I had raised another EUR 10 million for expanding its operations.
“The fund’s first year showed the team’s ability to get results, and we look forward to seeing the newly raised funds also successfully invested,” said Darius Šulnis.
INVL Emerging Europe Bond Subfund
The value of investments in the INVL Emerging Europe Bond Subfund (through Cedus Invest) fell 0.64% in the first quarter of this year to EUR 8.4 million. “The value fell due to negative changes in emerging market bond markets,” Darius Šulnis noted.
Investments in Šiaulių Bankas (with a 6.79% stake) grew in value by EUR 1.6 million to EUR 19.7 million and those in Litagra rose in value by EUR 0.47 million to EUR 10.4 million. The value of the Inservis group shrank EUR 0.6 million to EUR 2.9 million.
Investments in the shares of Žemaitijos Pienas increased in value by EUR 63 000 to EUR 1.6 million. An agreement was reached on the sale of this investment for a bigger price – that will be reflected in the financial results when the transaction is completed.
“There were no significant changes in these companies during the first quarter,” Darius Šulnis said.
Invalda INVL 2018 Q1 factsheet
The person authorised to provide additional information:
President of Invalda INVL