Invalda LT, one of the largest asset management companies in Lithuania, in 2013 has earned LTL 109.2 million unaudited consolidated net profit attributable to shareholders of the company. LTL 84.8 million out of this amount is the accounting profit which was formed in the process of the reorganisation of the company. In 2012 consolidated net profit attributable to the shareholders of the company amounted to LTL 24.8 million.
“2013 was the year of reforms. The final step is the switch to the classical structure of the asset management model. Our primary goal for 2014 is to finish reorganization and to prepare for the new projects,” – Darius Sulnis, the president of Invalda LT, said.
According to Mr. Sulnis, the year 2013 was moderately good for the key businesses of the group. Moreover all of the main businesses are planning to grow in 2014.
Shareholders of Invalda LT have approved earlier the preparation of the split-off terms. It is planned to separate real estate, agricultural land and information technologies (IT) companies from Invalda LT. These companies will apply for closed-end investment company licenses. All the shares of the newly established companies are planned to be quoted on the NASDAQ OMX Vilnius Exchange. All shareholders of Invalda LT (presently there are about 4000 shareholders of the company) will proportionally own shares in the separated companies.
Furniture manufacturing sector
The furniture manufacturing sector, where Invalda LT controls 45.4 % stake in Vilniaus Baldai, AB, in 2013 earned LTL 6.0 million for Invalda LT.
In 2013 sales of Vilniaus Baldai amounted to LTL 166.1 million, this is 28 % less than in 2012 when it was LTL 230.1 million. In 2013 Vilniaus Baldai has earned LTL 14.3 million net profit (LTL 27 million in 2012). EBITDA decreased by 40 % from LTL 34.9 million to LTL 21.1 million.
“We consider these results as normal for 2013 – the company didn’t achieve higher sales and profit due to lower than in previous years the level of production. Vilniaus Baldai has been changing the portfolio of products, increasing its capacity and modifying the manufacturing process. It requires various internal changes and investments, but it should gradually increase the company’s competitiveness and potential productivity scale,” – Mr. Sulnis said. According to him 2014 should demonstrate the fruits of the reform.
Last year Vilniaus Baldai has paid LTL 34.976 million or LTL 9 per share dividends.
In August 2013 Invalda LT increased the stake in Vilnius Baldai, AB from 39.4 % to 45.4 %. EUR 3.5 million (LTL 12.1 million) were paid for 6 percent of shares acquired during mandatory official tender offer.
Real estate
The companies of Invalda LT group, the largest whereof is Invalda Nekilnojamojo Turto Fondas, AB, manage about 50 thousand square meters of commercial premises in Vilnius. The profit of the sector amounted to LTL 2.9 million, in 2012 the loss of LTL 13.5 million was recorded.
“The activity in 2013 corresponds to our expectations. The occupation of objects and signed agreements allow to forecasts growth of income. In 2014 we will focus on strategies for separate objects”, – Mr. Sulnis said.
In December 2013 Invalda LT acquired claims to a part of assets of Latvian companies SIA Dommo Biznesa Parks and SIA Dommo Grupa. Value of the claims, estimating reversal of impairment, was equal to LTL 13.7 million in the end 2013. SIA Dommo biznesa parks and SIA Dommo grupa own about 12.800 square meters of warehouse space and over 58 hectares of land around Riga. Invalda LT indirectly controls 50 % of these assets.
Agricultural land
The new sector – investments into agricultural land – is separately presented in the financial statements of Invalda LT for 2013. Invalda LT manages 17 companies holding about 2.9 thousand hectares of agricultural land.
Estimating changes of asset value, the sector has earned for Invalda LT 9.1 million.
“The year was good – both land rent and land prices have been growing. We transformed the lands portfolio so that one company manages geographically close land plots,”- D.Sulnis said.
According to him amendments of laws have limited the possibilities to acquire more agricultural land and to growth organically, and considered changes regarding new restrictions brings uncertainty on further development.
Signed agreements provide that the average land rental price in 2014 will increase by about 20 % to about LTL 400 per hectare.
Agriculture sector
The agricultural sector, where Invalda LT owns 20.1 % stake in Litagra, UAB, has earned LTL 4.4 million for Invalda LT. Litagra Group revenue in 2013 increased by 5.5 % LTL 452.6 million, EBITDA decreased by 28 % to LTL 26.6 million, the net profit decreased by 45 % to LTL 11.2 million.
“The company strengthened its position in many spheres; however, the decrease by one-fifth in grain prices in the global market as well as a lower yield by 8 % in Lithuania had a negative effect on the results if compared with 2012. We are positive that the company should improve its results, even though the grain prices might not rebound,”- Mr. Sulnis, said.
IT sector
The information technology sector, where Invalda LT owns 80 percent of BAIP Group shares, in 2013 recorded a profit attributable to Invalda LT of LTL 0.5 million. The turnover of BAIP Group increased about 23.3 % up to LTL 50.3 million, EBITDA – by 63 % to LTL 4.4 million.
“BAIP Group demonstrated the best results in the company’s history. Alongside with the numbers, the growing team and increased services’ portfolio please us. Possessed orders and growth of cyber defence, critical IT infrastructure and information systems services, and geographic expansion provides a solid basis for optimism in 2014 and beyond” – Mr. Sulnis, said.
Facilities management sector
Facilities management sector, where Invalda LT owns Inservis, Priemiestis, Jurita, and Naujosios Vilnios Turgaviete has earned LTL 1.4 million.
“The good result mostly was influenced by the one-time sale of the construction company. The year 2013 was a time of reforms – after cost reduction, the companies of this sector targeted the profitability and quality of services, rather than increase of the market share. The results of the few last months’ show that the sector should demonstrate profitable activity in 2014”, – Mr. Sulnis, said.
Facilities management sector companies’ increased the turnover by 18.3 % to LTL 15.5 million.