Invalda, one of the largest investment companies in Lithuania, earned unaudited consolidated net profit of 16.6 million litas attributable to the parent company in the first quarter. This is 2.5 times more than in the first quarter of 2011 when the profit was 6.7 million litas.
„The increase of the profit was caused by higher share prices of Trakcja-Tiltra and good results of Vilniaus Baldai “- said Dalius Kaziunas, the President of Invalda AB.
According to him, Invalda group which is actively looking for new investment opportunities did not realize any significant acquisitions in the beginning of this year. 2 million litas was earned after the completion of sale of stake in Umega in the first quarter.
Furniture manufacturing sector
The furniture manufacturing sector, where Invalda controls 72 percent stake in the largest Lithuanian furniture manufacturing company Vilniaus Baldai earned 4.4 million litas for Invalda, i.e. 10.2 percent less than in January-March of 2011 (4.9 million litas). The consolidated sales of Vilniaus Baldai grew by 3.5 percent to 58.5 million litas, EBITDA decreased by 8 percent till 8.5 million litas and net profit decreased by11 percent till 6.1 million litas.
„The results were influenced by higher prices of raw materials. However, the company continues to enhance productivity, and we are satisfied with its achievements“- said D. Kaziūnas.
The shareholders of Vilniaus baldai decided to allocate 39 million litas for dividends, 28 million litas of this amount will be paid to Invalda.
Real estate sector
The profit of the real estate sector for the first quarter of 2012 amounted to 0.2 million litas (in January- March of 2011 it was 0.3 million litas). In the first quarter of this year, compared with the same period of 2011, total rental income grew by 7 percent to 4.5 million litas, from which rental income from assets belonging to their clients – grew by 4 percent to 1.3 million litas.
The total sector’s income growth was caused by the fact that apartments for the total amount of 4.3 million litas were sold in project Elniakampio Namai. Overall residential property sales amounted to 5.6 million litas.
„Objectives for the sector remain unchanged – to increase the turnover of the property and complete earlier started projects“- said D. Kaziunas.
During the first quarter of 2012 further investments to agricultural land were made; there was invested 0.5 million litas.
Facility management sector
Facility management sector, where Invalda owns Inreal Pastatu Prieziura and other companies, sales grew by 33.5 percent up to 3.0 million litas, loss totalled to 0.1 million litas.
„The loss was incurred due to increased operating costs related with the internal reforms. One of the objectives to the facility companies is to improve the management system”- said D. Kaziūnas.
Agriculture sector
In the agricultural sector, where Invalda owns 36.8 percent shares of Litagra, a loss of 1.5 million litas was incurred for Invalda.
„This business depends on seasonality – harvest is calculated in autumn“- said D. Kaziunas.
According to him, after investment into Litagra company at the end of 2012, the debt portfolio of the company was restructured. As a result, SEB bank together with DNB bank granted to Litagra two syndicated loans totalling to 98.4 million litas. The loans are used to refinance previous debts as well as for the needs of the working capital.
Rail and Road infrastructure sector
Invalda owns 12.5 percent of Trakcja – Tiltra shares which are listed in Warsaw Stock Exchange. Due to the increase of the share price of this company Invalda earned profit of 12.2 million litas.
Unlike other sectors, investment of Invalda in Trakcja – Tiltra is a financial one; therefore financial statement of Invalda reflects changes of the share price but not the result of activity of Trakcja – Tiltra.
Information technology infrastructure sector
In the information technology infrastructure sector where Invalda owns 80 percent of BAIP Group, Invalda incurred a loss of 0.5 million litas.
„This business depends on seasonality. After the Norwegian company Norway Registers Development acquisition BAIP group carries out projects in international markets. Therefore, we expect growth of revenue as well as profit“- said D. Kaziunas.
Other important first quarter and post-balance sheet events
The company has received the notification from the bondholders indicating that the bondholders have decided to exercise their right to convert bonds to shares of Invalda. The conversion of 32.44 million litas resulted in the increase of the share capital of Invalda by 5.898 million litas up to 57.558 million litas.
The conversion price of new shares was 5.5 litas per share. After the conversion the bondholders had the obligation to pay back 4.788 million litas interest paid according to the conditions of the bond issue. The accrued interest as of March 30, 2012 in the amount of 2.386 million litas was not payable to the bondholders.
Invalda is completely debt free after the completion of the bond conversion. The company will continue to adhere to the prudent borrowing policy.
Invalda shareholders approved the results for the year 2011 and formed a reserve of 269.1 million litas for the share buy-back. Taking into consideration the passed resolutions the Board of Invalda decided to acquire up to 10 per cent of shares of the Company, paying for each of them 10.358 litas. The share buy-back program lasted until May 15, as a result Invalda acquired up to 10 percent of own shares for 59.6 million litas. The amount of proposed for sale shares was higher than the amount had to be acquired, therefore each selling shareholder sold 14.47 percent of shares. As own shares of the Company do not have voting rights, the shares of Invalda with voting rights totals to 51.8.
Enclosed:
– Consolidated and company’s unaudited financial statements for the period of 3 months ending March 31, 2012;
– Unaudited consolidated interim report for the period of 3 months ending March 31, 2012;
– Confirmation of persons responsible for the financial statements;
– Presentation of Invalda AB group results for the period of 3 months ending March 31, 2012.
The person authorised to provide additional information:
Dalius Kaziunas
President
Tel. +370 5273 3278
Email: [email protected]