2014-02-24 08:13:40 CET

2014-02-24 08:14:42 CET


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Invalda AB - Interim information

Unaudited results of Invalda LT, AB group for the period for 12 months of 2013 


Vilnius, Lithuania, 2014-02-24 08:13 CET (GLOBE NEWSWIRE) -- Unaudited results
of Invalda AB group for the period for 12 months of 2013: 
- consolidated net profit attributable to shareholders of Invalda LT, AB
totalled to LTL 109.2 million (EUR 31.6 million). In the same period of 2012 it
was LTL 24.8 million (EUR 7.2 million); 
- total consolidated net profit amounted to LTL 110.4 million (EUR 32 million).
In the same period of 2012 it was LTL 32.1 million (EUR 9.3 million). 

The net profit of Invalda LT, AB for 12 months of 2013 amounted to LTL 79
million (EUR 22.9 million). In the same period of 2012 the profit of the
company amounted to LTL 20.9 million (EUR 6.1 million). 

A review of the results of Invalda LT, AB group for 12 months of 2013:
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. 


         The person authorized to provide additional information:
         Darius Sulnis
         President
         Phone +370 5279 0691
         E-mail:Darius@InvaldaLT.com