2016-08-31 15:20:47 CEST

2016-08-31 15:20:47 CEST


REGLERAD INFORMATION

Engelska Litauiska
Invalda INVL - Interim information

Unaudited results of Invalda INVL, AB group for the 6 months of 2016 


Vilnius, Lietuva, 2016-08-31 15:19 CEST (GLOBE NEWSWIRE) -- Unaudited results
of Invalda INVL, AB group for the 6 months of 2016: 

- consolidated net loss attributable to shareholders of Invalda INVL, AB and
consolidated net loss amounted to EUR 0.2 million, in the same period of 2015
consolidated net profit attributable to shareholders of the company and
consolidated net profit was EUR 4.1 million; 
- consolidated equity capital for the 6 months of 2016 amounted to EUR 47.5
million, in the end of 2015 it was EUR 48.1 million; 

The net profit of Invalda INVL, AB for the 6 months of 2016 amounted to EUR 0.1
million, in the same period of 2015 the net profit was EUR 3.8 million. Equity
capital of Invalda INVL, AB for the 6 months of 2016 amounted to EUR 48.2
million, in the end of 2015 it was EUR 48.5 million. 

Additional information:

Invalda INVL, one of the Baltic region’s leading asset management groups, had
consolidated equity capital of EUR 47.5 million, or EUR 4.10 per share, at the
end of the first half of 2016, which is 0.24% less than at the start of the
year. The Invalda INVL group had a consolidated loss of EUR 0.2 million in the
first half, versus a profit of EUR 4.1 million in the same period of 2015. 

“Ongoing operations, the current valuation of our investments and the plans of
the companies we’ve invested in give reason to expect that 2016 will be
successful for the Invalda INVL group,” said Darius Šulnis, the president of
Invalda INVL. 

During the first half of the year, Invalda INVL acquired 1.1% of its own shares
for EUR 0.6 million and the company’s shareholders also approved a stock option
policy for employees of the group. 

Asset management business

Invalda INVL’s asset management companies INVL Asset Management in Lithuania
and Latvia, the wealth-management financial brokerage firm INVL Finasta, and
the administrative company INVL Farmland Management had assets under management
of EUR 374.3 million at the end of June 2016, or 14% more than at the end of
2015 (EUR 328.2 million). The number of clients increased by 2.7% during the
first half of the year to 171,200. 

“The money clients have entrusted to us is being managed successfully and the
majority of the pension and mutual funds and securities portfolios that we
manage show gains for 2016. The long-term advantage we’re creating for our
clients is the essential precondition for maintaining rapid growth of assets
under management now and in the future,” Šulnis said. 

He said substantial investments in expansion of the asset management business
and in service quality are having a negative impact on short-term results, but
are creating long-term value for clients and for the Invalda INVL group. 

Revenues of Invalda INVL group companies from asset management and
administration activities increased 22% (compared with the same period in 2015)
during the first half of 2016 to EUR 2.1 million; the companies had losses of
EUR 0.3 million in the period. Investments in the asset management business at
the end of the first half totalled EUR 7.9 million. 

Investments

Investments in related companies

At the end of June, Invalda INVL held 32.1% of shares in the real estate
investment company INVL Baltic Real Estate, which were valued at EUR 8.2
million. This investment earned EUR 263 thousand in the first half of the year,
including dividends. In March 2016, INVL Baltic Real Estate completed a 9
million-euro offering of new shares in which Invalda INVL acquired shares for
EUR 6.2 million. 

“Reconstruction at the Vilnius Gates complex and focused work with this and
other properties held by the company and their tenants, along with rising real
estate values, should have a positive effect on INVL Baltic Real Estate’s
results in the near future,” Darius Šulnis said. 

He said INVL Baltic Real Estate is currently seeking a closed-end investment
company (UTIB) license in order to properly structure its business and fulfil
the commitments it made during the public share offering. 

Invalda INVL’s 15.7% stake in INVL Technology had a value of EUR 3.4 million at
the end of June 2016, while the recognized loss from the change in value of the
company’s shares was EUR 0.4 million. In July, INVL Technology obtained a
closed-end investment company license and its management was transferred to
INVL Asset Management. 

“We take a neutral view to the company’s 6-month results. INVL Technology is
currently in an investment cycle where what’s important is making suitable
acquisitions at reasonable prices and, by expanding held or newly acquired
business, creating significant value for shareholders. In the year since its
share offering, INVL Technology has completed acquisitions for 3.25 million
euros, which is in line with its plans and promises to investors,” Darius
Šulnis said. 

Agriculture

The value of Invalda INVL’s investments in the Baltic agribusiness company
Litagra, in which it has a 36.9% stake, was EUR 12 million at the end of June
2016. The shares’ fall in value caused a loss of EUR 2.9 million in the first
half of the year. 

“Reduced milk prices hurt results in the primary agricultural production
business and reduced the company’s value, though the farmer services and grain
trading business has shown improving performance,” Šulnis said. 

Banking

Invalda INVL holds a 6.79% equity stake in Šiaulių Bankas, the value of which
increased by EUR 2 million in the first half of the year to EUR 8.4 million.
“We’re satisfied with Šiaulių Bankas’s record results and organic growth of its
business. The Baltic banking market is undergoing consolidation – that creates
new opportunities for a bank that’s closer to customers,” Šulnis said. 

Facility management

Companies of the Inservis facility management group, which Invalda INVL
controls, had a total value of EUR 5.5 million at the end of the first half of
2016, or EUR 0.9 more than at the end of 2015. “We’re actively looking for
acquisitions in the facility management segment in Lithuania and Latvia,”
Šulnis said. 

Other investments

At the end of June 2016, Invalda INVL had EUR 0.6 million of investments in
other publicly traded shares, as well as other investments and loans with a
value of EUR 1.6 million. Invalda INVL had total liabilities of EUR 0.9 million
at the end of the half-year. 


         The person authorized to provide additional information:
         Darius Sulnis
         President of Invalda INVL
         E-mail: darius.sulnis@invl.com