OREANDA-NEWS. August 29, 2012. Invalda, one of the largest investment companies in Lithuania, earned unaudited consolidated net profit of 19.9 million litas attributable to the parent company in the first half of 2012. This is 7.1 times less than in the first half of 2011 when the profit was 141.7 million litas.

“Last year's profit grew because of the transaction of Tiltra Group. The result of current year comes from business activities of the group companies“- said Dalius Kaziunas, the President of Invalda.

59.6 million litas was allocated by Invalda for a share buy-back program in the first half of 2012.

Furniture manufacturing sector

The furniture manufacturing sector, where Invalda controls 72 percent stake in the largest Lithuanian furniture manufacturing company Vilniaus Baldai, earned 7.8 million litas for Invalda, i.e. 19 percent less than in January-June of 2011 (9.6 million litas). The consolidated sales of Vilniaus Baldai AB were 115.4 million litas, and were 0.5 percent higher than in the corresponding period of 2011 when they reached 114.8 million litas. EBITDA decreased by 15 percent to 15.4 million litas and net profit decreased by 19 percent to 10.9 million litas. Both, net profit and EBITDA decreased due to one - off operating costs (it was 3 million litas in the first half of 2012, compared to 0.8 million litas in the corresponding period of 2011).
„We are satisfied with cash-flow and results of activity of the company. However, competition among furniture manufacturers remains fierce, and this puts pressure on margins”- said D. Kaziыnas.
The shareholders of Vilniaus baldai decided to allocate 39 million litas for dividends, 28 million litas of this amount was paid to Invalda.

Real estate sector

The loss of the real estate sector for the first half of 2012 amounted to 0.3 million litas (in January- June of 2011 it was 1.4 million litas). In the first half of this year, compared with the same period of 2011, total rental income grew by 7 percent to 9 million litas, from which rental income from assets belonging to their clients - grew by 4 percent to 2.6 million litas. The total sector’s income growth was caused by the fact that apartments for the total amount close to 5.3 million litas were sold in the project Elniakampio Namai. Overall residential property sales amounted to more than 6.5 million litas.
„In the real estate market we are operating reservedly – the developed projects are not large.“- said D. Kaziunas.
During the first quarter of 2012 further investments to agricultural land were made; close to 2 million litas was invested.

Facility management sector

Facility management sector, where Invalda owns Inreal Pastatu Prieziura and other companies, sales grew by 36.4 percent up to 6.0 million litas, loss totalled to 0.2 million litas.
„Due to costs associated with business development and restructuring the results are lower than the company’s potential.“- said D. Kaziunas.
The department providing cleaning services started its activity and signed the first contracts after winning public procurement tenders.

Agriculture sector

In the agricultural sector, where Invalda owns 36.8 percent shares of Litagra, earned a profit of 3.6 million litas to Invalda.
„This year is favorable for agriculture in Lithuania and it is reflected in the results of Litagra as well,“- said D. Kaziunas.

Information technology infrastructure sector

In the information technology infrastructure sector where Invalda owns 80 percent of BAIP group, Invalda incurred a loss of 1.1 million litas.
„This business is seasonal and most of the profits are earned at the end of the year. Taking into account international projects developed together with the company Norway Registers Development acquired last year, the overall result of the sector for 2012 will be good“- said D. Kaziunas.

Rail and Road infrastructure sector

Invalda owns 12.5 percent of Trakcja – Tiltra shares which are listed on Warsaw Stock Exchange. Due to increase of the share price of this company Invalda earned a profit of 5.7 million litas. Unlike other sectors, investment of Invalda in Trakcja – Tiltra is a financial one; therefore, the financial statement of Invalda reflects changes of the share price but not the result of activity of Trakcja – Tiltra.

Other important six months and post-balance sheet events

The Articles of Association were amended due to reduction of the share capital of the Company for the purpose of cancelling of the own shares on August 6, 2012. The share capital of Invalda AB was reduced from 57,557,940 litas to 51,802,146 litas by cancelling 5,755,794 ordinary registered shares at par value of 1 litas.