OREANDA-NEWS. December 1, 2011. Invalda, one of the largest investment companies in Lithuania, has earned 233.7 million LTL of consolidated net profit attributable to the parent company. During the appropriate period of 2010 the consolidated net profit amounted to 29.9 million LTL. The consolidated net profit increased due to sale of Sanitas and Tiltra Group shares.

“The sale transaction of Sanitas, which was completed during the third quarter, has marked our exit from the largest investments, repayment of financial obligations and generation of funds for new investments. This is also the beginning of a new stage. The entry into the agricultural sector by signing the agreement regarding investments into Litagra is one of example of this”, - said Darius Sulnis, the president of Invalda.

Furniture manufacturing sector
The furniture manufacturing sector, where Invalda controls 72 percent stake in the largest Lithuanian furniture manufacturing company Vilniaus Baldai has earned 15.1 million LTL for Invalda. A consolidated sale of Vilniaus Baldai has grown by 26.7 percent to 179.4 million LTL, EBITDA has decreased by 2.7 percent to 28.3 million LTL and the net profit has decreased by 0.9 percent to 20.9 million LTL.

“A successful period for Vilniaus Baldai continues. The main priority of the company remains to maintain current advantages of competitive furniture manufacturing and discovering new ones”, - said D. Sulnis.

Real estate sector
The real estate sector, operating under Inreal brand, incurred a loss of 2.2 million LTL for nine months of 2011. During the same period of 2010, 0.4 million LTL has been incurred.

Sales of the real estate sector has totalled to 19.3 million LTL (24 million LTL appropriately in 2010).

“We continue to work with certain selected projects. Also we have increased some investments, i.e. into agricultural land. Despite the fact that our business is adopted to operate under different market conditions, a situation in real estate market remains the main factor, which significantly impacts results”, - said D. Sulnis.

According to Mr. Sulnis, investment property will be re-valued during the fourth quarter. This will have effect to the final profit or loss in 2011. Investment property and unsold residential projects were valued 260.7 million LTL at the end of the third quarter.

Rail and road infrastructure
In the rail and road infrastructure sector Invalda controls 12.5 per cent of Trakcja – Tiltra shares, which are listed on Warsaw Stock Exchange. Due to Trakcja-Tiltra share market price decline a loss of 59.3 million LTL was incurred.

IT infrastructure sector
In the IT infrastructure sector Invalda controls 80 percent of BAIP Group shares. The acquisition of 100 percent shares of the specialized register information systems software company Norway Registers Development (together with 70.7 percent stake in the Lithuanian company NRD) was completed in November at 1.2 million EUR price paid for the shares.

“We expect that this transaction will have a positive effect on the results of BAIP Group, will contribute to further growth and diversification in the international market”, - said D. Sulnis.

Mr. Sulnis mentioned that the business of BAIP Group is seasonal and profit is earned at the end of year. “We expect that 2011 will be profitable and so far the best in the group’s history”, - said D. Sulnis.

Revenues of BAIP Group during three-quarters of 2011 has increased by 11.6 per cent to 19.3 million LTL, loss of 0.9 million LTL was incurred.

Facilities management sector
In the facilities management sector, where Invalda controls Inreal Pastatu Valdymas together with other companies, turnover has grown by 33 per cent to 7.2 million LTL, and profit of 1.3 million LTL was earned. Excluding one-off items, the net profit amounted to 0.2 million LTL.

„After few small, but successful acquisitions and increase of business volumes, the main priority now is to rearrange internal processes and to prepare the company for new growth plans”, - said D. Sulnis.

Other important third quarter and post-balance sheet events
From sale of Sanitas finished during the third quarter Invalda has received 315.6 million LTL for Sanitas shares. 185.9 million LTL of the net profit was recorded from this transaction.

After completion of Sanitas and Tiltra Group sale transactions, Invalda has repaid all loans to banks and group companies. Currently Invalda is actively looking for new investment opportunities. At the end of the third quarter cash, deposits and other liquid financial instruments of Invalda amounted to 156 million LTL.

In November the agreement regarding investment into one of the largest Lithuanian agricultural sector companies Litagra was signed. Invalda will acquire 36.9 per cent stake in Litagra for 38.6 million LTL. The transaction should be closed when the permission of the Competition Council is received (expected in December).

Invalda has had 20 million LTL invested into the deposit certificate of AB bank Snoras. The Government of Lithuania nationalised 100 percent of bank Snoras shares. The Bank of Lithuania has revoked the banking licence of Snoras and decided to apply to a court for a bankruptcy. Invalda has evaluated possibilities to recover these amounts and decided to provide for 100 percent value of the investment.