On operating results
In the third quarter of 2022  Capitalia reported turnover of EUR 916 thousand and profit of EUR 30 thousand. The operating results worsened in the last reporting quarter as a result of low seasonal activity among companies seeking business financing, as well as administrative costs (IT development) associated to transition to licensed operating framework. 

On key events
In the last quarter of the year Capitalia issued new financing in the amount of EUR 3.5 million (EUR 4.9 million in the previous quarter). Among the financed businesses during this period were, for example, such companies as Rūjas Meži (forestry), Saltus (forestry) and GP Systems (specialized construction). 

In the alternative fund management, we have completed venture capital investments in Aispeco (Lithuania), in investment round led by Superhero Capital (Finland) and Ondato (Lithuania) in transaction led by OTB Ventures (Poland). We have finalized the launch of a new cost-efficient Baltic bond fund and we expect to make the first investments from this fund in the last quarter of the year.  

On plans for the next quarter
We believe that over the last quarter of 2022 the business financing activity will be increase despite the concerns regarding overall economic activity. We have identified several industries with high optimism regarding future outlook as well as can observe that companies have started to adjust to working in the current high inflation environment. We are continuing work on licensing our funding platform in Latvia but have pushed back the expected completion of the licensing to the middle of year 2023.