On operating results
In the first quarter of 2022 Capitalia reported turnover of EUR 309 thousand and profit of EUR 51 thousand. The Company reported a strong financial results in the period thanks to the high interest in business financing products from the clients. The Company showed a significant operational sustainability ratio of 1.20, indicating that the Company's turnover would be able to cover all of the financial, operating, and impairment expenses.

On key events
In the last quarter of the year Capitalia issued new financing in the amount of EUR 3.8 million (EUR 5.91 million in the previous quarter). Among the financed businesses during this period were, for example, such companies as Event Center (equipment rental), Mig Baltic (wholesale of construction equipment) and Inclusion/Planet42 (car rental). Altogether, interest in the business financing has been strong, as a result of Russia’s attack in Ukraine the rate of new financing applications has reduced significantly.  

In the alternative fund management, we have completed one venture capital investment – Favro (Lithuania), in investment round led by Practica Capital (Lithuania). We have also prepared two concepts for two new alternative investment funds to be launched in the next quarter. 

On plans for the next quarter
We believe that over the second quarter of 2022 the business financing activity will be relatively active as is typically characteristic to this season. We have started work on licensing our funding platform in Latvia and expect that this process will finish in the third or last quarter of this year.