On operating results
In the first half of 2023, Capitalia reported a turnover of  EUR 705 thousand and losses of  EUR 52 thousand. The operating results were negatively impacted by extraordinary one-off expenses which resulted from the sale of a subsidiary holding a brokerage license. As part of the costs associated with opening, and maintaining the subsidiary as well as obtaining the license were not fully amortized, they were booked at the moment of subsidiary sale. Financing activity remained strong in the second quarter of 2023. During the first half of 2023, we managed to issue a funding amount of EUR 13.03 million (EUR 9.85 million during the first half of 2022).

On key events
In the second quarter of the year, Capitalia issued new financing in the amount of EUR 5.6 million (EUR 7.43 million in the previous quarter). Among the financed businesses during this period were, for example, such companies as Aeonpump (manufacturing), MIG Baltic (wholesale and retail trade), and Selva Būve (construction). 

In alternative fund management, we have made 3 new investments from our cost-efficient Baltic bond fund and acquired bonds of Integre Trans (a Lithuanian logistics company), Akropolis Group (a Lithuanian retail property development company), and Eleving loan-backed securities - a Latvian finance company - on the Mintos Marketplace platform. 

 

On plans for the next quarter
We believe that over the third quarter of 2023 the business financing activity will continue strongly despite the still ongoing economic concerns. We continue to observe that companies are adjusting to working in the still high inflation as well as higher interest rates environment. Our financing is becoming more attractive as interest rates at commercial banks have increased and we expect to see good projects for financing throughout the year.  

   

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