The publication of Carpathia Capital SA semiannual report

COMMENTS OF THE MANAGEMENT BOARD Despite increased volatility and mixed performance of the core markets, after the first quarter the Company reported PLN 897k gain on investments. The main contributors to gain on investments were: – revaluation of investment portfolio (PLN 860k), – interest and dividend (PLN 41k), – other profits (PLN 14k). As of June 30, 2016, cash mounting to PLN 5 965k remains the Company’s most significant asset with a share of 63.47% of total assets. Financial assets in other entities valued at PLN 3 392, constituted the second most important position, representing 36.09% of total assets. Equity as of March 31, 2016 amounted to PLN 8 031k, with share capital of PLN 1 893k. The Company remained debt free. Long term liabilities were equal to zero and the reported value of short term liabilities (PLN 572k) comprised of significant value of other liabilities (PLN 568k) which are presented as a commitment to acquire financial assets equal to the carrying value of short term WIG20 futures presented as financial assets and negligible trade payables (PLN 4k). In a period under review, Carpathia Capital recognized PLN 40k of administrative costs and reported operating profit of PLN 940k. Carpathia Capital investment objective is to provide long-term capital growth through investing in portfolio of early-stage and early-growth companies operating in Central and Eastern Europe with prospects to become quoted companies. The slow deployment of collected capital is a result of two key factors: a) different path of development of the AeRO ATS in Romania which is evolving under pressure from local circumstances (demand for education on the role of capital market among SMEs in Romania, slow supply of EU funds for SMEs in Romania, weak IPO market in 1H2016), b) prudent investment policy on volatile markets in 1H2016. Taking into account strong pipeline of investment opportunities under review and newly established capital relations with INC Brokerage House, we remain confident that they provide value for Carpathia Capital in the coming months.Tags: , , ,