Penta Investments, the Central European investment group, has announced its audited financial results for the year 2012. According to Fair Value accounting, the group's net asset value has reached EUR 1.425 billion and its net profit in 2012 was EUR 147 million.
In 2012, the group has completed 7 transactions in 4 core markets (Poland, Czech Republic, Slovakia and Germany), of which 6 were acquisitions and 1 exit. Investments into new projects and expansions within the existing portfolio amounted to around EUR 370 million. The retail sector represents the largest share in Penta’s net asset value (37%).
Penta’s portfolio companies currently provide more than 33,000 jobs, of which more than 500 new jobs have been created in 2012. The Group’s new investment strategy will focus on larger companies within the CEE region with EBITDA of EUR 30 million or more. The holding period will increase to 7 – 10 years and the number of portfolio companies will be gradually reduced from existing 17 to approximately 10 within a five year horizon.
“The 2012 results provide a very strong ground for our ambitions. Nevertheless, we expect a very modest macroeconomic growth in Europe, if any. In order to succeed, our companies must therefore be able to outperform their competitors significantly. To achieve this, we need longer investment horizon and a much detailed and deeper focus on day-to-day management of our portfolio,”said Jaroslav Haščák, Penta’s Managing Partner.
The ratio of the fund’s value between Buy Outs and Real Estate divisions should reach 70:30. The current ratio is 82:18. Penta is determined to expand its Real Estate activities on the Polish market, having already started to establish the local Warsaw team.