The INC Group has PLN 5 million in cash and PLN 17.3 million in capital investments

The INC Group published selected estimated financial data as at the end of the first quarter. In the period January – March, the Group significantly strengthened its cash position and achieved a significant increase in the value of equity investments. Currently, the INC Group has PLN 5 million in cash, PLN 14.7 million in capital investments in listed companies and PLN 2.7 million in investments outside the public market.

– The first quarter of 2020 began very well for the Polish capital market. We observed increased interest in the stock exchange and strong increases, particularly among small and medium-sized companies or on the NewConnect market. However, the SARS-CoV-2 epidemic ended the quarter in a completely different mood. We are particularly pleased with such a strong increase in the value of our capital investments achieved at the end of March, while strengthening our cash position. This allows optimistic waiting for full financial data for the first quarter. – comments Paweł Śliwiński, president of INC.

As at March 31, 2020, INC, INC Brokerage House and INC Private Equity ASI had: PLN 10.6 million in capital investments in organized trading (an increase of 56% compared to December 31, 2019), PLN 1.7 million in cash (an increase of 76%) and PLN 231 thousand  investment in unlisted companies (unchanged). On the other hand, Carpathia Capital, belonging to the INC Group and listed on the NewConnect market, had PLN 4.0 million in investments in listed companies (increase by 28%), PLN 3.3 million in cash (increase by 15%) and PLN 2.4 million  invested in unlisted shares (a decrease of 22%).

The data on Carpathia Capital was significantly affected by the debut of Plantwear on the NewConnect market, which resulted in the reclassification of shares held from unlisted investments to equity investments in organized trading.

– Despite the prevailing pandemic, we operate in an undisturbed manner. What’s more, we are conducting and successfully completing share issues during this time. We are observing a large interest in investments of individual investors. On the one hand, this is due to the deterioration of the attractiveness of investment in the real estate market, in which many Polish people have invested their savings, on the other hand, it is the result of high volatility in the capital market and in many cases attractive valuations. This is also confirmed by other brokerage houses. In March, investors opened the most new brokerage accounts for 10 years. We were waiting for a change in approach to investment in the capital market, although definitely not in the situation we are in. We hope that investors will stay with us for longer, and after the pandemic we will enter a long-term growth trend on the Polish stock market. – adds Paweł Śliwiński.

In mid-March, the management of INC adopted a new development strategy, in which the main goal is to achieve the position of a national leader in comprehensive service for small and medium-sized companies seeking financing for development. One of the foundations of the INC development plan are diversified sources of income from advisory and transaction activities. The Group also plans to expand its operations outside Poland. Currently, the Group is conducting 12 projects to obtain financing through the issue of shares, stocks or bonds. The Company is also an Authorized Adviser in 11 processes of introducing shares on NewConnect.