2013: Latvia's most valuable company TOP 101

Continuing the well established traditions which have started 8 years ago, Prudentia once again presents Latvia’s 101 most valuable enterprises in collaboration with NASDAQ OMX Riga and with informative support of Lursoft IT. One of the main purposes of this project is to raise awareness and start a discussion about Enterprise Values in Latvia.

Detailed TOP 101 you can see here.

The project which was carried out this year, assessed more than 600 companies based on their profitability and turnover, which had submitted their annual reports to the Register of Enterprises of the Republic of Latvia. Not only were the companies’ performance indicators analysed but also corporate governance risks and transparency by use of 15 different criteria measurements- including the political independence of the company, company’s executive body connection to shareholders and potential risks, etc.

The TOP 101 prepared by Prudentia and NASDAQ OMX Riga reflects Company’s value (Enterprise Value). The only exception is for banking and insurance companies where company’s value is determined by Equity Value.  

The list of Latvia’s most valuable enterprises (TOP 101) was announced on October 16 during the ceremony of National Capital awards which took place in the Art Museum Riga Bourse. There, representatives of the most valuable companies were greeted by the president of the Latvian Republic - Andris Bērziņš and the minister of Economics of the Latvian Republic - Daniels Pavļuts. For the sixth time in the history of TOP 101, Latvenergo was awarded the title of the most valuable enterprise in Latvia. This year the Enterprise Value of Latvenergo is 792.2 million Lats (last year it was 876.3 million Lats)

Prudentia's special recognition award for „The Development of innovative and sustainable international business” was given to Ltd. Mikrotīkls – a company which manufactures communication equipment and provides unique software solutions to its clients all around the world. The enterprise value of Ltd. Mikrotīkls reached 133 million Lats, showing a 35% increase in comparison to last year’s Enterprise Value.

Prudentia’s perennial partner NASDAQ OMX Riga gave an award for „The fastest growing listed company from the TOP 101” to JSC Olainfarm. JSC Olainfarm was not only the most traded company on Riga Stock Exchange, but it also had the largest stock price increase in comparison to other companies in the Riga Regulated Market.

The overall picture of this year’s TOP 101 shows that previous year’s TOP 101’s trend of market stabilization is continuing. As in the previous year, the total value of companies included in the TOP 101 has increased by 1%, from 8.5 billion Lats to 8.6 billion Lats respectively. Additionally, the value of the 101^st company in the project also has increased, reaching 22.9 million Lats compared to 18.4 million Lats in the previous TOP 101. For the fifth year in a row, the leadership role of the top ten companies has been awarded to Latvenergo (with an Enterprise Value of 792 million Lats). Historically, changes in the order of the top ten most valuable companies were made by two or three newcomers from top twenty and top thirty, but this year the changes were made by one of the largest port service companies JSC „Rīgas Tirdzniecības Osta”. Indeed JSC „Rīgas Tirdzniecības Osta” has shown an increase of 99% in its enterprise value and has made a leap in the rating if compared to the previous TOP 101. The overall picture of this year’s TOP 101 indicated that the top ten companies have lost their value but at the same time the loss is compensated by an increase of the value for other companies in the TOP 101.   

Although the majority of companies in the TOP 101 have remained unchanged, there are two positive trends: there is a rise in the number of companies which have shown an increase in their Enterprise Value (up to two thirds); and the average growth rate was 42% in comparison to 28% in the last year's TOP 101. Moreover, the average decrease rate of companies’ values has remained almost unchanged. The most common types of sectors represented in the TOP 101 are financial services, transportation and logistics services, trade of consumer goods and manufacturing of industrial goods (more than 50% of companies in the top’s participants), but the leadership roles based on total value of sectors have remained unchanged only for financial services and transportation and logistics sectors. At the same time, the largest average Enterprise Value of one participant per sector was for representatives from natural resource extraction and utilities sectors (it was more than four times larger than the average value of one particular participant in the top). 

Based on the positive dynamics of Latvia’s gross domestic product (GDP), enterprises from cyclical industries are strengthening their position if measured by an increase of Enterprise Value. Another strengthening trend, which was also detected in previous year’s top, is that despite the fact that Latvia’s GDP growth in 2012 was nearly identical to GDP growth in 2011 and the total value of companies in TOP 101 has remained stable, the impact of relatively small enterprises on the Latvian economy  is increasing. 

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