IRF European Fin Investments Ltd
3/9/2007 00:00
IRF European Finance Investments Limited ('IRF')
• Consolidated Net Income increases to €111.9 million for six months.
• Dividends received of approximately $22.16 million from Proton Bank
and Marfin Popular Bank
• Profit realized of approximately $91.0 million from the sale of
interests in Marfin Popular Bank after the period ended
• Net asset value per share of $4.94 as of 30 June 2007
IRF European Finance Investments Limited (AIM: IRF) announces financial results
for the six-month period ended 30 June 2007.
Angeliki Frangou, chairman of IRF European Finance Investments Limited ('IRF' or
the 'Company') stated, 'We are pleased with our accomplishments during the first
six months of 2007. During this period, we:
o Completed two warrant programs, reducing warrants outstanding by 85%
and raising $292.8 million
o Purchased 41.4 million shares in Marfin Popular Bank ('Marfin'). These
shares were subsequently sold for a €66.9 million profit ($91.0 million, using
an exchange rate of €1.36:$1.00)
o Received dividends from Proton Bank ('Proton') in the amount of €3.5
million ($4.76 million)
o Received dividends from Marfin in the amount of €12.8 million ($17.4
million)'.
Ms. Frangou continued, 'The business fundamentals underlying Proton remain
strong. Proton continues to build successfully its banking business and today
has 25 branches in Greece. We hope to continue to enjoy dividend income and
capital appreciation through Proton and other opportunities we identify.
Subsequent to the second quarter, we returned capital to shareholders by
repurchasing 3.5 million shares in the open market for about $15.6 million.'
Net Asset Value
As of the business close on 30 June 2007, IRF determined that its shares had a
Net Asset Value ('NAV') of $4.94 per share. This determination does not include
any subsequent appreciation which IRF recognised on the sale of Marfin during
July.
On 30 June 2007, IRF owned a 20.58% interest in Proton and a 5.20% interest in
Marfin. The shares of both these companies trade on the Athens Stock Exchange.
The market value of these holdings, based on closing share prices on 29 June
2007, was approximately €498.5 million.
During the third quarter, IRF (1) acquired 12,000 additional shares in Proton
and currently holds a 20.60% interest Proton and (2) sold its entire stake in
Marfin.
IRF Common shares outstanding as at 30 June 2007 equalled approximately 129
million shares.
After the close of the second quarter, IRF purchased in the open market 3.5
million common shares for $15.62 million. Once these shares have been cancelled,
the shares outstanding will be 125,856,204.
The Company intends to periodically determine and publish NAV
Financials
Below are the financial highlights of IRF and its subsidiaries (together 'the
Group'). IRF owns a 20.60% interest in Proton and has appointed 6 members of the
11 member board. As a result it is considered to have 'de facto' control of
Proton's financial and operating activities and its financials are fully
consolidated into the Group's accounts. The financials below therefore include
Proton's full numbers for the period together with the investment in Marfin. In
general, because of the merger activity in 2006, items in the condensed income
statement and cash flow statement of this period are not comparable with the
respective items of the prior period.
Financial Highlights
Three month period ended
Amounts in € 000 Note 30 June 2007 30 June 2006
Income Statement Items
Net Income 111,866 6,480
Profit before income tax 66,097 6,257
Income tax expense 3,583 -
Profit after tax 62,513 6,257
Attributable to equity holders 45,944 6,257
of IRF
Minority Interests 16,569 -
Basic earnings per share (in 0.49 0.11
euro/share)
Diluted earnings per share (in 0.45 0.10
euro/share)
Balance Sheet Items 30 June 2007 31 December 2006
Cash and Cash Equivalents 496,703 203,917
Total assets 2,816,031 1,746,424
Total liabilities 2,024,309 1,200,714
Total Equity 791,722 545,710
Equity attributable to equity 488,328 238,397
holders of IRF
Minority Interests 303,394 307,313
Dividend Payment
Based on 2006 results, IRF declared a dividend payment of US$0.26 per share in
respect of 2006. Accordingly, $14.8 million in aggregate was paid out on 18
April 2007 to shareholders of record as of 23 March 2007.
Warrant Programs
As a result of the private and public warrant programs, a total of $292.8
million of gross cash proceeds were raised, and approximately 78.1 million
warrants were converted into common shares.
On 26 April 2007, after the close of the second warrant program, the total
outstanding common shares and warrants in the Company were approximately 129.3
million and 13.6 million, respectively.
For further information:
IRF European Finance Investments Ltd
Angeliki Frangou, Chairperson Tel: +30 (0) 210 4280560
Numis Securities Limited
James Black Tel: +44 20 7260 1206
Nick Westlake Tel: +44 20 7260 1345
About IRF
IRF was formed to invest in the financial services industry throughout Europe
with a primary focus on credit institutions and insurance companies in South
Eastern Europe. IRF's current strategy is the acquisition of financial
institutions having valuations which do not reflect their potential and where
marketing and operational efficiencies are possible. IRF owns a 20.60% interest
in Proton Bank
About Proton Bank
Proton Bank is a full-service financial services institution, including retail
and investment banking as well as the provision of specialized corporate
advisory and investment services. Proton Bank has 25 branches in Greece is
listed on the Athens Stock Exchange under the symbol 'PRO'.
Forward-looking statements
All statements, other than statements of historical fact, included in this
release are forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based upon
current expectations and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially from those
described in the forward-looking statements. IRF assumes no obligation and
expressly disclaims any duty to update the information contained herein except
as required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
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