1st Quarter Results
1/6/2007 07:00
IRF European Fin Investments Ltd
01 June 2007
IRF European Finance Investments Ltd
31 May 2007
IRF European Finance Investments Ltd ('IRF')
• Consolidated Net Income increases to €39.6 million
• Net asset value per share of $4.78
• Outstanding warrants reduced by 85%; approximately 78.1 million
warrants converted
• $292.8 million of gross cash proceeds raised and re-invested
IRF European Finance Investments Limited (AIM: IRF) announces its financial
results for the three-month period ended 31 March 2007.
Angeliki Frangou, chairman of IRF European Finance Investments Limited ('IRF' or
the 'Company') stated, 'The business fundamentals underlying our significant
holdings - Proton Bank ('Proton') and Marfin Popular Bank ('Marfin') - remain
very strong. Proton has diversified its business and now has 25 branches in
Greece. Marfin significantly increased guidance for the period 2007-2009 due to
strong growth in Greece and Cyprus. As a result, we hope to continue to enjoy
dividend income and capital appreciation through these holdings.'
In May 2007, the Company received the amount of €3.5 million as a dividend from
Proton and €10.2 million as a dividend from Marfin.
Ms. Frangou continued, 'IRF successfully reduced the number of warrants
outstanding by 85% through two warrant programs, the first of which ended in
this quarter. IRF raised $292.8 million through the conversion of approximately
78.1 million warrants. This additional capital allowed IRF to opportunistically
purchase further shares in Marfin. This investment together with the balance of
the cash from the conversion of the warrant programme significantly increases
liquidity and enables IRF to participate further in the consolidation of the
financial services sector in Southeast Europe.'
Net Asset Value
As of the business close on 30 March 2007, the Company determined that its
shares have a Net Asset Value ('NAV') of $4.78 per share, determined as follows:
The Company owned a 20.16% 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 30 March 2007,
was approximately €470.0 million.
IRF Common shares outstanding as at 30 March 2007 equalled approximately 114
million shares.
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 20.16% 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 31 March 2007 31 March 2006
Income Statement Items
Net Income 39,550 6
Profit before income tax 15,688 (26)
Income tax expense 1,759 -
Profit after tax 13,930 (26)
Attributable to equity holders 4,874 (26)
of IRF
Minority Interests 9,056 -
Basic earnings per share (in 0.08 0.00
euro/share)
Diluted earnings per share (in 0.06 0.00
euro/share)
Balance Sheet Items 31 March 2007 31 December 2006
Cash and balances with central 33,979 37,397
bank
Total assets 2,542,450 1,744,696
Total liabilities 1,805,832 1,198,987
Total Equity 736,618 545,709
Equity attributable to equity 420,299 238,397
holders of IRF
Minority Interests 316,319 307,312
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
Jagjit Mundi Tel: +44 20 7260 1284
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 20.16% interest
in Proton Bank and a 5.2% interest in Marfin Popular 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'.
About Marfin Popular Bank
Marfin Popular Bank is full-services financial institution that was created
through the recent merger of Marfin Financial Group, Laiki Hellas and Egnatia
Bank. As a result, Marfin is a regional financial institution with 312 branches
in 12 countries. Marfin Popular Bank is listed on the Athens Stock Exchange
under the symbol 'MARFB'.
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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