Eyrir Invest hf. H1 2013 results

30. August 2013
  • Net loss in the first half of the year amounts to 25.4 million Euros compared to a net profit of 18.3 m Euros in first half 2012.
  • Total assets are 355 million Euros, equity amounts to 162 m Euros and the equity ratio is 46%
  • In early 2013 Eyrir Invest secured long term and stable financing.
  • Cash and bank deposits intended to meet short term obligations amount to 29 m Euros. Eyrir Invest has requested permission from the Central Bank to prepay a Euro denominated loan with final maturity in December. Subsequently Eyrir intends to liquidate its listed bonds.
  • Eyrir´s core holdings are long term financed with net debt levels at 2-4x EBITDA

Eyrir Invest’s core holdings are a 29% share in Marel and 17% holding in Stork TS and Fokker. In addition, Eyrir Invest invests in prominent growth companies through its venture capital subsidiary, Eyrir Sprotar slhf.

Fokker and Stork TS have been operating as independent companies from the beginning of the year, with separate governance and long term financing. Marel is listed on Nasdaq OMX Iceland and is booked at market value in Eyrir Invests accounts. Fokker and Stork TS are booked at fair value.

Arni Oddur Thordarson, CEO:

“At the same time as we publish unsatisfactory results for the first half of the year, we remain optimistic towards the value creating potential of Eyrir Invests assets in the coming 2-3 years. Our core holdings all operate in growth industries and hold strong competitive positions.

Eyrir´s result in first half of the year is colored by a lowering of our booked valuation of Stork TS. The booked value is taken down due to weak operational results in first quarter, though we are already seeing signs of good improvements.   New management took over this summer and an action plan has been initiated to increase focus, lower the cost structure and increase profitability. Stork TS has a strong competitive position and solid customer base as is evident by 6% organic growth in H1 2013 and healthy development of the order book.

Fokker has delivered good growth in recent years and operations are proceeding according to plan.  Eyrir Invest is a long term investor in Marel and we remain confident in Marel’s value creating potential in the coming years.”

See attachment 

In February 2013, Eyrir issued new B-shares for 16 m Euros. The B-shares were purchased by institutional investors. Simultaneously Eyrir secured long term and stable financing, with extension of the majority of total financing to 2015-2018.

Eyrir Invest’s shareholder return has been good since the Company’s foundation in mid-year 2000. Net Asset Value per share at the end of H1 2013 is 14.5 eurocents compared to 1.4 eurocents at foundation. During the same period, the MSCI World Index in Euros has declined by 24% or 2% annually on average.

Outlook

Looking ahead, there is expected to be good growth within the industries where Eyrir Invests core holdings are placed – the food industry, energy industry and aerospace industry. In the past few years Eyrir´s core assets have strengthened their market positions and are now in a good position to harvest well. Nevertheless, results may vary from year to year.

Reykjavík, 30 August 2013

For further information, contact:

Arni Oddur Thordarson, CEO of Eyrir Invest

Tel: +354 525-0200

www.eyrir.is

Table.pdf

Financial Statements H1 2013.pdf

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