Eyrir Invest reports an after tax profit of 3.2 million Euros for H1 2010. Equity is 160 million at June 30th 2010.
· Equity is 160 million and the equity ratio 38%
· Cash and bank deposits amount to 34 million Euros
· Eyrir Invest uses equity method in accounting for its principal long-term holdings in Marel and Össur. Shares of both companies are listed in Nasdaq OMX Nordic. If Marel and Össur holdings were booked at last trading prices the equity ratio of Eyrir Invest would be slightly above 40%.
· The outlook for Marel, Össur and Stork is good. The companies are all highly cash generating, have sound financial positions and have strengthened further their competitive position in recent years. Their financing is in accordance with international practices with net debt around 2-4x EBITDA.
As of January 1st 2009, Eyrir Invest‘s functional currency is the Euro. Vast majority of Eyrir Invests’ assets are in three leading industrial companies; Marel, Össur and Stork. Eyrir has as well supported various ventures in recent years for further growth.
Eyrir Invest enjoys 10 years of operations. Internal value per share is by mid-year 2010 15.9 eurocents compared to 1.4 eurocents at foundation June 8th 2000. In the same period, the MSCI world index has declined by 5% annually measured in Euros, or by 41% compounded.
Árni Oddur Þórðarson, CEO:
„We are pleased with the good operations of Marel, Össur and Stork, in the first half of the year. The management and employees of our core holdings have shown strength and flexibility in turbulent times.
We appreciate the trust we receive from creditors and investors. Eyrir has always emphasised on a clear strategy, transparency in operations and long term financing both regarding Eyrir’s own operations and its key holdings.
Marel, Össur and Stork have in recent years been highly cash generative without sacrificing R&D or marketing efforts. With stable financing and leading market position in growing industries they are well positioned for further value creation“
Eyrir Invest´s „Buy and build“ strategy
Eyrir Invest’s key holdings are a 32% share in Marel, a 15% share in Össur and 17% share in the Dutch industrial group Stork that today stands on two legs; Stork Technical Services and Fokker Aerospace.
Eyrir has been a shareholder in Marel and Össur since 2004 and in Stork since 2006. Eyrir´s key holdings are market leaders in their respective industries. In recent years they have built up their current strong positions and looking forward they are in position to harvest well. In 1H 2010 Eyrir Invest sold 16.9 million shares in Össur, but remains Össurs second largest shareholder.
In addition to its core investments, Eyrir Invest has investments in various start-up companies and supports their further growth. In 1H 2010 Eyrir had a successful exit from its 25% holding in Calidris when Sabre Holdings acquired all shares in Calidris. Calidris is a global provider of revenue integrity solutions for the airline business.
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Key figures – Statement of Earnings |
||||
|
(in EUR thousands) |
2010/6m |
2009/6m |
2009 |
2008 |
|
Operating revenues: |
||||
|
Net income from securities and derivatives |
3.776 |
4.966 |
-9.512 |
40.914 |
|
Share of loss of equity accounted associates |
4.663 |
5.657 |
-13.116 |
-4.247 |
|
Interest income |
8.289 |
9.095 |
17.821 |
19.253 |
|
Interest expenses |
-8.145 |
-8.187 |
-16.909 |
-21.455 |
|
Net foreign exchange gain (loss) |
-4.612 |
910 |
183 |
-34.316 |
|
Net operating revenue |
3.971 |
12.441 |
-21.533 |
149 |
|
Operating expenses: |
||||
|
Salaries and salary related expenses |
459 |
584 |
889 |
1.046 |
|
Other operating expenses |
264 |
336 |
1.241 |
511 |
|
Operating expenses |
723 |
920 |
2.130 |
1.557 |
|
(Loss) Profit before income tax |
3.248 |
11.521 |
-23.663 |
-1.408 |
|
Income tax |
0 |
0 |
0 |
10.235 |
|
Net earnings |
3.248 |
11.521 |
-23.663 |
8.827 |
|
Other compreh. inc. (exp.) for the period |
3.137 |
-479 |
-7.696 |
24.975 |
|
Total comprehensive income for the period |
6.385 |
11.042 |
-23.663 |
33.802 |
|
Basic earnings per share-eurocents (each share 1 ISK) |
0,63 |
1,14 |
-2,00 |
1,00 |
|
Key figures – Balance Sheet |
2010/6m |
2009 |
2008 |
2007 |
|
Assets: |
||||
|
Cash and restricted cash |
34.497 |
27.526 |
40.732 |
76.304 |
|
Investment securities |
170.537 |
167.909 |
168.244 |
444.173 |
|
Investments in equity accounted securities |
208.446 |
208.631 |
227.710 |
0 |
|
Trade and other receivables |
1.531 |
615 |
12.741 |
5.681 |
|
Operating assets |
2.079 |
2.119 |
2.180 |
2.391 |
|
Total assets |
417.090 |
406.800 |
451.607 |
528.549 |
|
Equity and Liabilities |
||||
|
Total equity |
159.854 |
153.469 |
184.185 |
198.829 |
|
Trade and other payables |
259 |
373 |
29.351 |
29.139 |
|
Deferred income tax liability |
0 |
0 |
0 |
19.128 |
|
Liabilities |
256.977 |
252.958 |
238.071 |
281.453 |
|
Total equity and liabilities |
417.090 |
406.800 |
451.607 |
528.549 |
|
Equity ratio |
38,3% |
37,7% |
40,8% |
37,6% |
Marel and Össur are the largest listed companies in Iceland
Marel and Össur are the largest companies registered on Nasdaq OMX in Iceland and in addition Össur shares are listed in Copenhagen; they are as well among the largest export companies in Iceland.
· Marel share price has increased by 72% YTD, calculated in Euros. In 2009 Marel entered into equity issues which in addition to good cash flow and sale of non-core operations has strengthened Marel´s financing considerably. Marel has as well reported strong sales and operational profit increase in 1H 2010.
· Össur successfully dual listed its shares on Nasdaq OMX Copenhagen in 3Q 2009 in addition to its Nasdaq OMX Reykjavík listing. Össur share price has increased by 36% YTD calculated in US dollars. Össur has reported good sales and profit increase in 1H 2010.
Eyrir Invest holdings in Marel and Össur are booked in accordance with the equity method. If Marel and Össur holdings were booked at last share prices the equity ratio of Eyrir Invest would be slightly above 40% compared to 38% in Eyrir´s H1 2010 accounts.
Outlook
The industries in which Eyrir Invests core holdings operate are expected to continue to enjoy growth above general economic growth. Eyrir´s companies‘market positions and financials are strong and those companies should therefore be in a good position to create further values.
For further information please contact,
Arni Oddur Thordarson, CEO of Eyrir Invest
Tel: +354 525-0200
Attachment:
Eyrir Accounts 30 6 2010.pdf
