The financial strength of Eyrir Invest has increased due to issue of new equity and good operating result.
· Share capital has been increased by 10%.
· Profit after tax for the first nine months of 2006 amounts to 1,534 million ISK (EUR 17.2 million). Calculated return on equity for the period is 16% or 22% on an annual basis.
· New equity will be fully paid-in before year end 2006. Eyrir Invest equity after the share capital issue and the result for the first nine months of 2006 amounts to 11.7 billion ISK (EUR 131.4 million). Equity ratio is in excess of 47% and there are no off-balance sheet forward equity contracts.
· Eyrir Invest’s strategy is to finance equity holdings long-term. Average maturity of debt is approximately four years with the bulk of the debt due in 2009 and 2012.
· Listed bonds on the Iceland Stock Exchange amount to 2.6 billion ISK (EUR 29.2 million), thereof 1,160 m ISK (EUR 13 million) issued during the first six months of 2006.
Arni Oddur Thordarson, CEO:
“Eyrir Invests’ financial strength increases with the new equity and we further broeden our investor base with those powerful investors. The result in the first three quarters of 2006 is in accordance with targeted return on equity. In the future we are interested in extending our group of shareholders, step by step. Eyrir Invest is now financially better positioned to support the ambitious growth targets of Marel and Össur and at the same time increase the company´s profitability by diverse foreign portfolio of assets in accordance with our strategy.”
Shareholders – post increase:
|
Shareholders |
Shares |
|
Þórður Magnússon |
36.0% |
|
Árni Oddur Þórðarson |
28.5% |
|
Sigurjón Jónsson |
13.5% |
|
Straumborg ehf. / Jón Helgi Guðmundsson |
10.9% |
|
Arkur ehf. / Steinunn Jónsdóttir |
5.0% |
|
Landsbanki Luxembourg S.A. |
6.1% |
|
100.0% |
Outlook
The outlook for Eyrir Invest is positive. The company’s core holdings are solid and Eyrir Invests’ average annual return on equity target is 20% for the period 2006-2010, compared to over 60% actual annual average return for the period 2000-2005. Eyrir Invests’ results can fluctuate in line with fluctuations in the financial markets. The Icelandic economy is still dealing with great imbalances at the same time as the global outlook is positive.
Further information
Information on Eyrir Invest ehf. is available at www.eyrir.is
For further information please contact Arni Oddur Thordarson, CEO, at +354 525 0200.
