2014-08-07 09:00:42 CEST
2014-08-07 09:01:43 CEST
REGULATED INFORMATION
Leverator - Interim Management statement
LEVERATOR PLC INTERIM REPORT 1 JANUARY – 30 JUNE 2014
Leverator Plc Interim Report 7 August 2014 at 10.00 a.m. EEST
LEVERATOR PLC INTERIM REPORT 1 JANUARY - 30 JUNE 2014
Business
Leverator Plc's (Leverator) business consists of the issue of bonds and the
grant of loans to CapMan Mezzanine IV L.P. mezzanine fund (CMM IV). Leverator's
result is formed by the difference between interest received from CMM IV's
loans and interest paid to bondholders. The issued bonds are listed on the
Helsinki Exchanges (Nasdaq OMX Helsinki).
Bonds
Leverator has issued a serial loan with a fixed coupon interest of 8.162%. The
bonds were issued in five tranches in accordance with the loan capital needed
by CMM IV, and investors subscribed all five tranches according to their
commitments. The final size of the bond totalled MEUR 192 on 18 June 2009. The
final loan maturity is 21 June 2016. Leverator has a call option to repay the
bonds or part thereof not earlier than 22 June 2009.
Leverator repaid 13.5%, equivalent of EUR 26,000,256, in accordance with the
terms of the loan on 23 June 2014. The outstanding bond loan totalled EUR
70,313,856 on 30 June 2014.
Issued tranches and Leverator's financial performance
Issued tranches (trading code LEVJ816216)
Tranche Issue date Size of the tranche, Date of Subscription
MEUR listing price, %
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1st 12 July 2004 8.0 13 July 2004 100.00
tranche
2nd 5 June 2006 40.0 13 June 2006 99.137
tranche
3rd 28 March 48.0 13 April 98.290
tranche 2007 2007
4th 28 April 36.0 5 May 2009 97.389
tranche 2009
5th 18 June 2009 60.0 25 June 2009 98.468
tranche
Leverator's turnover for the accounting period was EUR 0, because the Company's
interest earnings and interest expenses are presented as financial items in the
income statement. Leverator's operating loss was EUR 28,165 (EUR 28,529 for the
review period 1 January - 30 June 2013) and financial income and expenses
totalled EUR 118,768 (EUR 140,553). The result for the accounting period was
EUR 72,482 (EUR 84,578).
Leverator's solvency and risks
The security for the bonds is Leverator's receivable from CMM IV. The security
for this receivable to Leverator is CMM IV's mezzanine loan receivables from
portfolio companies as well as associated options and portfolio company shares
that are possibly subscribed on the basis of those options.
Leverator's solvency to pay the bonds' interest and principal is based on CMM
IV's solvency to pay the loan receivable and interest to Leverator. CMM IV's
solvency is dependent on its mezzanine loan receivables from portfolio
companies and on the value of associated options or shares as well as on CMM
IV's right to call the commitments and clawback of the Fund's Limited Partners.
The most significant risks or uncertainty factors in Leverator's operations are
that the portfolio companies would not be able to pay their debt to the fund,
that the fund's Limited Partners would not fulfil their obligations in
accordance with fund agreement or that the fund's solvency would be put at risk
due to some other cause.
An examination of CMM IV's solvency to manage the loan receivable to Leverator
is first carried out in order to determine Leverator's solvency.
CMM IV's solvency 30 June 2014
MEUR
Outstanding balance to Leverator 70.3
CMM IV's mezzanine loans and associated options and shares:
- acquisition cost* 39.8
- value appreciation* 12.0
Net cash assets
- bank deposits 3.3
- accumulated interest receivables** 0.5
- Leverator/accumulated interest -0.1
Commitments at call from Limited Partners 10.0
Clawback at call 10.9
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Total 76.4
* Figures by CMM IV's management company, as reported or with a discount.
** Excludes interest receivables that are outstanding or have accumulated that
are not booked in the Fund's accounts because of the uncertainty whether they
can be collected.
CMM IV's financial assets exceed the total loan receivables of Leverator by
€6.1 million on 30 June 2014 and therefore the latter's receivable due from CMM
IV presented below can be booked in full. CMM IV's financial assets exceeded
the total loan receivables of Leverator by €10.1 million on 30 June 2013 and by
€7.0 million on 31 March 2014.
The values given above are reported by CMM IV's management company. The
management company's assessment of the value appreciation of mezzanine loans
and associated options and shares is based on reporting principles common to
the private equity industry. These principles aim at take into account risk
factors caused by the general economic environment. The amount of commitments
and clawback that the fund has a right to call from the Fund's Limited Partners
is based on CMM IV's fund agreement.
Leverator's solvency 30 June 2014
MEUR
Balance of bonds at nominal value 70.3
Leverator's receivable from CMM IV at nominal value 70.3
Net cash assets 1.0
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Total 71.3
Leverator's solvency exceeds the balance of the bonds.
Leverator's more detailed financial position is presented in the income
statement, balance sheet, statement of changes in equity and cash flow
statement in Appendix 1. There are no exceptional liabilities of Leverator or
CMM IV in the knowledge of Leverator's Board of Directors that should be
considered in the above calculations.
Leverator's ownership
The owners of Leverator Plc are CapMan Plc, Etera Mutual Pension Insurance
Company, Foundation for Economic Education, Ilmarinen Mutual Pension Insurance
Company, OP Life Assurance Company Ltd, Pharmacy Pension Fund, Mandatum Life
Insurance Company Limited, Varma Mutual Pension Insurance Company and
Yleisradio Pension Fund with equal holdings.
Leverator's Board of Directors
On 8 May 2014 the shareholders of Leverator Plc elected the following members
to the Company's Board of Directors: Mr Tatu Hemmo, Mrs Nina Härkönen, Mr
Staffan Jåfs, Mr Harri Lemmetti, Mr Olli Liitola, Mr Tommi Mäkelä, Mrs Katja
Salovaara, Mr Tomi Viia, and Mr Kyösti Ylikortes. The members elected Mr Tatu
Hemmo as Chairman of the Board.
Future outlook
Developments in the general market environment in the next few years may
continue to cause difficulties in the ability of fund's portfolio companies to
pay interest on their mezzanine loans and repay principal to the fund in
accordance with original loan terms. Restrictions in the portfolio companies'
senior loan agreements may in certain cases prevent the companies from meeting
their interest payments in accordance with the original loan terms during 2014.
The aforementioned issues might, in turn, weaken the fund's ability to meet its
debt to Leverator Plc in full, which would affect Leverator Plc's solvency. It
is possible that the fund's solvency weakens further during 2014.
It is probable that Leverator Plc's interest earnings will cover its interest
payable and other expenses in 2014.
Leverator Plc will publish its Interim Report 1 January-31 September 2014 on 6
November 2014.
Helsinki 7 August 2014
LEVERATOR PLC
Board of Directors
For further information, please contact:
Olli Liitola, CEO, tel. +358 207 207 506 or mobile +358 400 605 040
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
Bondholders
www.leverator.fi
APPENDIX 1. Income statement, balance sheet, statement of
changes in equity and cash flow statement
The Interim Report 1 January-30 June 2014 has been prepared in compliance with
International Financial Reporting Standards (IFRS) and the accounting
principles applied are the same as in the financial statements for 2013. The
information presented is unaudited.
APPENDIX 1. Income Statement, Balance Sheet, Statement of Changes in Equity and
Cash Flow Statement
LEVERATOR PLC
INCOME STATEMENT,
IFRS
EUR 1.4.- 30.6.2014 1.1.- 1.4.- 30.6.2013 1.1.- 1.1.-
30.6.20 30.6.20 31.12.2
14 13 013
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Turnover 0 0 0 0 0
Personnel expenses 0 0 0 0 -24,000
Other operating -10,860 -28,165 -18,327 -28,529 -69,632
expenses
Operating loss -10,860 -28,165 -18,327 -28,529 -93,632
Financial income 58,571 118,768 70,277 140,553 280,196
and expenses
Profit before taxes 47,711 90,602 51,950 112,024 186,564
Income taxes -9,542 -18,120 -12,728 -27,446 -45,708
Profit for the 38,169 72,482 39,222 84,578 140,856
financial year
Total comprehensive income, IFRS
The company does
not have items
included in
comprehensive
income.
Earnings per share:
Earnings per share, 0.0371 0.0705 0.0381 0.0822 0.1369
€
LEVERATOR PLC
BALANCE SHEET, IFRS
EUR 30.6.2014 30.6.2013 31.12.2013
ASSETS
Non-current assets
Investments
Other investments 70,313,856 112,442,112 96,314,112
Total non-current assets 70,313,856 112,442,112 96,314,112
Current assets
Current receivables 190,655 286,184 230,712
Cash and bank 968,833 830,506 911,301
Total current assets 1,159,488 1,116,691 1,142,013
TOTAL ASSETS 71,473,344 113,558,803 97,456,124
EUR 30.6.2014 30.6.2013 31.12.2013
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity
Share capital 102,857 102,857 102,857
Retained earnings 840,673 699,817 699,817
Profit for the financial year 72,482 84,578 140,856
Total shareholders' equity 1,016,012 887,252 943,530
Liabilities
Non-current liabilities 70,313,856 112,442,112 96,314,112
Current liabilities 143,475 229,438 198,482
Total liabilities 70,457,331 112,671,550 96,512,594
TOTAL SHAREHOLDERS' EQUITY 71,473,344 113,558,803 97,456,124
AND LIABILITIES
LEVERATOR PLC
STATEMENT OF CHANGES IN EQUITY, IFRS
Share Other Retained Total
capital reserves earnings equity
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Equity on 31.12.2013 102,857 0 840,673 943,530
Profit for the 72,482 72,482
financial year
Equity on 30.6.2014 102,857 0 913,155 1,016,012
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Share Other Retained Total
capital reserves earnings equity
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Equity on 31.12.2012 102,857 0 699,817 802,674
Profit for the 84,578 84,578
financial year
Equity on 30.6.2013 102,857 0 784,395 887,252
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LEVERATOR PLC
CASH FLOW STATEMENT, IFRS
EUR 1-6/2014 1-6/2013 1-12/2013
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Cash flow from operations
Operating profit 72,482 84,578 140,856
Other adjustments to operating profit -135,343 -143,607 -259,641
Interest paid -3,930,579 -4,588,763 -9,177,525
Interest received 4,050,972 4,729,315 9,458,630
Cash flow from operations 57,531 81,523 162,319
Cash flow from investments
Change in long-term loan receivables 26,000,256 0 16,128,000
Cash flow from investments 26,000,256 0 16,128,000
Financial cash flow
Change in long-term liabilities -26,000,256 0 -16,128,000
Financial cash flow -26,000,256 0 -16,128,000
Change in cash funds 57,531 81,523 162,319
Cash funds at start of the period 911,301 748,982 748,982
Cash funds at end of the period 968,833 830,505 911,301
Olli Liitola, CEO, tel. +358 207 207 506 or mobile +358 400 605 040
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