2011-08-29 11:48:02 CEST
2011-08-29 11:49:04 CEST
REGULATED INFORMATION
Eyrir Invest ehf. - Financial Statement Release
A modest increase in Net Asset Value
Eyrir Invest H1 2011 Results
A modest increase in Net Asset Value
-- Net Asset Value amounted to EUR 196 m on June 30th 2011, compared to EUR
193 m at year-end 2010 corresponding to an increase of 2% for the first
half of 2011.
-- Net loss for the period amounts to EUR 13 million in the first half of the
year. Unrealized gains on Marel holdings are neither taken through the
income statement nor the balance sheet which for the most part explains the
difference between NAV increase and net income results.
-- Booked equity at June 30th 2011 is EUR 173 m. The equity ratio is 48% in
mid-year 2011 compared to 44% at year end 2010. Decrease in interest
bearing debt in H1 2011 amounts to EUR 52m.
-- The outlook for Eyrir Invest and its core holdings is good. Their
financials are in line with strategy and international benchmarks with net
debt levels at 2-3x EBITDA.
Eyrir Invests core holdings are a 36% share in Marel and a 17% share in Stork
BV which owns and operates Stork Technical Services and Fokker Technologies. In
addition, Eyrir invests in various prominent start-up companies. Eyrir Invests
“Buy and Build” strategy has delivered good returns since Eyrir´s foundation in
2000.
Arni Oddur Thordarson, CEO:
“Today's challenges are the imbalances in the world economy. In recent months
we have seen global food prices increasing by 30-40% and energy prices have
been rising as well. The only reliable way to deal with those circumstances
is to invest in better technology and processes.
Marel grew organically by 19% in first half of the year. Poultry, fish and
meat processors are modernizing and new factories are being built in S-America,
Asia and Eastern Europe to meet increased customers demand.
Stork Technical Services (STS) increased geographical footprint by the
acquisition of RBG. There are now 15.000 employees within STS that are
dedicated to serve the oil, gas and power business in Benelux, North Sea,
Caspian, Middle East, N- and S-America.
We are pleased with the results achieved in first half of the year. All in all
our core holdings are extremely well positioned within growth industries and
the outlook remains positive.”
Statement of Comprehensive Income
(in EUR thousands) 2011/6m 2010/6m 2010 2009*
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Operating revenues:
Change in fair value of securities -15.165 10.991 64.851 4.992
Share of profit (loss) of equity acc. 2.583 4.663 7.491 -13.116
associates
Net interest expenses -5.487 -7.071 -15.873 -13.592
Net foreign exchange gain (loss) 5.531 -4.612 -3.254 183
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Net operating revenue -12.538 3.971 53.215 -21.533
Operating expenses:
Salaries and salary related expenses 451 459 836 889
Other operating expenses 370 264 560 1.241
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Operating expenses 821 723 1.396 2.130
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(Loss) profit for the period -13.359 3.248 51.819 -23.663
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Other compreh. inc./(exp.) for the period -190 3.137 -18.639 -7.696
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Total comprehensive income for the period -13.549 6.385 33.180 -31.359
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Basic earnings per share-eurocents (each -0.0133 0.0032 0.05 -0.02
share 1 ISK)
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*) 2009 figures adjusted to compare to newer figures where fair-value changes in
London Acquisition (Stork) is booked amongst net income from securities
Statement of Financial Position 2011/6m 2010 2009 2008
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Assets:
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Cash and restricted cash 12.274 22.758 27.526 40.732
Investment securities 174.320 256.835 167.909 168.244
Investments in equity accounted securities 167.533 143.602 208.631 227.710
Trade and other receivables 2.764 1.201 615 12.741
Operating assets 2.126 2.050 2.119 2.180
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Total assets 359.017 426.446 406.800 451.607
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Equity and Liabilities
Total equity 173.098 186.648 153.469 184.185
Trade and other payables 226 1.908 373 29.351
Liabilities 185.693 237.890 252.958 238.071
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Total equity and liabilities 359.017 426.446 406.800 451.607
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Equity ratio 48.2% 43.8% 37.7% 40.8%
Highlights of H1 2011
Marel grew organically by 19% in H1 2011
Eyrir Invest books its 36% share in Marel according to the equity method. At
June 30th 2011 the book value is 64 eurocents per share compared to a trading
price of 72 eurocents (121 ISK) at the same time.
In March and May 2011 Eyrir increased its holdings in Marel, taking its
shareholding to 35.6% from 31.7%. Marel has continued to perform well in H1
2011. Sales growth in H1 2011 amounted to 19%, on top of a very strong
performance last year. EBIT was within 10-12% targets and net profit
increased by 57% compared to H1 2010, largely reflecting the benefits from the
favorable long term financing that Marel completed from international banks in
late 2010.
Eyrir sells Össur after seven fruitful years
Össur secured long term financing at good terms and conditions with three
international banks in Q1 2011. In May, Eyrir sold all of its shares in Össur
after having been a major shareholder in the company for seven years, during
which time Össur grew considerably. Following the sale of the Össur shares
Eyrir repaid some of it's borrowings, resulting in a decrease of EUR 52 million
in borrowings in the period from 1 January to 30 June 2011.
Stork Technical Services expands geographically
In May Stork Technical Services (STS) increased geographical footprint by the
acquisition of RBG. There are now 15.000 employees within STS that are
dedicated to serve the oil, gas and power business in Benelux, North Sea,
Caspian, Middle East and N- and S-America. Various cost and cross selling
synergies are between those companies.
The acquisition of RBG increases STS sales and operating results by a third.
Fokker Technologies sales grew by 11% in the first half of the year, with
unchanged operating results.
Stork Group is long term financed and including the acquisition of RBG net
debt stands at about x3 EBITDA.
A Principle agreement of Stork Pension Fund
In H1 2011 a principle agreement was reached between the Stork Pension Fund,
the Dutch company Stork BV, Marel and a number of other companies that were
formerly part of the Stork group on the future arrangement of the pensions
currently managed by the Fund. Following this agreement, Stork's and Marel´s
liability towards SPS is limited to a fixed annual premium.
Outlook
Looking ahead, good growth is expected 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.
Reykjavik, August 29th 2011
For further information contact:
Arni Oddur Thordarson, CEO of Eyrir Invest
Tel: +354 525-0200
www.eyrir.is
About Eyrir
Eyrir Invest is an international investment company. Eyrir Invest places great
emphasis on participating in the operations and strategic planning of its core
holdings.
Forward-looking statements
Statements in this press release that are not based on historical facts are
forward-looking statements. Although such statements are based on management's
current estimates and expectations, forward-looking statements are inherently
uncertain. We, therefore, caution the reader that there are a variety of
factors that could cause business conditions and results to differ materially
from what is contained in our forward-looking statements, and that we do not
undertake to update any forward-looking statements. All forward-looking
statements are qualified in their entirety by this cautionary statement.
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