IRF.L Regulatory News (IRF)

1 Jun 2007 07:01

IRF European Fin Investments Ltd01 June 2007 IRF European Finance Investments Ltd31 May 2007 IRF European Finance Investments Ltd ('IRF') • Consolidated Net Income increases to €39.6 million • Net asset value per share of $4.78 • Outstanding warrants reduced by 85%; approximately 78.1 million warrants converted • $292.8 million of gross cash proceeds raised and re-invested IRF European Finance Investments Limited (AIM: IRF) announces its financialresults for the three-month period ended 31 March 2007. Angeliki Frangou, chairman of IRF European Finance Investments Limited ("IRF" orthe "Company") stated, "The business fundamentals underlying our significantholdings - Proton Bank ("Proton") and Marfin Popular Bank ("Marfin") - remainvery strong. Proton has diversified its business and now has 25 branches inGreece. Marfin significantly increased guidance for the period 2007-2009 due tostrong growth in Greece and Cyprus. As a result, we hope to continue to enjoydividend income and capital appreciation through these holdings." In May 2007, the Company received the amount of €3.5 million as a dividend fromProton and €10.2 million as a dividend from Marfin. Ms. Frangou continued, "IRF successfully reduced the number of warrantsoutstanding by 85% through two warrant programs, the first of which ended inthis quarter. IRF raised $292.8 million through the conversion of approximately78.1 million warrants. This additional capital allowed IRF to opportunisticallypurchase further shares in Marfin. This investment together with the balance ofthe cash from the conversion of the warrant programme significantly increasesliquidity and enables IRF to participate further in the consolidation of thefinancial services sector in Southeast Europe." Net Asset Value As of the business close on 30 March 2007, the Company determined that itsshares have a Net Asset Value ("NAV") of $4.78 per share, determined as follows: The Company owned a 20.16% interest in Proton and a 5.20% interest in Marfin.The shares of both these companies trade on the Athens Stock Exchange. Themarket value of these holdings, based on closing share prices on 30 March 2007,was approximately €470.0 million. IRF Common shares outstanding as at 30 March 2007 equalled approximately 114million shares. The Company intends to periodically determine and publish NAV Financials Below are the financial highlights of IRF and its subsidiaries (together "theGroup"). IRF owns a 20.16% interest in Proton and has appointed 6 members of the11 member board, As a result it is considered to have "de facto" control ofProton's financial and operating activities and its financials are fullyconsolidated into the Group's accounts. The financials below therefore includeProton's full numbers for the period together with the investment in Marfin. Ingeneral, because of the merger activity in 2006, items in the condensed incomestatement and cash flow statement of this period are not comparable with therespective items of the prior period. Financial Highlights Three month period ended Amounts in • 000 Note 31 March 2007 31 March 2006 Income Statement Items Net Income 39,550 6 Profit before income tax 15,688 (26) Income tax expense 1,759 - Profit after tax 13,930 (26) Attributable to equity holders 4,874 (26)of IRF Minority Interests 9,056 - Basic earnings per share (in 0.08 0.00euro/share) Diluted earnings per share (in 0.06 0.00euro/share) Balance Sheet Items 31 March 2007 31 December 2006 Cash and balances with central 33,979 37,397bank Total assets 2,542,450 1,744,696 Total liabilities 1,805,832 1,198,987 Total Equity 736,618 545,709 Equity attributable to equity 420,299 238,397holders of IRF Minority Interests 316,319 307,312 Dividend Payment Based on 2006 results, IRF declared a dividend payment of US$0.26 per share inrespect of 2006. Accordingly, $14.8 million in aggregate was paid out on 18April 2007 to shareholders of record as of 23 March 2007. Warrant Programs As a result of the private and public warrant programs, a total of $292.8million of gross cash proceeds were raised, and approximately 78.1 millionwarrants were converted into common shares. On 26 April 2007, after the close of the second warrant program, the totaloutstanding common shares and warrants in the Company were approximately 129.3million and 13.6 million, respectively. For further information: IRF European Finance Investments LtdAngeliki Frangou, Chairperson Tel: +30 (0) 210 4280560 Numis Securities LimitedJagjit Mundi Tel: +44 20 7260 1284Nick Westlake Tel: +44 20 7260 1345 About IRF IRF was formed to invest in the financial services industry throughout Europewith a primary focus on credit institutions and insurance companies in SouthEastern Europe. IRF's current strategy is the acquisition of financialinstitutions having valuations which do not reflect their potential and wheremarketing and operational efficiencies are possible. IRF owns a 20.16% interestin Proton Bank and a 5.2% interest in Marfin Popular Bank. About Proton Bank Proton Bank is a full-service financial services institution, including retailand investment banking as well as the provision of specialized corporateadvisory and investment services. Proton Bank has 25 branches in Greece islisted on the Athens Stock Exchange under the symbol "PRO". About Marfin Popular Bank Marfin Popular Bank is full-services financial institution that was createdthrough the recent merger of Marfin Financial Group, Laiki Hellas and EgnatiaBank. As a result, Marfin is a regional financial institution with 312 branchesin 12 countries. Marfin Popular Bank is listed on the Athens Stock Exchangeunder the symbol "MARFB". Forward-looking statements All statements, other than statements of historical fact, included in thisrelease are forward looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. These statements are based uponcurrent expectations and are subject to a number of risks, uncertainties andassumptions that could cause actual results to differ materially from thosedescribed in the forward-looking statements. IRF assumes no obligation andexpressly disclaims any duty to update the information contained herein exceptas required by law. This information is provided by RNS The company news service from the London Stock Exchange