IRF.L Regulatory News (IRF)

7 Dec 2007 07:01

IRF European Fin Investments Ltd07 December 2007 IRF European Finance Investments Limited ('IRF') • Consolidated Net Income increases to €177.1 million for nine month period ended 30 September 2007 • Net asset value per share of $5.49 as of 30 September 2007 IRF European Finance Investments Limited (AIM: IRF) announces financial resultsfor the nine month period ended 30 September 2007. Angeliki Frangou, chairmanof IRF European Finance Investments Limited ("IRF" or the "Company") stated, "Weare pleased with our accomplishments during the first nine months of 2007, asduring this period, we: • Completed two warrant programs, reducing warrants outstanding by 85% and raising $292.8 million. • Purchased 41.4 million shares in Marfin Popular Bank ("Marfin"). These shares were subsequently sold for a €66.9 million profit. ($91.0 million, using an exchange rate of €1.36:$1.00). • IRF purchased 261,891 additional shares in Proton Bank ("Proton") which increased our stake in Proton to 20.60% • Received dividends from Proton in the amount of €3.5 million ($4.76 million) • Received dividends from Marfin in the amount of €12.8 million ($17.4 million) • Paid $14.8 million ($0.26 per share) in dividend payments on 18 April 2007 to our shareholders of record as of 23 March 2007 • Returned capital to the shareholders by repurchasing 3.5 million of our outstanding shares in the open market for $15.6 million." Ms. Frangou continued "although we have actively pursued investmentopportunities, prudence dictated that we preserve our capital and flexibility inlight of relatively expensive assets. Our patience has been warranted given theglobal financial market dislocation, resulting from stress in asset-backedsecurities. This dislocation is having an adverse impact on the credit markets,and we are witnessing a repricing of risk generally, with a significant impacton the financial services sector in particular. These market dynamics may giverise to new investment opportunities, and we are monitoring events closely." Net Asset Value As of the business close on 30 September 2007, IRF determined that its shareshad a Net Asset Value ("NAV") of $5.49 per share. On 30 September 2007, IRF owned a 20.60% interest in Proton whose shares tradeon the Athens Stock Exchange. The market value of these holdings, based onclosing share prices on 28 September 2007, was approximately €134.3 million. IRF Common shares outstanding as at 30 September 2007 equalled approximately125.8 million 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 20.60% 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. In general, because of the mergeractivity in 2006, items in the condensed income statement and cash flowstatement of this period are not comparable with the respective items of theprior period. Financial Highlights Nine month period endedAmounts in • 000 Note 30 September 2007 30 September 2006Income Statement ItemsNet Income 177,060 19,452Profit before income tax 100,604 15,886Income tax expense 5,443 1,534Profit after tax 95,161 14,351Attributable to equity holders 73,199 9,941of IRFMinority Interests 21,962 4,410Basic earnings per share (in 0.70 0.17euro/share)Diluted earnings per share (in 0.66 0.16euro/share)Balance Sheet Items 30 September 2007 31 December 2006Cash and Cash Equivalents 566,044 203,917Total assets 2,770,958 1,746,424Total liabilities 1,963,451 1,200,714Total Equity 807,507 545,710Equity attributable to equity 503,645 238,397holders of IRFMinority Interests 303,862 307,313 For further information: IRF European Finance Investments LtdAngeliki Frangou, Chairperson Tel: +30 (0) 210 4280560 Numis Securities LimitedJagjit Mundi Tel: +44 20 7260 1000James Black Tel: +44 20 7260 1000 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 20.60% interestin Proton 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". 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