IRF.L Regulatory News (IRF)

31 Mar 2008 07:02

IRF European Fin Investments Ltd31 March 2008 Press Release 31 March 2008 IRF European Finance Investments Ltd ("IRF" or the "Company") Final Results IRF European Finance Investments Ltd (AIM: IRF) announces its audited financialresults for the 12 months ended 31 December 2007. Highlights • Group Net Income increases 185% to €160.0 million • Dividend declared of $0.28 per share • Company Net Asset Value per share on 31 December 2007 of $5.59 Angeliki Frangou, Chairman of IRF said, "2007 was a year of significantaccomplishment. We simplified our capital structure through two warrantprograms. These programs reduced the number of outstanding warrants byapproximately 85%, from 91.7 million warrants to 13.6 million warrants. Inaddition, we opportunistically invested and created a gain of approximately€80.0 million (including dividends), representing a 24% return on ourinvestment." Ms. Frangou continued: "We are also delighted with our operational performancein 2007. Although the financial services industry suffered during the latterhalf of 2007, we were able to avoid much of the dislocation affecting theindustry. Today, our liquidity provides great flexibility in terms ofconsidering and executing on potential transactions." Below are the financial highlights of the consolidated group, including ProtonBank and its subsidiaries (the "Group") and IRF and its wholly ownedsubsidiaries for the 12 months ended 31 December 2007. Financial Highlights Amounts in • 000 The Group IRFIncome Statement itemsNet Income 159,995 88,449Profit before income tax 87,606 68,451Income tax expense 9,732 -Profit after tax 78,026 68,451Attributable to equity holders of the 61,635 68,451CompanyMinority Interests 16,391 -Basic earnings per share (in euro/ 0.56 0.62share)Diluted earnings per share (in euro/ 0.53 0.59share)Balance Sheet ItemsCash and cash equivalents 559,371 350,503Total assets 2,750,355 480,072Total liabilities 1,973,008 3,291Total Equity 777,347 476,781Equity attributable to equity holders 487,099 476,781of the CompanyMinority Interests 290,248 - Dividend Payment Based upon 2007 results, IRF has declared a dividend payment of US $0.28 percommon share in respect of 2007. The record date has been fixed at 18 April2008 with 25 April 2008 being the dividend payment date. Commenting on the declaration of the dividend, Angeliki Frangou said: "Our 2007financial results permitted the board to declare a dividend of $0.28 per share.Continued dividends will depend on future financial performance." Net Asset Value IRF determined that its shares had a net asset value ("NAV") of $5.59 per share, on 31 December 2007, computed as follows: IRF owned a 20.60% interest in ProtonBank. The value of this holding, based on the closing share price on the AthensStock Exchange on 31 December 2007, was €126.5 million. IRF had 124.8 millioncommon shares outstanding. The Euro/$ exchange rate of $1.4729 on 31 December2007 was used. IRF intends to determine and publish NAV on a periodic basis. This estimatedNAV is provided for information purposes only and should not be relied upon forinvestment decisions. Share Buybacks In 2007, IRF purchased approximately 4.5 million shares for a total cost ofapproximately $20.3 million. As of 31 December 2007 the total common sharesand warrants outstanding were 124.8 million and 13.6 million, respectively. For further information: IRF European Finance Investments LtdAngeliki Frangou, Chairperson Tel: +30 (0) 210 428 0560 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 28 branches in Greece and 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. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007 BOARD OF DIRECTORS Name PositionAngeliki Frangou Chairman, Non - Executive DirectorSheldon Goldman Deputy ChairmanLoukas Valetopoulos Chief Executive Officer, DirectorAlexander Meraclis Secretary of the CompanyJohn Karakadas Non - Executive Director Changes in the Board of Directors On the 25 January 2007, Dionysios Malamatinas, Director of IRF, submitted hisresignation effective from 29 January 2007 and has not been replaced. STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ANNUAL ACCOUNTS The directors are responsible for preparing the Annual Report and the financialstatements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for eachfinancial year. Under that law and in accordance with the AIM regulations thedirectors have elected to prepare financial statements in accordanceInternational Financial Reporting Standards as adopted by the European Union. The financial statements are required by law to give a true and fair view of thestate of affairs of the Group and of the profit or loss of the Group for thatperiod. In preparing these financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgments and estimates that are reasonable and prudent; • state whether applicable International Financial Reporting Standards as adopted by the European Union have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors, to the best of their knowledge, state that: • the financial statements, prepared in accordance with International Financial Reporting Standards as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and The directors are responsible for keeping proper accounting records thatdisclose with reasonable accuracy at any time the financial position of thecompany and enable them to ensure that the financial statements comply with theCompanies Act 1981 of Bermuda. They are also responsible for safeguarding theassets of the company and hence for taking reasonable steps for the preventionand detection of fraud and other irregularities. In so far as the directors are aware: • there is no relevant audit information of which the company's auditors are unaware; and • the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Legislation in Bermuda governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions. INDEPENDENT AUDITOR'S REPORT To the Shareholders of "IRF EUROPEAN FINANCE INVESTMENTS LTD" Report on the Consolidated Financial Statements We have audited the accompanying financial statements of "IRF EUROPEAN FINANCEINVESTMENTS LTD" (the "Company") and its subsidiaries (the "Group"), whichcomprise the consolidated balance sheet as at December 31, 2007, and theconsolidated income statement, statement of changes in equity and cash flowstatement for the year then ended, and a summary of significant accountingpolicies and other explanatory notes. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of thesefinancial statements in accordance with International Financial ReportingStandards that have been adopted by the European Union. This responsibilityincludes designing, implementing and maintaining internal control relevant tothe preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error; selecting and applyingappropriate accounting policies; and making accounting estimates that arereasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements basedon our audit. We conducted our audit in accordance with the Greek AuditingStandards, which are based on the International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance whether the financial statements arefree from material misstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal controlrelevant to the entity's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluatingthe overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion. Opinion In our opinion, the abovementioned financial statements present fairly, in allmaterial respects, the financial position of the Group as of December 31, 2007,and its financial performance and cash flows for the year then ended inaccordance with International Financial Reporting Standards that have beenadopted by the European Union. Athens, 27 March 2008 The Certified Auditor __________________________ Vasilis Kazas A.M. SOEL 13 281 Grant Thornton 44 Vasileos Constantinou 116 35 Athens A.M. SOEL 127 CONSOLIDATED INCOME STATEMENT Amounts presented in • '000 Note 1/1/- 31/12/2007 1/1 - 31/12/2006 Interest and similar income 122,692 28,990Interest and similar expenses (78,939) (12,225)Net interest income 8 43,753 16,765Fee and commission income 43,966 10,296Fee and commission expense (16,105) (2,430) Net fee and commission income 9 27,861 7,866Dividend income 10 16,217 1,620Net trading income 11 68,421 28,517Net income from financial instruments designated at fair 2,263 -value Other operating income 12 1,480 1,297Total Net Income 159,995 56,065 Staff costs 13 (25,136) (7,838)Other operating expenses 14 (25,836 (10,109) Impairment of goodwill 27 (7,465) -Depreciation 15 (7,225) (1,893) Impairment losses 16 (6,981) (558)Total operating expenses (72,644) (20,398) Share of profits / (losses) of associates 255 240 Profit before tax 87,606 35,907Income tax expense 17 (9,732) (2,904) Profit after tax from continuing operations 77,874 33,003 Net profit from discontinued operations 42 152 (136)Profit after tax 78,026 32,868 Attributable to: Shareholders of the Parent Company 61,635 23,361 Minority Interest 16,391 9,507 78,026 32,868Earning per Share attributable to parent company's 40shareholders ( •/share )From continuing and discontinued operations- Basic 0.56 0.41- Diluted 0.53 0.37 From continuing operations- Basic 0.56 0.41- Diluted 0.53 0.37 The accompanying notes constitute an integral part of the financial statements. CONSOLIDATED BALANCE SHEET Amounts presented in • '000 Note 31/12/2007 31/12/2006ASSETSCash and balances with Central Bank 18 52,796 37,397Loans and advances to financial institutions 19 527,410 181,885Trading portfolio and other financial assets at fair value 20 179,802 264,174through Profit & LossDerivative financial instruments 21 11,529 2,611Loans and advances to customers 22 1,368,025 941,214Insurance assets - 18,060 Investment portfolio 23 259,944 37,977Investments in associates 24 3,886 4,604Property, plant and equipment 25 27,880 33,402Investment property 28 - 50 Goodwill and other intangible assets 27 166,784 190,100Deferred tax assets 28 7,098 -Other assets 29 91,474 34,886 2,696,628 1,746,360Non current assets held for sale 26,42 53,727 64TOTAL ASSETS 2,750,355 1,746,424 EQUITY AND LIABILITIESDue to financial institutions 30 433,941 90,897Due to customers 31 1,422,139 1,042,157Derivative financial instruments 21 14,570 6,319Issued debt securities 32 25,283 1,500Provisions for insurance contracts 42 - 34,093 Retirement benefit obligations 33 1,140 1,228Current income tax liabilities 34 10,498 1,349Deferred tax liability 28 6,928 1,727Other liabilities 35 14,170 21,445 1,928,669 1,200,714Liabilities directly associated with assets classified as 42 44,339 -held for sale Total Liabilities 1,973,008 1,200,714 Shareholders equityShare capital 36 147 71Share premium 36 400,443 200,174Revaluation reserve 37 (2,570) (2)Other reserves 37 16,587 16,156Retained earnings / (losses) 72,491 21,998Total equity attributable to shareholders' of parent 487,099 238,397companyMinority interest 290,248 307,313Total equity 777,347 545,710 TOTAL LIABILITIES AND EQUITY 2,750,355 1,746,424 To view the full text of the announcement, please follow the link below; http://www.rns-pdf.londonstockexchange.com/rns/1097r_-2008-3-31.pdf This information is provided by RNS The company news service from the London Stock Exchange