IRF.L Regulatory News (IRF)

3 Sep 2007 07:01

IRF European Fin Investments Ltd03 September 2007 IRF European Finance Investments Limited 3 September 2007 IRF European Finance Investments Limited ('IRF') • Consolidated Net Income increases to €111.9 million for six months. • Dividends received of approximately $22.16 million from Proton Bank and Marfin Popular Bank • Profit realized of approximately $91.0 million from the sale of interests in Marfin Popular Bank after the period ended • Net asset value per share of $4.94 as of 30 June 2007 IRF European Finance Investments Limited (AIM: IRF) announces financial resultsfor the six-month period ended 30 June 2007. Angeliki Frangou, chairman of IRF European Finance Investments Limited ("IRF" orthe "Company") stated, "We are pleased with our accomplishments during the firstsix months of 2007. During this period, we: o Completed two warrant programs, reducing warrants outstanding by 85%and raising $292.8 million o Purchased 41.4 million shares in Marfin Popular Bank ("Marfin"). Theseshares were subsequently sold for a €66.9 million profit ($91.0 million, usingan exchange rate of €1.36:$1.00) o Received dividends from Proton Bank ("Proton") in the amount of €3.5million ($4.76 million) o Received dividends from Marfin in the amount of €12.8 million ($17.4million)". Ms. Frangou continued, "The business fundamentals underlying Proton remainstrong. Proton continues to build successfully its banking business and todayhas 25 branches in Greece. We hope to continue to enjoy dividend income andcapital appreciation through Proton and other opportunities we identify.Subsequent to the second quarter, we returned capital to shareholders byrepurchasing 3.5 million shares in the open market for about $15.6 million." Net Asset Value As of the business close on 30 June 2007, IRF determined that its shares had aNet Asset Value ("NAV") of $4.94 per share. This determination does not includeany subsequent appreciation which IRF recognised on the sale of Marfin duringJuly. On 30 June 2007, IRF owned a 20.58% interest in Proton and a 5.20% interest inMarfin. The shares of both these companies trade on the Athens Stock Exchange.The market value of these holdings, based on closing share prices on 29 June2007, was approximately €498.5 million. During the third quarter, IRF (1) acquired 12,000 additional shares in Protonand currently holds a 20.60% interest Proton and (2) sold its entire stake inMarfin. IRF Common shares outstanding as at 30 June 2007 equalled approximately 129million shares. After the close of the second quarter, IRF purchased in the open market 3.5million common shares for $15.62 million. Once these shares have been cancelled,the shares outstanding will be 125,856,204. 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. 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 endedAmounts in • 000 Note 30 June 2007 30 June 2006 Income Statement ItemsNet Income 111,866 6,480Profit before income tax 66,097 6,257Income tax expense 3,583 -Profit after tax 62,513 6,257Attributable to equity holders 45,944 6,257of IRFMinority Interests 16,569 -Basic earnings per share (in 0.49 0.11euro/share)Diluted earnings per share (in 0.45 0.10euro/share) Balance Sheet Items 30 June 2007 31 December 2006 Cash and Cash Equivalents 496,703 203,917Total assets 2,816,031 1,746,424Total liabilities 2,024,309 1,200,714Total Equity 791,722 545,710Equity attributable to equity 488,328 238,397holders of IRFMinority Interests 303,394 307,313 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 LimitedJames Black Tel: +44 20 7260 1206Nick 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 20.60% 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. 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