Eyrir Invest ehf. results 2011

Eyrir Invest ehf. 

21.02.2012 00:12
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A solid base for continued growth and value creation

  -- Net asset value is 202 m Euros at year-end 2011 compared to 193 m at
     beginning of the year.
  -- Total assets amount to 395 m Euros and the equity ratio is 51% [2010; 44%].
     Cash and cash equivalents are 26 m at year-end.
  -- Net profit in 2011 was 1.0 million Euros [2010; EUR 52 m].
  -- A 10% equity increase was executed in December 2011. All the new shares
     were subscribed by the Pension Fund of Commerce.
  -- The long term 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 2-4x EBITDA.

Eyrir Invest's core holdings are a 36% share in Marel and 17% holding in Stork
Technical Services and Fokker Technologies through their parent company, Stork
BV. In addition, Eyrir Invest holds prominent growth companies through Eyrir
sprotar slhf. 

Eyrir Invest's shareholder return has been good since foundation in mid-year
2000. Net Asset Value per share is today 18.3 eurocents compared to 1.4
eurocents at foundation. During the same period, the MSCI World Index in Euros
has declined by 37% or 4% annually. 

Arni Oddur Thordarson, CEO:
'2011 was an eventful year for Eyrir with highlights including the stellar
performance of Marel, Stork Technical Services successful acquisitions of RBG
and establishment of Eyrir Sprotar backed by equity increase at the end of the
year. 

The slightly positive results in 2011 are acceptable in light of turbulent
market circumstances in 2011.  Our companies have strengthened their
competitive positions by continuous innovation and further geographical
expansion.   All in all, we start the year 2012 cautiously optimistic.' 



Statement of Comprehensive Income                                               
                                                                                
(in EUR thousands)                               2011  2011/6m     2010    2009*
--------------------------------------------------------------------------------
Operating revenues:                                                             
Change in fair value of investment            -30.977  -15.165   64.851    4.992
 securities                                                                     
Income from change in accounting treatment of  30.107        0        0        0
an associate                                                                    
Share of profit of equity accounted            11.650    2.583    7.491  -13.116
 associates                                                                     
Net interest expenses                         -12.920   -5.487  -15.873  -13.592
Net foreign exchange gain (loss)                4.763    5.531   -3.254      183
                                           -------------------------------------
                     Net operating revenue      2.623  -12.538   53.215  -21.533
                                                                                
Operating expenses:                                                             
Salaries and salary related expenses              934      451      836      889
Other operating expenses                          732      370      560    1.241
                                           -------------------------------------
                                           -------------------------------------
                        Operating expenses      1.666      821    1.396    2.130
                                                                                
(Loss) profit for the period                      957  -13.359   51.819  -23.663
                                           -------------------------------------
Other compreh. inc./(exp.) for the period        -488     -190  -18.639   -7.696
                                           -------------------------------------
Total comprehensive inc./(exp.) for the           469  -13.549   33.180  -31.359
 period                                                                         
                                           -------------------------------------
Earn. per share-eurocents (each share 1          0.09    -1.33     5.14    -2.35
 ISK)                                                                           
                                           -------------------------------------
                      Earn. Per shares for       0.05    -1.34     3.29    -3.11
                  compreh.income-eurocents                                      
                                           -------------------------------------
                                                                                
*) 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     2010     2009     2008  
                                           -------------------------------------
                                           -------------------------------------
Assets:                                                                         
Cash and restricted cash                       10.474   22.758   27.526   40.732
Share subscription                             15.377        0        0        0
Investment securities                         364.931  256.835  167.909  168.244
Investments in equity accounted securities          0  143.602  208.631  227.710
Trade and other receivables                     2.282    1.201      615   12.741
Operating assets                                2.082    2.050    2.119    2.180
                                           -------------------------------------
                              Total assets    395.146  426.446  406.800  451.607
                                           -------------------------------------
                                           -------------------------------------
                                                                                
Equity and Liabilities                                                          
Total equity                                  202.493  186.648  153.469  184.185
Trade and other payables                          239    1.908      373   29.351
Liabilities                                   192.414  237.890  252.958  238.071
                                           -------------------------------------
              Total equity and liabilities    395.146  426.446  406.800  451.607
                                           -------------------------------------
                                                                                
Equity ratio                                    51.2%    43.8%    37.7%    40.8%
                                                                                

Eyrir Invest reports slightly positive net profits in 2011 while the equity
markets in general were weak with the MSCI world index in Euros declining by
5.2%. The equity markets were mixed with share prices of financial institutions
collapsing while many technologically leading companies with truly global
revenue streams and broad customer base showed healthy growth in sales and
profitability leading to increases in shareholder value. 

Eyrir Invest's balance sheet is strong with 395 m Euros in total assets and a
51% equity ratio, good liquidity and long term financing. A strategic 10% share
increase was executed in December, subscribed fully by the Pension fund of
Commerce. 

All of Eyrir's assets are booked at fair value or market value in line with
current accountings practices of major international investment companies. In
the past years Eyrir has accounted for its holdings in Marel using the equity
method. The Board of Directors has decided to account for the shares at fair
value in order to givea  clear and transparent view of Eyrir's financial
position. The accounting method is in accordance with IAS 39 Financial
Instruments: Recognition and measurement. 

Core assets account for more than 90% of Eyrir's total assets.  Profits
attributed to shares in Marel are 42 m Euros, while sale of shares in Össur
results in a loss of close to 10 m Euros. Eyrir's 17% share in Stork is
adjusted downward by 16 m Euros in 2011 due to trading conditions in Europe.
Both Marel and Össur shares are listed on Nasdaq OMX.  Stork is an unlisted
company valuated using a fair value method based on market and transaction
multiples. 

In the first half of 2011 Eyrir sold all its shares in Össur hf.  At year end
2010 Eyrir held 14% of total shares. Eyrir was a major shareholder in Össur
since 2004, holding 20-25% of total shares for the majority of that period.
Overall Eyrir had capital gains from investments in Össur. Eyrir actively
supported Össur's growth strategy and during the period of possession Össur
tripled its revenues and increased profitability. 



Highlights 2011

Eyrir increased its share in Marel to 36% from 32% at beginning of the year.

  -- Marel's share price increased to 79 eurocents per share compared to 65
     eurocents at the beginning of the year. Marel showed strong and profitable
     organic growth in 2011. Marel's net profit increased significantly last
     year due to higher operating profit and reduced financing cost.
  -- Eyrir has been principal shareholder in Marel since 2005 and supported its
     growth strategy including providing significant new equity to the company. 
     Marel's Board of Directors proposes to pay a dividend for the operating
     year 2011 equalling to 20% of operating profit, resulting in approximately
     2.5 m Euros dividend payment to Eyrir.



Eyrir remains a 17% shareholder in Stork BV which owns and operates Fokker
Technologies and Stork Technical Services (STS). 



  -- STS expanded geographically in 2011 by acquiring RBG, a UK based supplier
     of inspect, assess and repair services to the global energy industry. RBG
     has already been rebranded as Stork Technical Services (STS). STS is a
     leading knowledge based asset integrity management company to the oil, gas
     and power companies. Following the acquisition, STS operates in North Sea,
     Benelux, Caspian, Africa, Middle East and the Americas and has 14.500
     employees and estimated revenues of around 1.4 billion Euros.
  --  In 2011 Fokker Technologies celebrated 100 years of aircrafting. Total
     revenues in Fokker Technologies are close to 700 million Euros and Fokker
     employs 3.700 people.



Eyrir increased its share capital by 10% in 2011. Coinciding with the share
issue, Eyrir Invest established Eyrir sprotar slhf. Eyrir sprotar will
emphasise supporting promising ventures for international growth and value
creation. 

Outlook

Looking ahead, there is expected to be good growth 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. 



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
News Source: NASDAQ OMX



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Language:     English
Company:      Eyrir Invest ehf.
              
               
              Iceland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         IS0000010833
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