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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Irf European Finance Investments Ltd | LSE:IRF | London | Ordinary Share | BMG493831058 | COM SHS USD0.0015 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0018 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 1321Y
IRF European Fin Investments Ltd
27 August 2009
IRF European Finance Investments Ltd
("IRF" or the "Company")
First Half 2009 Results
IRF European Finance Investments Ltd announces its audited financial results for
the six months ended 30 June 2009.
Financial Highlights
+---------------------------------+------------------+-------------------+
| |
+---------------------------------+
| Amounts in EUR 000 |Six months ended | Six months ended |
| | 30 June 2009 | 30 June 2008 |
| | | (as restated) |
+---------------------------------+------------------+-------------------+
| Amounts in EUR 000 |Six months ended | Six months ended |
| | 30 June 2009 | 30 June 2008 |
| | | (as restated) |
+---------------------------------+------------------+-------------------+
| Income Statement items | | |
+---------------------------------+------------------+-------------------+
| Total Operating Income | 33,350 | 26,231 |
+---------------------------------+------------------+-------------------+
| (Loss)/Profit after tax from | 9,432 | 12,284 |
| continuing operations | | |
+---------------------------------+------------------+-------------------+
| Net (Loss)/Profit from | - | (9,477) |
| discontinued operations | | |
+---------------------------------+------------------+-------------------+
| (Loss)/Profit after Tax | 9,432 | 2,807 |
+---------------------------------+------------------+-------------------+
| Attributable to equity holders | 9,432 | 4,596 |
| of IRF | | |
+---------------------------------+------------------+-------------------+
| Minority Rights | - | (1,789) |
+---------------------------------+------------------+-------------------+
| Basic earnings (loss) per share | 0.08 | 0.04 |
| (in euro/share) | | |
+---------------------------------+------------------+-------------------+
| Diluted earnings per share (in | 0.08 | 0.04 |
| euro/share) | | |
+---------------------------------+------------------+-------------------+
| Basic earnings (loss) per share | 0.08 | 0.10 |
| (in euro/share) from continuing | | |
| operations | | |
+---------------------------------+------------------+-------------------+
| Diluted earnings per share (in | 0.08 | 0.10 |
| euro/share) from continuing | | |
| operations | | |
+---------------------------------+------------------+-------------------+
| Balance Sheet Items | 30 June 2009 | 31 December 2008 |
| | | (as restated) |
+---------------------------------+------------------+-------------------+
| Cash and cash equivalents | 129,333 | 148,610 |
+---------------------------------+------------------+-------------------+
| Total assets | 427,940 | 403,689 |
+---------------------------------+------------------+-------------------+
| Total liabilities | 199,048 | 200,148 |
+---------------------------------+------------------+-------------------+
| Total Equity | 228.892 | 203,541 |
+---------------------------------+------------------+-------------------+
| Equity attributable to equity | 228,892 | 203,541 |
| holders of the Company | | |
+---------------------------------+------------------+-------------------+
| Minority Rights | - | - |
+---------------------------------+------------------+-------------------+
Share Premium Reduction and Related Payment to Shareholders
At a special general meeting of the Company held on 21 May 2009, shareholder
approval was given for the reduction of part of the Company's share premium. At
the time of the capital reduction, notwithstanding the Company having sufficient
cash reserves to distribute funds to its shareholders, Bermuda law restricted
the Company from declaring a dividend. The Company's board of directors
determined that it would be in the best interests of its shareholders to propose
a reduction of the Company's share premium account and to make a payment to its
shareholders in connection therewith.
In line with the resolution, IRF's share premium account was reduced on 26 May
2009 from US$520,344,639.17 to US$495,378,160.37, enabling an amount of US$0.20
per common share to be paid to holders of the Company's common shares on record
on 8 May 2009. Payment was effected on 9 June 2009.
Net Asset Value
IRF determined that its shares had a net asset value ('NAV') of $2.59 per share
as at 30 June 2009. The equity holdings portfolio of IRF is marked to market on
the balance sheet as at 30 June 2009. As of this date, the total assets of the
Company, including the cash balance of EUR129.3 million, was EUR427.9 million. The
total liabilities were EUR199.0 million. Consequently, the equity value was EUR228.9
million. The Euro/$ exchange rate of $1.4134 on 30 June 2009 was used to compute
the NAV. As of 30 June 2009, IRF had 124.8 million common shares outstanding.
IRF intends to determine and publish NAV on a periodic basis. This estimated NAV
is provided for information purposes only and should not be relied upon for
investment decisions.
For further information:
IRF European Finance Investments Ltd
Angeliki Frangou, Chairperson Tel: +30 (0) 210 428 0560
Sheldon Goldman Tel: +1 212 404 5740
About IRF
IRF's principal investment strategy is to seek investment opportunities in
global financial institutions, with a complementary focus on investments in
distressed opportunities in other industries. The Company was initially listed
on AIM until 19 January 2009 when it transferred to the SFM (Specialist Fund
Market), both markets operated by the London Stock Exchange plc. The Company's
registered office is at Canon's Court 22 Victoria Street, Hamilton HM12,
Bermuda.
Forward-looking statements
All statements, other than statements of historical fact, included in this
release are forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based upon
current expectations and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially from those
described in the forward-looking statements. IRF assumes no obligation and
expressly disclaims any duty to update the information contained herein except
as required by law.
IRF European Finance Investments Ltd
Consolidated Interim Financial Statements
for six-month period
ended 30 June 2009
In accordance with the International
Financial Reporting Standards
The accompanying consolidated interim financial statements of IRF European
Finance Investments Ltd ("IRF") and its subsidiaries (together "the Group"), for
the six-month period ended 30 June 2009 were approved by the Company's Board of
Directors on 24 August 2009.
Contents
BOARD OF DIRECTORS
INTERIM MANAGEMENT REPORT FOR THE PERIOD ENDED 30 JUNE 2009
STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE SEMI-ANNUAL REPORT AND
THE CONDENSED SET OF FINANCIAL STATEMENTS
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED CASH FLOW STATEMENT
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
2. BASIS OF INTERIM FINANCIAL STATEMENT PREPARATION
3. SUMMARY OF IMPORTANT ACCOUNTING POLICIES
4. STRUCTURE OF THE GROUP
5. REALISED GAIN FROM DISPOSAL OF FINANCIAL ASSETS HELD FOR TRADE
6. DIVIDEND AND OTHER INCOME
7. IMPAIRMENT LOSSES
8. DISCONTINUED OPERATIONS
8.1 NET LOSS FROM DISCONTINUED OPERATIONS
9. CASH AND OTHER EQUIVALENTS
10. TRADING PORTFOLIO AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT &
LOSS
11. INVESTMENT PORTFOLIO
12. OTHER ASSETS
13. LONG TERM LOANS
14. OTHER LIABILITIES
15. SHARE CAPITAL & SHARE PREMIUM
16. CASH AND CASH EQUIVALENTS - CASH FLOW STATEMENT
17. EARNINGS PER SHARE
18. RELATED PARTIES TRANSACTIONS
19. COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
20. POST-BALANCE SHEET EVENTS
21. APPROVAL OF INTERIM FINANCIAL STATEMENTS
BOARD OF DIRECTORS
+--------------------------+--------------------------------------------+
| Name | Position |
+--------------------------+--------------------------------------------+
| Angeliki Frangou | Chairman, Non - Executive Director |
+--------------------------+--------------------------------------------+
| Sheldon Goldman | Deputy Chairman, Non - Executive Director |
+--------------------------+--------------------------------------------+
| Loukas Valetopoulos | Chief Executive Officer, Director |
+--------------------------+--------------------------------------------+
| Alexander Meraclis | Secretary of the Company and Non - |
| | Executive Director |
+--------------------------+--------------------------------------------+
INTERIM MANAGEMENT REPORT FOR THE PERIOD ENDED 30 JUNE 2009
Financial highlights
+---------------------------------------+------------+-------------+
| Amounts in EUR 000 | | |
+---------------------------------------+------------+-------------+
| Income Statement items (six month | 30 June | 30 June |
| period) | 2009 | 2008 (as |
| | | restated) |
+---------------------------------------+------------+-------------+
| Continuing operations | | |
+---------------------------------------+------------+-------------+
| Realised gain from disposal of | 13,406 | - |
| financial assets held for trade | | |
+---------------------------------------+------------+-------------+
| Dividend income | 18,198 | 729 |
+---------------------------------------+------------+-------------+
| Impairment losses on | (17,397) | |
| available-for-sale financial assets | | |
+---------------------------------------+------------+-------------+
| Profit after tax | 9,432 | 12,284 |
+---------------------------------------+------------+-------------+
| | | |
+---------------------------------------+------------+-------------+
| Attributable to equity holders of the | 9,432 | 4,596 |
| Company | | |
+---------------------------------------+------------+-------------+
| Basic earnings per share (in | 0.08 | 0.10 |
| euro/share) | | |
+---------------------------------------+------------+-------------+
| Diluted earnings per share (in | 0.08 | 0.10 |
| euro/share) | | |
+---------------------------------------+------------+-------------+
| | | |
+---------------------------------------+------------+-------------+
| Continuing and discontinued | | |
| operations | | |
+---------------------------------------+------------+-------------+
| Profit after tax | 9,432 | 2,807 |
+---------------------------------------+------------+-------------+
| | | |
+---------------------------------------+------------+-------------+
| Attributable to equity holders of the | 9,432 | 4,596 |
| Company | | |
+---------------------------------------+------------+-------------+
| Minority rights | - | (1,789) |
+---------------------------------------+------------+-------------+
| Basic earnings per share (in | 0.08 | 0.04 |
| euro/share) | | |
+---------------------------------------+------------+-------------+
| Diluted earnings per share (in | 0.08 | 0.04 |
| euro/share) | | |
+---------------------------------------+------------+-------------+
| Balance sheet items | 30 June |31 December |
| | 2009 | 2008 |
+---------------------------------------+------------+-------------+
| Cash and cash equivalent | 129,333 | 148,610 |
+---------------------------------------+------------+-------------+
| Trading portfolio | 4,135 | 5,965 |
+---------------------------------------+------------+-------------+
| Investment portfolio | 276,218 | 248,508 |
+---------------------------------------+------------+-------------+
| Total Assets | 427,940 | 403,689 |
+---------------------------------------+------------+-------------+
| | | |
+---------------------------------------+------------+-------------+
| Loans from banks | 198,134 | 198,393 |
+---------------------------------------+------------+-------------+
| Total liability | 199,048 | 200,148 |
+---------------------------------------+------------+-------------+
| | | |
+---------------------------------------+------------+-------------+
| Total Equity | 228,892 | 203,541 |
+---------------------------------------+------------+-------------+
Significant events
In January 2009, IRF successfully transferred from AIM to the Specialist Fund
Market (the "SFM"), a regulated market operated by the London Stock Exchange.
The SFM is an EU Regulated Market and is compliant with the EU's Financial
Services Action Plan (FSAP). As at 19 January 2009, the date of admission, there
were 124,832,394 shares and 13,596,541 warrants in issue.
Notwithstanding the Company having sufficient cash reserves to distribute funds
to its shareholders, Bermuda law restricted the Company from declaring a
dividend. Therefore, the Company's board of directors determined that it would
be in the best interests of its shareholders to propose a reduction of the
Company's share premium account and to make a payment to its shareholders in
connection therewith. The Company's Special General Meeting held on 21 May 2009
resolved to reduce the Company's share premium account from US$520,344,639.17 to
US$495,378,160.37, enabling an amount of US$0.20 per common share to be paid to
holders of the Company's common shares. The amount was paid to shareholders on 9
June 2009. The reduction of share premium account does not reduce the authorised
or issued share capital of the Company or the nominal value of the shares of the
Company.
Portfolio review and trading results
During the second quarter of 2009, IRF engaged in significant investing
activities, trading selected stocks and securities on the Athens Stock Exchange.
IRF acquired approximately EUR35.7 million (acquisition cost) of listed securities
and disposed of them for a total of approximately EUR49 million, realising a
profit of approximately EUR13.3 million.
IRF's major investment continues to be in Marfin Investment Group ("MIG"). At an
ordinary General Meeting held on 9 June 2009, MIG's shareholders resolved to
distribute EUR0.20 per share in the form of a constructive dividend. The record
date and payment date were set as 26 June 2009 and 9 July 2009 respectively.
Under this program, IRF was entitled to approximately EUR16.3 million and opted to
reinvest such dividend into MIG in return for shares at a price of EUR2.76 per
share. This option was provided to existing shareholders at a price that was a
10% discount to the average closing price of MIG's shares on the Athens Stock
Exchange in the first five sessions during which the shares were traded without
the right to constructive dividend.
As at 31 December 2008, approximately EUR185.146 million was recognised as an
impairment loss. This loss was generated by the difference between the
acquisition cost of the investments classified as "available for sale" and fair
value of such investments. Under IAS 39, when in a subsequent period (after the
initial impairment), there is a further decline in the fair value of an
"available for sale" asset, the difference between the new fair value and the
previous evaluation is recognised in profit or loss. Thus, a EUR17.397 million
impairment loss was generated (from the difference between the carrying amounts
of the investments classified as "available for sale" as at 31 December 2008 and
fair value of such investments at the end of the previous quarter). As at 30
June 2009 the portfolio's difference between the fair value and the 1st quarter
evaluation increased positively by approximately EUR33.87 million. This difference
has been recognised directly to equity.
As at 30 June 2008, IRF had cash and cash equivalents of approximately EUR129
million. IRF held investments in equity securities valued at about EUR 280
million, including 81.6 million shares in MIG. All equity holdings are publicly
listed on the Athens Stock Exchange.
Debt
In September 2008, IRF modified the terms of its loan facility. Under the
revised terms, the maturity of the EUR200 million loan facility has been extended
to September 2011. This has strengthened the liquidity position of the company
significantly. Securities and deposit accounts have been pledged as collateral
for this medium-term facility.
Related parties transactions
There are no significant related parties transactions that could have a material
effect on the financial position or performance of the Group in the first six
months of the current financial year. For further details see also note 18 of
the notes to the interim financial statements
STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE SEMI-ANNUAL REPORT
AND THE CONDENSED SET OF FINANCIAL STATEMENTS
The directors are responsible for preparing the semi-annual report and the
condensed set of financial statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare financial statements for each
financial year. Under that law and in accordance with appropriate regulations of
the listing authority, the directors have elected to prepare annual and interim
financial statements in accordance International Financial Reporting Standards
as adopted by the European Union.
The financial statements are required by law to give a true and fair view of the
state of affairs of the Group and of the profit or loss of the Group for that
period. 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 a 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 condensed set of financial statements, prepared in accordance with
International Financial Reporting Standards as adopted by the European Union and
specifically under IAS 34, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Group; and
* the interim management report includes a fair review of the development and
performance of the business and the position of the issuer and the undertakings
included in the consolidation taken as a whole, description of important events
that have occurred during the year together with a description of the principal
risks and uncertainties that they face.
The directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
company and enable them to ensure that the financial statements comply with the
Companies Act 1981 of Bermuda. They are also responsible for safeguarding the
assets of the company and taking reasonable steps for the prevention and
detection of fraud and other irregularities.
In so far as the directors are aware:
* there is no relevant review 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 review information and to establish that the
auditors are aware of that information.
Legislation in Bermuda governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
To the Shareholders of IRF European Finance Investments Ltd
Introduction
We have reviewed the accompanying interim consolidated statement of financial
position of IRF European Finance Investments Ltd (the "Company") and the related
interim consolidated statement of comprehensive income, changes in equity and
cash flows for the six-month period then ended, and the selected explanatory
notes.
Management is responsible for the preparation and fair presentation of this
interim financial statement in accordance with the International Financial
Reporting Standards that have been adopted by the European Union and apply for
interim financial information ("IAS 34"). Our responsibility is to express a
conclusion on these interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements 2410, "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" to which the Greek Auditing Standards indict.
A review of interim financial information consists of making inquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less
in scope than an audit conducted in accordance with Greek Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the accompanying interim financial information is not prepared, in all
material respects, in accordance with IAS 34.
Athens, 24 August 2009
+------------------------------------------+------------------------------------------+
| The Chartered Accountant | The Chartered Accountant |
+------------------------------------------+------------------------------------------+
| | |
+------------------------------------------+------------------------------------------+
| Vassilis Kazas | Panagiotis Christopoulos |
+------------------------------------------+------------------------------------------+
| SOEL Reg. No 13281 | SOEL Reg. No 28481 |
+------------------------------------------+------------------------------------------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+-----------------------------------+------+-----------+-----------+------------+-----------+
| |
+-----------------------------------+
| Amounts presented in EUR '000 | Note | 1/1 - | 1/1 - | 1/4/- | 1/4 - |
| | | 30/06/09 | 30/06/08 |30/06/2009 | 30/06/08 |
| | | | (as | | (as |
| | | |restated) | |restated) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Amounts presented in EUR '000 | Note | 1/1 - | 1/1 - | 1/4/- | 1/4 - |
| | | 30/06/09 | 30/06/08 |30/06/2009 | 30/06/08 |
| | | | (as | | (as |
| | | |restated) | |restated) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Income | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Interest and similar income | | 1,208 | 5,084 | 344 | 2,158 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Dividend and other income | 6 | 18,198 | 729 | 18,198 | 729 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Exchange differences | | - | - | (5,806) | - |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Realised gain from disposal of | | - | 10,847 | - | 10,847 |
| available for sale financial | | | | | |
| assets | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Realised gain from disposal of | 5 | 13,406 | - | 13,377 | - |
| financial assets held for trade | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Unrealised gain from valuation of | | 539 | - | 539 | - |
| financial assets at fair value | | | | | |
| through Profit & Loss | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Derivatives | | - | 9,570 | - | 9,570 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Total operating income | | 33,350 | 26,231 | 26,652 | 23,305 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Expenses | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Interest and similar expenses | | (5,146) | (2,736) | (2,475) | (2,547) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Fee and commission expense | | (307) | (542) | (307) | (304) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Exchange differences | | (555) | (10,399) | (555) | 373 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Unrealised loss from valuation of | | - | - | 228 | - |
| financial assets at fair value | | | | | |
| through Profit & Loss | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Impairment losses on | 7 | (17,397) | - | - | - |
| available-for-sale financial | | | | | |
| assets | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Management fees | | (50) | (50) | (25) | (33) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Other operating expenses | | (462) | (219) | (279) | (186) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Total operating expenses | | (23,918) | (13,947) | (3,413) | (2,697) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Profit after tax from continuing | | 9,432 | 12,284 | 23,239 | 20,607 |
| operations | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Net loss from discontinued | 8 | - | (9,477) | - | (14,764) |
| operations | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Profit after tax | | 9,432 | 2,807 | 23,239 | 5,843 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Other comprehensive income | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Available-for-sale financial | 7 | 33,870 | (47,042) | 33,870 | (42,168) |
| assets | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Exchange differences on | | - | (9) | - | 13 |
| translating foreign operations | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Other comprehensive income for | | 33,870 | (47,042) | 33,870 | (42,146) |
| the period net of tax | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Total comprehensive income for | | 43,302 | (44,235) | 57,108 | (36,303) |
| the period after tax | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Profit after tax attributable to: | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Owners of the parent Company | | 9,432 | 4,596 | 23,239 | 11,624 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Minority rights | | - | (1,789) | - | (5,781) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Total comprehensive income | | | | | |
| attributable to: | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Owners of the parent Company | | 43,302 | (36,303) | 57,108 | (29,524) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Minority rights | | - | (7,940) | - | (6,787) |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| Earning per share attributable to | | | | | |
| parent company's shareholders ( | | | | | |
| EUR/share ) | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| From continuing and discontinued | | | | | |
| operations | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| - Basic | 17 | 0.08 | 0.04 | 0.19 | 0.09 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| - Diluted | 17 | 0.08 | 0.04 | 0.19 | 0.09 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| From continuing operations | | | | | |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| - Basic | 17 | 0.08 | 0.10 | 0.19 | 0.17 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
| - Diluted | 17 | 0.08 | 0.10 | 0.19 | 0.16 |
+-----------------------------------+------+-----------+-----------+------------+-----------+
The notes on the following pages form an integral part of these consolidated
interim financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
+------------------------------------------+------+--------------+--------------+
| Amounts presented in EUR '000 |Note |30 June 2009 | 31 December |
| | | | 2008 |
| | | | (as |
| | | | restated) |
+------------------------------------------+------+--------------+--------------+
| ASSETS | | | |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Non-current assets | | | |
+------------------------------------------+------+--------------+--------------+
| Investment portfolio | 11 | 276,218 | 248,508 |
+------------------------------------------+------+--------------+--------------+
| Total non-current assets | | 276,218 | 248,508 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Current assets | | | |
+------------------------------------------+------+--------------+--------------+
| Trading portfolio & other financial | 10 | 4,135 | 5,965 |
| assets at fair value through Profit & | | | |
| Loss | | | |
+------------------------------------------+------+--------------+--------------+
| Other assets | 12 | 18,254 | 607 |
+------------------------------------------+------+--------------+--------------+
| Cash and other equivalents | 9 | 129,333 | 148,610 |
+------------------------------------------+------+--------------+--------------+
| Total non-current assets | | 151,722 | 155,182 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| TOTAL ASSETS | | 427,940 | 403,689 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| EQUITY AND LIABILITIES | | | |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Shareholders equity | | | |
+------------------------------------------+------+--------------+--------------+
| Share capital | 15 | 147 | 147 |
+------------------------------------------+------+--------------+--------------+
| Share premium | 15 | 382,491 | 400,443 |
+------------------------------------------+------+--------------+--------------+
| Revaluation reserve | 7 | 33,870 | - |
+------------------------------------------+------+--------------+--------------+
| Retained losses | | (187,617) | (197,049) |
+------------------------------------------+------+--------------+--------------+
| Total equity attributable to | | 228,892 | 203,541 |
| shareholders' of the Parent Company | | | |
+------------------------------------------+------+--------------+--------------+
| Minority rights | | - | - |
+------------------------------------------+------+--------------+--------------+
| TOTAL EQUITY | | 228,892 | 203,541 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| LIABILITIES | | | |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Non-current | | | |
+------------------------------------------+------+--------------+--------------+
| Long term loans | 13 | 198,134 | 198,393 |
+------------------------------------------+------+--------------+--------------+
| Total non-current liabilities | | 198,134 | 198,393 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Current liabilities | | | |
+------------------------------------------+------+--------------+--------------+
| Other liabilities | 14 | 914 | 1,755 |
+------------------------------------------+------+--------------+--------------+
| Total current liabilities | | 914 | 1,755 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| TOTAL LIABILITIES | | 199,048 | 200,148 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| TOTAL LIABILITIES AND EQUITY | | 427,940 | 403,689 |
+------------------------------------------+------+--------------+--------------+
The notes on the following pages form an integral part of these consolidated
interim financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| | | Attributable to shareholders of the Parent Company | |
+---------------------------------+------+---------------------------------------------------------------------+-------------------------+
| |Note | Share | Share |Revaluation | Other | Retained | Total | Minority | Total |
| | |capital | premium | reserve |reserves | earnings | | rights | |
| | | | | | | / | | | |
| | | | | | | (losses) | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Consolidated Statement of | | | | | | | | | |
| Changes in Equity | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Amounts presented in EUR '000 | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Opening balance as at 1 January | | 147 | 400,443 | - | - | (197,049) | 203,541 | - | 203,541 |
| 2009 | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Share premium reduction & | 15 | - | (17,951) | - | - | - | (17,951) | - | (17,951) |
| return to shareholders | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Transactions with owners | | - | (17,951) | - | - | - | (17,951) | - | (17,951) |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Net result for the period | | - | - | - | - | 9,432 | 9,432 | - | 9,432 |
| 01/01-30/06/2009 | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Other comprehensive income: | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Gains/ losses directly | | | | | | | | | |
| recognized in equity: | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| - on the valuation of | 7 | - | - | 33,870 | - | - | 33,870 | - | 33,870 |
| available for sale financial | | | | | | | | | |
| assets | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Total comprehensive | | - | - | 33,870 | - | - | 33,870 | - | 33,870 |
| income/(loss) for the period | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| | | | | | | | | | |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
| Balance as at 30 June 2009 | | 147 | 382,491 | 33,870 | - | (187,617) | 228,892 | - | 228,892 |
+---------------------------------+------+---------+----------+-------------+----------+------------+----------+------------+------------+
The notes on the following pages form an integral part of these consolidated
interim financial statements.
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+-----------------------------------------+---------+
| Consolidated Statement of | | Attributable to shareholders of the Parent Company | | |
| Changes in Equity | | | | |
+---------------------------------+-----+-----------------------------------------------------------------------+------------------------------------------------------+---------+
| Amounts presented in EUR '000 | | Share | Share |Revaluation | Other | Retained | Total | Minority | Total |
| | | Capital | Premium | Reserve |Reserves | Earnings | | rights | |
| | | | | | | / | | | |
| | | | | | | (losses) | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Opening balance as at 1st | | 147 | 400,443 | (2,570) | 16,587 | 72,492 | 487,099 | 290,248 | 777,347 |
| January 2008 | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Equity share options granted to | | - | - | - | 103 | - | 103 | 395 | 498 |
| employees | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Dividend relating to 2007 | | - | - | - | - | (22,105) | (22,105) | (9,829) | (31,935) |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Capitalisation to legal | | - | - | - | 196 | (196) | - | - | - |
| reserves | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Transactions with owners | | | | | 299 | (22,301) | (22,002) | (9,434) | (31,437) |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Net result for the period | | - | - | - | - | 4,596 | 4,596 | (1,789) | 2,807 |
| 01/01-30/06/2008 | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Other comprehensive income: | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Gains/ losses directly | | | | | | | | | |
| recognized in equity: | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| - on the valuation of | | - | - | (40,897) | - | - | (40,897) | (6,145) | (47,042) |
| available for sale financial | | | | | | | | | |
| assets | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| - exchange differences on | | - | - | - | - | (2) | (2) | (7) | (9) |
| translating foreign operations | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Total comprehensive | | - | - | (40,897) | - | (2) | (40,899) | (6,152) | (47,050) |
| income/(loss) for the period | | | | | | | | | |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+---------------------------------------------------+
| Balance as at 30 June 2008 | | 147 | 400,443 | (43,466) | 16,885 | 54,784 | 428,793 | 272,874 | 701,667 |
+---------------------------------+-----+----------+-----------+-------------+----------+-----------+-----------+------------+-----------------------------------------+---------+
The notes on the following pages form an integral part of these consolidated
interim financial statements.
CONSOLIDATED CASH FLOW STATEMENT
+------------------------------------------+--------------+--------------+-------------+
| |
+------------------------------------------+
| Amounts presented in EUR '000 | Note |30 June 2009 | 30 June |
| | | | 2008 |
| | | | (as |
| | | | restated) |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from operating activities | | | |
+------------------------------------------+ +--------------+-------------+
| Profit before tax of continuing | | 9,432 | 12,284 |
| operations | | | |
+------------------------------------------+--------------+--------------+--------------+
| Adjustments for: | | | |
+------------------------------------------+--------------+--------------+-------------+
| Add: Impairment losses on financial | 7 | 17,397 | - |
| assets | | | |
+------------------------------------------+--------------+--------------+-------------+
| Profit/(loss) from revaluation of | | (490) | - |
| financial assets at fair value through | | | |
| Profit & Loss | | | |
+------------------------------------------+--------------+--------------+-------------+
| Proft /loss from sale of a.f.s. | | - | (11,048) |
| portfolio | | | |
+------------------------------------------+--------------+--------------+-------------+
| Dividend income | | - | (729) |
+------------------------------------------+--------------+--------------+-------------+
| Interest and other non cash expenses | | 3,938 | |
+------------------------------------------+--------------+--------------+-------------+
| Exchange differences | | 487 | 8,506 |
+------------------------------------------+ +--------------+-------------+
| Cash flows from operating activities | | 30,765 | 9,013 |
| before changes in working capital | | | |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Changes in working capital: | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net (increase)/decrease in trading | | 1,830 | - |
| securities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net (increase)/decrease in other assets | | (17,647) | (1,379) |
+------------------------------------------+--------------+--------------+-------------+
| Due to financial institutions | | - | 140,000 |
+------------------------------------------+--------------+--------------+-------------+
| Net increase/(decrease) in other | | (841) | 18,363 |
| liabilities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from operating activities | | 14,106 | 165,997 |
| before payment of income tax | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from operating activities | | - | 2,479 |
| of discontinued operations | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from operating activities | | 14,106 | 168,475 |
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from investing activities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Proceeds from a.f.s. portfolio | | (11,384) | (350,316) |
+------------------------------------------+--------------+--------------+-------------+
| Interest received | | 1,208 | - |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from investing activities | | - | (52,368) |
| of discontinued operations | | | |
+------------------------------------------+ +--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Net cash flow from investing activities | | (10,177) | (402,684) |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from financing activities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Interest paid | | (4,887) | (2,394) |
+------------------------------------------+--------------+--------------+-------------+
| Dividends paid | | - | (22,105) |
+------------------------------------------+--------------+--------------+-------------+
| Share premium reduction & return to | 15 | (17,573) | - |
| shareholders | | | |
+------------------------------------------+--------------+--------------+-------------+
| Repayment of borrowings | | (259) | - |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from financing activities | | - | (10,468) |
| of discontinued operations | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flow from financing activities | | (22,719) | (34,968) |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net decrease in cash and cash | | (18,790) | (269,176) |
| equivalents | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents at the | | 148,610 | 559,372 |
| beginning of the period | | | |
+------------------------------------------+--------------+--------------+-------------+
| Effect of exchange rate fluctuations on | | (487) | (8,506) |
| cash and cash equivalents | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents at the end of | 16 | 129,333 | 281,690 |
| the financial period | | | |
+------------------------------------------+--------------+--------------+-------------+
| Amounts presented in EUR '000 | Note |30 June 2009 | 30 June |
| | | | 2008 |
| | | | (as |
| | | | restated) |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from operating activities | | | |
+------------------------------------------+ +--------------+-------------+
| Profit before tax of continuing | | 9,432 | 12,284 |
| operations | | | |
+------------------------------------------+--------------+--------------+--------------+
| Adjustments for: | | | |
+------------------------------------------+--------------+--------------+-------------+
| Add: Impairment losses on financial | 7 | 17,397 | - |
| assets | | | |
+------------------------------------------+--------------+--------------+-------------+
| Profit/(loss) from revaluation of | | (490) | - |
| financial assets at fair value through | | | |
| Profit & Loss | | | |
+------------------------------------------+--------------+--------------+-------------+
| Proft /loss from sale of a.f.s. | | - | (11,048) |
| portfolio | | | |
+------------------------------------------+--------------+--------------+-------------+
| Dividend income | | - | (729) |
+------------------------------------------+--------------+--------------+-------------+
| Interest and other non cash expenses | | 3,938 | |
+------------------------------------------+--------------+--------------+-------------+
| Exchange differences | | 487 | 8,506 |
+------------------------------------------+ +--------------+-------------+
| Cash flows from operating activities | | 30,765 | 9,013 |
| before changes in working capital | | | |
+------------------------------------------+--------------+--------------+--------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Changes in working capital: | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net (increase)/decrease in trading | | 1,830 | - |
| securities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net (increase)/decrease in other assets | | (17,647) | (1,379) |
+------------------------------------------+--------------+--------------+-------------+
| Due to financial institutions | | - | 140,000 |
+------------------------------------------+--------------+--------------+-------------+
| Net increase/(decrease) in other | | (841) | 18,363 |
| liabilities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from operating activities | | 14,106 | 165,997 |
| before payment of income tax | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from operating activities | | - | 2,479 |
| of discontinued operations | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from operating activities | | 14,106 | 168,475 |
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from investing activities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Proceeds from a.f.s. portfolio | | (11,384) | (350,316) |
+------------------------------------------+--------------+--------------+-------------+
| Interest received | | 1,208 | - |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from investing activities | | - | (52,368) |
| of discontinued operations | | | |
+------------------------------------------+ +--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+--------------+
| Net cash flow from investing activities | | (10,177) | (402,684) |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash flows from financing activities | | | |
+------------------------------------------+--------------+--------------+-------------+
| Interest paid | | (4,887) | (2,394) |
+------------------------------------------+--------------+--------------+-------------+
| Dividends paid | | - | (22,105) |
+------------------------------------------+--------------+--------------+-------------+
| Share premium reduction & return to | 15 | (17,573) | - |
| shareholders | | | |
+------------------------------------------+--------------+--------------+-------------+
| Repayment of borrowings | | (259) | - |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flows from financing activities | | - | (10,468) |
| of discontinued operations | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net cash flow from financing activities | | (22,719) | (34,968) |
+------------------------------------------+--------------+--------------+-------------+
| | | | |
+------------------------------------------+--------------+--------------+-------------+
| Net decrease in cash and cash | | (18,790) | (269,176) |
| equivalents | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents at the | | 148,610 | 559,372 |
| beginning of the period | | | |
+------------------------------------------+--------------+--------------+-------------+
| Effect of exchange rate fluctuations on | | (487) | (8,506) |
| cash and cash equivalents | | | |
+------------------------------------------+--------------+--------------+-------------+
| Cash and cash equivalents at the end of | 16 | 129,333 | 281,690 |
| the financial period | | | |
+------------------------------------------+--------------+--------------+-------------+
The accompanying notes constitute an integral part of the financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
Country of incorporation
IRF was incorporated on 8 September 2005 under the Bermuda Companies Act 1981.
The Company was initially listed on AIM on 14 November 2005 and on 19 January
2009 transferred to the Specialist Fund Market (the "SFM"), a regulated market
operated by the London Stock Exchange plc. The Company's registered office is at
Canon's Court 22 Victoria Street, Hamilton HM12, Bermuda.
Principal Activities
The Group was initially engaged in the provision of banking, financial and
insurance services. IRF was formed as an investing company to serve as a vehicle
for the acquisition of one or more businesses in the financial services industry
in Europe, with a primary focus on credit institutions and insurance companies
in Greece, Bulgaria, Romania and Turkey.
On 29 June 2006, the Company acquired a controlling interest in Proton
Investment Bank, a Greek bank listed on the Athens Stock Exchange. Subsequent to
this acquisition, Proton Investment Bank merged with Omega Bank, resulting in
IRF having an interest in the newly merged entity, Proton Bank. Proton Bank and
its subsidiaries operate in the sectors of retail, corporate and investment
banking, portfolio management, insurance and other financial services. Proton
Bank is licensed by the Bank of Greece to operate as a financial institution in
Greece. Proton Bank, which is established in Greece and is supervised by the
Bank of Greece, operates through a network of 28 branches.
On 24 September 2008, IRF sold a 15.95% interest in Proton Bank from its 20.6%
holding in Proton Bank. Following such disposal, the IRF directors holding
positions on the Board of Directors of Proton Bank resigned. As at 31 December
2008, IRF had disposed of its entire investment in Proton Bank. The results of
Proton Bank's Group were consolidated in the financial statements of IRF, as
discontinued operations, up to the date of the disposal (see notes 2.3, 3.1, 4
and 8).
IRF acquired and continues to hold approximately 11% of the issued shares in
Marfin Investment Group ('MIG') which, as at 30 June 2009, is the most
significant investment in the company's portfolio. MIG invests in private
equity, privatisations and infrastructure projects and principally operates in
Greece, Cyprus and South East Europe. All equity holdings are publicly listed on
the Athens Stock Exchange.
2. BASIS OF INTERIM FINANCIAL STATEMENT PREPARATION
2.1 Statement of compliance
The condensed consolidated interim financial statements for the six month period
ended 30 June 2009 have been prepared in accordance with International
Accounting Standard 34 'Interim Financial Reporting' and should be read in
conjunction with the audited financial statements for the year ended 31 December
2008.
The financial information set out in this interim report does not constitute
statutory financial statements pursuant to Section 84 of Bermuda Companies Act
1981. The Group's statutory financial statements for the year ended 31 December
2008 were approved by the Board of Directors on 24 April 2009. The auditor's
report on those financial statements was unqualified.
2.2 Functional and presentation currency
The current financial statements are presented in Euro, which is the functional
currency of the Group. The functional currency is the currency of the primary
economic environment in which an entity operates and is normally the one in
which it primarily generates and expends cash. Management used its judgment to
determine the functional currency that most faithfully represents the economic
effects of the underlying transactions, events and conditions.
All amounts are presented in thousand Euros unless mentioned otherwise. Due to
rounding, percentages and numbers presented throughout the condensed interim
consolidated financial statements may not match the counterparts in the
financial statements. All amounts expressed in dollars, are US dollars.
2.3 Comparative figures
Consolidated statement of financial position, comprehensive income statement,
and cash flow statement for the comparative period have been adjusted for the
reclassification of income statement to reflect results of discontinued
operations and the implementation of the revised IAS 1. Details are provided in
note 3.1.
2.4 Use of estimates
The preparation of the financial statements in accordance with the IFRS requires
management to make estimates, judgements and assumptions that affect the
application of accounting policies and the reporting amounts of assets,
liabilities, income and expenses.
Assumptions and estimates are reviewed on an ongoing basis and are revised based
on experience and other factors. Revisions of the accounting estimates are
recognised in the period in which estimates are revised and in any future
periods affected. Assumptions and estimates include expectations on future event
and outcomes that are considered as reasonable given the current conditions.
Actual results may differ from these estimates.
3. SUMMARY OF IMPORTANT ACCOUNTING POLICIES
3.1 Change in accounting policies
These condensed consolidated interim financial statements have been prepared in
accordance with the accounting policies adopted in the last annual financial
statements for the year ended 31 December 2008 except for the adoption of:
- IAS 1 "Presentation of Financial Statements" (revised in 2007 and applied by
companies for annual periods starting on or after 01/01/2009). The basic changes
introduced by the revised Standard are summarized in the separate presentation
of the changes in equity stemming from the transactions with the owners in their
capacity as owners (e.g. dividends, share capital increases) from changes in
equity (e.g. conversion reserves). Furthermore, the revised version of the
Standard brings forward changes in term use as well as the presentation of the
Financial Statements (in certain cases the presentation of a third Statement of
Financial Position is required for the commencement of the earliest comparative
period). The new definitions however do not create any changes to the rules for
recognition, measurement, or disclosure of certain transactions and other events
required by the rest of the Standards. The revised Standard foresees the
presentation of one statement, the Statement of Comprehensive Income, or the
presentation of two statements (one separate Income Statement and one Statement
of Comprehensive Income). The Group has decided to present one statement. The
interim financial statements have been prepared based on the requirements of IAS
1.
Moreover, in previous periods the management prepared the consolidated financial
statements in the format of "order of liquidity" according to IAS 1 due to the
nature of the operations of the consolidated group of Proton Bank. The format of
"order of liquidity" is used as best practise by all financial institutions. Due
to the disposal of the entire Proton Group, the management has decided to adopt
the presentation of "current and non-current assets", and "current and
non-current liabilities", as separate classifications in its statement of
financial position, as most funds and investing entities implement in their
financial statements. The aforementioned adoption did not lead to any
reclassifications of assets or liabilities.
The statement of comprehensive income analysis is based upon the 'nature of
expense' method.
- IFRS 8 "Operating Segments" (issued in 2006 and is applied by companies for
periods starting on or after 01/01/2009). IFRS 8 replaces IAS 14 "Segment
Reporting". The new IFRS requires a "management approach" to the Group's
presentation of financial information under segment reporting. Information
disclosed is basically information that the management uses for internal
reporting so as to assess the productivity of segments, as well as the manner in
which resources are allocated. Such reporting might differ from information used
during the preparation of the balance sheet and the income statement.
Furthermore, the standard requires that explanatory notes on the basis of
preparation of segment reporting, as well as traces to entries in financial
statements should also be disclosed.
In previous periods the management prepared the consolidated segment analysis
based upon the operations of the consolidated group of Proton Bank. After the
disposal of Proton Bank, the directors came to the conclusion that IRF operates
only in the investment in listed securities business segment. Also, IRF, up to
the current period, invests mainly in the Greek market.
3.2 Other new standards, amendments and interpretations with effective date as
of 1 January 2009, with no applicability or significant impact:
(a) IFRIC 13: "Customer Loyalty Programmes (effective for annual accounting
periods beginning on or after 1 July 2008);
(b) IAS 23: (Revised 2007) "Borrowing Costs" (effective from 1 January 2009)
The revised IAS 23 removes the option of immediately expensing borrowing costs
directly attributable to the acquisition, construction, or production of a
qualifying asset as part of the cost of that asset;
(c) IFRS 2: "Share-based Payment" - Amendment 2008: Vesting Conditions and
Cancellations (effective from 1 January 2009)
This amendment clarifies that only service conditions and performance conditions
are vesting conditions, while all other features need to be included in the
grant date fair value. The Group is currently assessing the implications of the
adoption of the aforementioned amendment;
(d) IAS 32: Financial Instruments: Presentation and IAS 1: Presentation of
Financial Statements - Amendment 2008: Puttable Financial Instruments and
Obligations Arising on Liquidation (effective from 1 January 2009)
These amendments address the classifications of some puttable financial
instruments as well as instruments or their components that impose on the entity
an obligation to deliver to another party a pro rata share of the net assets of
the entity only on liquidation. The above mentioned amendments are not
applicable at present for Group activities;
(e) IFRIC 11: "Group and treasury share transactions"
IFRIC 11 provides guidance on IFRS 2 application in three cases: i) share-based
payment arrangements involving an entity's own equity instruments, ii)
share-based payment arrangements involving equity instruments of the parent and
iii) a subsidiary granting rights to equity instruments of its parent to its
employees. An entity shall apply this interpretation for annual periods
beginning on or after 1 March 2008.
(f) IFRS 7 (Amendment 2009): Improvements to the Financial Instruments
disclosures (effective from 1 January 2009)
This amendment aims to provide additional and improved disclosures concerning
the fair value of the financial instruments and the liquidity risk. Among the
changes of the standard, which are estimated to modify the way that the relative
information of the Group is presented, are: the introduction of three levels for
the definition of the fair value (market prices, valuation based on remarkable
market data and valuation based on non-remarkable market data), requirement for
disclosure of changes at the valuation methods used and requirement for
additional information concerning the third level including the sensitivity
analysis.
3.3 New standards, amendments and interpretations that have been issued and are
subject to endorsement by the European Union:
(a) IFRS 3: "Business Combinations" - Revised 2007 and subsequent amendments in
IAS 27, 28 and 31 (effective the first annual reporting period beginning on or
after 1 July 2009)
The revised standard introduces significant amendments for the application of
the acquisition method for business combinations. Among other changes the
standard introduces the possibility of minority interests being measured at fair
value. Furthermore, the revised standard requires that the acquirer of a
subsidiary recognizes the assets acquired and liabilities assumed as a
transaction with owners of the business and any difference should be recognized
in equity. The revised IFRS 3 applies for business combinations for which the
acquisition date is on or after the beginning of the first annual reporting
period beginning on or after 1 July 2009, while no consolidation adjustments are
required for the period before the revised standard will become effective. Thus,
the adoption of the revised standards will have no significant impact on the
Group's financial statements.
(b) IFRIC 15: "Agreements for the Construction of Real Estate"
An entity shall apply IFRIC 15 "Agreements for the Construction of Real Estate"
for annual periods beginning on or after 1 January 2009. This interpretation
applies to the accounting for revenue which refers to the real estates'
disposal. This interpretation does not apply to the Group's activities;
(c) IFRIC 16: "Hedges of a Net Investment in a Foreign Operation";
(d) IFRIC 17: "Distribution of non-cash assets to owners" (effective for annual
periods beginning on or after 1 July 2009)
This interpretation, issued on 27 November 2008, provides guidance to an entity
in order to recognize and subsequently measure a liability arising from the
distribution of non-cash assets to owners;
(e) IFRIC 18 "Transfer of assets from customers"
Effective for annual periods beginning on or after 1 July 2009. This
interpretation, issued on 29 January 2009, clarifies the accounting treatment
for agreements under which an entity receives from a customer an item of
property, plant and equipment that the entity must then use to serve
conventional obligations to him. The interpretation also applies in cases where
the entity receives cash from customers to construct or buy an item of property,
plant and equipment to be used as defined above. This interpretation does not
apply to Group activities.
(f) IAS 39: "Financial instruments: Recognition and Measurement": Eligible
Hedged Items Amendment to IAS 39
Amendment to IAS 39 clarifies accounting hedges issues and, in particular,
inflation and one-sided risk of a hedged item. An entity shall apply those
amendments to IAS 39 for annual periods beginning on or after 1 July 2009;
4. STRUCTURE OF THE GROUP
Entities consolidated under full consolidation method at 31 December 2008 and at
30 June 2009:
+-----------------------------+-------------+-------------+---------------+-------------------+
| Name | Country | Direct and |Relation that | Note |
| | | indirect | dictated the | |
| | | holding |consolidation | |
+-----------------------------+-------------+-------------+---------------+-------------------+
| IRF EUROPEAN FINANCE | BERMUDA | Parent | | |
| INVESTMENTS LIMITED | | | | |
+-----------------------------+-------------+-------------+---------------+-------------------+
| MIMOSA TRADING SA | MARSHALL | 100% | Percentage | Direct Stake |
| | ISLANDS | | Ownership | |
+-----------------------------+-------------+-------------+---------------+-------------------+
| MYRTLE TRADING COMPANY | MARSHALL | 100% | Percentage | Direct Stake |
| | ISLANDS | | Ownership | |
+-----------------------------+-------------+-------------+---------------+-------------------+
The following table indicates the Group structure as at 30 June 2008:
+--------------+----------+--------------+--------------+----------+---------------+----------+
| |
+--------------+
| Name | Country | Direct | Indirect | Direct | Relation | Note |
| | |Shareholding |Shareholding | and | that | |
| | | % | % |Indirect | dictated | |
| | | | | Holding | the | |
| | | | | |consolidation | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| Name | Country | Direct | Indirect | Direct | Relation | Note |
| | |Shareholding |Shareholding | and | that | |
| | | % | % |Indirect | dictated | |
| | | | | Holding | the | |
| | | | | |consolidation | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| IRF | BERMUDA | | | Parent | | |
| EUROPEAN | | | | | | |
| FINANCE | | | | | | |
| INVESTMENTS | | | | | | |
| LIMITED | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| MIMOSA |MARSHALL | 100.00% | 0.00% | 100% | Percentage | Direct |
| TRADING | ISLANDS | | | | Ownership | Stake |
| SA | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| MYRTLE |MARSHALL | 100.00% | 0.00% | 100% | Percentage | Direct |
| TRADING | ISLANDS | | | | Ownership | Stake |
| COMPANY | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| PROTON | | | | | | |
| BANK | | | | | | |
| GROUP | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| PROTON | GREECE | 20.60% | 0.00% | 20.60% | Control | Direct |
| BANK | | | | | | Stake |
| SA | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| FIRST | SERBIA | 0.00% | 16.63% | 16.63% | Control | Indirect |
| GLOBAL | | | | | | stake |
| BROKERS | | | | | | through |
| SA | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| PROTON | GREECE | 0.00% | 20.58% | 20.58% | Control | Indirect |
| MUTUAL | | | | | | stake |
| FUNDS | | | | | | through |
| SA | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| OMEGA | GREECE | 0.00% | 13.60% | 13.60% | Control | Indirect |
| INSURANCE | | | | | | stake |
| BROKERS | | | | | | through |
| SA | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| PROTON | GREECE | 0.00% | 18.80% | 18.80% | Control | Indirect |
| INSURANCE | | | | | | stake |
| SA | | | | | | through |
| | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
|INTELLECTRON | GREECE | 0.00% | 11.46% | 11.46% | Control | Indirect |
| SYSTEMS SA | | | | | | stake |
| | | | | | | through |
| | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| ASSOCIATES | | | | | | |
+--------------+----------+--------------+--------------+----------+---------------+----------+
| Omega | GREECE | 0.00% | 6.01% | 6.01% | | Indirect |
| Portfolio | | | | | | stake |
| Investment | | | | | | through |
| SA | | | | | | "Proton |
| | | | | | | Bank" |
+--------------+----------+--------------+--------------+----------+---------------+----------+
DISPOSAL OF SHAREHOLDING IN PROTON: On 24 September 2008, IRF sold 10 million
shares in Proton Bank for a gross sales price of EUR65 million. The consideration
for this disposal was in the form of cash. Following IRF's disposal of these
shares in Proton Bank, the IRF directors holding positions on the Board of
Directors of Proton Bank resigned. As at 30 September 2008, IRF held
approximately 2.9 million shares in Proton Bank, representing an interest of
approximately 4.65%. As at 31 December 2008, IRF had disposed of its entire
investment in Proton Bank. The results of Proton Bank's Group were consolidated
in the financial statements of IRF, as discontinued operations, up to the date
of the disposal (note 8).
Information on consolidation
MIMOSA TRADING SA: This company is duly incorporated and filed articles of
incorporation under the provisions of the Marshall Islands Business Corporation
Act on 6 July 2007. IRF is the owner of five hundred (500) fully paid and
non-assessable shares of the capital stock of the corporation. The aggregate
number of shares of stock that this company is authorized to issue is five
hundred (500) registered and/or bearer shares without par value.
MYRTLE TRADING COMPANY: This company is duly incorporated and filed articles of
incorporation under the provisions of the Marshall Islands Business Corporation
Act on 6 July 2007. IRF is the owner of five hundred (500) fully paid and
non-assessable shares of the capital stock of the corporation. The aggregate
number of shares of stock that this company is authorized to issue is five
hundred (500) registered and/or bearer shares without par value.
5. REALISED GAIN FROM DISPOSAL OF FINANCIAL ASSETS HELD FOR TRADE
During the second quarter of 2009, IRF engaged in significant investing
activities, trading selected stocks and securities on the Athens Stock Exchange.
The Company acquired a total of approximately EUR 35.7 million (acquisition cost)
of listed securities and disposed of them for a total of approximately EUR 49
million, realising a profit of aproximatelly EUR 13.3 million.
6. DIVIDEND AND OTHER INCOME
As mentioned above, the major investment of IRF is the placement in MIG. At an
ordinary General Meeting held on 9 June 2009, MIG's shareholders resolved to
distribute EUR0.20 per share in the form of a constructive dividend. The record
date for the determination of the beneficiaries was set as 26 June 2009. ?he
date of payment was set as 9 July 2009. IRF, according to the above dates and
the relevant participation, was entitled to approximately EUR16.3 miillion.
Shareholders were offered the option to reinvest the constructive dividend in
return for MIG shares in whole or in part, at a price of EUR2.76 per share,
notably equal to the average closing price of MIG's shares on the Athens Stock
Exchange in the first five sessions during which the share was traded without
the right to capital refund, discounted by 10%.
7. IMPAIRMENT LOSSES
As at 31 December 2008, the total amount of approximately EUR185,146,000 was
recognised as an impairment loss, generated from the difference between the
acquisition cost of the investments classified as "available for sale" and fair
value of the aforementioned portfolio. Following the stipulations of IAS 39,
when in a subsequent period after the initial impairment, the decline in the
fair value of an "available for sale" financial asset continues, the difference
between the new fair value and the previous evaluation is recognised in profit
or loss. The amount of EUR17,397,423.99 was generated from the difference between
the carrying amounts of the investments classified as "available for sale" as at
31 December 2008 and fair value of the aforementioned portfolio at the end of
the previous quarter (31 March 2009). As at 30 June 2009 the portfolio's
difference between the fair value and the 1st quarter evaluation increased
positively by approximately EUR33.87 million. This difference has been recognised
directly to equity.
8. DISCONTINUED OPERATIONS
8.1 NET LOSS FROM DISCONTINUED OPERATIONS
On 24 September 2008, IRF sold 15.95% investment in Proton Bank from its 20.6%
interest. The results of Proton Bank's Group were consolidated in the financial
statements of IRF, as discontinued operations, up to the date of the disposal
and for the comparative periods. Net profit from discontinued operation is
analyzed as follows:
+--------------------------------------+------------+-------------+
| |
+--------------------------------------+
| Amounts presented in EUR '000 |30/06/2008 | 1/4 - |
| | | 30/06/08 |
+--------------------------------------+------------+-------------+
| Amounts presented in EUR '000 |30/06/2008 | 1/4 - |
| | | 30/06/08 |
+--------------------------------------+------------+-------------+
| Interest and similar income | 63,761 | 31,861 |
+--------------------------------------+------------+-------------+
| Interest and similar charges | (42,679) | (20,955) |
+--------------------------------------+------------+-------------+
| Net interest income | 21,082 | 10,906 |
+--------------------------------------+------------+-------------+
| Fee and commission income | 17,135 | 6,707 |
+--------------------------------------+------------+-------------+
| Fee and commission expense | (2,625) | (1,798) |
+--------------------------------------+------------+-------------+
| Net fee and commission income | 14,510 | 4,909 |
+--------------------------------------+------------+-------------+
| Income from insurance services | 17,251 | 7,610 |
+--------------------------------------+------------+-------------+
| Expenses from insurance services | (4,209) | (2,191) |
+--------------------------------------+------------+-------------+
| Net income from insurance services | 13,042 | 5,419 |
+--------------------------------------+------------+-------------+
| | | |
+--------------------------------------+------------+-------------+
| Dividend income | 1,073 | 1,070 |
+--------------------------------------+------------+-------------+
| Net trading income | (12,164) | (5,622) |
+--------------------------------------+------------+-------------+
| Net income from financial | 7,010 | (415) |
| instruments designated at fair value | | |
+--------------------------------------+------------+-------------+
| Other operating income | 1,078 | 608 |
+--------------------------------------+------------+-------------+
| | | |
+--------------------------------------+------------+-------------+
| Total net income | 45,630 | 16,876 |
+--------------------------------------+------------+-------------+
| | | |
+--------------------------------------+------------+-------------+
| Staff costs | (14,845) | (7,750) |
+--------------------------------------+------------+-------------+
| Other operating expenses | (12,977) | (6,981) |
+--------------------------------------+------------+-------------+
| Depreciation | (3,816) | (1,904) |
+--------------------------------------+------------+-------------+
| Insurance claims | (10,572) | (5,012) |
+--------------------------------------+------------+-------------+
| Impairment losses on financial | (3,063) | (3,011) |
| assets and non financial assets | | |
+--------------------------------------+------------+-------------+
| Total operating expenses | (45,272) | (24,657) |
+--------------------------------------+------------+-------------+
| Share of (losses)/profits of | (899) | (187) |
| associates | | |
+--------------------------------------+------------+-------------+
| Loss before tax | (542) | (7,968) |
+--------------------------------------+------------+-------------+
| Less: Income tax | (1,216) | 924 |
+--------------------------------------+------------+-------------+
| Loss after tax from discontinued | (1,758) | (7,044) |
| operations | | |
+--------------------------------------+------------+-------------+
| Impairment of goodwill previously | (7,720) | (7,720) |
| recognised | | |
+--------------------------------------+------------+-------------+
| Net loss after tax from discontinued | (9,477) | (14,764) |
| operations | | |
+--------------------------------------+------------+-------------+
9. CASH AND OTHER EQUIVALENTS
+---------------------------------------+-------------+-------------+
| Amounts presented in EUR '000 | 30/06/2009 | 31/12/2008 |
+---------------------------------------+-------------+-------------+
| Petty cash | 1 | 1 |
+---------------------------------------+-------------+-------------+
| Deposits placed in financial | 22,580 | 3,569 |
| institutions | | |
+---------------------------------------+-------------+-------------+
| Time deposits | 106,751 | 145,039 |
+---------------------------------------+-------------+-------------+
| Total | 129,333 | 148,610 |
+---------------------------------------+-------------+-------------+
10. TRADING PORTFOLIO AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT &
LOSS
+---------------------------------------+--------------+------------+
| |
+---------------------------------------+
| Amounts presented in EUR '000 | |
+---------------------------------------+---------------------------+
| Amounts presented in EUR '000 | |
+---------------------------------------+---------------------------+
| Trading portfolio | 30/06/2009 | 31/12/2008 |
+---------------------------------------+--------------+------------+
| Corporate entities bonds | 637 | 3,688 |
+---------------------------------------+--------------+------------+
| Equity securities | 3,498 | 2,276 |
+---------------------------------------+--------------+------------+
| Total | 4,135 | 5,965 |
+---------------------------------------+--------------+------------+
11. INVESTMENT PORTFOLIO
+----------------------------------------+--------------+------------+
| |
+----------------------------------------+
| Amounts presented in EUR '000 | | |
+----------------------------------------+--------------+------------+
| Amounts presented in EUR '000 | | |
+----------------------------------------+--------------+------------+
| Available-for-sale | 30/06/2009 | 31/12/2008 |
+----------------------------------------+--------------+------------+
| Equity securities | 276,218 | 248,508 |
+----------------------------------------+--------------+------------+
| Total | 276,218 | 248,508 |
+----------------------------------------+--------------+------------+
Investment in MIG constitutes the major investment in IRF's portfolio as at 30
June 2009.
12. OTHER ASSETS
+---------------------------------------+--------------+-------------+
| |
+---------------------------------------+
| Amounts presented in EUR '000 | |
+---------------------------------------+----------------------------+
| Amounts presented in EUR '000 | |
+---------------------------------------+----------------------------+
| Trading portfolio | 30/06/2009 | 31/12/2008 |
+---------------------------------------+--------------+-------------+
| Dividend income (note 6) | 18,198 | - |
+---------------------------------------+--------------+-------------+
| Prepayments to third parties | 5 | 63 |
+---------------------------------------+--------------+-------------+
| Brokerage fees & settlements | - | 381 |
| receivables | | |
+---------------------------------------+--------------+-------------+
| Other receivables | 52 | 163 |
+---------------------------------------+--------------+-------------+
| Total | 18,254 | 607 |
+---------------------------------------+--------------+-------------+
13. LONG TERM LOANS
+----------------------------------------+--------------+------------+
| Amounts presented in EUR '000 | 30/06/2009 | 31/12/2008 |
+----------------------------------------+--------------+------------+
| Long-term loans | 198,134 | 198,393 |
+----------------------------------------+--------------+------------+
| Total | 198,134 | 198,393 |
+----------------------------------------+--------------+------------+
The loan bears interest of 3 month Euribor plus 2.75% spread and 0.6% Greek Law
contribution. From the implementation of IAS 39, the effective rate has been
calculated to 4.98% as at 30 June 2009 and 6.37% as at 31 December 2008. All
investment portfolio and cash accounts of IRF are assigned as collateral to the
loan which is repayable in full by September 2011.
14. OTHER LIABILITIES
+------------------------------------------+--------------+-------------+
| Amounts presented in EUR '000 | 30/06/2009 | 31/12/2008 |
+------------------------------------------+--------------+-------------+
| Salaries payable | 8 | 17 |
+------------------------------------------+--------------+-------------+
| Brokerage transactions | 709 | - |
+------------------------------------------+--------------+-------------+
| Suppliers and other third party | 197 | 1,739 |
| liabilities | | |
+------------------------------------------+--------------+-------------+
| Total | 914 | 1,755 |
+------------------------------------------+--------------+-------------+
15. SHARE CAPITAL & SHARE PREMIUM
+------------------------------+----------------+---------+---------+---------+-----------+------------+
| Amounts in EUR' 000 | Number of |Nominal | Share | Share | Share | Total |
| | shares |value $ |capital |capital | premium | |
| | | | in $ | | | |
+------------------------------+----------------+---------+---------+---------+-----------+------------+
| Opening balance at 1 January | 124,832,394 | - | 187 | 147 | 400,443 | 400,590 |
| 2009 | | | | | | |
+------------------------------+----------------+---------+---------+---------+-----------+------------+
| Share premium returned to | | | | | (17,951) | (17,951) |
| shareholders | | | | | | |
+------------------------------+----------------+---------+---------+---------+-----------+------------+
| Closing balance at 30 March | 124,832,394 | - | 187 | 147 | 382,491 | 382,639 |
| 2009 | | | | | | |
+------------------------------+----------------+---------+---------+---------+-----------+------------+
At a Special General Meeting of the Company held on 21 May 2009, the
shareholders resolved to reduce the Company's share premium account from
US$520,344,639.17 to US$495,378,160.37, enabling an amount of US$0.20 per common
share to be paid to holders of the Company's common shares. The amount was paid
to shareholders on 9 June 2009. The reduction of share premium does not reduce
the authorised or issued share capital of the Company or the nominal value of
the shares of the Company.
As at 30 June 2009, there are 13,596,541 Warrants outstanding which may be
exercised by 14 November 2009.
16. CASH AND CASH EQUIVALENTS - CASH FLOW STATEMENT
In the 30 June 2008 comparatives, the Cash and Cash equivalents for the Cash
Flow Statement also contain the balances from Proton Group. For the purposes of
preparing the Cash Flow Statement of the Group for 30 June 2008, the short-term
placements in other financial institutions, which are either immediately
available or available within 90 days, were included in the cash account.
+--------------------------------------------+---------------+--------------+
| Amounts presented in EUR '000 | 30/06/2009 | 30/06/2008 |
+--------------------------------------------+---------------+--------------+
| Cash and balances with Central Bank | - | 37,141 |
+--------------------------------------------+---------------+--------------+
| Petty cash | 1 | 1 |
+--------------------------------------------+---------------+--------------+
| Deposits placed in other financial | 22,580 | 110,132 |
| institutions | | |
+--------------------------------------------+---------------+--------------+
| Time deposits | 106,751 | 1,892 |
+--------------------------------------------+---------------+--------------+
| Loans and advances to financial | - | 132,300 |
| institutions | | |
+--------------------------------------------+---------------+--------------+
| Asset held for sale | - | 223 |
+--------------------------------------------+---------------+--------------+
| Total - Included in cash and cash | 129,333 | 281,690 |
| equivalents | | |
+--------------------------------------------+---------------+--------------+
17. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit attributable
to shareholders by the weighted average number of shares in issue during the
year. Diluted earnings per share are calculated by adjusting the weighted
average number of common shares outstanding to assume exercise of the warrants.
Basic and diluted earnings per share are analysed below:
+----------------------------------------+-------------+----------------+-------------+-------------+
| | Six month period | Three month period |
+----------------------------------------+------------------------------+---------------------------+
| Amounts presented in EUR '000 | 1/1 - | 1/1 - | 1/4/- | 1/4 - |
| | 30/06/09 | 30/06/08 | 30/06/2009 | 30/06/08 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Basic earnings per share | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Profit from continuing operations and | 9,432 | 4,596 | 23,239 | 11,624 |
| discontinued operations attributable | | | | |
| to the parent Company's shareholders | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares in | 124,832,395 | 124,832,395 | 124,832,395 | 124,832,395 |
| issue | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Basic earnings per share ( EUR/Share ) | 0.08 | 0.04 | 0.19 | 0.09 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Profit from continuing operations | 9,432 | 12,284 | 23,239 | 20,607 |
| attributable to the parent Company's | | | | |
| shareholders | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares in | 124,832,395 | 124,832,395 | 124,832.395 | 124,832.395 |
| issue | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Basic earnings per share ( EUR/Share ) | 0.08 | 0.10 | 0.19 | 0.17 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Diluted earnings per Share | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Net Profit attributable to the parent | 9,432 | 4,596 | 23,239 | 11,624 |
| Company's shareholders | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares | 124,832,395 | 124,832,395 | 124,832,395 | 124,832,395 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Plus: Shares with no consideration | - | 2,329,215 | - | 2,788,577 |
| (adjustment in number of shares due to | | | | |
| probable exercise of Warrants) | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares for | 124,832,395 | 127,161,610.29 | 124,832,395 | 127,620,972 |
| the purposes of diluted earnings per | | | | |
| share | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Diluted earnings per share (EUR/Share ) | 0.08 | 0.04 | 0.19 | 0.09 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Net Profit from continuing operations | 9,432 | 12,284 | 23,239 | 20,607 |
| attributable to the parent Company's | | | | |
| shareholders | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares | 124,832,395 | 124,832,395 | 124,832,395 | 124,832,395 |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Plus: Shares with no consideration | - | 2,329,215 | - | 2,788,577 |
| (adjustment in number of shares due to | | | | |
| probable exercise of Warrants) | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Weighted average number of shares for | 124,832,395 | 127,161,610.29 | 124,832,395 | 127,620,972 |
| the purposes of diluted earnings per | | | | |
| share | | | | |
+----------------------------------------+-------------+----------------+-------------+-------------+
| Diluted earnings per share (EUR/Share ) | 0.08 | 0.10 | 0.19 | 0.16 |
+----------------------------------------+-------------+----------------+-------------+-------------+
The effect of IRF's "Offering" of warrants on diluted earnings per share for the
first summester of 2009 has not been taken into consideration since it is
anti-dilutive. Also the effect of Proton's stock option plan on diluted earnings
per share has not been taken into consideration for the comparative first
summester of 2008 since it is anti-dilutive.
18. RELATED PARTIES TRANSACTIONS
18.1 Transactions between companies included in consolidation
+-------------------------------------+------------+-------------+
| Transactions of the parent company | | |
| with Subsidiaries | | |
+-------------------------------------+------------+-------------+
| Amounts presented in EUR '000 |30/06/2009 | 31/12/2008 |
+-------------------------------------+------------+-------------+
| Liability accounts | | |
+-------------------------------------+------------+-------------+
| Other liabilities | 71,025 | 70,881 |
+-------------------------------------+------------+-------------+
| Total | 71,025 | 70,881 |
+-------------------------------------+------------+-------------+
| Amounts presented in EUR '000 | 30/06/2009 | 30/06/2008 |
+-------------------------------------+------------+-------------+
| Income | | |
+-------------------------------------+------------+-------------+
| Dividend income | - | 2,582 |
+-------------------------------------+------------+-------------+
| Interest income | - | 433 |
+-------------------------------------+------------+-------------+
| Total | - | 3,016 |
+-------------------------------------+------------+-------------+
The aforementioned balances of the Company have been eliminated from the
consolidated financial statements.
18.2 Transactions with Associates
+------------------------------------+------------+-------------+
| Amounts presented in EUR '000 | 30/06/2009 | 30/06/2008 |
+------------------------------------+------------+-------------+
| Income /Expenses | | |
+------------------------------------+------------+-------------+
| Other operating income | - | 70 |
+------------------------------------+------------+-------------+
| Interest and similar expenses | - | (95) |
+------------------------------------+------------+-------------+
| Total | - | (25) |
+------------------------------------+------------+-------------+
18.3 Transactions with Management and Members of the Board of Directors
No salaries or loans were paid to the Directors of the Company for the period,
apart from salaries paid to the CEO of the Company.
+------------------------------------+------------+-------------+
| |
+------------------------------------+
| Transactions with Management and Members of the Board of |
| Directors |
+---------------------------------------------------------------+
| Amounts presented in EUR '000 |30/06/2009 | 31/12/2008 |
+------------------------------------+------------+-------------+
| Transactions with Management and Members of the Board of |
| Directors |
+---------------------------------------------------------------+
| Amounts presented in EUR '000 |30/06/2009 | 31/12/2008 |
+------------------------------------+------------+-------------+
| Liability accounts | | |
+------------------------------------+------------+-------------+
| Other Liabilities | 8 | 1,009 |
+------------------------------------+------------+-------------+
| Total | 8 | 1,009 |
+------------------------------------+------------+-------------+
| | | |
+------------------------------------+------------+-------------+
| | 30/06/2009 | 30/06/2008 |
+------------------------------------+------------+-------------+
| Income | | |
+------------------------------------+------------+-------------+
| Interest and similar income | - | 862 |
+------------------------------------+------------+-------------+
| Other income | - | 674 |
+------------------------------------+------------+-------------+
| Total | - | 1,536 |
+------------------------------------+------------+-------------+
| Expenses | | |
+------------------------------------+------------+-------------+
| Remuneration | (50) | (2,802) |
+------------------------------------+------------+-------------+
| Interest and similar expenses | - | (1,326) |
+------------------------------------+------------+-------------+
| Other fees & expenses | - | (139) |
+------------------------------------+------------+-------------+
| Total | (50) | (4,267) |
+------------------------------------+------------+-------------+
19. COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
19.1 Contingent legal liabilities
As at 30 June 2009, there was no litigation pending against the Group in
connection with its activities.
19.2 Assets given as collateral
All investment portfolio and cash accounts of IRF are assigned as collateral to
IRF's long term loan.
20. POST-BALANCE SHEET EVENTS
There were no subsequent events according to the International Financial
Reporting Standards regarding the Group, which need to be mentioned.
21. APPROVAL OF INTERIM FINANCIAL STATEMENTS
Athens, 24 August 2009
+------------------------------------------+------------------------------------------+
| Angeliki Frangou | Loukas Valetopoulos |
| _________________________________ | _________________________________ |
| Chairman, Non - Executive Director | Chief Executive Officer, Director |
+------------------------------------------+------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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