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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 : 9244R
IRF European Fin Investments Ltd
31 August 2010
IRF European Finance Investments Ltd
('IRF' or the 'Company')
Six Months 2010 Results
IRF European Finance Investments Ltd announces its financial results for the six
months ended 30 June 2010.
Financial Highlights
+----------------------------+-------------+--------------+
| Amounts in EUR 000 | Six months | Six months |
| | ended 30 | ended 30 |
| | June 2010 | June 2009 |
+----------------------------+-------------+--------------+
| Income Statement Items: | | |
+----------------------------+-------------+--------------+
| (Loss)/Operating Income | 13,048 | 33,350 |
+----------------------------+-------------+--------------+
| (Loss)/Profit before | (80,503) | 9,432 |
| income tax | | |
+----------------------------+-------------+--------------+
| Income tax expense | - | - |
+----------------------------+-------------+--------------+
| (Loss)/Profit after tax | (80,503) | 9,432 |
+----------------------------+-------------+--------------+
| Other Comprehensive income | (4,957) | 33,870 |
| net of tax | | |
+----------------------------+-------------+--------------+
| (Loss)/Total Comprehensive | (85,461) | 43,302 |
| income after tax | | |
+----------------------------+-------------+--------------+
| Attributable to equity | (85,461) | 43,302 |
| holders of IRF | | |
+----------------------------+-------------+--------------+
| Minority Interests | - | - |
+----------------------------+-------------+--------------+
| Basic earnings (loss) per | (0.64) | 0.08 |
| share (in euro/share) | | |
+----------------------------+-------------+--------------+
| Balance Sheet Items: | 30 June | 31 December |
| | 2010 | 2009 |
+----------------------------+-------------+--------------+
| Cash and cash equivalents | 7,760 | 126,842 |
+----------------------------+-------------+--------------+
| Total Assets | 184,705 | 340,504 |
+----------------------------+-------------+--------------+
| Total Liabilities | 159,139 | 201,027 |
+----------------------------+-------------+--------------+
| Total Equity | 25,566 | 139,478 |
+----------------------------+-------------+--------------+
| Equity attributable to | 25,566 | 139,478 |
| equity holders of IRF | | |
+----------------------------+-------------+--------------+
| Minority Interest | - | - |
+----------------------------+-------------+--------------+
Return of Capital
On 29 July 2010, the Company received the amount of approximately EUR9 million in
the form of a return of capital from its investment in Marfin Investment Group.
Share Premium Reduction and Related Payment to Shareholders
At a special general meeting of the Company held on 19 April 2010, 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 22 April
2010 from US$495.4 million to US$457.9 million, enabling an amount of US$0.30
per common share to be paid to holders of the Company's common shares on record
on 6 April 2010. Payment was effected on 6 May 2010.
Loan Maturity
In the beginning of the second quarter 2010, IRF repaid EUR40 million of its
outstanding loan with Investment Bank of Greece. On 20 July 2010 the Company
entered into an agreement to refinance the remaining EUR160 million loan for a
five year period. The loan refinancing is expected to occur in the third
quarter of 2010.
Net Asset Value
IRF determined that its shares had a net asset value ('NAV') of US$0.25 per
share as at 30 June 2010. The equity holdings portfolio of IRF is marked to
market on the balance sheet as at 30 June 2010. As of this date, the total
assets of the Company, including the cash balance of EUR7.8 million, was EUR184.7
million. The total liabilities were EUR159.1 million. Consequently, the equity
value was EUR25.6 million. The Euro/$ exchange rate of $1.2271 on 30 June 2010
was used to compute the NAV. As of 30 June 2010, 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, Deputy Chairman 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. On 19 January 2009 IRF commenced
trading on the SFM (Specialist Fund Market), 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 2010
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 2010 were approved by the Company's Board of
Directors on 31 August 2010.
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 2010
Financial highlights
+---------------------------------+----------+-------------+
| Amounts in EUR 000 | | |
+---------------------------------+----------+-------------+
| Income Statement items (six | 30 June | 30 June |
| month period) | 2010 | 2009 |
+---------------------------------+----------+-------------+
| Continuing operations | | |
+---------------------------------+----------+-------------+
| Interest and similar income | 1,079 | 1,208 |
+---------------------------------+----------+-------------+
| Dividend income | 545 | 18,198 |
+---------------------------------+----------+-------------+
| Exchange differences | 10,393 | (555) |
+---------------------------------+----------+-------------+
| Interest and similar charges | (4,328) | (5,146) |
+---------------------------------+----------+-------------+
| Impairment losses on | (88,819) | (17,397) |
| available-for-sale portfolio | | |
+---------------------------------+----------+-------------+
| (Loss)/Profit for the period | (80,503) | 9,342 |
+---------------------------------+----------+-------------+
| Total comprehensive income for | (85,461) | 43,302 |
| the period | | |
+---------------------------------+----------+-------------+
| Basic earnings per share (in | (0.64) | 0.08 |
| euro/share) | | |
+---------------------------------+----------+-------------+
| | | |
+---------------------------------+----------+-------------+
| Financial position items | 30 June |31 December |
| | 2010 | 2009 |
+---------------------------------+----------+-------------+
| Cash and cash equivalent | 7,760 | 126,842 |
+---------------------------------+----------+-------------+
| Trading portfolio | 75,955 | 18,499 |
+---------------------------------+----------+-------------+
| Investment portfolio | 100,093 | 193,886 |
+---------------------------------+----------+-------------+
| Total Assets | 184,705 | 340,504 |
+---------------------------------+----------+-------------+
| | | |
+---------------------------------+----------+-------------+
| Long term loans | - | 198,104 |
+---------------------------------+----------+-------------+
| Short term loans | 158,805 | - |
+---------------------------------+----------+-------------+
| Total liabilities | 159,139 | 201,027 |
+---------------------------------+----------+-------------+
| | | |
+---------------------------------+----------+-------------+
| Total Equity | 25,566 | 139,478 |
+---------------------------------+----------+-------------+
Significant events
Bermuda law restricted the Company from declaring a dividend during the second
quarter of 2010; the Company's board of directors determined that it would be in
the best interests of its shareholders to make a payment to its shareholders by
reducing the Company's share premium. At the Company's Special General
Meeting, held on 19 April 2010, the shareholders agreed to reduce the Company's
share premium account from US$495,378,160.37 to US$457,928,442.17, enabling an
amount of US$0.30 per common share to be paid to such shareholders The amount
was paid to shareholders in early May 2010.
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.
Q2 Portfolio review
The market conditions in Greece have been extremely difficult in the first six
months of 2010, with conditions materially worsening during Q2 2010. The drivers
have mainly been political and other pressure relating to government budget
deficits and pre-existing debts of the Hellenic Republic. These drivers along
with the fiscal austerity program have caused negative sentiment adversely
affecting the liquidity and pricing of securities trading on the Athens Stock
Exchange.
Under IAS 39, the amount of any decline in the fair value of an "available for
sale" financial asset is recognized in the profit and loss. The amount of such
profit or loss is determined based on the difference between the new fair value
and the previous evaluation of fair value.
During Q2 2010, the Company recognized an impairment loss of EUR62,837,754.32.
This impairment reflects the deterioration in value of investments in securities
available for sale (primarily shares in MIG) from the prior valuation date as of
31 March 2010.
Due to its activities, IRF is exposed mainly to market and credit risk relating
to financial instruments.
Debt
On 8 April 2010, the Company repaid EUR40 million in reduction of the principal
amount of the outstanding loan. On 20 July 2010 the Company signed an agreement
to refinance EUR160 million loan for a 5-year period.
The loan refinancing is expected to occur in the third quarter of 2010
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 its
subsidiaries (the "Group") as of 30 June 2010 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 information 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, 31 August 2010
+------------------------------------+
| The Chartered Accountant |
+------------------------------------+
| |
| |
| |
| |
+------------------------------------+
| Panagiotis Christopoulos |
+------------------------------------+
| SOEL Reg. No 28481 |
+------------------------------------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+-----------------------------+------+----------+----------+------------+------------+
| Amounts presented in EUR | Note | 1/1 - | 1/1 | 1/4/- | 1/4/- |
| '000 | |30/06/10 | - |30/06/2010 |30/06/2009 |
| | | |30/06/09 | | |
+-----------------------------+------+----------+----------+------------+------------+
| Income | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Interest and similar income | | 1,079 | 1,208 | 640 | 344 |
+-----------------------------+------+----------+----------+------------+------------+
| Dividend and other income | | 545 | 18,198 | 545 | 18,198 |
+-----------------------------+------+----------+----------+------------+------------+
| Exchange differences | | 10,393 | - | 4,188 | (5,806) |
+-----------------------------+------+----------+----------+------------+------------+
| Realised gain from disposal | | 178 | 13,406 | 33 | 13,377 |
| of financial assets at fair | | | | | |
| value through Profit & Loss | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Unrealised gain from | | 854 | 539 | (1,389) | 539 |
| valuation of financial | | | | | |
| assets at fair value | | | | | |
| through Profit & Loss | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Total operating income | | 13,048 | 33,350 | | 26,652 |
| | | | | 4,017 | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Expenses | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Interest and similar | | (4,328) | (5,146) | (2,080) | (2,475) |
| expenses | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Fee and commission expense | | - | (307) | - | (307) |
+-----------------------------+------+----------+----------+------------+------------+
| Realised loss from | | (4) | - | - | - |
| derivative financial | | | | | |
| instruments | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Exchange differences | | - | (555) | - | (555) |
+-----------------------------+------+----------+----------+------------+------------+
| Unrealised loss from | | - | - | - | 228 |
| valuation of financial | | | | | |
| assets at fair value | | | | | |
| through Profit & Loss | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Impairment losses on | 5 | (88,819) | (17,397) | (62,838) | - |
| available-for-sale | | | | | |
| financial assets | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Management fees | | (50) | (50) | (25) | (25) |
+-----------------------------+------+----------+----------+------------+------------+
| Other operating expenses | | (301) | (462) | (214) | (279) |
+-----------------------------+------+----------+----------+------------+------------+
| Share of losses of | | (50) | - | (40) | - |
| associates | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Total operating expenses | | (93,552) | (23,918) | | (3,413) |
| | | | | (65,197) | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Profit / (Loss ) for the | | (80,503) | 9,432 | | 23,239 |
| period | | | | (61,179) | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Less: Income tax | | - | - | - | - |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Profit / (Loss ) after tax | | (80,503) | 9,432 | | 23,239 |
| | | | | (61,179) | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Other comprehensive income | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Available-for-sale | | (4,975) | 33,870 | (3,271) | 33,870 |
| financial assets | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Exchange differences on | | 17 | - | 24 | - |
| translating foreign | | | | | |
| operations | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Other comprehensive income | | (4,957) | 33,870 | (3,246) | 33,870 |
| for the period net of tax | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Total comprehensive income | | (85,461) | 43,302 | (64,426) | 57,108 |
| for the period after tax | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Profit after tax | | | | | |
| attributable to: | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Shareholders of the parent | | (80,503) | 9,432 | (61,179) | 23,239 |
| Company | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Non-contoling interest | | - | - | - | - |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Total comprehensive income | | | | | |
| attributable to: | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Shareholders of the parent | | (85,461) | 43,302 | (64,426) | 57,108 |
| Company | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Non-contoling interest | | - | - | - | - |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| Earnings per share | | | | | |
| attributable to parent | | | | | |
| company's shareholders ( | | | | | |
| EUR/share ) | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| - Basic | 15 | (0.64) | 0.08 | (0.49) | 0.19 |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
| | | | | | |
+-----------------------------+------+----------+----------+------------+------------+
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 | 31 |
| | | 2010 | December |
| | | | 2009 |
| | | | |
+------------------------------------+------+-----------+-----------+
| ASSETS | | | |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| Non-current assets | | | |
+------------------------------------+------+-----------+-----------+
| Investments in associates | 9 | 214 | 228 |
+------------------------------------+------+-----------+-----------+
| Investment portfolio | 8 | 100,093 | 193,886 |
+------------------------------------+------+-----------+-----------+
| Total non-current assets | | 100,307 | 194,114 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| Current assets | | | |
+------------------------------------+------+-----------+-----------+
| Trading portfolio & other | 7 | 75,955 | 18,499 |
| financial assets at fair value | | | |
| through Profit & Loss | | | |
+------------------------------------+------+-----------+-----------+
| Derivative financial instruments | | - | 80 |
+------------------------------------+------+-----------+-----------+
| Other assets | 10 | 684 | 969 |
+------------------------------------+------+-----------+-----------+
| Cash and other equivalents | 6 | 7,760 | 126,842 |
+------------------------------------+------+-----------+-----------+
| Total current assets | | 84,399 | 146,390 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| TOTAL ASSETS | | 184,705 | 340,504 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| EQUITY AND LIABILITIES | | | |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| Shareholders equity | | | |
+------------------------------------+------+-----------+-----------+
| Share capital | 13 | 147 | 147 |
+------------------------------------+------+-----------+-----------+
| Share premium | 13 | 354,041 | 382,491 |
+------------------------------------+------+-----------+-----------+
| Revaluation reserve | | - | 4,975 |
+------------------------------------+------+-----------+-----------+
| Other reserves | | 20 | 3 |
+------------------------------------+------+-----------+-----------+
| Retained losses | | (328,642) | (248,139) |
+------------------------------------+------+-----------+-----------+
| Total equity attributable to | | 25,566 | 139,478 |
| shareholders' of the Parent | | | |
| Company | | | |
+------------------------------------+------+-----------+-----------+
| Non-contoling interest | | - | - |
+------------------------------------+------+-----------+-----------+
| TOTAL EQUITY | | 25,566 | 139,478 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| LIABILITIES | | | |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| Non-current | | | |
+------------------------------------+------+-----------+-----------+
| Long term loans | | - | 198,104 |
+------------------------------------+------+-----------+-----------+
| Total non-current liabilities | | - | 198,104 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| Current liabilities | | | |
+------------------------------------+------+-----------+-----------+
| Short term loans | 11 | 158,805 | - |
+------------------------------------+------+-----------+-----------+
| Financial liabilities at fair | | - | 1,687 |
| value through profit & loss | | | |
+------------------------------------+------+-----------+-----------+
| Derivative financial instruments | | - | 21 |
+------------------------------------+------+-----------+-----------+
| Deferred tax liability | | 116 | 99 |
+------------------------------------+------+-----------+-----------+
| Other liabilities | 12 | 218 | 1,115 |
+------------------------------------+------+-----------+-----------+
| Total current liabilities | | 159,139 | 2,923 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| TOTAL LIABILITIES | | 159,139 | 201,027 |
+------------------------------------+------+-----------+-----------+
| | | | |
+------------------------------------+------+-----------+-----------+
| TOTAL LIABILITIES AND EQUITY | | 184,705 | 340,504 |
+------------------------------------+------+-----------+-----------+
The notes on the following pages form an integral part of these consolidated
interim financial statements.
+------------------------------------+------------------------------------+
| Angeliki Frangou | Loukas Valetopoulos |
| | |
| | |
| | |
| _________________________________ | _________________________________ |
| Chairman, Non - Executive Director | Chief Executive Officer, Director |
+------------------------------------+------------------------------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| | Attributable to shareholders of the Parent | |
| | Company | |
+-----------------------------+--------------------------------------------------------------------+--------------------------+
| | Share | Share |Revaluation | Other | Retained | Total |Non-contoling | Total |
| |Capital | Premium | Reserve |Reserves | Earnings | | interest | |
| | | | | | / | | | |
| | | | | | (losses) | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Consolidated Statement of | | | | | | | | |
| Changes in Equity | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Amounts presented in EUR '000 | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Opening balance as at 1st | 147 | 382,491 | 4,975 | 3 | (248,139) | 139,478 | - | 139,478 |
| January 2010 | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Share premium reduction & | - | (28,451) | - | - | - | (28,451) | - | (28,451) |
| return to shareholders | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Transactions with owners | - | (28,451) | - | - | - | (28,451) | - | (28,451) |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Net result for the period | - | - | - | - | (80,503) | (80,503) | - | (80,503) |
| 01/01-30/06/2010 | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Other comprehensive income: | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Available for sale: | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| - Gains/ losses directly | - | - | (4,975) | - | - | (4,975) | - | (4,975) |
| recognized in equity | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Exchange differences on | - | - | - | 17 | - | 17 | - | 17 |
| translating foreign | | | | | | | | |
| operations | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Total comprehensive income | - | - | (4,975) | 17 | (80,503) | (85,461) | - | (85,461) |
| / (loss) recognised for the | | | | | | | | |
| period | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| | | | | | | | | |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
| Balance as at 30 June 2010 | 147 | 354,041 | - | 20 | (328,642) | 25,566 | - | 25,566 |
+-----------------------------+---------+----------+-------------+----------+-----------+----------+---------------+----------+
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 |Non-contoling | Total |
| | |capital | premium | reserve |reserves | earnings | | interest | |
| | | | | | | / | | | |
| | | | | | | (losses) | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Consolidated Statement | | | | | | | | | |
| of Changes in Equity | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Amounts presented in EUR | | | | | | | | | |
| '000 | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Opening balance as at 1 | | 147 | 400,443 | - | - | (197,049) | 203,541 | - | 203,541 |
| January 2009 | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Share premium reduction | 14 | - | (17,951) | - | - | - | (17,951) | - | (17,951) |
| & return to shareholders | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Transactions with owners | | - | (17,951) | - | - | - | (17,951) | - | (17,951) |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
| Net result for the | | - | - | - | - | 9,432 | 9,432 | - | 9,432 |
| period 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 | | 147 | 382,491 | 33,870 | - | (187,617) | 228,892 | - | 228,892 |
| 2009 | | | | | | | | | |
+--------------------------+------+---------+----------+-------------+----------+------------+----------+---------------+----------+
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 | 30 June |
| | | 2010 | 2009 |
+------------------------------------+-----------+-----------+----------+
| Cash flows from operating | | | |
| activities | | | |
+------------------------------------+ +-----------+----------+
| Profit / (loss) before tax | | (80,503) | 9,432 |
+------------------------------------+-----------+-----------+-----------+
| Adjustments for: | | | |
+------------------------------------+-----------+-----------+----------+
| Add: Impairment losses on | 5 | 88,819 | 17,397 |
| financial assets | | | |
+------------------------------------+-----------+-----------+----------+
| Profit/(loss) from revaluation of | | (854) | (490) |
| financial assets at fair value | | | |
| through Profit & Loss | | | |
+------------------------------------+-----------+-----------+----------+
| Share of (profit) /loss from | | 50 | - |
| associates | | | |
+------------------------------------+-----------+-----------+----------+
| Interest and other non cash | | 3,249 | 3,938 |
| expenses | | | |
+------------------------------------+-----------+-----------+----------+
| Exchange differences | | (5,134) | 487 |
+------------------------------------+ +-----------+----------+
| Cash flows from operating | | 5,627 | 30,765 |
| activities before changes in | | | |
| working capital | | | |
+------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------+-----------+-----------+----------+
| Changes in working capital: | | | |
+------------------------------------+-----------+-----------+----------+
| Net (increase)/decrease in trading | | (55,070) | 1,830 |
| securities | | | |
+------------------------------------+-----------+-----------+----------+
| Net (increase)/decrease in other | | 285 | (17,647) |
| assets | | | |
+------------------------------------+-----------+-----------+----------+
| Net increase/(decrease) in other | | (899) | (841) |
| liabilities | | | |
+------------------------------------+-----------+-----------+----------+
| Cash flows from operating | | (50,057) | 14,106 |
| activities before payment of | | | |
| income tax | | | |
+------------------------------------+-----------+-----------+----------+
| Net cash flows from operating | | (50,057) | 14,106 |
| activities | | | |
+------------------------------------+-----------+-----------+----------+
| | | | |
+------------------------------------+-----------+-----------+----------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+-----------+-----------+----------+
| Proceeds from a.f.s. portfolio | | - | (11,384) |
+------------------------------------+-----------+-----------+----------+
| Interest received | | 1,079 | 1,208 |
+------------------------------------+-----------+-----------+----------+
| | | | |
+------------------------------------+-----------+-----------+----------+
| Net cash flow from investing | | 1,079 | (10,177) |
| activities | | | |
+------------------------------------+-----------+-----------+----------+
| | | | |
+------------------------------------+-----------+-----------+----------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+-----------+-----------+----------+
| Interest paid | | (3,627) | (4,887) |
+------------------------------------+-----------+-----------+----------+
| Share premium reduction & return | 13 | (28,451) | (17,573) |
| to shareholders | | | |
+------------------------------------+-----------+-----------+----------+
| Repayment of borrowings | 11 | (40,000) | (259) |
+------------------------------------+-----------+-----------+----------+
| Net cash flow from financing | | (72,077) | (22,719) |
| activities | | | |
+------------------------------------+-----------+-----------+----------+
| | | | |
+------------------------------------+-----------+-----------+----------+
| Net decrease in cash and cash | | (121,055) | (18,790) |
| equivalents | | | |
+------------------------------------+-----------+-----------+----------+
| Cash and cash equivalents at the | | 126,842 | 148,610 |
| beginning of the period | | | |
+------------------------------------+-----------+-----------+----------+
| Effect of exchange rate | | 1,973 | (487) |
| fluctuations on cash and cash | | | |
| equivalents | | | |
+------------------------------------+-----------+-----------+----------+
| Cash and cash equivalents at the | 14 | 7,760 | 129,333 |
| end of 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.
IRF currently focuses its major investments in the Greek market. IRF acquired
and continues to hold approximately 11% of the issued shares in Marfin
Investment Group ('MIG') which, as at 30 June 2010, 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 Greek 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 2010 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
2009.
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
2009 were approved by the Board of Directors on 26 ?arch 2010. 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
For the preparation of the condensed consolidated statement of financial
position, comprehensive income statement, and cash flow statement of the period
ended 30 June 2010, comparatives as of 31 December and 30 June 2009
respectively, were used.
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 estimated 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 2009.
3.2 Operating segments
IFRS 8 "Operating Segments" (issued in 2006 and applied by companies for periods
starting on or after 01/01/2009), 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
The directors determined that IRF's continuing business, as an investment
company, would be managed by the directors as a whole and no segmental
information would be reported to the CEO. Therefore, IRF does not present
segmental financial information.
3.3 New standards, amendments and interpretations with effective date as of 1
January 2010
During 2009, IASB issued the annual improvements to IFRS for 2009, a series of
adjustments in 12 Standards, as a part of the annual improvement program. The
annual improvement program of IASB aims to make necessary but not urgent
adjustments to IFRS's and will not be a part of bigger revision program. The
following standards are applicable from the period ending 31 December 2010:
(a) IFRS 3 (Revised) "Business Combinations" and IAS 27 (Amended) "Consolidated
and Separate Financial Statements"; The revised IFRS 3 introduces a number of
changes in the accounting for business combinations which will impact the amount
of goodwill recognized, the reported results in the period that an acquisition
occurs, and future reported results. Such changes include the expensing of
acquisition-related costs and recognizing subsequent changes in fair value of
contingent consideration in the profit or loss. The amended IAS 27 requires that
a change in ownership interest of a subsidiary to be accounted for as an equity
transaction. Furthermore the amended standard changes the accounting for losses
incurred by the subsidiary as well as the loss of control of a subsidiary. The
changes introduced by these standards must be applied prospectively and will
affect future acquisitions and transactions with minority interests. This
revision will not have significant impact on the Group's financial statement.
(b) IFRS 2 (Amendment) - "Group Cash-settled Share-based Payment Arrangements";
The amendment clarifies how an individual subsidiary in a group, in its own
financial statements, should account for some share-based payment arrangements
that are settled in cash on group level. This amendment is not applicable for
the Group.
(c) IAS 39 (Amended) "Financial Instruments: Recognition and Measurement" -
Eligible Hedged Items; This amendment clarifies how the principles that
determine whether a hedged risk or portion of cash flows is eligible for
designation should be applied in particular situations.. The standard does not
apply to the Group.
(d) IFRS 1(Amendment) "First time adoption - Additional exemptions for first
time adopters"; The amendments exempt retrospective application of IFRS to
assets measurement for oil, gas and lease sectors. This amendment does not apply
to the Group.
(e) IFRS 8 "Operating Segments"; the amendment provides clarifications on the
disclosure of information about segment assets.
(f) IAS 7 "Statement of Cash Flows"; the amendment requires that only
expenditures that result in a recognized asset in the statement of financial
position can be classified as investing activities.
(g) IAS 17 "Leases" ; The amendment provides clarification as to the
classification of leases of land and buildings as either finance or operating.
The standard does not apply to the Group.
(h) IAS 18 "Revenue"; the amendment provides additional guidance regarding the
determination as to whether an entity is acting as a principal or an agent.
(i) IAS 36 "Impairment of Assets"; the amendment clarifies that the largest
cash-generating unit to which goodwill should be allocated for the purposes of
impairment testing is an operating segment as defined by paragraph 5 of IFRS 8.
(j) IAS 38 "Intangible assets"; The amendments clarify (a) the requirements
under IFRS 3 (revised) , regarding accounting for intangible assets acquired in
a business combination and (b) the description of valuation techniques commonly
used by entities when measuring the fair value of intangible assets acquired in
a business combination that are not traded in active markets.
(k) IAS 39 "Financial Instruments: Recognition and Measurement"; The amendments
relate to (a) clarification on treating loan pre-payment penalties as closely
related derivatives, (b) the scope exemption for business combination contracts
and (c) clarification that gains or losses on cash flow hedge of a forecast
transaction should be reclassified from equity to profit or loss in the period
in which the hedged forecast cash flow affects profit or loss.
(l) IFRIC 9 "Reassessment of embedded derivatives"; This amendment clarifies
that IFRIC 9 does not apply to possible reassessment, at the date of
acquisition, to embedded derivatives in contracts acquired in a business
combination between entities under common control.
(m)IFRIC 12 - Service Concession Arrangements (EU endorsed for periods beginning
30 March 2009); This interpretation applies to companies that participate in
service concession arrangements. This interpretation is not relevant to the
Group's operations.
(n) IFRIC 16 -" Hedges of a net investment in a foreign operation" (effective
for annual periods beginning on or after 1 July 2009); This interpretation
applies to an entity that hedges the foreign currency risk arising from its net
investments in foreign operations and qualifies for hedge accounting in
accordance with IAS 39. The interpretation provides guidance on how an entity
should determine the amounts to be reclassified from equity to profit or loss
for both the hedging instrument and the hedged item. This interpretation is not
relevant to the Group as the Group does not apply hedge accounting for any
investment in a foreign operation.
(o) IFRIC 17: "Distribution of non-cash assets to owners"; this interpretation
provides guidance to an entity in order to recognize and subsequently measure a
liability arising from the distribution of non-cash assets to owners;
(p) IFRIC 18 "Transfers of assets from customers" (effective for transfers of
assets received on or after 1 July 2009); This interpretation clarifies the
requirements of IFRSs for agreements in which an entity receives from a customer
an item of property, plant and equipment that the entity must then use to
provide the customer with an ongoing supply of goods or services. In some cases,
the entity receives cash from a customer which must be used only to acquire or
construct the item of property, plant and equipment. This interpretation is not
relevant to the Group.
3.4 New standards, amendments and interpretations effective for periods
beginning 1 January 2011 and own wards.
(a) I.F.R.S 9 - Financial Instruments; In the primary issuance of IFRS 9 from
IASB at November 12, 2009, the standard replaces IAS 39 only in the stipulations
regarding classification and measurement of financial assets. In its final form,
which is expected to be completed by the end of 2010, the new standard will lead
to complete replacement of IAS 39. The new standard negates the four
classification categories of IAS 39 and imposes the classification of all
financial assets in two categories (amortized cost and fair value), according to
the business model of each corporate entity and the characteristics of the
financial asset. IFRS 9 eliminates the requirement of IAS 39, for the separation
of embedded derivates in financial assets. The standard imposes the overall
evaluation of both derivative and financial asset for the determination of cash
flows being capital and capital on interest. IFRS permits reclassifications
between fair value and amortized cost categories only if there is a change in
the business management model of the financial assets.
IFRS 9 obligatory adoption is for periods beginning at or after January 1st 2013
and has a retrospective effect. Early adoption is permitted, but it has not been
adopted by the European Union. The effect from the application of IFRS 9 is
evaluated by the Group because it is expected these changes affect its Equity
and results.
(b) IFRS 1 (Amendment) "First time adoption - Limited Scope Exemption for IFRS
7 Disclosures"; (effective for annual periods beginning on or after 1 July
2010). This amendment provides exemptions for first time adopters relating to
presentation of comparative financial information that is required from IFRS 7.
This amendment does not apply to the Group.
(c) IAS 24 (Amendment) "Related Party Disclosures"; The aforementioned amendment
clarifies the definition of related parties and reduces disclosures regarding
related parties of the State. In particular, it rescinds the obligation of State
entities t disclose details of all transactions with other State parties, it
clarifies and simplifies the definition of a related party and endorses the
disclosure not only of transactions and balances between related parties, but
also undertakings, both in separate and consolidated statements. The
aforementioned amendment has not been endorsed yet by the European Union and has
obligatory adoption from January 1st 2011. This amendment is not expected to
have significant impact on the financial statements.
(d) IFRIC 14 (Amendment) - "Prepayments of a Minimum Funding Requirement"
(effective date for mandatory adoption 1st January 2011); The amendment applies
in the limited circumstances when an entity is subject to minimum funding
requirements and makes an early payment of contributions to cover those
requirements. The amendment permits such an entity to treat the benefit of such
an early payment as an asset. This amendment does not apply to the Group.
(e) IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments";
IFRIC 19 considers the accounting treatment when an entity renegotiates the
terms of a financial liability with its creditor and the creditor agrees to
accept the entity's shares or other equity instruments to settle the financial
liability fully or partially. Before the issuance of IFRIC 19, there were
multiple choices in accounting treatment of these transactions.
The interpretation is effective for annual periods beginning on or after 1 July
2010 with earlier application permitted. IFRIC 19 is relevant only for the
debtor's accounting treatment for these transactions. It does not apply when the
creditor is also an immediate or intermediate stock holder and acts upon his
status, or the debtor and the entity are controlled by the same party after the
transaction, and the substance of the transaction relates to a capital return
from or to the entity. Financial liabilities that are extinguished with equity
instruments in accordance with the initial terms of the financial liability are
also outside the scope of this IFRIC.
(f) IAS 32 (Amendment) - "Financial instruments: Presentation - Classifications
of rights issues"; The amendment revises the definition of financial liability
of IAS 32 in order to classify options or rights on stocks as debt instruments.
The amendment is effective for periods beginning on or after 1 February 2010.
During 2010, IASB issued the annual improvements to IFRS for 2011. The following
standards are applicable from the period ending 31 December 2011:
(a) IFRS 3 "Business combinations"; The amendments provide additional guidance
with respect to : (i) contingent consideration arrangements arising from
business combinations with acquisition dates preceding the application of IFRS 3
(2008) , (ii) measuring non- controlling interests and (iii)accounting for
share-based payment transactions that are part of a business combination ,
including un -replaced and voluntarily replaced share-based payment awrds.
(b) IAS 1 "Presentation of Financial Statements"; The amendment clarifies that
entities may present an analysis of the components of other comprehensive income
either in the statement of changes in equity or within the notes.
(c) IFRIC 13 " Customer Loyalty Programmes": The amendment clarifies the meaning
of the term fair value in the context of measuring award credits under customer
loyalty programmes.
4. STRUCTURE OF THE GROUP
The structure of the Group as at 30 June 2010 and 31 December 2009:
+------------------+---------+---------+--+--------+---+-----+---------+--+-----------+----------+
| Name | Country |Direct and | Relation | Note |
| | | indirect | that | |
| | | holding | dictated the | |
| | | |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 | |
+----------------------------+------------+------------+---------------+-------------------------+
| IRF US | USA | 100% | Percentage | Direct Stake |
| | | | Ownership | |
+----------------------------+------------+------------+---------------+-------------------------+
| ASSOCIATES | | | | | | | |
+------------------+---------+---------+-----------+---------+------------+-----------+----------+
| S.GOLDMAN ASSET MANAGEMENT | USA | 49% | | Indirect stake through |
| LLC | | | | "IRF US" |
+----------------------------+------------+------------+---------------+-------------------------+
| | | | | | | | | | | |
+------------------+---------+---------+--+--------+---+-----+---------+--+-----------+----------+
The following table indicates the Group structure as at 30 June 2009:
+------------------------+----------+----------+---------------+--------------+
| Name | Country | Direct | Relation | Note |
| | | and | that | |
| | |indirect | dictated | |
| | | holding | the | |
| | | |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 | |
+------------------------+----------+----------+---------------+--------------+
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.
IRF US INVESTMENTS INC: During 2009, IRF US Investments inc. (IRF US) was
organized as a wholly owned subsidiary under the laws of the State of Delaware.
IRF US's only activity is to hold the 49% interest in S.Goldman Asset Management
LLC (SGAM). IRF US is fully consolidated in IRF's Group financial statements.
S.Goldman Asset Management LLC (SGAM) is a limited liability company formed in
2009, under the law of the State of Delaware. IRF US holds a 49% interest in
SGAM. SGAM is an investment manager on a "managed account" and fund basis. SGAM
is classified as an associate company and it is consolidated under the equity
method.
One of IRF's non - executive directors controls the aforementioned company,
which provides investment advisory services to IRF and receives a management fee
under an investment advisory agreement.
5. IMPAIRMENT LOSSES
+----------------------+------------+------------+----------+------------+------------+----------+
| Amounts presented in | 1/1/- | 1/1/- | | 1/4/- | 1/4/- | |
| EUR '000 |30/06/2010 |30/06/2009 | |30/06/2010 |30/06/2009 | |
+----------------------+------------+------------+----------+------------+------------+----------+
| Listed stocks | (88,819) | (17,397) | | (62,838) | - | |
+----------------------+------------+------------+----------+------------+------------+----------+
| Total | (88,819) | (17,397) | | (62,838) | - | |
+----------------------+------------+------------+----------+------------+------------+----------+
| | | | | | | |
+----------------------+------------+------------+----------+------------+------------+----------+
Under IAS 39, the amount of any decline in the fair value of an "available for
sale" financial asset is recognized in the profit and loss. The amount of such
profit or loss is determined based on the difference between the new fair value
and the previous evaluation of fair value.
During the second quarter of 2010, the Company recognized an impairment loss of
EUR62,837,754.32. This impairment reflects the deterioration in value of
investments in securities available for sale (primarily shares in MIG) from the
prior valuation date as of 31 March 2010. The impairment loss for the six-month
period ending 30 June 2010 was EUR88.818.754,32.
6. CASH AND OTHER EQUIVALENTS
+------------------------+-----------+------------+
| Amounts presented in |30/6/2010 |31/12/2009 |
| EUR '000 | | |
+------------------------+-----------+------------+
| Petty cash | 1 | 1 |
+------------------------+-----------+------------+
| Deposits placed in | 7,759 | 4,485 |
| financial institutions | | |
+------------------------+-----------+------------+
| Time deposits | - | 122,356 |
+------------------------+-----------+------------+
| Total | 7,760 | 126,842 |
+------------------------+-----------+------------+
7. TRADING PORTFOLIO AND OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT &
LOSS
+----------------------+------------+------------+
| Amounts presented in | | |
| EUR '000 | | |
+----------------------+------------+------------+
| Trading Portfolio | 30/6/2010 | 31/12/2009 |
+----------------------+------------+------------+
| Corporate entities | 50,000 | 15,585 |
| bonds | | |
+----------------------+------------+------------+
| Investment fund | 24,709 | - |
| units | | |
+----------------------+------------+------------+
| Securities | 1,246 | 2,914 |
+----------------------+------------+------------+
| Total | 75,955 | 18,499 |
+----------------------+------------+------------+
In January 2010, the Company transferred a managed account valued at $23.8
million to the SG Aurora Fund Ltd (the "Aurora Fund) in exchange for units in
the Aurora Fund. The managed account had initially been funded with $20.0
million. The Aurora Fund is an investment fund incorporated under the Companies
Act of the Cayman Island. In Q2 2010, the Company invested $5.0 million in the
Aurora Fund for additional units
On 19 March 2010, the Company purchased a convertible bond loan issue of MIG
with a five-year term. Under the terms of the issue, the Company acquired
10,482,180 bonds for a price of EUR4.77 per bond, paying approximately EUR50
million. The bonds bears 5% fixed annual interest and are convertible into
common registered shares of MIG. On 26 March 2010, the bonds commenced trading
on the Athens Stock Exchange.
8. INVESTMENT PORTFOLIO
+----------------------+----------------------+----------------------+
| Amounts presented in | |
| EUR '000 | |
+----------------------+---------------------------------------------+
| Available for sale | 30/6/2010 | 31/12/2009 |
+----------------------+----------------------+----------------------+
| Equity securities | 100,093 | 193,886 |
+----------------------+----------------------+----------------------+
| Total | 100,093 | 193,886 |
+----------------------+----------------------+----------------------+
Investment in MIG constitutes the major investment in IRF's portfolio as at 30
June 2010.
9. INVESTMENTS IN ASSOCIATES
+----------------------+------------+---------------------+
| Amounts presented in |30/06/2010 | 31/12/2009 |
| EUR '000 | | |
+----------------------+------------+---------------------+
| Investments in | 214 | 228 |
| associates | | |
+----------------------+------------+---------------------+
| Total | 214 | 228 |
+----------------------+------------+---------------------+
In 2009, IRF invested a nominal sum in exchange for a 49% interest in "S.Goldman
Asset Management LLC". Some brief financial information as at 30 June 2010 is
given below:
+-----------------------+----------+--------+-------------+-----------+---------------+
| Amounts presented in | Domicile | Assets | Liabilities | Profits |Participation |
| EUR '000 | | | | /(losses) | % |
+-----------------------+----------+--------+-------------+-----------+---------------+
| S.GOLDMAN ASSET | USA | 452 | 20 | (102) | 49% |
| MANAGEMENT LLC | | | | | |
+-----------------------+----------+--------+-------------+-----------+---------------+
10. OTHER ASSETS
The Group's other assets and the company's other assets account are analysed as
follows:
+---------------------------+------------+---------------------+
| Amounts presented in EUR | 30/06/2010 | 31/12/2009 |
| '000 | | |
+---------------------------+------------+---------------------+
| Other Assets | | |
+---------------------------+------------+---------------------+
| Dividend income | 545 | - |
+---------------------------+------------+---------------------+
| Prepayments to third | 64 | 47 |
| parties | | |
+---------------------------+------------+---------------------+
| Brokerage fees | - | 666 |
| receivables | | |
+---------------------------+------------+---------------------+
| Sundry debtors and other | 75 | 256 |
| receivables | | |
+---------------------------+------------+---------------------+
| Total | 684 | 969 |
+---------------------------+------------+---------------------+
11. SHORT TERM LOANS
+----------------------------+------------+------------+
| Amounts presented in EUR |30/06/2010 |31/12/2009 |
| '000 | | |
+----------------------------+------------+------------+
| Short-term loans | 158,805 | - |
+----------------------------+------------+------------+
| Total | 158,805 | - |
+----------------------------+------------+------------+
On 8 April 2010, the Company repaid EUR40 million in reduction of the principal
amount of the outstanding loan. On 20 July 2010 the Company signed an agreement
to refinance EUR160 million loan for a 5-year period.
The loan refinancing is expected to occur in the third quarter of 2010
12. OTHER LIABILITIES
+-----------------------------+------------+------------+
| Amounts presented in EUR | 30/06/2010 | 31/12/2009 |
| '000 | | |
+-----------------------------+------------+------------+
| Contribution to associate | 8 | 7 |
| companies | | |
+-----------------------------+------------+------------+
| Salaries payable | 42 | 17 |
+-----------------------------+------------+------------+
| Brokerage services | - | 985 |
| securities and derivatives | | |
+-----------------------------+------------+------------+
| Suppliers and other third | 168 | 107 |
| party liabilities | | |
+-----------------------------+------------+------------+
| Total | 218 | 1,115 |
+-----------------------------+------------+------------+
13. SHARE CAPITAL & SHARE PREMIUM
+-------------------------+-----------------+---------+---------+---------+----------+----------+
| Amounts in EUR' 000 | Number |Nominal | Share | Share | Share | Total |
| | of |value $ |capital |capital | premium | |
| | shares | | in $ | | | |
+-------------------------+-----------------+---------+---------+---------+----------+----------+
| Opening balance at 1 | 124,832,394 | | 187 | 147 | 382,491 | 382,639 |
| January 2010 | | - | | | | |
+-------------------------+-----------------+---------+---------+---------+----------+----------+
| Share premium returned | | | | | (28,451) | (28,451) |
| to shareholders | | | | | | |
+-------------------------+-----------------+---------+---------+---------+----------+----------+
| Closing balance at 30 | 124,832,394 | | 187 | 147 | 354,041 | 354,187 |
| June 2010 | | - | | | | |
+-------------------------+-----------------+---------+---------+---------+----------+----------+
The Company's Special General Meeting held on 19 April 2010, resolved to reduce
the Company's share premium from US$495,378,160.37 to US$457,928,442.17,
enabling an amount of US$0.30 per common share to be paid to holders of the
Company's common shares. The amount was paid to shareholders on 6 May 2010. The
reduction of share premium reduces neither the authorised or issued share
capital of the Company nor the nominal value of the shares of the Company.
14. CASH AND CASH EQUIVALENTS - CASH FLOW STATEMENT
+-----------------------------+------------+------------+
| Amounts presented in EUR |30/06/2010 |30/06/2009 |
| '000 | | |
+-----------------------------+------------+------------+
| Petty cash | 1 | 1 |
+-----------------------------+------------+------------+
| Deposits placed in | 7,759 | 22,580 |
| financial institutions | | |
+-----------------------------+------------+------------+
| Time deposits | - | 106,751 |
+-----------------------------+------------+------------+
| Total - Included in cash | 7,760 | 129,333 |
| and cash equivalents | | |
+-----------------------------+------------+------------+
15. 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.
+-----------------------+-----------------+--------------+-----------------+----------------+
| Amounts presented in | Six month period | Three month period |
| EUR | | |
+-----------------------+--------------------------------+----------------------------------+
| Basic Earnings per | 30/6/2010 | 30/6/2009 | 1/4-30/06/2010 |1/4-30/06/2009 |
| share | | | | |
+-----------------------+-----------------+--------------+-----------------+----------------+
| Profit / (Loss) | (80,503,254.07) | 9,432,425.60 | (61,179,157.02) | 23,238,687.78 |
| attributable to the | | | | |
| Parent Company's | | | | |
| Shareholders | | | | |
+-----------------------+-----------------+--------------+-----------------+----------------+
| Weighted average | 124,832,395 | 124,832,395 | 124,832,395 | 124,832,395 |
| number of shares in | | | | |
| issue | | | | |
+-----------------------+-----------------+--------------+-----------------+----------------+
| Basic earnings per | (0.64) | 0.08 | (0.49) | 0.19 |
| Share ( EUR/Share ) | | | | |
+-----------------------+-----------------+--------------+-----------------+----------------+
16. RELATED PARTIES TRANSACTIONS
16.1 Transactions between companies included in consolidation
+-----------------------------+------------+------------+
| Transactions of the parent | | |
| company with Subsidiaries | | |
+-----------------------------+------------+------------+
| Amounts presented in EUR |30/06/2010 |31/12/2009 |
| '000 | | |
+-----------------------------+------------+------------+
| Liability accounts | | |
+-----------------------------+------------+------------+
| Other liabilities | 2,187 | - |
+-----------------------------+------------+------------+
| Total | 2,187 | - |
+-----------------------------+------------+------------+
The aforementioned balances of the Company have been eliminated from the
consolidated financial statements.
16.2 Transactions with Associates
+----------------------------+------------+------------+
| Amounts presented in EUR |30/06/2010 |31/12/2009 |
| '000 | | |
+----------------------------+------------+------------+
| Liability accounts | | |
+----------------------------+------------+------------+
| Other liabilities | - | 985 |
+----------------------------+------------+------------+
| Capital contribution | 8 | 7 |
+----------------------------+------------+------------+
| Total | 8 | 992 |
+----------------------------+------------+------------+
| | | |
+----------------------------+------------+------------+
+---------------------------+------------+------------+
| | 30/06/2010 | 30/06/2009 |
+---------------------------+------------+------------+
| Other operating expenses | (49) | - |
+---------------------------+------------+------------+
| Total | (49) | - |
+---------------------------+------------+------------+
16.3 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 |30/06/2010 |31/12/2009 |
| '000 | | |
+----------------------------+------------+------------+
| Liability accounts | | |
+----------------------------+------------+------------+
| Other Liabilities | 42 | 17 |
+----------------------------+------------+------------+
| Total | 42 | 17 |
+----------------------------+------------+------------+
| | | |
+----------------------------+------------+------------+
| | 30/06/2010 | 30/06/2009 |
+----------------------------+------------+------------+
| Expenses | | |
+----------------------------+------------+------------+
| Insurance | (30) | - |
+----------------------------+------------+------------+
| Remuneration | (50) | (50) |
+----------------------------+------------+------------+
| Total | (80) | (50) |
+----------------------------+------------+------------+
17. COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
17.1 Contingent legal liabilities
As at 30 June 2010, there was no litigation pending against the Group in
connection with its activities.
17.2 Assets given as collateral
All investment portfolio and cash accounts of IRF are assigned as collateral to
IRF's short term loan.
18. POST-BALANCE SHEET EVENTS
On 29 July 2010, IRF received the amount of EUR8,958,834.90 in the form of capital
refund from the investment in MIG.
19. APPROVAL OF INTERIM FINANCIAL STATEMENTS
Athens, 31 August 2010
+------------------------------------+------------------------------------+
| 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
IR WGUCARUPUGQG
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