Correction: In note 21, Derivatives, a number was missing and note 36, Related parties, now contains additional information.
Record after tax profit of ISK 44.6 billion (EUR 475.8 million)
Profit more than doubles in 2006
Key financial highlights
- Profits after tax up by 158% to ISK 44,559 million (EUR 475.8 million)
- Q4 2006 Profits after tax up by 215% to ISK 33,581 million (EUR 358.4 million)
- Total assets up by 98% to ISK 262.9 billion (EUR 2.81 billion)
- Shareholders equity up by 92% to ISK 142.7 billion (EUR 1.52 billion)
- Return on equity of 42.9%
- Equity ratio of 54.3%
- The Board of Directors proposes a dividend payment of ISK 15,000 million (EUR 160.2 million) which is 33,7% of profit for the year, and 193% of the nominal value of the share capital
Key investment and operating highlights
- Successful transformation of FL Group into a pure investment company with the disposal of its entire shareholding in the two operating subsidiaries Icelandair Group and Sterling
- Increased stake in Glitnir to 30.4%
- Acquired 6% stake in AMR Corporation
- Disposed of 22.6% share in Straumur-Burdaras Investment Bank and simultaneously increased share in Finnair to 22.4%
- Disposed of 16.9% share in easyJet
- ISK 47 billion of available cash to make further acquisitions
Commenting on the results, Hannes Smárason, CEO of FL Group, said:
"2006 was a very successful year for FL Group. Through the diversification and active management of our holdings we achieved record results, more than doubling net profits to ISK 44.6 billion (EUR 476 million).
"The last quarter saw the transformation of FL Group with the sale of Icelandair and Sterling Airlines. This left us with an investment company with significant liquidity and investment power. We are very excited about 2007 and the goal is to make this year even more exciting and successful than 2006."
Enquiries:
FL Group
Hannes Smárason, CEO Kristjan Kristjánsson
Tel: +354 591 4400 Director Corporate Communications
Tel: +354 591 4427 / 354 899 9352
Sveinbjörn Indriðason, CFO
Tel: +354 591 4400
UK / Brunswick Group LLP Denmark / Jöp, Ove & Myrthu A/S
Anita Scott, Nigel Prideaux, Leonora Pou Lars Jörgensen
Tel: +44 (0) 20 7404 5959 Tel: +45 29 78 49 32
+45 39 27 50 50
About FL Group
FL Group is a unique international investment company, focusing primarily on private equity and strategic investments. FL Group's business also includes proprietary trading, with a particular emphasis on active participation in markets with listed securities. With its head office in Reykjavik and offices in Copenhagen and London, FL Group invests in companies in Northern Europe, focusing primarily on the Nordics and the UK.
FL Group is listed on the Icelandic Stock Exchange (ICEX: FL). At the end of 2006 FL Group's total assets amounted to ISK 262.9 billion (EUR 2.81 billion). Its market capitalisation at the end of the year was ISK 203 billion (EUR 2.17 billion). The largest shareholders of FL Group are Oddaflug BV (19.8%), owned by Hannes Smárason, CEO; Baugur Group (18.1%), Gnúpur fjárfestingafélag hf. (17.2%), Icon and Materia Invest (10.7%). The shareholding can in some cases be in the name of Icelandic financial institutions because of forward contracts. More information on www.flgroup.is
