MILESTONE REPORTS ISK 32.8 BILLION PROFIT FOR THE FIRST HALF 2007
Consolidated profit before income tax amounted to ISK 32.8 billion and ISK
27.2 billion after tax.
Annualized return on equity was 160.1%
Total investment income amounted to ISK 36.9 billion.
Total operating income amounted to ISK 9.9 billion.
Total equity amounted to ISK 74.1 billion on 30 June 2007.
The equity ratio of the Group stands at 19.2% and the parent company's equity
ratio stands at 43.4%
Milestone's wholly owned insurance company Sjóva delivered excellent returns.
Profit before income tax amounted to ISK 7.9 billion and ISK 6.3 billion
after tax in the first half of 2007.
Other subsidiaries showed a strong performance in the period.
On 5 April 2007 Milestone sold a 13% stake in Glitnir Bank for ISK 54
billion. Glitnir has been a key holding of Milestone and has proved to be a
very profitable investment for the Group. Milestone and related parties
currently hold a 7% stake in Glitnir Bank.
Milestone realized a handsome profit on the sale of its shares in the British
food retailing business Iceland.
Milestone has finalized the ISK 70 billion takeover of Invik & Co. AB (publ)
and Invik is a part of the group from 30 June 2007.
At the end of the period assets and debt under management within the group
amounted to ISK 399.6 billion.
Milestone's focus on growth in financial services is emphasized and
demonstrated with the acquisition.
Milestone's consolidated profit amounted to ISK 27.2 billion, net of taxes in
1H 2007. Milestone's operations are based on a dynamic approach to insurance,
banking and asset management, and over 75% of Milestone's assets are within
these sectors. Consistent profit of core assets in the last several years has
provided a foundation for the sound financial standing of the Group.
After the disposition of several listed Icelandic entities and the acquisition
of Invik & Co. AB, the majority of Milestone's assets lies outside of Iceland.
Furthermore, the Group's annual operating income is expected to increase by
approximately 60% after the consolidation of Invik.
The Group's equity at 30 June 2007 amounted to ISK 74.1 billion and has
increased by 69.6% in the past six months. The annualized return on equity in
the first half of 2007 was 160.1%. The Group's equity ratio stands at 19.2% and
the parent company's equity ratio stands at 43.4%.
Invik brings to Milestone several niche non-life insurance platforms, a growing
unit-linked life operation and an established presence in retail and
institutional funds management as well as a private banking platform. Milestone
foresees significant synergies between the Milestone Group and Invik in
relation to operations, investments and future expansion in the Nordic region.
The reported profit of Milestone is excluding the operations of Invik Group,
which is included in the consolidated accounts from 30 June 2007.
The total profit of the Invik Group in 1H 2007 amounted to ISK 1.5 billion
and total revenues amounted to ISK 10.6 billion.
Combined fund assets in Invik Funds in 1H 2007 amounted to ISK 205 billion,
an increase of 95% compared with the same date in 2006.
Modern Insurances Non-Life showed continued growth, with a 20% increase in
total income and a 13% increase in operating income in 1H 2007.
Milestone's total assets amount to ISK 387 billion and have more than doubled
since year-end 2006. The growth of the Group has been facilitated by organic
growth and strategic investments with focus on insurance, banking and asset
management.
The debt and asset management capabilities of the Group have continued to grow
in all areas with combined debt and assets under management amounting ISK 399.6
billion. The debt and asset management business is expected to continue its
growth as Milestone will keep on integrating its businesses and launching new
products in the Nordic region in the next quarters.
GUÐMUNDUR ÓLASON, CEO
“The profit and the overall growth of Milestone in the first half of 2007 shows
the strength and flexibility of the Group. Milestone is made up of solid
subsidiaries in the financial sector, which emphasizes the Group's core focus
on financial services. Invik Group will play a paramount role in the further
expansion of Milestone in the Nordic region. The strategy going forward is to
establish Milestone as a dynamic financial group comprising well known brands
led by a strong management team delivering outstanding results.”
KARL WERNERSSON, CHAIRMAN OF THE BOARD
“The first half result demonstrates great execution by the management of
Milestone's strategy. We have taken decisive steps towards changing the profile
of Milestone from an investment company to a financial group, which will
further discipline the operations of the company. We have high expectations for
Milestone's growth and overall profitability and we are looking forward to
taking the next steps in developing Milestone and exploring new frontiers.”
For additional information, visit
www.milestone.is
www.sjova.is
www.invik.se
www.askar.is
Or contact
Guðmundur Ólason, CEO
Tel: (+354) 414 1800
