FL Group presents record first half profit of ISK 23.1 billion after tax
An increase of 304% compared to 6m 2006
Key financial highlights
- First half year profit after tax increases to ISK 23.1 billion (EUR 274
million) second quarter profit amounts to ISK 8.0 billion (EUR 95 million)
- Profit up by 304% compared to first half of 2006
- Total assets rise by ISK 56.7 billion during the first half of 2007 and
amount to ISK 319.6 billion (EUR 3.79 billion) at the end of Q2
- Shareholders equity increases by ISK 6.8 billion (EUR 80 million) during
first half of 2007 to ISK 149 billion (EUR 1.8 billion)
- Return on equity is 22% in the second quarter and 32% for the first half of
2007 on an annual basis
- Financial position remains strong with equity ratio of 47%
Key investment and operating highlights
- Refresco closed its fourth acquisition this year during the second quarter
and achieved its goal of becoming the largest company in Europe in its
field
- FL Group finalized long term funding of EUR 330 million for its shareholding
in Glitnir bank.
- Geysir Green Energy acquired a 32% stake in geothermal power plant Hitaveita
Suðurnesja and a 100% stake in Jarðboranir hf. (Iceland Drilling Company
Ltd)
- FL Group's Capital Markets desk began operations in the second quarter,
dealing with short term trading as well as derivative and hedging
- FL Group invested USD 50 million in four real estate development projects in
the US with real estate company Bayrock Group, this was followed by the first
joint venture with Bayrock Group in the “Midtown Miami” project
Commenting on the results, Hannes Smárason, CEO of FL Group, said:
“We are pleased to announce a continued strong growth in the second quarter of
2007. In comparison to the first half of 2006 profits increased three-fold,
total assets have risen by 24% from year end 2006 and the financial position
remains strong. FL Group has added considerably to its investment power and the
company will continue to search for exciting opportunities across sectors and
geographical boundaries.
Besides strengthening our position in already familiar sectors, FL Group has
expanded its operations into the energy sector with Geysir Green Energy, the
first privately owned company to acquire a considerable stake in a public
utility in Iceland. This will be a key sector for FL Group going forward with
significant deal flow.
Following excellent results for the first half of 2007, FL Group will strive to
perform even better. That is an ambitious goal but we believe that the company
is very well positioned to capitalise on future opportunities.”
Commenting on the role of FL Group in Glitnir Bank, Mr. Smárason said: ,,FL
Group is fully dedicated to Glitnir bank and has reconfirmed its commitment to
the bank yet again in the first half of 2007. FL Group is the largest
shareholder in Glitnir and as such it plays an important role in the banks
development.”
Mr. Smárason added on the issue of Refresco: ,,The Refresco story is an
excellent case study of FL Group's abilities. In the 14 months since FL Group
along with other investors, including the management team, acquired Refresco,
we have been pursuing a successful buy and build strategy. Refresco is now the
largest company in Europe in its field and has doubled its revenue in less than
a year. It has gained a foothold in vital markets and the aim is to continue to
increase and enlarge the operation even further.”
Enquiries:
FL Group
Hannes Smárason Kristján Kristjánsson
CEO Director Corporate Communications
Tel: +354 591 4400 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, Hanna Gustafsson 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 an international investment company focusing on two areas of
investment. The majority of its operations are run through the Private Equity
and Strategic Investment division which can take stakes in listed and private
companies as well as lead private equity buy-outs. The Capital Markets division
is a proprietary trading desk focused on taking short-term positions for
profits in primarily equities, bonds and currencies.
With head office in Reykjavik and offices in London and Copenhagen, FL Group
invests in companies worldwide, with a special focus on Europe. FL Group is
listed on the OMX Nordic Exchange in Reykjavik (OMX: FL). At the end of the
second quarter 2007, FL Group's total assets amounted to ISK 319.6 billion (EUR
3.8 billion). Its market capitalisation at the end of June 2007 was ISK 234.4
billion (EUR 2.8 billion).
The largest shareholders of FL Group are Gnúpur fjárfestingafélag hf. (20.2%),
Oddaflug BV (19.8%), owned by Hannes Smárason, CEO; Baugur Group (19.6%) , 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
