Stock Exchange Announcement of
13 December 2018 and extract of
Annual Report
1 October 2017 - 30 September 2018 (The Company's 45th financial year)
Investeringsselskabet
Luxor A/S
Frederiksborggade 50, 4. 1360 København K CVR-nr. 49 63 99 10
Nasdaq Copenhagen A/S | Annual Report 2017/18 |
Nikolaj Plads 6 | Date 13 December 2018 |
PO Box 1040 | |
DK-1007 Copenhagen K | Company Announcement No 1 2018/19 |
The Supervisory Board of Investeringsselskabet Luxor A/S has today considered and adopted the Compa-ny's Annual Report for 2017/18.
The Annual Report:
Basic earnings amount to DKK 27.1 million (DKK 24.9 million), which is higher than the expected basic earnings level of approx. DKK 24.9 million stated in the Interim Report of 27 August 2018.
The higher basic earnings are primarily attributable to an increase in net yield on mortgage deeds and bad debts recovered.
The Group's profit before tax amounts to DKK 29.6 million (DKK 27.4 million). The Group's profit after tax amounts to DKK 23.3 million (DKK 20.9 million).
The Group's profit before tax is DKK 2.5 million higher than basic earnings due to:
DKK 1.8 million from fair value adjustments etc of investment properties;
DKK 0.8 million from fair value adjustments of interest swaps and fair value adjustments of debt to mortgage credit institutes;
DKK -0.1 million from fair value adjustments of securities as well as realised gains on bonds and shares.
Dividend:
The Supervisory Board proposes to the General Meeting that dividend of DKK 23 million (DKK 22 mil-lion) be distributed, corresponding to DKK 23 (DKK 22) per share, which is a payout ratio of 98.6% and a dividend yield of 5.4%.
Fourth quarter of the financial year 2018:
Basic earnings for the quarter amount to DKK 8.7 million (DKK 6.0 million).
The Group's profit before tax amounts to DKK 13.8 million (DKK 4.9 million).
The Group's profit before tax is DKK 5.1 million higher than basic earnings due to:
DKK 2.3 million from fair value adjustments of interest swaps and fair value adjustments of debt to mortgage credit institutes;
DKK 1.8 million from fair value adjustments etc of investment properties;
DKK 1.0 million from fair value adjustments of securities as well as realised gains/losses on bonds and shares.
Expected basic earnings for 2018/19:
For the coming financial year 2018/19, basic earnings of approx. DKK 28 million are expected.
Fair value adjustments of interest swaps are not included in basic earnings and would at 6 December 2018 affect the Group's profit before tax by DKK -2.3 million.
For additional information concerning the Annual Report, please contact Jannik Rolf Larsen, CEO (tel: +45 33325015).
Financial Highlights of the Group
OCTOBER - SEPTEMBER
Q4 | Q4 | |||||
2016/17 | 2015/16 | 2014/15 | 2013/14 | 2017/18 | 2016/17 | |
63.7 | 75.7 | 49.0 | 67.9 | 20.9 | 15.2 | |
54.5 | 69.2 | 42.7 | 60.0 | 20.0 | 14.0 | |
27.4 | 29.1 | -10.2 | 15.0 | 13.8 | 4.9 | |
20.9 | 22.1 | -8.5 | 11.1 | 11.0 | 3.4 | |
24.9 | 31.1 | 24.1 | 13.8 | 8.7 | 6.0 | |
846.8 | 868.6 | 915.5 | 888.2 | 867.1 | 846.8 | |
0.1 | 0.4 | 0.7 | 0.0 | 0.0 | 0.0 | |
352.3 | 356.4 | 354.3 | 412.8 | 353.6 | 352.3 | |
22.0 | 25.0 | 20.0 | 50.0 | 23.0 | 22.0 | |
20.9 | 22.1 | -8.5 | 11.1 | 11.0 | 3.4 | |
20.90 | 22.06 | -8.48 | 11.15 | 11.01 | 3.40 | |
352.25 | 356.35 | 354.29 | 412.78 | 353.57 | 352.25 | |
5.90 | 6.21 | -2.21 | 2.72 | 12.65 | 3.89 | |
41.60 | 41.03 | 38.70 | 46.47 | 40.77 | 41.60 | |
22.00 | 25.00 | 20.00 | 50.00 | 23.00 | 22.00 | |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
333 | 310 | 261 | 216 | 406 | 391 | |
440 | 360 | 362 | 264 | 450 | 440 | |
408 | 334 | 317 | 264 | 426 | 408 | |
14,695 | 16,011 | 32,385 | 20,679 | 1,888 | 2,785 | |
number of shares .................................... 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 |
DKK million | 2017/18 |
Key figures | |
Income ................................................... | 69.3 |
Gross earnings ....................................... | 61.6 |
Profit/loss before tax .............................. | 29.6 |
Net profit/loss ........................................ | 23.3 |
Basic earnings ........................................ | 27.1 |
Assets ..................................................... | 867.1 |
Investment in property, plant and | |
equipment .............................................. | 0.3 |
Equity .................................................... | 353.6 |
Proposed dividend for the year .............. | 23.0 |
Profit/loss for analytical purposes: | |
Net profit/loss (after tax) ....................... | 23.3 |
Ratios | |
Values per DKK 100 share | |
Earnings per share (EPS) (DKK) ........... | 23.32 |
Net asset value per share in | |
circulation (DKK) .................................. | 353.57 |
Return on equity in percentage p.a . ....... | 6.61 |
Equity share in percentage ..................... | 40.77 |
Dividend per share (DKK)* .................. | 23.00 |
Share capital | |
Nominal share capital, | |
end of year (DKK million) ................... | 100.0 |
Number of shares in | |
circulation (DKK million) ..................... | 100.0 |
Official price on the Stock Exchange per | |
DKK 100 share: | |
Lowest ................................................... | 405 |
Highest ................................................... | 460 |
End of year ............................................ | 426 |
Volume of trade on the Stock Exchange, | |
number of shares .................................... | 13,249 |
Listed on the Stock Exchange, | |
The key figures have been calculated in accordance with "Recommendations & Ratios" January 2018 issued by the Danish Society of Financial Analysts. EPS and diluted EPS are in accordance with IAS 33.
* Calculated on the basis of proposed dividend distribution.
Basic earnings and results for the year
The Group's basic earnings amount to DKK 27.1 million (DKK 24.9 million), which is higher than the ex-pected basic earnings level of approx. DKK 24.9 million stated in the Interim Report of 27 August 2018. The higher basic earnings are primarily attributable to increased net yield on mortgage deeds and bad debts re-covered.
Basic earnings are calculated as profit/loss before tax for the year adjusted for fair value adjustments of fi-nancial assets, debt and foreign exchange movements and realised gains/losses on bonds and shares.
The profit for the year before tax amounts to DKK 29.6 million (DKK 27.4 million); after recognition of tax for the year of DKK 6.3 million (DKK 6.5 million), the profit for the year after tax amounts to DKK 23.3 million (DKK 20.9 million).
The profit for the year before tax is DKK 2.5 million higher than basic earnings due to:
DKK 1.8 million from fair value adjustments etc of investment properties;
DKK 0.8 million from fair value adjustments of interest swaps and fair value adjustments of debt to mortgage credit institutes;
DKK -0.1 million from fair value adjustments of securities as well as realised gains on bonds and shares.
Fourth quarter of the financial year 2018
The Group's basic earnings for the fourth quarter of the financial year 2018 amount to DKK 8.7 million (DKK 6.0 million), and profit before tax amounts to DKK 13.8 million (DKK 4.9 million).
The profit for the quarter before tax is DKK 5.1 million higher than basic earnings due to:
DKK 2.3 million from fair value adjustments of interest swaps and fair value adjustments of debt to mortgage credit institutes;
DKK 1.8 million from fair value adjustments etc of investment properties;
DKK 1.0 million from fair value adjustments of securities as well as realised gains/losses on bonds and shares.
Business areas
The Group's balance sheet, DKK 867.1 million (DKK 846.8 million), includes the following business areas:
2017/18 | 2016/17 | |
DKK million | DKK million | |
Mortgage deeds ................................... | 645.1 | 622.6 |
Bonds .................................................. | 0.0 | 6.5 |
Shares .................................................. | 1.0 | 1.5 |
Total securities | 646.1 | 630.6 |
Investment properties .......................... | 189.5 | 184.9 |
Total .................................................... | 835.6 | 815.5 |
Below, the individual business areas are described. The financing and the effect of interest and currency hedging are described in the section financing and debt.
Mortgage deeds
The fair value of the Group's portfolio of mortgage deeds amounts to DKK 645.1 million (DKK 622.6 mil-lion), and the nominal value amounts to DKK 713.9 million (DKK 699.6 million).
The fair value of the Group's portfolio of mortgage deeds is distributed with DKK 479.1 million (DKK 452.3 million) in fixed-interest mortgage deeds and DKK 166.0 million (DKK 170.3 million) in floating-rate cibor mortgage deeds.
The total return on the portfolio of mortgage deeds for the financial year is specified as follows:
2017/18 DKK million
2016/17 DKK million
Interest income ......................................................... 51.3 46.7 Capital gains, mortgage deeds ................................. 7.2 8.5 Fair value adjustment ............................................... -0.1 -0.6
58.4 54.6
Realised losses on mortgage deeds, fair value adjustment for credit risk as well as gain on sale of properties acquired for the purpose of resale ...................................................... Bad debts recovered .................................................
-12.4 | -12.1 | ||
6.5 | -5.9 | 5.0 | -7.1 |
52.5 | 47.5 |
Fixed-interest mortgage deeds of a nominal amount of DKK 482.8 million are measured in the balance sheet at fair value on the basis of an effective interest rate of 8.5% p.a. (average 8.5% p.a.). Fixed-interest mort-gage deeds of a nominal amount of DKK 40.1 million and cibor mortgage deeds of a nominal amount of DKK 191.0 million are measured at fair value, which substantially corresponds to the cost of the mortgage deeds. At the measurement of the portfolio of mortgage deeds at fair value, adjustment for credit risk has been deducted.
The Group's portfolio of mortgage deeds has an average market value per mortgage deed of kDKK 295.3 (kDKK 285.6).
The nominal amount of the mortgage deed portfolio has increased from DKK 699.6 million to DKK 713.9 million. The increase consists of additions of DKK 166.9 million (DKK 185.8 million) and redemptions of DKK 152.6 million (DKK 116.9 million). The addition of mortgage deeds in the financial year primarily consists of specific mortgage deeds purchased on the basis of an individual assessment.
The rate of redemption of mortgage deeds in the financial year 2017/18 is higher than in the financial year 2016/17. For the coming year, the Group expects a small net increase in the portfolio of mortgage deeds and lower premature repayments than in 2017/18.
Capital gains on redeemed mortgage deeds amount to DKK 7.2 million (DKK 8.5 million). The lower capital gains primarily relate to the composition of the cost of the redeemed mortgage deeds.
Net loss/gain, mortgage deeds amounts to DKK -5.9 million (DKK -7.1 million).
Net loss/gain, mortgage deeds includes:
realised net losses on mortgage deeds and mortgage deed receivables of DKK 12.4 million (DKK 12.1 million), including adjustment to meet credit risk on mortgage deeds, properties acquired for the purpose of resale and mortgage deed receivables, which is in line with expectations;
bad debts recovered of DKK 6.5 million (DKK 5.0 million), which is higher than expected.
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Investeringsselskabet Luxor A/S published this content on 07 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 January 2019 10:13:01 UTC