Investeringsselskabet Luxor A/S

Frederiksborggade 50, 4. 1360 København K Telefon 33 32 50 15 - CVR-nr. 49 63 99 10

Nasdaq Copenhagen A/S

Announcement No 4, 2018/19

Nikolaj Plads 6

page 1 of 20

PO Box 1040

date 22 February 2019

DK-1007 Copenhagen K

ref. IK

Interim Report as at 31 December 2018

The Supervisory Board of Investeringsselskabet Luxor A/S has today adopted the Interim Report as at 31 De-cember 2018.

First quarter 2018/19:

  • Basic earnings amount to DKK 8.0 million (DKK 5.0 million).

  • The Group's profit before tax amounts to DKK 5.2 million (DKK 2.9 million).

    Profit before tax for the period is DKK 2.8 million lower than basic earnings due to fair value ad-justments of interest swaps and debt to mortgage credit institutes as well as financial assets.

  • The Group's profit after tax amounts to DKK 4.1 million (DKK 2.3 million).

Expected basic earnings 2018/19:

  • At present, basic earnings of approx. DKK 28 million are expected for the financial year 2018/19, which is in accordance with the most recent announcement made in Company Announcement No 1, 2018/19 of 13 December 2018.

  • Fair value adjustments of interest swaps and financial assets are not included in basic earnings and will from the beginning of the financial year until 13 February 2019 affect results for the year before tax by DKK -4.8 million. The amount is distributed with DKK -2.8 million for the quarter and DKK -2.0 million for the period 1 January to 13 February 2019.

For additional information concerning this Interim Report, please contact Jannik Rolf Larsen, CEO (tel: +45 33325015).

Announcement No 4 of 22 February 2019

Interim Report for the period 1 October to 31 December 2018

Contents

Page

Financial Highlights of the Group ..........................................................

3

Interim Report ........................................................................................

4 -7

Management's Statement .......................................................................

8

Consolidated Statement of Comprehensive Income ..............................

9

Consolidated Balance Sheet ...................................................................

10 - 11

Statement of Changes in Equity .............................................................

12

Cash Flow Statement ..............................................................................

13

Segment Reporting .................................................................................

14

Significant Notes ....................................................................................

15 - 20

Investeringsselskabet Luxor A/S is an investment company investing shareholders'

The Company's main activities are distributed on interest-bearing securities and equity and debt capital in capital investments. The Company's main activities are dis-properties, for which the Company has adopted a flexible investment strategy within tributed on securities and properties. The Company has adopted a flexible investment a number of specific investment frameworks.

strategy within a number of specific investment frameworks.

The overall objective of the Group is to achieve the best possible long-term return The overall objective of the Group is to achieve the best possible long-term return on on investments for the shareholders by investing shareholders' equity and debt investments for the shareholders by investing shareholders' equity and debt capital in capital in capital investments within the risk frameworks established.

capital investments within the risk frameworks established.

Investeringsselskabet Luxor A/S intends to distribute annual dividend to the investors Pursuant to the Danish Act on Alternative Investment Fund Managers, the Parent to the extent this is appropriate in view of results for the year and other circumstanc-Company is permitted to invest in mortgage deeds, bonds and properties and has been es.

granted an exemption in respect of being permitted to manage shares received in con-nection with a corporate bond in the portfolio being wholly or partly converted into Pursuant to the Danish Act on Alternative Investment Fund Managers, Investerings-shares.

selskabet Luxor A/S is permitted to invest in mortgage deeds, bonds and properties and has been granted an exemption in respect of being permitted to manage shares received in connection with full or partial conversion of a corporate bond.

FINANCIAL HIGHLIGHTS OF THE GROUP

OKTOBER - DECEMBER

DKK million

2017/18

Full year

Key figures

Income ................................................................

19.3

16.7

18.4

53.4

Gross earnings ....................................................

16.0

11.0

19.3

61.6

Profit/loss before tax ...........................................

5.2

2.9

12.9

29.6

Net profit/loss for the period ..............................

4.1

2.3

10.0

23.3

Basic earnings .....................................................

8.0

5.0

7.1

27.1

Assets ..................................................................

878.6

865.2

829.2

867.1

Equity .................................................................

357.6

354.5

366.4

353.6

Investment in property, plant and equipment .....

0.0

0.3

0.0

0.3

Profit/loss for analytical purposes:

Net profit/loss for the period (after tax) ..............

4.1

2.3

10.0

23.3

Ratios

Values per DKK 100 share

Earnings per share (EPS) (DKK) ........................

4.06

2.29

10.03

23.32

Net asset value per share in circulation (DKK) ..

357.62

354.54

366.38

353.57

Return on equity in percentage p.a . ....................

4.56

2.59

11.10

6.61

Equity share in percentage ..................................

40.70

40.98

44.19

40.77

Share capital

Nominal share capital,

end of period (DKK million) ..............................

100.0

100.0

100.0

100.0

Number of shares in circulation (DKK million).

100.0

100.0

100.0

100.0

Official price on the Stock Exchange

per DKK 100 share:

Lowest ................................................................

416

405

333

405

Highest ................................................................

456

440

355

460

End of period ......................................................

446

415

350

426

Volume of trade on the Stock Exchange,

number of shares .................................................

2,021

3,605

2,364

13,249

Listed on the Stock Exchange,

number of shares .................................................

825,000

825,000

825,000

825,000

2018/19

2017/18

Q1

2016/17

Q1

Q1

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.

Basic earnings and results for the period

The Group's basic earnings for Q1 amount to DKK 8.0 million (DKK 5.0 million).

Basic earnings are calculated as profit before tax for the period adjusted for fair value adjustments of finan-cial assets and interest swaps.

The Group's profit before tax for the period amounts to DKK 5.2 million (DKK 2.9 million).

Profit before tax for the period is DKK 2.8 million lower than basic earnings due to:

  • fair value adjustments of interest swaps and debt to mortgage credit institutes of DKK -2.7 million;

  • fair value adjustments of financial assets of DKK -0.1 million.

Similarly, profit before tax for Q1 2017/18 was DKK 2.1 million lower than basic earnings due to:

  • fair value adjustments of bonds and shares including currency hedging of DKK -1.5 million;

  • fair value adjustments of interest swaps and debt to mortgage credit institutes of DKK -0.6 million.

After recognition of tax for the quarter of DKK 1.1 million (DKK 0.6 million), the profit after tax for the pe-riod amounts to DKK 4.1 million (DKK 2.3 million).

Business areas

The Group's balance sheet, which compared with the same time last year has increased from DKK 865.2 million to DKK 878.6 million, includes the following business areas:

2018/19

2017/18

DKK million

DKK million

Mortgage deeds ...................................

655.7

640.3

Bonds ..................................................

0.0

5.6

Shares ..................................................

0.7

1.2

Total securities ....................................

656.4

647.1

Investment properties ..........................

187.9

184.1

Total ....................................................

844.3

831.2

Below, the individual business areas are described. The financing and the effect of currency hedging as well as currency exposure and hedging of currency risk are described in the section financing and debt.

Mortgage deeds

The fair value of the Group's portfolio of mortgage deeds amounts to DKK 655.7 million (DKK 640.3 mil-lion), and the nominal value amounts to DKK 719.6 million (DKK 719.6 million).

The fair value of the Group's portfolio of mortgage deeds is distributed with DKK 487.3 million (DKK 465.6 million) in fixed-interest mortgage deeds and DKK 168.4 million (DKK 174.7 million) in floating-rate cibor mortgage deeds.

The return on the portfolio of mortgage deeds for the financial year is specified as follows:

2018/19

2017/18

DKK million

DKK million

Interest income .........................................................

13.3

12.4

Capital gains, mortgage deeds .................................

2.1

0.4

Fair value adjustment ...............................................

0.2

-0.3

15.6

12.5

Direct expenses, mortgage deeds .............................

0.5

0.5

Realised losses on mortgage deeds, fair value

adjustment for credit risk as well as expenses

relating to the sale of mortgages in default ..............

Bad debts recovered .................................................

-2.0

-3.9

1.5

-0.5

1.5

-2.4

14.6

9.6

Fixed-interest mortgage deeds of a nominal amount of DKK 490.3 million have been measured in the bal-ance sheet at fair value on the basis of an effective interest rate of 8.5% p.a. (average 8.5% p.a.). Fixed-interest mortgage deeds of a nominal amount of DKK 37.9 million and cibor mortgage deeds of a nominal amount of DKK 191.4 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 fair value per mortgage deed of kDKK 299.4 (kDKK 293.1).

Net loss/gain, mortgage deeds amounts to DKK -0.5 million (DKK -2.4 million), which is slightly lower than expected.

Net loss/gain, mortgage deeds includes:

  • realised net losses on mortgage deeds and mortgage deed receivables of DKK -2.0 million (DKK -3.9 million), including adjustment to meet credit risk on mortgage deeds and mort-gage deed receivables as well as expenses relating to the sale of mortgages in default;

  • bad debts recovered of DKK 1.5 million (DKK 1.5 million).

The total fair value adjustment of credit risk on mortgage deeds amounts to DKK 15.1 million (DKK 22.0 million), corresponding to 2.3% (3.3%) of the portfolio.

For the current financial year, the Group expects a small increase in the mortgage deed portfolio.

Attachments

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Investeringsselskabet Luxor A/S published this content on 18 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 March 2019 11:09:11 UTC