Result of DKK -1,036.6 million after tax in 2011
Tower Group A/S announces its Annual Report 2011. The Annual Report 2011 is attached to this announcement and is available on the Company's website, www.towergroup.dk.
Here are selected highlights:
- The Company’s assets are from an accounting basis, treated as held for sale and the Company is no longer considered as a going concern.
- The Group’s result of the period 1 January 2011 to 31 December 2011 was DKK -1,036.6 million. The result was negatively impacted by the revaluation of investment properties (DKK -215.7 million), the adjustments on financial instruments (DKK -332.6 million), and the deconsolidation of the insolvent subsidiaries representing 52% of the overall portfolio (DKK -244 million).
- With Company release no. 38, 23 November 2011, the Company announced result expectations for the period 1 January 2011 to 31 December 2011 on the basis of the implications of the insolvency situation in four subsidiaries, but with the rest of the Group continuing to operate as a going concern. The Company expected at that time a loss – including anticipated losses on receivables from the four insolvent subsidiaries, but before tax and value adjustments to properties – in the range of DKK -250 to -300 million.
- Excluding the extraordinary items, the 2011 result is in the range announced in Company release no. 38, 23 November 2011.
- As a result of the insolvencies, the Company’s assets are no longer held as a Going Concern, but as being held for sale.
- The Group's net result for 2011 was a loss of DKK 1,036.6 million – a decrease of DKK 1,126 million compared to the 2009/10 period (which was an 18 month reporting period).
- Book value of the investment properties as per 31 December 2011 has, as a result of the assets being reclassified as being held for sale, been reduced to zero – compared to DKK 4,295.9 million as per December 31 2010.
- Assets being held for sale, excluding the insolvent subsidiaries, are valued at DKK 1,943.1 million as per 31 December 2011.
- The Company’s balance sheet amounted to DKK 1,943.1 million as per 31 December 2011 – compared to DKK 4,456.7 million as per 31 December 2010.
- The total equity as per 31 December 2011 amounts to DKK -178.3 million – compared to DKK 581.3 million as per 31 December 2010. During the financial year, the equity was negatively affected as a result of the revaluation of assets, the adjustment on financial instruments, and the deconsolidation of the insolvent subsidiaries.
- The Company expects that the consolidated result for 2012 will be the level of the negative equity at December 31 2011, i.e. DKK 178 million, which will leave the consolidated equity at DKK 0 million at year end 2012.
Chairman of the Board, Anton Aksich, comments: ”The result for the period 2011 is clearly disappointing. The Company is now focused on completing the initiated sales process, which it anticipates to be able to complete by the end of the 2nd quarter 2012, and related liquidation efforts, so as to recover as much value as possible for all the stakeholders”.
Best regards
Tower Group A/S
Anton Aksic
Chairman of the Board of Directors
Questions regarding this release can be directed to CEO, Martin Coté, on tel.: +420 725 716 755.
