SOURCE: EuroTrust A/S

November 10, 2006 07:03 ET

EuroTrust Reports Preliminary Unaudited Results for the Twelve Month Period Ended June 30, 2006

Net Income Approximately US $9.2 Million -- Increase of 45%

COPENHAGEN, DENMARK -- (MARKET WIRE) -- November 10, 2006 -- EuroTrust A/S (NASDAQ: EURO) today reported preliminary unaudited results for the twelve month period ended June 30, 2006. As required by United States generally accepted accounting principles, the results include the operations of Aktiv Gruppen Holding A/S for the twelve months ended June 30, 2006 and the operations of EuroTrust A/S for the period from April 18, 2006 (the date of the acquisition of Aktiv Gruppen by EuroTrust) to June 30, 2006.

Net income (after tax) for the twelve months ended June 30, 2006 was DKK 53.9 million (US $9.2 million) or DKK 3.33 (US $0.57) per diluted share as compared to a profit of DKK 37.1 million for the twelve month period ended June 30, 2005. The net result of DKK 53.9 million is an increase of 45% for the twelve month period ended June 30, 2006 compared to the twelve month period ended June 30, 2005.

Bo Kristensen, CEO EuroTrust, said: "We are very satisfied with the result for a period where we have used a lot of effort on carry the company through the merger with Aktiv Gruppen Holding A/S. We are all extremely excited to continue our rapid growth in our business units, real estate development and renewable energy."

As required by Danish law, the following information (translated into English) was publicly disclosed today in Denmark.

For the first six months of 2006 EuroTrust's business has been characterized by the implementation of the company's new strategy, business procedures, company law and organization.

The group has now implemented a thorough simplification of its structure, lately through the sale of EuroTrust's media activities carried on in the TV-station DK4 and the production company Prime Vision.

This has happened in order to focus 100% on the group's new business concept -- property development in Denmark and Norway and renewable energy in Europe.

Through a number of purchases we have already started an aggressive but controlled growth strategy which will focus on property development with continuous sale of the building units through our low-risk strategy. The major part of the capital provided by our property development business is expected to be used for long term investments in renewable energy (primarily wind turbines). The investments are based on the group's own investments and lately by the purchase of a controlling interest in the wind turbines development company European Wind Farms A/S. The goal is to build up a portfolio of wind turbines that will place EuroTrust as a strong European player in the renewable energy market.

Purchase of the Company Aktiv Gruppen Holding

The merger of EuroTrust and Aktiv Gruppen was approved December 23, 2005 at the extraordinary general meeting of EuroTrust and was effectuated on April 18, 2006, when NASDAQ finally approved the continued listing of EuroTrust A/S ADRs (shares).

Sale of the TV Companies to Europe Vision Plc

The sale of EuroTrust's previous media activities took place the April 19, 2006, where the (as of July 3, 2006) London Stock Exchange listed company Europe Vision Plc took over all of the TV companies from EuroTrust A/S. EuroTrust A/S received 23% of the capital stock in EuroVision Plc or 31.250.000 shares as payment for the TV companies. The shares are in the financial statements as of June 30, 2006 booked at DKK 81 million according to US GAAP.

The shares in Europe Vision Plc. are quoted at the London Stock Exchange AIM at a price (as of November 6, 2006) of GBP 1.20 per share (a market value of approx. DKK 417 million.) As the major stockholders in the company have agreed to a lock-up on the shares for 12 months, the trading volume in the share has been low, and we have therefore chosen to book the shares at our previous cost price. If interested, you can read more about the activities of Europe Vision Plc. under the symbol code EVN on London Stock Exchange (www.londonstockexchange.com).

It is our intention to realize the shares continuously in line with the opportunities we get, so that we can focus our resources on the group's new business concept.

Purchase of the Balance of 50% of the shares in AGH Norge A/S

Previous to the merger with EuroTrust A/S, Aktiv Gruppen Holding A/S owned 50% of the shares in AGH Nordan Invest A/S (now renamed to AGH Norge A/S). As of June 1, 2006 EuroTrust A/S has bought up the remaining 50% of the shares, so that the group in June 2006 owned the company 100%.

Purchase of 2S Ejendomsinvest ApS and Drejens Strandskovpark A/S

With the purchase of these two companies the group entered two property projects in progress. Rømø Golf & Wellness, which include 200 luxury holiday cottages, a links golf course, a Pay & Play golf course of 9 holes and a wellness centre of 7,000 square meters and Drejens Strandskovpark A/S, where 60 houses at present time are being build at Kolding Fjord.

Purchase of 50.25% of European Wind Farms A/S

As a part of the group's growth strategy in renewable energy EuroTrust A/S purchased a controlling interest in European Wind Farms A/S. Result and balance effect of this purchase however has no effect on the results in current financial reports as the share purchase did not happen until the month of July 2006.

Expectations to the Future

The company expects a significant higher result for the fiscal year 2006/2007 and the following years.

Property Development in the Purpose of Sale

The background of the higher result expectations is due to the large and attractive composition of project portfolio of property projects in Denmark and Norway, which have an expected sales value of DKK 22-23 billion.

To be carried out within the next four fiscal years the company has entered into purchase agreements for approx. 45 property projects in Denmark and Norway and one in Austria -- primarily within the housing and holiday market -- with an expected sales value of DKK 7-8 billion.

Furthermore the company has entered into agreements for the rights to three very large housing and business development projects in Aarhus and North Zealand in Denmark and Kristiansand in Norway, with an expected sales value of up to DKK 15 billion. These three projects are expected to be realized in stages over the next 10-15 years.

The significant higher expectations to the results are based upon a continuing demand for houses on the market and an unchanged price level.

Primarily the uncertainty of the results for each year can be related to project postponements that may arise or risks of approval of district plans, expected building percentages and the sale of the individual projects.

Wind Turbines Investment Portfolio

At the end of the calendar year 2006 EuroTrust will have installed 81 wind turbines in Germany and Italy with a total capacity of 152 MW, of which EuroTrust through joint venture companies owns what corresponds to 78 MW with approx. DKK 750 million in purchase price. EBITDA from these wind turbines is expected to amount to approx. DKK 80 million in normal wind years.

In addition to this EuroTrust has, in cooperation with local developers, contractually insured the rights to wind turbines projects in Italy, Poland, Bulgaria, France and Greece with an ownership of a further 178 MW with a purchase price of approx. DKK 1.5 billion. These wind turbines are expected to begin to produce electricity in the calendar years 2007 and 2008. EBITDA from these wind turbines is expected to amount to a minimum of DKK 160 million in normal wind years.

In addition to this the company is negotiating the rights to wind turbines projects of a further 212 MW in the above mentioned countries and additionally in Spain.

As the wind turbines are expected to have a lifetime of more than 25 years EuroTrust expects that the results for the coming years will increasingly be related to electricity sale income from the gradual increased portfolio of wind turbines in Europe.

About EuroTrust A/S:

EuroTrust (NASDAQ: EURO) EuroTrust owns European property and property development businesses and wind energy farms. More information about EuroTrust and its subsidiaries is available at www.eurotrust.dk

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause EuroTrust's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, economic and other factors that could affect the development and sales of properties and environmental factors that could impact wind energy turbines as well as general economic, political and labor conditions that might impact the operations of such installations. More information about potential factors that could affect the company's business and financial results is included in EuroTrust's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 20-F for the year ended December 31, 2005 and reports on Form 6-K. EuroTrust undertakes no obligation to update any of the forward-looking statements after the date of this press release.

Contact Information

  • EuroTrust Contact:
    Bo Kristensen
    CEO EuroTrust
    +45 7550 2475
    Email Contact