Farmer Business Developments, the investment holding company with roots going back to the foundation of FBD in the late 1960s, has reported pre-tax profits of €11.5m, a more than 80% increase on the €6.2m earned in 2014.
The net asset value of Developments’ overall investment portfolio decreased by almost €33m over the course of last year to €178m.
Having acquired full control of the FBD hotels business (FBDPLL) last year when it paid €48.5m for the remaining 50% stake, coupled with the fall in the share price in FBD Holdings, the make-up of Developments’ investment portfolio has evolved significantly over the last two years.
From insurance to hotels
Where once Developments’ 24.6% shareholding in FBD Holdings was the group’s principal asset, today it is the hotels and property business that is its largest investment, representing 45% of net assets. And with no dividend coming from Holdings, which now accounts for 33% of net assets, the group has become dependent on the hotels as its principal income stream.
The share price in FBD Holdings deteriorated further in 2015, resulting in a €41m decline in the asset value of Developments’ shareholding in the insurer, which stood at just over €59m at year-end.
In the space of just two years, the book value of Developments’ stake in FBD Holdings has declined by a cumulative €92m, with the insurer’s share price plunging from over €17 in 2013 to about €6.60 at year-end 2015. FBD Holdings shares are currently trading at €6.50.
Berlin airport
After the hotels and the 24.6% stake in FBD Holdings, Developments’ third most important investment is the zoned development land bank situated at Schönefeld. Adjacent to the new airport in Berlin, the land represents 11% of total net assets and is carried at a book value of €19.7m, unchanged from last year.
The initial aim had been for the new airport to open in late 2011, but continued setbacks have delayed the work. In December last year, the airport management company announced that the airport will open in the second half of 2017 with a starting capacity of 27m passengers, but this date could be pushed back further now.
The original plan for the zoned lands situated adjacent to the new airport was to develop an airport business park selling off plots to developers. However, the land remains undeveloped as the construction of Berlin’s new airport was delayed.
The remaining 11% of Developments’ asset portfolio is tied up in smaller investments such as private equity funds, a commercial property in Geneva and cash deposits valued at €19.5m, down from its value of €30m last year.
The hotels deal also led Developments to take on borrowings of almost €56m last year, having previously carried no debt. During the year, there were two changes to the board of directors with former IFA general secretary Pat Smith stepping down, while Donal Buckley replaced John Hally as Dairygold’s appointed director to the board.
The total fees for the board of directors for 2015 was €116,000, unchanged from the previous year. The group is recommending an annual dividend to shareholders of 5c per share for 2015, which is unchanged from the previous year.
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Full coverage: FBD
Farmer Business Developments, the investment holding company with roots going back to the foundation of FBD in the late 1960s, has reported pre-tax profits of €11.5m, a more than 80% increase on the €6.2m earned in 2014.
The net asset value of Developments’ overall investment portfolio decreased by almost €33m over the course of last year to €178m.
Having acquired full control of the FBD hotels business (FBDPLL) last year when it paid €48.5m for the remaining 50% stake, coupled with the fall in the share price in FBD Holdings, the make-up of Developments’ investment portfolio has evolved significantly over the last two years.
From insurance to hotels
Where once Developments’ 24.6% shareholding in FBD Holdings was the group’s principal asset, today it is the hotels and property business that is its largest investment, representing 45% of net assets. And with no dividend coming from Holdings, which now accounts for 33% of net assets, the group has become dependent on the hotels as its principal income stream.
The share price in FBD Holdings deteriorated further in 2015, resulting in a €41m decline in the asset value of Developments’ shareholding in the insurer, which stood at just over €59m at year-end.
In the space of just two years, the book value of Developments’ stake in FBD Holdings has declined by a cumulative €92m, with the insurer’s share price plunging from over €17 in 2013 to about €6.60 at year-end 2015. FBD Holdings shares are currently trading at €6.50.
Berlin airport
After the hotels and the 24.6% stake in FBD Holdings, Developments’ third most important investment is the zoned development land bank situated at Schönefeld. Adjacent to the new airport in Berlin, the land represents 11% of total net assets and is carried at a book value of €19.7m, unchanged from last year.
The initial aim had been for the new airport to open in late 2011, but continued setbacks have delayed the work. In December last year, the airport management company announced that the airport will open in the second half of 2017 with a starting capacity of 27m passengers, but this date could be pushed back further now.
The original plan for the zoned lands situated adjacent to the new airport was to develop an airport business park selling off plots to developers. However, the land remains undeveloped as the construction of Berlin’s new airport was delayed.
The remaining 11% of Developments’ asset portfolio is tied up in smaller investments such as private equity funds, a commercial property in Geneva and cash deposits valued at €19.5m, down from its value of €30m last year.
The hotels deal also led Developments to take on borrowings of almost €56m last year, having previously carried no debt. During the year, there were two changes to the board of directors with former IFA general secretary Pat Smith stepping down, while Donal Buckley replaced John Hally as Dairygold’s appointed director to the board.
The total fees for the board of directors for 2015 was €116,000, unchanged from the previous year. The group is recommending an annual dividend to shareholders of 5c per share for 2015, which is unchanged from the previous year.
Read more
Full coverage: FBD
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