Update to 2013 annual accounts

2 April 2014 – Reference is made to Agasti Holding ASA’s (Agasti) stock exchange announcement dated 18 March 2014 about the notification of planned withdrawal of Navigea’s licenses to provide investment advisory services.

As indicated in the announcement, the consequence of a decision in accordance with the notification could, as a result of restructuring costs, negatively affect Agasti’s 2014 financial results. A preliminary estimate for said restructuring costs is approximately NOK 40 million if the investment advisory function ends up being liquidated. These costs will be charged to the consolidated accounts for the first half of 2014, with exception of NOK 14 million related to future rental obligations which will be taken provision for in the 2013 annual accounts. In addition, and as a result of the advance notification, an impairment of goodwill of NOK 9 million will be made.

Changes to the operating income in relation to the preliminary 2013 annual accounts, which were announced to the stock exchange on 11 February 2014, amount to NOK 23 million. The Agasti group’s operating profit for 2013 is expected to be negative at minus NOK 4 million, while net profit is set to be negative at minus NOK 2 million. Beyond this, there will only be minor changes to the financial numbers published on 11 February 2014.

The group’s underlying operation was positive in 2013. Operating profit before goodwill impairment and restructuring costs was NOK 19 million.

In parallel, Agasti considers structural alternatives for the operations in Navigea Securities AS and is in talks with several external parties. This could result in changes to the NOK 40 million in estimated restructuring costs.

Around 70 percent of the group’s revenues, but only around 55 percent of the operating expenses, are related to the group’s two other business areas, Capital Markets and Investment Management. Both business areas demonstrated significant progress throughout the second half of 2013. Preliminary analyses indicate that the group may strengthen its profitability following a possible liquidation or exit from the Navigea business. The group’s financial results for 2014 could be positive if the group succeeds with its ambitions within Investment Management and Capital Markets.

Annual report, income statement, balance sheet, changes in consolidated equity and consolidated cash flow statement and notes for the Agasti Group, as well as income statement, balance sheet, cash flow statements and notes for Agasti Holding ASA for 2013, will be published on www.newsweb.no and Agasti’s investor relations pages on www.agasti.no following the board of directors’ approval.

For further information, please contact:
Jørgen Pleym Ulvness, CEO – tel:+ 47 906 67 877
Christian Dovland, CFO – tel: +47 908 84 730

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.