Bermuda First Investment Company Limited - 2012 Results Announcement (Excerpt)

Hamilton, Bermuda – 14 March, 2013 – Bermuda First Investment Company Limited (the "Company" or "BFIC"; Ticker: BFIC.BH), an investment holding company with a number of significant investments in BSX Bermuda listed companies, is pleased to announce its results for the period ended December 31, 2012, its first results as a public company.

Highlights:

• Successful listing of shares and 5% loan notes on the BSX on October 29, 2012
• Only listed investment company which is focused solely on investing in BSX listed Bermuda companies
• Revenue of $618,971
• Market value of listed investments of approximately $33.7 million

Commenting on the financial results, J. Michael Collier, Chairman of BFIC said: “BFIC successfully listed its shares and loan notes on the BSX in October 2012. BFIC aims to build strategic investments in BSX listed local companies and we will continue to develop relationships with the management and boards of the investee companies so as to enhance the long term value of the investee companies for the benefit of all shareholders. As the only BSX listed investment company with a focus on BSX listed Bermuda companies we hope that potential investors will invest in the Company’s shares or loan notes and therefore gain exposure to a portfolio of local Bermuda companies.“

Financial summary

For the period ended December 31, 2012, the Company recorded a profit of $299,922 (before the unrealized loss on investments) on income of $618,971. Total expenses were $319,049 with $180,945 relating to accrued interest expense on the Company’s 5% unsecured 2019 loan notes. In addition there were one‐off expenses totaling $72,402 relating to the listing of the Company’s shares and loan notes on the BSX.

The Company’s unrealised loss on its investments for the period was $629,350. The Company is required under International Financial Reporting Standards (“IFRS”) to value its investments based on the bid price quoted on the BSX. The Company’s investments were acquired on an average trading price and the majority of the unrealised loss relates to the accounting treatment required under IFRS.

The Company has total assets as at December 31, 2012 of approximately $33.7 million and shareholders’ funds of approximately $16.8 million. The Company’s major liability is the $17.1 million 5% unsecured loan notes that it issued in October 2012.

It is anticipated that the Company will pay dividends to its shareholders on a six monthly basis.

Investments

The Company’s major investments are in KeyTech Limited (“KeyTech”) and The Ascendant Group Limited (“Ascendant”). In addition BFIC has investments in a number of other BSX listed Bermuda companies and comments thus:

KeyTech

BFIC is interested in approximately 22.8% of KeyTech’s issued share capital. As at December 31, 2012 BFIC’s holding in KeyTech was valued at approximately $19.8 million.

On December 5, 2012 KeyTech announced improved interim results for the 6 months ended 30 September 2012. On a like for like basis operating profit increased by approximately 19.3% to $6.8 million. Operating revenue was $39.8 million, a reduction of 9.5% reflecting the economic difficulties being experienced in Bermuda. The Company declared quarterly dividends for the quarters ending 30 June and 30 September of $0.12 per share. KeyTech’s share price increased by 2.8% during the period.

On 1 February 2013, KeyTech announced that its Cayman subsidiary, WestTel Limited, had acquired TeleCayman Limited. This should provide KeyTech with a greater foothold in Cayman and allow management to leverage the knowledge of Logic.

Ascendant

BFIC is interested in 10.0% of Ascendant’s issued share capital. As at December 31, 2012 BFIC’s holding in Ascendant was valued at approximately $12.2 million.

Ascendant continues to be the bellwether for the Bermuda economy and with the reduction in the number of people in Bermuda combined with the macroeconomic conditions their results in the first half of 2012, were affected accordingly. Ascendant continues to trade on an attractive dividend yield of approximately 7.4% and the share price is approximately one third of book value. We look forward to the publication of Ascendant’s results for the year ended December 31, 2012, which we believe will be available in due course.

2013 will be an important year for Ascendant as it will need to address its long term strategy and the consequent funding. Given the depressed share price of Ascendant, it is important that Ascendant looks to fund its future strategy by restructuring its balance sheet which is currently relatively ungeared rather than through their shareholders.

Ascendant’s share price decreased by 2.5% during the period.

Argus Group Holdings Limited (“Argus”)

BFIC is interested in approximately 2.3% of Ascendant’s issued share capital. As at December 31, 2012 BFIC’s holding in Argus was valued at approximately $1.6 million.

Argus announced positive interim results for the six months ended 30 September 2012 on 10 December 2012. It reported a net profit of $7 million (2011: loss of $3.9 million) for the first half. Shareholders equity increased to $91 million with total assets of $1.7 billion. It is pleasing to note that Argus believes that the investment impairments that the company has suffered over the last 4 years have all been provided for.

Net premiums earned in the period were in line with 2011 whilst net benefits and claims increased by 3 per cent. as a result of increasing healthcare costs. Investment income grew by 64% due to unrealized gains from the group’s fixed income portfolio. Operating expenses increased by 10.2% due to the ongoing investment in the infrastructure of the European operations.

Argus did not declare a dividend for the first half of 2012/13 but we anticipate that a return to paying dividends

may occur in the next 12 months.

Argus’s share price increased by 11.5% during the period.

Other investments

The Company’s other investments include small holdings in The Bank of N.T Butterfield & Son Ltd (“Butterfield”),

Bermuda Press Holdings Limited, Bermuda Aviation Services Limited and Watlington Waterworks Limited.

It was pleasing to see Butterfield announce a special dividend of $0.04 per share as apart of their annual results

for the year ended December 31, 2012 and to expand its share buyback programme. This should provide support to its share price in the medium term.

All of the Company’s other investment continue to experience weakness resulting from the Bermuda economy and we are conscious that any recovery in Bermuda is likely to take a number of years.

Bermuda First Investment Company Limited is a Bermuda exempt investment holding company with significant investments in a number of BSX listed Bermuda companies. BFIC’s core strategy is to continue to build strategic investments in local Bermudian companies subject to the relaxation of the 60/40 rule. BFIC’s shares and loan notes are publicly traded and listed on the Bermuda Stock Exchange bsx.com (Tickers: BFIC.BH and BFICN.BH).

Media Contacts:

Alasdair Younie, Director                                          

Bermuda First Investment Company Limited

Tel:  441-299-2897     

Email:  ay@icm.bm