Blom ASA presented the results for 4th quarter 2009 today.
The presentation was webcast, and teh presentation and full financial report can be downloaded.
4Q 2009 REPORT
REPORT FOR 4th QUARTER 2009:
Weaker revenue and profit due to significant adjustments in the financial accounts in Spain
Irregularities were identified in connection with the final audit of the group’s operations in Spain. These irregularities have affected the company’s revenue in 2008 and 2009, and subsequently led to additional adjustments to the valuation of a number of the items on the Spanish company’s balance sheet. This has resulted in significant adjustments to both the quarterly and annual accounts.
The company reported revenue of NOK 159 million in the 4th quarter, compared with NOK 219 million for the same quarter in 2008. EBITDA for the quarter was NOK 23 million, compared with NOK 33 million for the 4th quarter of 2008. This corresponds to an EBITDA margin of 14.4 per cent for the 4th quarter of 2009, compared with 14.9 per cent for the 4th quarter of 2008. The operating profit for the quarter was NOK – 59 million, compared with NOK 8 million for the 4th quarter of 2008. This includes NOK 44 million in write-down of goodwill in Spain together with NOK 6 million in provision for future loss of intangible assets in Spain.
The operating revenues for the respective segments was NOK 123 million for Geo Engineering and NOK 37 million for Information Services in the 4th quarter. The comparable figures for the 4th quarter of 2008 were NOK 170 million for Geo Engineering and NOK 49 million for Information services.
For the full year 2009, the company delivered revenues of NOK 737 million, compared with NOK 867 million in 2008. EBITDA for 2009 was NOK 92 million, compared with NOK 155 million in 2008. This corresponds to an EBITDA margin of 12.5 per cent in 2009, compared with 17.9 per cent in 2008.
The operating revenue for the respective segments was NOK 618 million for Geo Engineering and NOK 119 million for Information Services in 2009. The comparable figures for 2008 were NOK 656 million for Geo Engineering and NOK 211 million for Information services.
The adjustments in the group’s accounts related to Spain at EBITDA level, amounts to NOK 41 million for 2008 and NOK 29 million for 2009.
The board of directors of Blom ASA has appointed an investigation-committee headed by PwC Forensic Services in Madrid. The managing director of the Spanish subsidiary has with immediate effect resigned his position.
In the short-term perspective, the Blom has faced challenges in the market that have entailed revenues and margins that are lower than budgeted for the year. This can also affect the first quarter of 2010, but it is not expected to have an impact on the long-term creation of value that is taking place within the company’s operative activities.
Blom has completed the development of its new online distribution channel BlomURBEX, which enables us to give customers immediate access to the company’s databases. The company is confident that this will form a foundation for good earnings over time through licenses-based revenue streams.
Blom has entered into strategically important cooperation agreements that will strengthen the company as a supplier of services to major international companies and the respective local markets. Blom will gain competence through such cooperation, and it will improve our access to markets at the same time. Blom will continue its efforts to develop existing agreements and seek the establishment of new agreements.
For further information please contact:
the CEO, Mr. Dirk Blaauw, on tel. +47 22 13 19 20 or CFO Lars Bakklund on tel. +47 22 13 19 34.