Earnings as anticipated, with satisfactory new order volume during the quarter
Blom experienced that the start of a number of the company`s projects was delayed in the first quarter due to abnormal weather conditions and large amounts of snow in parts of Europe in particular. The company is satisfied with the volume of new orders during the quarter, but now see that it will be difficult to catch up with the lost revenue for the year as a whole.
Sales turnover in the first quarter 2006 totalled NOK 111.0 million, compared with NOK 67.4 million for the corresponding period in 2005. EBITDA was NOK 7.9 million, compared with NOK 9.9 million for the corresponding period in 2005, while the pre-tax earnings were a loss of NOK 8.4 million, compared with a profit of NOK 5.5 million for 2005.
The company has built a comprehensive European corporate structure and expects that the higher level of activity in the southern part of Europe will reduce the quarterly fluctuations related to the climate and weather conditions in the future. The company`s strategy to focus more on licence revenues from its own libraries will also contribute to a reduction in the seasonal variations, since such revenues will be distributed evenly throughout the year.
The company has announced that it will focus in 2006 on organic growth combined with the acquisition of new businesses that coincide with the company`s strategy or offer technology that can be utilised across national borders. The ongoing process of developing market competence and realising synergies through the acquisitions that have already been made is going according to plan. The effect of this process will gradually become evident in the earnings starting in the second half of 2006 and in subsequent years.
Downlaod: Report for 1st Quarter 2006