Strong Growth in Sales Turnover
The company`s operating revenues in the first quarter totalled NOK 312.8 million, compared with NOK 111.0 million for the corresponding period in 2006. Earnings before depreciation in the first quarter were NOK 37,3 million, compared with NOK 7.9 million for the corresponding period in 2006. For the respective divisions, the EBITDA margins were 15 % for Geographic Information and 13 % for Offshore Technology. The pre-tax profit was NOK 6.9 million, compared with a loss of NOK 8.4 million for 2006.
The results show a clear improvement in relation to the corresponding period in 2006. The margins are generally better than budgeted, at the same time as they are normally lower in the 1st quarter than budgeted for the remainder of 2007. The company`s operations have performed well in all areas, but a great portion of the increase can be attributed to the acquisition of ScanRope AS, which took effect in our accounts as of 1 July 2006.
Due to strong growth in the underlying markets for both divisions and to improve our opportunities for continued focused growth further, the Board adopted a de-merger plan on 7 March 2007 that entails de-merger of the Offshore Technology division as a separate listed company. The Board`s de-merger plan was approved by Blom`s General Meeting of 12 April. It is expected that the shares in the de-merged company will be listed on the Oslo Stock Exchange in the second half of June 2007.
To meet the strong demand for ScanRope`s products, the company has invested more than NOK 125 million over the last year to increase its production capacity. The Board has now decided to invest up to NOK 75 million in new storage equipment for manufactured cables. The company will then have the capacity to deliver products and services for more than NOK 1 billion per year based on today`s prices and product mix.
Within Geographic Information, the company`s European library of Pictometry images has been very well received. We have experienced that the sales processes are somewhat more extensive than originally expected. This has impacted our margin for the 1st quarter, while we are maintaining our high expectations for the company`s database sales for the year.
The report for Q1 2007 can be downloaded