News

Oslo, Norway, Wednesday, February 29, 2012
REPORT FOR 4TH QUARTER 2011

A CHALLENGING YEAR

The company posted revenues from continuing operations of NOK 106 million for the 4th quarter, compared with NOK 141 million for the same quarter in 2010. EBITDA for the quarter was NOK -38 million, compared with NOK -76 million for the corresponding quarter in 2010. This corresponds to an EBITDA margin of -35.9 per cent, compared with -54.1 per cent for the 4th quarter of 2010. The operating profit for the quarter was NOK -176 million, compared with NOK -393 million for the same period in 2010. Goodwill write-downs of NOK 126 million were charged against the operating profit. Provisions for potential losses on trade receivables and inventory write-downs totalling NOK 32 million were also charged against the operating profit. Profit for the divested business in Denmark is netted under "Discontinued operations" on a separate line in the statement.


The operating revenues for the respective segments were NOK 96 million for Geo Engineering and NOK 10 million for Information Services in the 4th quarter. The comparative figures for the 4th quarter of 2010 were NOK 122 million for Geo Engineering and NOK 19 million for Information Services.

The company’s revenues for 2011 totalled NOK 437 million, compared with NOK 570 million in 2010. EBITDA for 2011 was NOK -33 million, compared with NOK -35 million in 2010. This corresponds to an EBITDA margin of -7.5 per cent for 2011, compared with -6.2 per cent in 2010.

The operating revenues for the respective segments totalled NOK 381 million for Geo Engineering and NOK 56 million for Information Services in 2011. The comparative figures for 2010 were NOK 457 million for Geo Engineering and NOK 113 million for Information Services.

The last quarter of the year has also been marked by continued weak macroeconomic factors in many of the markets where Blom operates. Public sector customers, particularly in certain Southern European countries, showed a significant decline in demand. Northern Europe was marked by a challenging operating environment, which prevented firm orders from being delivered to the customer until 2012.

Financial restructuring.

The company's equity has been lost due to the weak financial results in 2011. The Board of Directors has assessed and is assessing measures to improve the debt to equity ratio. Since the third quarter there have been on-going discussions with a majority of the bondholders to find a more long-term solution for the company's debt structure. The parties are seeking jointly to establish a long-term sustainable capital structure for the company.

For further information please contact the CEO, Dirk Blaauw, on tel. +47 22 13 19 20 or CFO Lars Bakklund on tel. +47 22 13 19 34.

PRESENTATION

 

Blom ASA presented the report for 4th quarter 2011 today. The presentation is attached on www.newsweb.no

29th of February 2012

Blom ASA

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