As reported in the Company’s report for the 3rd quarter of 2012 and in Stock Exchange Announcement 7. December 2012, the challenging macroeconomic conditions in parts of Europe continue and have given weak operating results in the fourth quarter. EBIT is additionally charged with extraordinary write downs of intangible assets, work in progress and accruals for potential losses on account receivables. Further, the results for fourth quarter have been positively impacted by a final settlement with Pictometry International Corp. related to the dispute regarding the Technology License Agreement entered into between the Company and Pictometry on 29 January 2009.
A lasting shift in the awarding of new contracts, particularly in Italy, has had a negative impact on the company's results and liquidity situation, and has made additional compensatory measures necessary.
Against this background Blom ASA (Blom) has signed a Share Purchase Agreement to divest its Italian subsidiary Blom CGR S.p.A. to an Italian investment group. Blom will receive a consideration of 15 million NOK as compensation for the shares, which leads to a loss of 90 million NOK in Blom. For further details on this transaction please see the attachment to this Stock Exchange Notification.
Blom Group consequently expects to report a preliminary EBIT of approx. break-even (zero) for the quarter. The equity at the end of the fourth quarter is expected to be approximately 53 million NOK for the Blom Group and 36 million NOK for the mother company.
For further information please contact:
Dirk Blaauw, CEO Blom ASA, at tel: +47 22 13 19 23 or
Lars Bakklund, CFO Blom ASA, at tel: +47 22 13 19 34