FINANCIAL RESTRUCTURING The company has had an on-going dialogue with a majority of the key bondholders for the company's bond loan with a view to strengthening the company's capital structure through increasing its equity. The bondholders converted debt of NOK 312 million to equity in May 2012 and contributed to re-establishing a healthy balance sheet for the company and securing adequate liquidity which contributes to create a basis for regained revenue growth and improved margins. The first quarter of the year has also been marked by continued macroeconomic unrest in many of the markets in which Blom operates. Public sector customers, particularly in certain southern and central European countries, showed a significant decline in demand. The introduction of a new market-oriented organisational structure for the group in 2011 has contributed to revenue growth. At the same time, as a result of the continuation and intensification of the measures that the company implemented last year to reduce the cost base, the margins improved during the quarter. Since the first quarter has a relatively low revenue volume due to seasonal fluctuations, the EBITDA for the quarter is negative. The company posted revenues of NOK 95 million for the 1st quarter, compared with NOK 81 million for the same quarter in 2011. EBITDA for the quarter was NOK - 11 million, compared with NOK -17 million for the corresponding quarter in 2011. This corresponds to an EBITDA margin of -11.1 per cent, compared with -20.7 per cent for the 1st quarter of 2011. The operating profit for the quarter was NOK -24 million, compared with NOK -31 million for the same period in 2011. The pre-tax profit was NOK -39 million, compared with NOK -42 million for the corresponding period in 2011. 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.
Attachments
Blom_Q1_Report_2012