Blom looks to the future Extensive restructuring has marked the company's reports in recent years. In the first quarter of 2014, the sale of the consulting engineering company in Romania was finalized. The company will also complete the restructuring of the company's operations in Iberia in the 2nd quarter of 2014. The company's focus and resources will in the future be directed towards new revenue-generating measures that will establish the foundation for a healthier business model in markets where the willingness and capacity to pay for the company's expertise is better. The first quarter is seasonally weak for the company. The company reported revenues of NOK 49 million for the 1st quarter of 2014, compared with NOK 42 million for the same quarter in 2013. EBITDA for the quarter was NOK -6 million, compared with NOK -10 million for the corresponding quarter in 2013. This corresponds to an EBITDA margin of -11.4 per cent, compared with -22.9 per cent in the 1st quarter of 2013. The operating loss for the quarter was NOK 7 million, compared with an operating loss of NOK 17 million for the same period in 2013. The pre-tax loss was NOK 9 million, compared with a pre-tax loss of NOK 20 million for the corresponding quarter in 2013. The company's principal operations are focused out of the Nordic region, where the company holds a strong historic market position. After three years when a significant portion of the operations in Sweden were linked to a major contract, the Swedish operations have now demonstrated an excellent ability to develop new business areas aimed at new customer groups based on products with satisfactory margins, in a market marked by overcapacity, the company has increased its market share in certain customer segments to over 50 per cent. The company believes that these development trends, combined with a focus on a broader range of services developed on the basis of the company's core competence, may form a solid foundation for growth in the time to come. The challenging macroeconomic conditions in Iberia continue, and the order intake to date in 2014 has been weak and significantly lower than expected. Therefore, the company will scale down its operations further through the sale and liquidation of its subsidiaries. Operations linked to specific customer segments in the region, as well as the operation and development of the company's database technology, will still be carried out by the Spanish subsidiary. In the future, the company will focus on increasing sales and measures to develop business opportunities in markets where the company's competence can be exposed to a better risk and earnings profile. The company will also assess new development and business opportunities in which we can exploit the company's expertise to improve the results through various forms of partnership. The company will also continue its work to adapt its structure, cost base and product portfolio. The company has established a satisfactory balance sheet through the measures that have been implemented. The company's equity ratio is 35 per cent, and the current ratio has improved. A new Board of Directors and a new shareholder structure with express confidence in the company's competence and opportunities is a strong motivation for the company's employees. For further information please contact the CEO, Dirk Blaauw, on tel. +47 22 13 19 23.
Attachments
Blom_Q1_2014