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NRC Group Interim / Quarterly Report 2010
3693_rns_2010-04-29_c8419efe-81f2-4cb2-ad2c-b9f3fc7cad80.pdf
Interim / Quarterly Report
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BLOM
IMAGING THE WORLD
Report for 1st quarter 2010
Report for
1^{\text{st}}
quarter 2010
A challenging quarter
The company reported revenues of NOK 122 million in the 1st quarter, compared with NOK 150 million for the same quarter in 2009. EBITDA for the quarter was minus NOK 7 million, compared with minus NOK 6 million for the 1st quarter of 2009. This corresponds to an EBITDA margin of minus 5.6 per cent for the 1st quarter of 2010, compared with minus 3.9 per cent for the 1st quarter of 2009. The operating loss for the quarter was NOK 28 million, compared with a loss of NOK 26 million for the 1st quarter of 2009. The pre-tax loss was NOK 39 million, compared with a loss of NOK 36 million for the corresponding quarter in 2009.
The operating revenues for the respective segments totalled NOK 106 million for Geo Engineering and NOK 16 million for Information Services. The comparative figures for the 1st quarter of 2009 were NOK 135 million for Geo Engineering and NOK 15 million for Information Services.
The first quarter has historically been the quarter with the lowest creation of value. The company is seeking to establish operations that are not so exposed to fluctuations through establishing the sale of its own databases. Sale of the same data to multiple customers through different distribution channels is a long-term investment that the company expects will provide a good return over time. A stronger focus on and the implementation of partnership agreements, and building up our own sales force, are expected to gradually strengthen our ability to penetrate the market.
The demand for the company's contractual services for which the public sector is the largest customer group is marked by the continuing weak economy in a number of countries in which we have a significant portion of our operations. This has resulted in temporary pressure on the prices in parts of our operations. The company has decided to focus on services where satisfactory margins can be achieved. This strategy will have an impact on our revenue growth in 2010.
The reorganisation of our operations in Spain also marked the quarter. This reorganisation was implemented after an extensive investigation that was conducted due to the identification of irregularities in the accounting. The company has implemented measures in consultation with the company's advisors to ensure that there is no reoccurrence. The extensive reorganisation will strengthen the operations in Spain over time and increase the focus on the competence that has been built up at our office in Madrid.
Results
| (Amounts in NOK 1000) | 1st qtr. 2010 | 1st qtr. 2009 | 31/12/2009 |
|---|---|---|---|
| Operating revenues | 122 294 | 149 627 | 736 901 |
| EBITDA | -6 809 | -5 862 | 92 306 |
| EBIT | -27 753 | -26 461 | -53 832 |
| EBT | -39 244 | -35 606 | -93 960 |
Report for 1st quarter 2010
This report has been prepared in accordance with IAS 34 on interim accounts. The interim accounts do not contain all the information that is required in complete annual accounts, and they should be read in conjunction with the consolidated accounts for 2009. The interim accounts have been prepared in accordance with the same principles that are used in the annual accounts for 2009. The report has not been audited.
Cash flow
Net cash flow from operations was positive NOK 11 million, which is attributed primarily to a reduction in inventories and work in progress. Investments in the quarter totalled NOK 13 million, which reflects primarily the updating of databases and development related to Blom URBEX. The cash flow from financing activities was negative NOK 18 million, which reflects the repayment of debt during the quarter.
Operations
Information Services achieved revenues of NOK 16 million in the quarter, compared with NOK 15 million in the 1st quarter of 2009. During the quarter the company renewed and expanded its cooperation with Microsoft, which is one of several building blocks in the company's enhanced focus on and implementation of market-oriented partnership agreements. A gradual build-up of our own sales force is expected to strengthen our ability to penetrate the market.
The first quarter is seasonally the weakest quarter for Engineering Services. The first quarter was also marked by challenging weather conditions. This entailed a lot of downtime for the company's aircraft fleet and the associated reduction in revenues. The continuing challenging macroeconomic situations in a number of countries in which the company operates has temporarily increased the pressure on prices for parts of our operations. Under these market conditions, the company has decided to focus on services where satisfactory margins can be achieved.
The following agreements have been entered into in the first quarter:
Blom awarded significant and strategically important contract in Italy through Telaer STA consortium
Blom CGR, Blom's subsidiary in Italy, has formed a new consortium, Telaer STA, with two daughter companies of the Finmeccanica Group, E-Geos and Galileo Avionica, for the purpose of providing geospatial and airborne geo referenced data and services to the Italian Governmental Agency (AGEA).
Telaer STA has now been awarded a EUR 15 million contract for a survey related to the provision of remote sensing services, and any other new and additional services for spatial information, required by AGEA, both to support the mission of the national agriculture as well as the regional forestry in Italy. The duration of the contract is three years.
Blom has signed strategically important contract in France for mapping and monitoring of coastal stretches
Blom signed 1st of February a framework agreement for a survey related to the mapping and monitoring of coastal stretches in Brittany, France, required by the French Marine
Report for 1st quarter 2010
Protected Areas Agency and the Marine Natural Park of Iroise. The framework agreement has a total value of NOK 11 million, with NOK 5,5 million already signed for. The contract is will be completed by 3rd quarter 2010.
IGN (National Geographic Institute) programme, aims to produce a seamless Digital Terrain Model of the entire French coast (more than 5.500 km length), which will be the core of all integrated coastal management projects.
Blom awarded NOK 20 million contract in Mongolia
Blom has 3rd of February awarded a consultancy services contract in Mongolia by the Millennium Challenge Account - Mongolia (MCA-M), as part of the Property Rights Project. The contract has a total value of NOK 20 million and the project will be completed during a 3-year period. The project is funded by Millennium Challenge Corporation (USA).
The objective of the consultancy service is to implement activities in order to make registration processes more efficient for the public and private sectors in Mongolia. Specifically, Blom will provide full business analysis and recommendations on improving registration information technology systems, processes and procedures; develop management tools and guidance documents; digitize registry data.
Blom and Microsoft renew and extend agreement valued at USD 10 - 14 million
Blom has 4th of March renewed and extended the existing agreement with Microsoft to 2014. The agreement allows Microsoft the right to use Blom's database of oblique aerial images - RealImages. The RealImages database is based on Pictometry technology, and is the most extensive library of oblique aerial images, covering more than 1,100 cities in Europe. The contract has a value between USD 10 and USD 14 million from January 2010 until end of the contract period.
Blom will continue to provide the oblique images both offline and online through the company's own server BlomURBEX.
Blom awarded EUR 2,8 million contract in Albania
Blom has 26th of March awarded a World Bank funded service contract for the registration of real estate property in Albania by the Albanian Government. The contract has a total value of ca. EUR 2,8 million and the project will be completed during a 2-year period. The contract is expected to be signed in Q2 2010.
The objective of the services is to carry out systematic first registration of real estate properties in 50 cadastral zones throughout Albania. The services include compiling existing documents, public information campaign, surveying and mapping as well as revision of documents in the field, updating of cadastre maps and real estate property registers.
Organisation and personnel
During the period the company strengthened its finance and accounting function at the head office by adding two persons.
Continued restructuring of the group combined with improved coordination and utilisation of the company's resources will result, in combination with the introduction of new technology, to additional reductions in the number of employees in 2010.
The company has a staff of employees with a high level of competence. This represents the foundation for the company's future growth. As at 31 March 2010 there were a total
Report for 1st quarter 2010
of 584 employees in the operative companies, while there was a total of 578 employees at the production facilities in Indonesia and Eastern Europe. The group has a total of 1,162 employees.
Shareholder matters
The total number of shareholders as at 31 March 2010 was 2,796, and foreign shareholders accounted for 43.9 per cent of the share capital. Blom owns a total of 1,100,000 of the company's own shares, which represents 2.64 per cent of the total number of outstanding shares.
Future outlook
Due to the fact that the continuing weak economy in a number of countries has temporarily increased the pressure on prices in parts of our operations, the company has decided to focus on services where satisfactory margins can be achieved. This strategy is expected to result in moderate growth in our revenues and contribute to an improvement in our profitability in 2010.
Oslo, 28 April 2010
Gunnar Hirsti
Board Chairman
Per Kyllingstad
Board Member
Bente Loe
Board Member
Brita Eilertsen
Board Member
Dirk Blaauw
Managing Director and Board Member
Report for 1st quarter 2010
Consolidated statement of comprehensive income
(Amounts in NOK 1000)
| 31/03/2010 | 31/03/2009 | 31/12/2009 | |
|---|---|---|---|
| Operating revenues | 122 294 | 149 627 | 736 901 |
| Cost of materials | 39 383 | 52 799 | 242 461 |
| Salaries and personnel costs | 68 451 | 77 746 | 297 554 |
| Depreciation and amortisation | 20 944 | 20 599 | 146 138 |
| Other operating and administrative costs | 21 268 | 24 944 | 104 580 |
| Operating expenses | 150 047 | 176 088 | 790 733 |
| Operating profit/loss | -27 753 | -26 461 | -53 832 |
| Profit/loss attributable from associated companies | -155 | -697 | -565 |
| Net financial items | -11 335 | -8 447 | -39 562 |
| Pre-tax profit/loss | -39 244 | -35 606 | -93 960 |
| Taxes | 10 894 | 9 586 | 10 949 |
| Net profit/loss | -28 350 | -26 020 | -83 012 |
| Profit/loss attributable to: | |||
| Shareholders | -28 350 | -25 921 | -82 505 |
| Minority interests | 0 | -98 | -506 |
| Net profit/loss | -28 350 | -26 020 | -83 012 |
| Total comprehensive income: | |||
| Currency translation differences | -17 334 | -50 323 | -74 757 |
| Total comprehensive income | -45 684 | -76 343 | -157 769 |
| Comprehensive income attributable to: | |||
| Shareholders | -45 684 | -76 100 | -156 688 |
| Minority interests | 0 | -242 | -1 081 |
| Total comprehensive income | -45 684 | -76 343 | -157 769 |
| Earnings and diluted earnings per share | -0.70 | -0.64 | -2.04 |
Report for 1st quarter 2010
Balance Sheet
| ASSETS | |||
|---|---|---|---|
| (Amounts in NOK 1000) | |||
| 31/03/2010 | 31/03/2009 | 31/12/2009 | |
| Patents, licences and similar rights | 37 184 | 42 524 | 36 700 |
| Deferred tax assets | 60 746 | 38 203 | 50 428 |
| Goodwill | 263 604 | 333 126 | 270 579 |
| Total intangible fixed assets | 361 535 | 413 853 | 357 707 |
| Tangible fixed assets | 290 220 | 304 659 | 295 797 |
| Long-term receivables | 9 681 | 11 377 | 10 253 |
| Investments in associated companies | 69 178 | 45 114 | 45 246 |
| Total fixed asset investments | 78 859 | 56 491 | 55 498 |
| Total long-term assets | 730 614 | 775 003 | 709 003 |
| Inventories | 2 842 | 3 697 | 2 826 |
| Work in progress | 250 084 | 247 450 | 261 237 |
| Total inventories | 252 926 | 251 147 | 264 062 |
| Receivables from customers | 171 332 | 237 391 | 240 252 |
| Other current receivables | 40 396 | 39 626 | 35 404 |
| Total receivables | 211 728 | 277 017 | 275 656 |
| Cash and cash equivalents | 145 397 | 63 861 | 164 873 |
| Total current assets | 610 051 | 592 025 | 704 592 |
| TOTAL ASSETS | 1 340 665 | 1 367 028 | 1 413 595 |
Report for 1st quarter 2010
Balance Sheet
| EQUITY AND LIABILITIES
(Amounts in NOK 1000) | | | |
| --- | --- | --- | --- |
| | 31/03/2010 | 31/03/2009 | 31/12/2009 |
| Paid in share capital: | | | |
| Nominal share capital | 4 170 | 4 170 | 4 170 |
| Treasury shares | -110 | -110 | -110 |
| Share premium account | 129 581 | 129 581 | 129 581 |
| Other reserves: | | | |
| Currency translation differences | -35 758 | 4 371 | -18 424 |
| Retained earnings | 553 954 | 638 594 | 580 924 |
| | 651 837 | 776 606 | 696 141 |
| Minority interests | 8 | 2 347 | 1 389 |
| Total equity | 651 845 | 778 953 | 697 529 |
| Pension obligations | 20 146 | 20 004 | 20 625 |
| Long-term liabilities | 361 552 | 213 620 | 368 717 |
| Total long-term liabilities | 381 698 | 233 624 | 389 342 |
| Overdraft facilities | 77 792 | 77 742 | 89 824 |
| Other interest-bearing short-term liabilities | 29 093 | 81 639 | 31 031 |
| Total interest bearing short-term liabilities | 106 885 | 159 381 | 120 855 |
| Payables to suppliers | 97 004 | 72 517 | 104 798 |
| Unpaid government taxes | 23 371 | 24 385 | 35 289 |
| Other current liabilities | 79 863 | 98 168 | 65 780 |
| Total other current liabilities | 200 238 | 195 070 | 205 868 |
| Total current liabilities | 307 122 | 354 451 | 326 723 |
| TOTAL EQUITY AND LIABILITIES | 1 340 665 | 1 367 028 | 1 413 595 |
Change in equity from 1 January to 31 March
| 2010 | 2009 | |
|---|---|---|
| Equity as at 31 December | 697 529 | 855 296 |
| Profit/loss for the period | -28 350 | -26 020 |
| Foreign exchange losses/gains from translation of foreign subsidiaries | -17 334 | -50 323 |
| Equity | 651 845 | 778 953 |
Report for 1st quarter 2010
Cash Flow Statement
| | Indirect model | (Figures in NOK 1000)
As at 31 March | |
| --- | --- | --- | --- |
| | | 2010 | 2009 |
| CASH FLOW FROM OPERATIONAL ACTIVITIES | | | |
| | Pre-tax profit/loss | -39 244 | -35 606 |
| + | Depreciation and amortisation of operating assets | 20 944 | 20 599 |
| +/- | Change in receivables from customers | 43 990 | 115 628 |
| +/- | Change in inventories and work in progress | 11 137 | -12 090 |
| +/- | Change in supplier debt | -7 794 | -8 062 |
| +/- | Change in other accruals and unrealised foreign exchange | -17 889 | -50 144 |
| A = | Net cash flow from operational activities | 11 144 | 30 326 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | | | |
| - | Payments for purchase of operating assets | -13 011 | -20 463 |
| B = | Net cash flow from investment activities | -13 011 | -20 463 |
| CASH FLOW FROM FINANCING ACTIVITIES | | | |
| - | Payments on long-term debt and loans | -8 577 | -25 125 |
| +/- | Net change in overdraft facilities | -9 032 | 2 641 |
| C = | Net cash flow from financing activities | -17 609 | -22 484 |
| | A+B+C Net change in cash and cash equivalents | -19 476 | -12 621 |
| + | Cash and cash equivalents | 164 873 | 76 482 |
| = | Cash and cash equivalents | 145 397 | 63 861 |
Report for 1st quarter 2010
Segments
| (Amounts in NOK 1000) | ||
|---|---|---|
| 31/03/2010 | 31/03/2009 | |
| Information Services | 16 337 | 15 149 |
| Geo Engineering Services | 105 957 | 134 478 |
| Total operating revenues | 122 294 | 149 627 |
| Information Services | 3 764 | -2 368 |
| Geo Engineering Services | -59 | 5 795 |
| Others | -10 514 | -9 289 |
| EBITDA | -6 809 | -5 862 |
| Information Services | -6 948 | -10 024 |
| Geo Engineering Services | -10 251 | -6 774 |
| Others | -10 554 | -9 663 |
| EBIT | -27 753 | -26 461 |
| Information Services | -155 | -697 |
| Profit attributable to associated companies: | -155 | -697 |
| Information Services | -7 103 | -10 721 |
| Geo Engineering Services | -10 251 | -6 774 |
| Others | -10 554 | -9 663 |
| Earnings before interest and tax | -27 908 | -27 158 |
| Information Services | 536 533 | 539 628 |
| Geo Engineering Services | 652 911 | 674 333 |
| Others/Unallocated | 151 221 | 153 067 |
| Total assets 1) | 1 340 665 | 1 367 028 |
| Information Services | 10 559 | 9 434 |
| Geo Engineering Services | 7 563 | 7 984 |
| Total assets | 18 122 | 17 418 |
1) Allocated assets include receivables from customers, work in progress, inventories, fixed assets and intangible assets with the exception of deferred tax assets. Investments in associated companies are additional.
Report for 1st quarter 2010
Blom ASA
P.O. Box 34 Skøyen
N-0212 Oslo
Norway
Tel.: +47 22 13 19 20
Fax: +47 22 13 19 21
E-mail: [email protected]
Blom Aerofilms Ltd.
Cheddar Business Park
Wedmore Road, BS27 3EB
UK
Tel.: +44 1934 311000
Fax: +44 1334 745825
E-mail: [email protected]
Blom Sistemas Geoespaciales S.L.
C/ Zurbano 46
28027 Madrid, Spain
Tel.: +34 914 150 350
Fax: +34 9 310 49 14
E-mail: [email protected]
Blom Deutschland GmbH
Friedrich-Engels-Ring 48 a
17033 Neubrandenburg, Germany
Tel.: +49 395 570 7480
Fax: +49 398 485 748299
E-mail: [email protected]
Blom CGR S.p.A.
Via Cremonese 35/A
43126 Parma
Italy
Tel.: +39 0521 994948
Fax: +39 0521 992803
E-mail: [email protected]
Blom Romania S.R.L.
Ion Heliade Radulescu Street, no 3-5
130010 Tagoviste
Romania
Tel.: +40(0)245 606 150
Fax: +40(0)245 210 852
E-mail: [email protected]
Blom Kartta OY
Plasilanraitio 5
FI-00240 Helsinki
Finland
Tel.: +358 9 229 3060
Fax: +358 9 148 1711
E-mail: [email protected]
Blom Sweden AB
Klippan 1J
SE-414 51 Gothenburg
Sweden
Tel.: +46 317 045670
Fax: +46 317 049980
E-mail: [email protected]
Blom Geomatics AS
P.O. Box 34 Skøyen
N-0202 Oslo
Norway
Tel.: +47 23 25 45 00
Fax: +47 23 25 45 01
E-mail: [email protected]
BlomInfo AS
Masnedøgade 20
DK-2100 Copenhagen
Denmark
Tel.: +45 70 200 226
Fax: +45 70 200 227
E-mail: [email protected]