- The low interest rates which continue to fall, a less restrictive policy for loans from banks and a general fall in house prices are all factors which have attracted home buyers back to the market. The first three months of 2009 have shown a significant improvement in sales with an increase of 217% when compared with Q4 2008. For March and April alone, sales saw an increase of 12% from the same period last year. Both the Norwegian and Swedish segments have reported a definite increase in the number of potential home buyers at showings, and increased demand for new houses, comments Lars Nilsen, CEO in BWG Homes ASA.

 

The decline in turnover can be attributed to the significant cut in the Group's production capacity in both Norway and Sweden over the past year. The workforce cuts were necessary to ensure profitability in a weakened market throughout 2008. By October and November 2008, the market had come to a complete halt due to the financial crisis. A continued pressure on the company's operating revenues and margins in Q2 and Q3 2009 is expected.

 

- The fact that the decline in revenues is not higher than 21% can be explained by high quarterly sales of houses which had already been built. The number of finished houses at Q4-08 was approx. 150 units. By end of April approx. 90 of these units were sold. The current number of finished houses for sale are approx. 100 including recently completed houses, Nilsen comments further.

 

 

Operating revenues: NOK 677 million (NOK 858 million). Down 21.2%.

EBITDA: NOK 72 million (NOK 113 million). Down 36.3 %.

EBITDA margin: 10.6 % (13.1 %).

EBIT: NOK 61 million (NOK 106 million). Down 42.6 %.

EBIT margin: 9.0 % (12.4 %).

New orders: NOK 712 million (NOK 736 million). Down 3.2 %.

 

 

For more details, see attached interim report.

 

Lars Nilsen, CEO, BWG Homes ASA, tel: +47 23 24 60 00,

Arnt Eriksen, CFO, BWG Homes ASA, tel: +47 23 24 60 37, +47 922 14 625.