Winding up of a loss-making subsidiary in Denmark

As we have detailed in previous press releases, the market in Copenhagen is currently very weak. Cell Network has therefore decided to close one of its Danish subsidiaries, an interactive marketing communications business, as the company has not succeeded in achieving the expected profitability. Cell Network will, however, continue to be active in the Danish market through its profitable subsidiary, Cell Free Agents.

Cell Network AS, a Danish subsidiary of Cell Network employing 30 people, has failed to achieve the expected profitability because of the very weak market. A considerable injection of capital would be required from the parent company for the business to continue. For this reason, the board of directors of Cell Network AS has filed for bankruptcy.

The closure will give losses of up to approximately SEK 10 million in the second quarter of the year, generated from a write-down for goodwill and receivables.

Cell Network will continue to be active in Denmark through its subsidiary company Cell Free Agents, which in the past year has been responsible for approximately half of the group's sales in the Danish market. The company is profitable and supplies advanced IT services to leading Danish companies.


For more information, please contact:
Robert Karlsson, Director of Communication, Cell Network ,Tel: +46 709 565 141