Impairment of intangible assets in connection with strategy changes for Nilar International AB
Nilar International AB (“Nilar” or “the Company”) announces write-downs of intangible assets in the fourth quarter of 2021 as a result of a revised strategy, and delays the publication of year-end reports due to strategy work and board changes.
As a result of ongoing changes regarding Nilar's future strategy, the Company will write down parts of its intangible assets. The preliminary assessment is that the need for impairment amounts to approximately SEK 140 million. The write-down is attributable to older development work concerning system design and production methods. The current research and development on the new BMS (Battery Management System) and reoxygenating technology is not affected as it is vital in Nilar's future product development and strategy. The write-down will have a negative effect on the result in the fourth quarter of 2021, whereby the operating profit for the period is expected to amount to a loss of approximately SEK -270 million. The write-down does not affect cash flow and Nilar will continue to have a good equity ratio after the write-down.
With the revised strategy, Nilar's management sees great potential for Nilar's products in the future:
“The market for energy storage is still in its infancy and it’s with great optimism that I look forward to the coming years. There is a strong momentum in the market where we have a unique position and potential to play a vital role in enabling the sustainable energy system of the future” says Erik Oldmark, CEO of Nilar.
As announced earlier today, Nilar's Nomination Committee proposes changes to the Board and the Company has convened an Extraordinary General Meeting on March 3rd, 2022, to decide on this. In order to anchor the changes in the Company's strategy, which are of great importance for the company's year-end report for 2021, the Company has decided to postpone the publication of the year-end report until February 28th 2022.
This information is information that Nilar International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 2022-02-14 15:30 CET.
For further information, please contact:
Erik Oldmark, CEO
+46 70 432 4444
erik.oldmark@nilar.com
Press contact:
Matilda Ekman Vråmo
+46 72-213 01 28
matilda.ekman.vramo@nilar.com
About Nilar:
Nilar is a Swedish-based developer and manufacturer of batteries for stationary energy storage systems. Energy storage systems can be used to bridge imbalances between energy production and demand in order to, for example, improve the utilization of intermittent electricity production from renewable energy sources, such as solar energy and wind power, as well as to strengthen the increasingly strained power grids. Nilar's battery technology is based on nickel-metal hydride (NiMH) electrochemistry with a water-based electrolyte, which results in a strong environmental, safety, and longevity profile. The Company is headquartered in Täby and the energy-efficient production facility is, since 2012, located in Gävle, where the Company's research and development also takes place.
The Nilar share is listed at Nasdaq First North Premier Growth Market, ticker NILAR. FNCA Sweden is Certified Adviser +46 8 528 00 399. For more information go to www.nilar.com.