CONTINUED LOSSES FOR SIMTRONICS
Simtronics ASA, the Norwegian fire and gas safety company, today posted its fourth quarter and preliminary full year 2010 results. Soft markets and project delays resulted in negative earnings for Simtronics also in the fourth quarter. For the full year sales were down 10 per cent from the previous year, resulting in a net loss of NOK 49 million in 2010.
Simtronics posted fourth quarter sales of NOK 61.9 million, which is slightly down from the same period in 2009. EBITDA for the quarter came in at NOK -11,8 million, which is NOK 1,1 million better than the previous year.
For the full year 2010 revenues were NOK 260.4 million, which is a ten per cent decrease from 2009 sales. EBITDA for the full year 2010 was NOK -20.4 million, compared to NOK -16.7 million the previous year. Simtronics’ net result for 2010 ended at NOK -49.1 million, compared to NOK -41.9 million in 2009.
“The challenging market conditions continued also in the fourth quarter. Throughout 2010 we have been up against soft markets both in Europe and Asia. In addition, our customers seem to move forward with caution, including postponing planned deliveries,” said Simtronics CEO Rune Martini.
The Group’s order intake developed less favourably in the last months of 2010, leaving Simtronics with an order backlog of NOK 140 million at year-end. The order flow has however picked up after Year End with a number of significant orders.
The difficult situation throughout 2010 has had an adverse effect on Simtronics financial situation. A lack of working capital has forced the company to seek interim financing from its main shareholder while the Board of Directors has explored alternatives for a financial restructuring of the Company.
On 15 February 2011, Simtonics’ largest shareholder Autronica Fire and Security announced a conditional voluntary cash offer for all issued shares of Simtronics not already held by Autronica. The NOK 1.90 per share offer is supported and recommended by Simtronics' Board of Directors (see stock exchange announcement dated 15 February 2011).
For further information, please contact Mr Rune Martini, CEO of Simtronics ASA, telephone +47 4807 8080
Simtronics ASA (Oslo Stock Exchange: SIMTRO) works to prevent disasters from happening. The company is an international supplier of fire and gas safety systems, active fire fighting solutions and fire prevention systems. Simtronics' flame and gas detectors represent the most accurate, reliable and robust safety technology available. The Company's products, solutions and systems are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.