Interim Report 1 January – 31 March 2008
• Consolidated net sales for the period reached SEK 55.4 million (74.3).
• The operating loss for the period was SEK 18.6 million (7.8). The loss after tax was SEK
19.2 million (6.1), equal to earnings per share of SEK -1.13 (-0.38).
• On 24 January 2008 the Parent Company VärmeKyl Grossisten Scandinavia AB was granted
permission for a corporate reconstruction. Composition negotiations will be held in district court
on 25 April, after which the reconstruction is expected to be cancelled.
• In order to finance the company’s operations, the Board of Directors decided on two directed
issues to GTM Holding AS and an issue with pre-emptive rights for the shareholders. All in all,
these issues will provide the company with proceeds of approximately SEK 48 million.
• On 20 March a new Board of Directors took office, with Ole Oftedal as the new Chairman and
Gunnar Mannerheim, Patrik Gransäter, Bertil Persson and Fredrik Mannerheim as Board
members.
• In February the company began winding up its operations in the consumer market outside
Stockholm, and a total of around 90 employees were given notice. These measures are
expected generate cost savings of around SEK 40 million on an annual basis.
Comments from the CEO:
On 24 January a corporate reconstruction was initiated in the Parent Company Värmekyl Grossisten
Scandinavia AB, a process that has naturally set the tone for the entire first quarter. The Group
reported an overall loss of SEK 18.6 million for the period, mainly attributable to operations in the
consumer market. This is also the segment where we have made the most far-reaching changes and
where we expect to see tangible effects already in the second quarter.
As we prepare to leave the reconstruction behind us, I can say that the process has been
unusually successful. We have secured the company’s future financing and gained a new and
committed Board of Directors. Through the issue of shares and warrants the company will earn total
proceeds of around SEK 48.8 million, giving us a very strong cash position.
Following reconstruction, VKG is a whole different company today than it was last autumn. There
is still much work to be done in developing the Group, but I see enormous opportunities for VKG in the
future. This applies not least to the market for commercial properties and multi-dwelling units – the
portion of the market where we are already strong and which is assessed to have the greatest
potential for growth in coming years.