In connection with the audit of the 2009 annual financial accounts of our Spanish subsidiary indications of irregularities in recognition of income have been revealed. The indicated irregularities are related to the basis for revenue recognition of projects in the accounting years 2008 and 2009. The aggregated negative EBITDA-impact for the accounting years 2008 and 2009 is preliminary estimated to be approximately NOK 30 million.
Investigation of these matters is still ongoing. The Board of Directors of Blom ASA has appointed an investigation-committee headed by PWCs Forensic Services in Madrid. The Managing Director of the Spanish subsidiary has with immediate effect resigned his position.
In addition, due to general negative market development and uncertainty, write downs and provisions for future losses related to the whole project portfolio of the Spanish subsidiary will be carried out, which will have a preliminary negative EBITDA impact of NOK 20 - 30 million.
Including the above mentioned adjustments, the preliminary revenues of the Blom Group is expected to be approximately NOK 140-160 millions in fourth quarter 2009, with a corresponding preliminary EBITDA of approximately NOK 10-20 millions. The Board of Directors of Blom ASA has due to uncertainty in the closing of the annual accounts decided to postpone the release of the financial results for fourth quarter 2009 to Friday 26th February 2010.
For further information please contact:
Dirk Blaauw, CEO Blom ASA, tel: (+47) 22 13 19 20 or
Lars Bakklund, CFO Blom ASA, tel: (+47) 911 79 120