Annual report 2012 - Comrod

Annual report 2012 7/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement Notes• New telescopic mast.• Various multiband/wideband antennas,including jamming versions.• Various antenna control systems.• New and improved medium duty mast.Parent CompanyThe Group’s administration is located at Tau (nearStavanger), Norway, and consists of the Group’sChief Executive Officer (a position combined withthe role as Managing Director of Comrod AS) , theChief Financial Officer and the Chief CommercialOfficer . The CFO position of the Group iscombined with the Financial Director role ofComrod AS. With the current level of activity thisis considered to provide a slim and cost-effectiveGroup Management.In 2012, the Parent Company returned anoperating loss of NOK 9.3 million compared toan operating loss of NOK 11.4 million in 2011. Theloss for the year was NOK 31.3 million comparedwith a loss of 11.1 million in 2011. This includesnon-recurring costs of NOK 23.9 million, relatedto investment write-off of the Comrod France andComrod Sweden investments.Cash flow from operations amounted to NOK -6.7million (NOK 19.1 million in 2011) compared to anEBITDA of NOK -9.3 million (NOK -11.4 in 2011).The work environment is regarded as positive.There were no incidents resulting in personalinjury or material damage. The Company’soperations are not considered to pollute theexternal environment.GroupThe Comrod Communication Group reportedrevenues of NOK 218.3 million (compared to NOK286.2 million in 2011) and an operating profitbefore depreciation/amortization (EBITDA) ofNOK 0.7 million in 2012 compared to NOK 13.9million in 2011. Operating profit (EBIT) amountedto NOK – 30.1 million (NOK -24.6 million in 2011).The equity as of 31 December 2012 was NOK104.5 million (NOK 129.1 million in 2011) andthe corresponding equity ratio was 38.4 % (38.9%). The Group’s long-term strategy is to have anequity ratio of minimum 30 %.Inventories increased with NOK 1.5 million duringthe year. Current receivables were reduced byNOK 19.1 million. Current liabilities were reducedby NOK 18.5 million. Total working capital thusincreased by NOK 0.9 million.Net interest-bearing liabilities increased with NOK4.8 million during the year.The total assets at the end of December 2012 wasNOK 272.0 million (NOK 331.9 million in 2011).Due to the non-satisfactory financial performanceduring 2012, a capital increase of NOK 7.9 millionwas issued in December 2012 to strengthen theGroup liquidity.Cash flow from operations amounted to NOK 0.5million (NOK 22.0 million in 2011) compared toan EBITDA of NOK 0.7 million (NOK 13.9 millionin 2011). Investing activities amounted to NOK10.3 million (NOK 35.5 million in 2011). Financingactivities was NOK -11.8 million (NOK 10.8 millionin 2011).During Q4 2012 the EBITDA-bank covenant7