Basis of preparation
The annual financial statements for BWG Homes ASA have been prepared in accordance with the Norwegian Public Limited Liability Companies Act, the Norwegian Accounting Act and Norwegian GAAP as at 31 December 2009.
Profit 2009
In 2009, the Parent Company’s group contributions from subsidiaries amounted to NOK 100 million. This amount was recognised in the income statement. After tax expenses of NOK 13 million, the income statement for the parent company showed profit for the year of NOK 32.2 million. In 2008, the income statement showed a loss of NOK 112.4 million.
Allocation of profit
The company has been through a challenging period where there has been a need to strengthen the comany’s financial situation. At the end of 2009 the financial position appears as strong, but the Board will still give priority to repayment of long-term debt ahead of dividends to further strengthen the balance sheet. The profit is proposed entirely used to cover previous losses. The Board will propose that the general meeting resolve a reduction of the share premium reserve with allocation to other paid-in capital.