The Group has renegotiated the loan terms with its main bank Nordea. New covenants and a new repayment structure for the Group’s liabilities were established. New loan agreements were formally completed in the second quarter of 2009.
In February, a private placement was carried out issuing 28 000 000 shares at NOK 5.00 per share, bringing gross proceeds of NOK 140 million. The purpose of the issue was to strengthen the equity ratio and increase the Group’s financial flexibility. In March, another private placement (repair issue) was carried out issuing 4 276 000 shares at NOK 5.00 per share, bringing gross proceeds of NOK 21.38 million. The issues in total brought NOK 161 million in new capital (gross).
In April, the Group’s ownership stake in the insurance company Gar-Bo AB was sold for SEK 72.3 million. SEK 39.7 million was paid in 2009, and SEK 32.6 million will be paid in April 2014.
The Group’s cash flow from operations after interest and taxes was positive at NOK 301 million in 2009. This is an improvement of NOK 527 million on the figure for 2008. Capital tied up in projects fell by NOK 240 million in 2009, and payments for land purchases were very low. These two factors alone improved cash flows by NOK 629 million compared with 2008.
Net cash flow from investing activities was positive at NOK 32 million in 2009. This included a payment of NOK 35 million for the sale of shares in Gar-Bo AB, and interest on bank deposits of approx. NOK 4 million. Investments in operating assets amounted to NOK 4 million in 2009.
Current liabilities fell by NOK 395 million in 2009, and net cash flow from financing activities was negative at NOK 292 million. In 2008, the Group’s net borrowings were NOK 413 million.
Net interest-bearing debt was NOK 1 483 million at the end of 2009, compared with NOK 2 073 million at the end of 2008. NOK 470 million of this figure is attributable to project financing (land and building loans) and working capital loans. Capital tied up in projects was reduced by NOK 240 million in 2009. Including an extra instalment of NOK 30 million in October, the Group’s total repayments on its non-current debt amounted to NOK 51 million in 2009. SEK 834 million of total Swedish non-current debt (SEK 859 million) was converted into NOK loans in December. Consequently, the Group is no longer exposed to fluctuations in net interest-bearing debt due to currency movements.
In addition to financing needs connected with land and work in progress, the Group also has a constant need for providing guarantees to customers making prepayments. These are mainly statutory guarantees in favour of customers. The Group has a good working relationship with a number of banks and insurance companies and the current facilities for borrowing and guarantees are considered acceptable for the present activity level.
The Group’s equity was NOK 1 713 million at the end of the year, corresponding to an equity ratio of 39.8 per cent. The corresponding figures at the end of 2008 were NOK 1 540 million and 32.1 per cent.
The Group’s cash amounted to NOK 102 million at the end of 2009, with an additional NOK 201 million available under credit facilities. In addition to cash and working capital loans, the Group also has access to liquidity in the form of project financing. The level of this type of additional liquidity is dependent on the status of projects, and varies during the year. Overall, the Group has a solid financial position and good liquidity. Growth in the Group’s business operations will to some extent result in an increased need of access to project financing.