Basis of preparation
The annual financial statements have been prepared in accordance with IFRS (International Financial Reporting Standards). The Board confirms that the annual financial statements have been prepared on the basis of a going concern, in accordance with section 3-3 of the Norwegian Accounting Act.
Results
The Group’s staffing and production capacity was reduced considerably in the second half of 2008 and the first quarter of 2009. This was largely the result of the decline in the housing market, which was exacerbated by the financial crisis. In the first half of 2009, the achieved average price of houses sold was low as a result of general price pressure and also because the Group sold a relatively high proportion of reasonably priced houses. This meant sales and operating profit were lower in 2009 than the previous year. However, the Group still experienced good growth in sales and operating profit during the year.
Housing starts and the order backlog were very low in both the Norwegian and Swedish housing sectors in 2008 and 2009. The combination of a limited number of new houses, low interest rates and the Group’s holdings of previously completed houses helped make 2009 a good sales year for BWG Homes.Operating income for the year was NOK 2,534 million. This is a decline of NOK 637 million (20.1 per cent) on the figure for 2008. Sales of previously completed houses generated a higher sales figure than current production would have indicated.
Earnings before finance and depreciations (operational1) EBITDA) was NOK 274 million. This is a decline of NOK 104 million (-27.6 per cent) on the figure for 2008. The operational EBITDA margin for 2009 was 10.8 per cent, compared with 11.9 per cent in 2008. The margin reduction in 2009 was the result of price pressure in a demanding market and a temporary fall in operating efficiency. The margin was also affected by the fact that the decline in production was not matched by a pro rata decline in fixed costs.
Earnings before finance (EBIT) was NOK 250 million. This is a decline of NOK 107 million (30.1 per cent) on the figure for 2008. The operational EBIT margin for 2009 was 9.8 per cent, compared with 11.2 per cent in 2008.
Net finance costs for the year amounted to NOK 133 million. This included increased value of NOK 6 million in forward rate agreements and negative currency effects of NOK 22 million. Net finance costs for 2008 were NOK 153 million. This included negative value growth of NOK 43 million in forward rate agreements and positive currency effects of NOK 25 million. Net interest-bearing debt fell considerably during the year, which also contributed to lower finance costs than in 2008.
Earnings before tax (EBT) was NOK 139 million in 2009. This is a decline of NOK 40 million on the figure for 2008.
Tax expenses were NOK 27 million. This is a decline of NOK 23 million compared with 2008. The decline is largely due to a fall in profits.
Profit for the year was NOK 90 million. This is an increase of NOK 172 million compared with 2008. In 2008, goodwill impairment losses of NOK 226 million were recognised.
The net order intake for 2009 was NOK 2 882 million, which is an increase of 22.8 per cent compared with 2008 (NOK 2 347 million). The Group ended the year with an order backlog of NOK 1 471 million, compared with NOK 1 169 million at the end of 2008.