Company Announcement No. 9/2007
Copenhagen, Denmark
August 23, 2007
Financial results for First Half-year 2007 and Announcement of New CEO
Copenhagen, Denmark, August 23, 2007: Olicom A/S, which trade on OMX Nordic
Exchange in Copenhagen, today announced its financial results for first
half-year 2007.
New Main Activity
As also announced in the Company's annual report for 2006, the Company has
entered an agreement with ADR NR. 1904 ApS (“ADR”) on a share issue and the
acquisition from ADR of a real estate portfolio. The agreement is conditional
upon approval by the shareholders of the terms of the share issue. Under the
agreement ADR will secure the funding of Olicom's operations until the
completion of the share issue. After the planned share issue Olicom's future
main activity will be real estate investments. The Company's existing IT
venture capital investments are expected to be held until exits are achieved.
The share issue, which will be presented for approval at an extraordinary
shareholders' meeting, is expected to comprise a share capital increase in the
amount of DKK 200 million of which DKK 100 million will be offered as a rights
issue and another DKK 100 million will be a directed issue. Through the
directed issue the Company will acquire 9 business properties predominantly
located in Denmark having a gross value of app. DKK 300 million. The price of
the properties has been determined based on valuations provided by independent
experts. The subscription price is expected to be equal to the nominal value of
the shares, which is DKK 0.25 per share. The Company expects that the
prospectus for the share issue will be completed before the end of Q3 2007
allowing the issue to take place early in Q4 2007.
New Management
In preparation of the Company's new main activity Per Brøndum Andersen has been
appointed new Chief Executive Officer effective September 1, 2007. Per Brøndum
Andersen holds a degree as chartered accountant and has most recently worked as
an independent real estate development consultant. Previously Per Brøndum
Andersen has held positions as Chief Financial Officer in both Carlsberg A/S
and Coca-Cola Nordic Beverages A/S. Per Brøndum Andersen has also participated
in the development of Carlsberg's real estate portfolio.
The Company's present CEO Boje Rinhart remains a member of the Company's
Management Board, but is expected to leave his position in April 2008.
Half-year Report
The Board of Directors and Management have today considered and approved the
Interim Report for the period January 1 - June 30, 2007 for Olicom A/S.
The Interim Report, which has not been audited, has been drawn up in accordance
with the provisions in IFRS and additional provisions for companies listed on
OMX Nordic Exchange in Copenhagen. The accounting policies applied are
considered as appropriate so that the Interim Report under the stated
assumptions gives a true and fair view of Olicom A/S' assets, liabilities and
financial position as of June 30, 2007 and of the Group's results for the
period January 1 - June 30, 2007.
The financial statements for the period January 1 - June 30, 2007, which have
been prepared under the assumption that the abovementioned plan is carried
through, show a loss of DKK 8.5 million. The shareholders' equity as of June
30, 2007, is negative by DKK 11.7 million.
In July 2007 the EC Court has ruled in favour of Olicom in a case concerning
payment of import duty regarding combined modem and network cards, which the
Company manufactured in the late 1990s. The case will be finally settled by the
Danish courts, which are expected, however, to follow the ruling of the EC
Court. In that case the Company will receive a refund of app. DKK 2 million
plus interest. The Company expects that this amount can be booked as income in
Q3 2007.
Portfolio Companies
Through the co-operation with IVS A/S the Company holds shares in LH Comlog
A/S, Hymite A/S, and Scalado AB. All of the three portfolio companies have
during the year performed in accordance with the Company's expectations. During
the quarter Scalado raised additional capital from its existing shareholders
and Olicom subscribed its proportional share at an amount of DKK 1.3 million.
Expectations for 2007
Provided that the shareholders' meeting in Olicom approves the preconditions
for implementing the agreement with ADR, the Company's future activities will
predominantly be real-estate investments. In 2007 the Company expects to incur
administrative and financial costs of DKK 8 - 10 million. In addition the
Company's result may be impacted by non-recurrent costs related to the
implementation of the new business plan and by losses or gains resulting from
write-downs and write-ups of the value of the existing investment portfolio.
The result of the new investment activities is not expected to be significant
to the 2007 result as such investments will only impact the last quarter of the
year.
Forward Looking Statements
This announcement contains forward looking statements, which are subject to
risks and uncertainties, which may cause actual results to differ from the
anticipated results.
Attachments
Summary of Income Statement and Balance Sheet follow.
About Olicom
Further information about Olicom can be found at www.olicom.com or obtained by
contacting CEO Boje Rinhart tel. +45 4527 0000 or e-mail bri@olicom.com.
Attachments - Summary of Income Statement for The Group
Attachments - Summary of Balance Sheet for The Group
Attachments - Statement of Equity
