NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 17 February, 2011 at 3.10 pm
NEO INDUSTRIAL MAKES AN ADDITIONAL INVESTMENT IN FINNDOMO
Neo Industrial has decided to strengthen the financial position of its Single Family Housing industry company, Finndomo. Neo Industrial will make an additional investment in Finndomo, together with the prefabricated house manufacturer’s other major owner, Ilkka Brotherus, pro rata i.e. in proportionate allocation. Neo Industrial’s share of the additional investment is 2.8 million euros.
In the same context, Finndomo has agreed with its financers of financing reorganization, which together with Neo Industrial’s and Ilkka Brotherus’s additional investments significantly strengthens the company’s balance sheet and supports its long-term strategy.
The effects of the restructuring measures carried out in Finndomo will be visible with some delay, and at the same time the faster than expected revival of the markets and demand require investments. This is why the entire company continued to operate at a loss in 2010, although its result was clearly better than in the previous year. Neo Industrial’s share of the loss was -1.3 million euros in May-December 2010.
Finndomo’s profitability is, however, improving. In H2 of 2010, the restructuring began to show results, and the company’s Finnish operations’ EBITDA turned positive.
- We continue to be convinced of Finndomo’s excellent operating conditions; quality, good brand and efficient production. Furthermore, last year’s positive tempo in the prefabricated house market seems to continue, comments Neo Industrial’s Managing Director Markku E. Rentto.
Finndomo carries on with its profitability improving measures in Finland and particularly in Sweden, where the restructuring will be intensified in the near future.
Neo Industrial invested in a 30 percent share of Finndomo in April 2010.
Neo Industrial Plc
Markku E. Rentto
Managing Director
FURTHER INFORMATION:
Markku E. Rentto, Managing Director, Neo Industrial, tel. +358 207 209 191
Neo Industrial Plc's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's B shares are listed on the NASDAQ OMX Helsinki Stock Exchange.