Downgrading of expectations to the result by DKK 10 million for 2012
Expectation to the result of the year is further negatively influenced by
disease pressure in the livestock, sale of agricultural land and fraud in
Disease pressure in the livestock has had negative effect with approx. DKK 5
million more than expected. Larger preventive maintenance and higher use of
employee resources have been carried out.
In February 2013, the company sold 411 hectares of agricultural land in Romania,
which is not in the company's primary cultivation area, with a smaller loss. At
the same time FirstFarms chose to write off on a few larger operational assets
in the livestock.
The total write offs constitute approx. DKK 3 million.
In general, FirstFarms assesses that the agricultural land in the Group is
FirstFarms A/S has been exposed to fraud at the office in Bucharest. The fraud
amounts to DKK 1.5-2 million.
FirstFarms A/S got suspicion about the fraud, when we in September last year
were closing the office in Bucharest and moving the administration to the
company's office in Faurei, from where the company's fieldwork already is
FirstFarms A/S has made claim for refund of the money from the now expelled
employees. Civil cases have been raised against the now expelled employees, just
as a police investigation is initiated regarding the fraud.
The expelled employees have made claim against FirstFarms for termination
benefit in the region of DKK 2.0 million. These demands are now tested before
the courts and are expected to be dismissed.
Changes in the organisation and tightening of the procedures are initiated, and
it reduces the risk for similar cases in the future.
FirstFarms downgrades in the light of the above the expectations for the result
for 2012 to an EBIT-result in the region of DKK -28 to -30 million compared to
previous expectation of an EBIT-result of DKK -15 to -20 million in company
announcement no. 14/2012.
Billund 6 March 2013
For further information:
Please visit our website www.firstfarms.com or
contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
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