Tiimari: PRELIMINARY INFORMATION ON 2010 RESULTS - GOODWILL IMPAIRMENT IN TIIMARI BUSINESS OPERATIONS
The issued full-year outlook for 2010 remains unchanged. The company had estimated that it has the potential to improve operational profitability (EBITDA before non-recurring and to have clearly positive operational cash flow (operating cash flow before financial items and taxes) in 2010.
Tiimari’s result in 2010 will be better than year before but weaker than expected as a result of the weaker 2010 Christmas Sales than the year before. The January sales trend was below expectations as well, in Finland in particular, as reported on 8th February 2011 which is challenging the company's financial position. As announced on 30 December 2011 Standstill Agreement, the company will take steps to identify the structural and financial options needed to strengthen its balance sheet by an accelerated schedule during the first part of 2011.
Tiimari Plc will recognize an impairment loss on goodwill in the Tiimari business operations for the fourth quarter of 2010. According to the preliminary calculations the impairment loss is about EUR 7 million. Thereafter the goodwill of Tiimari business will be about EUR 23,8 million. The recognized impairment loss will not have a direct effect on the cash flow of the Group. Cash flow from operations is positive. Operative profitability (EBITDA before non-recurring items) is better than year ago. All numbers in this stock exchange release are unaudited.
Tiimari Plc will publish January-December 2010 Financial Statements on 7 March 2011.
Hannu Krook
Managing Director
Tiimari Plc
Further information:
Managing Director Hannu Krook
tel. + 358 (0)3 812911, e-mail hannu.krook@tiimari.fi
Chief Financial Officer Kai Järvikare
tel. +358 44 7129475, email kai.jarvikare@tiimari.fi
Distribution: NASDAQ OMX Helsinki
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Tiimari Plc is a listed company. The group consists of two retail shop concepts:Tiimari and Gallerix. These two concepts do business in five countries within the Baltic Sea region and there are altogether nearly 300 shops. All concepts belong to the forerunners of their market segment.