STOCKHOLM, Sweden, July 23, 2003 (PRIMEZONE) -- Framfab began collaborating with 30 new clients during the first half of the year, while continuing to enjoy the trust of all of its big clients. Owing partly to postponed assignments, net revenue was lower than in the first quarter. Net revenue totaled SEK 132.3 million (195.7) in January-June and SEK 59.7 million (87.8) in April-June.
The loss after tax was SEK -72.7 million (-29.4) for January-June and SEK -69.3 million (-23.0) for April-June, SEK -37.2 million of which was attributable to the divestment of shares in B2 Bredband AB and SEK - 11 million to provisions for planned measures. Earnings per share amounted to SEK -0.15 (-0.06) in January-June and SEK -0.14 (-0.05) in April-June.
Cash flow of SEK -1.9 million (-7.4) for April-June represented a considerable improvement over January-March. The previously announced proceeds of SEK 12.8 million from the divestment of the B2 Bredband AB holding will be received in the third quarter.
Framfab again established that it holds a leading position in the field of digital brand communication by winning a Grand Prix at the Cannes Lions International Advertising Festival. This is the fourth year in succession that the company has won an award at Cannes.
The Malmo and Stockholm operations underwent restructuring during the second quarter. The company has decided to launch further measures in the Group. The measures will reduce annual costs in excess of SEK 40 million.
Poorer profitability as a result of restructuring and delayed assignments, along with the third quarters traditional weakness, isaffecting the companys financial strength. Framfabs clients, whichconsist chiefly of large multinational groups, seek suppliers that arefinancially strong. As a result, the board has proposed that anextraordinary meeting of shareholders bolster liquidity by approving alimited special issue of new shares. An additional objective of theissue is to attract big shareholders and be financially prepared for thelikely consolidation of the sector.
Given the present state of the business cycle, the board does not expect a rapid recovery from the ongoing sluggishness of the market in the second quarter. Although it is difficult to predict how the current weak demand will affect revenue for the second half of the year, the objective for the company is to attain profitability during the fourth quarter by means of reduced costs. Framfab is talking with other players about potential strategic constellations that can generate additional cost and marketing benefits.
www.waymaker.se or www.framfab.com
Framfab is a leading provider of consulting services and business solutions based on Internet technology. Most of Framfab's customers are big international companies, including 3M, AXA, the Coca-Cola Company, Danske Bank, Electrolux, Ericsson, Hydro Texaco, IKEA, Kellogg's, Maersk Sealand, NEC Packard-Bell, Nike, Observer, Postbank, SAAB, Volvo Car Corporation and UBS. Framfab operates in Denmark, Germany, the Netherlands and Sweden. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For more information, please visit www.framfab.com.
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