STOCKHOLM, Sweden, May 10, 2004 (PRIMEZONE) -- At the Extra General Meeting, held today on May 10 2004, that will consider the board's decision to issue new shares with preferential right for existing shareholders, Framfab's financial objectives will be presented. The rights issue is being carried out to better position Framfab to take full part in the ongoing Interactive Marketing and Internet Consultancy industry consolidation in Europe. The financial objectives presented below, will be included in a possible prospectus.
Framfab's strategic goal, which has been presented previously, is to establish and sustain market-leading positions within its industry niche and in the geographic markets where the Company is present. This will be achieved by offering high value interactive solutions to world-leading companies, and by forging long- term relationships spanning multiple projects with our clients. Framfab will strive to achieve continuous improvements in profitability through a long-term and focused effort to deliver economies of scale.
Based on the strategic goals set out above, it is Framfab's long-term financial objective that each operating entity, on average, shall reach an EBITA-margin (Earnings before interest tax and amortizations) on net revenue of 12-15 percent on an annualized basis.
As a company listed on the Stockholm Stock Exchange, central administrative costs are disproportionately high in relation to the scale of current operations. Central administrative costs were approximately SEK 4,5 million (5 percent of Group net revenue) in the first quarter, 2004. Framfab expect that this actual cost level could remain at a similar level whilst the growth targets of the group over the next three years are achieved. Consequentially it is expected that the EBITA margin for the Group will improve as the central administrative costs, as proportion of net revenue decrease.
Framfab's objective is to achieve an average annual growth rate of 30 percent during the next 3 years subject to the appropriate market conditions. This will be achieved through a combination of organic growth and growth through acquisition.
Framfab's objective is on Group level to reach a 10-13 percent EBITA- margin within 3 years.
For additional information, please contact:
Sven Skarendahl, Chairman of the board, Framfab AB +45 8 41 00 10 00, sven.skarendahl@framfab.se
Steve Callaghan, CEO and President, Framfab AB +44 77 71 92 12 10, steve.callaghan@framfab.com
Christian Luiga, EVP and CFO, Framfab AB +45 8 41 00 10 00, christian.luiga@framfab.se
Tobias Bulow, Group Communications Manager, Framfab AB +46 709 41 22 58, tobias.bulow@framfab.se
Framfab is a leading European communications specialist in digital media and interactive solutions based on Internet technology. Most of Framfab's customers are large international companies, including 3M, American Express, AXA, Carlsberg Breweries, the Coca-Cola Company, Danske Bank, DuPont, Ericsson, Hydro Texaco, Kellogg's, Kraft Food International, Lloyds TSB, Nike, Nobel Biocare, Philip Morris International, Philips, Postbank, SAAB, Sara Lee Douwe Egberts, Swedish Match, Vodafone, Volvo Car Corporation, Volvo Group and UBS. Framfab operates in Denmark, Germany, the Netherlands, Switzerland, Sweden and the United Kingdom. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For additional information, see www.framfab.com
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