The turnover in 2008/09 was DKK 177.0 million and the result for the year
before interest, taxes, depreciation and amortization (EBITDA) amounting to
minus DKK 20.6 million.
The Company's EBIT result amounts to minus 161.9 million and has primarily been
affected by depreciation/amortisation of goodwill and client contracts in the
amount of DKK 141.3 million. The Company's net result of going concern/activity
amounts to DKK minus 151.0 million, while the result for the year amounts to
minus DKK 244.7 million, including termination of activity. The termination of
activity consists of the sale of Guava Communication A/S and Adfair ApS and
amounts to minus DKK 93.7 million.
The equity has decreased from DKK 363.7 million as at 30 June 2008 to DKK 141.7
million as at 30 June 2009.
The Company's solvency ratio is 64.2 % as at 30 June 2009.
During the financial year, the Company has tried to navigate its way through
the impact of the economic cycles. However, the decline in the advertising
agency market and the general nervousness among clients as a result of the
overall declining productivity in society and the general slackening of
consumption have severely affected the Company.
Today, Guava is focusing on ”classic” online marketing and intends in 2009/2010
to focus on sale, services and analyses of online activities in Scandinavia and
Europe.
The Annual Report for 2008/2009 shows a turnover in the amount of DKK 177.0
million as against a turnover in the amount of DKK 220.3 million for the
financial year 2007/08. If including the terminated activity, the Company's
turnover for 2008/2009 would have been DKK 208.5 million.
The Company's result for the year before interest, taxes, depreciation and
amortisation (EBITDA) amounts to DKK minus 20.6 million.
The Company's equity has decreased from DKK 363.7 million as at 30 June 2008 to
DKK 141.7 million as at 30 June 2009.
The Company has previously announced an estimated turnover in the amount of DKK
220
million and a result for the year in the amount of minus DKK 20 million before
interest, taxes, depreciation and amortisation (EBITDA). In the opinion of the
management, the result for the year is not satisfactory, but the management
expects a vigorous upward turn and improvement of the result in 2009/2010.
- The turnover has increased from DKK 81.4 million in 2006/2007 to DKK 220.3
million in
2007/2008 and decreased to DKK 177.0 million in 2008/2009.
- The Company has defrayed considerable non-recurring expenses for integration
and giving notice of dismissal to employees in connection with the merger of
companies acquired in the period from 2006 to 2008.
- The Company's EBIT result amounts to minus DKK 161.9 million and is
unfavourably affected by depreciation/amortisation in the amount of DKK 141.3
million primarily of goodwill and client contracts. The result of terminated
activities affects the result unfavourably by DKK 93.7 million.
- The Company's net result amounts to minus DKK 244.7 million.
- The Company's equity has developed from DKK 92.1 million in 2006/2007 to DKK
363.7 million in 2007/2008 and to DKK 141.7 million in 2008/2009.
Streamlining/cost savings
In previous periods, the Company has acquired several companies in the field of
online marketing. Now, the Company has changed its focus and in order to
achieve sustainable competitive benefits, the Company now follows a
consolidation strategy with organic growth and streamlining of all business
units as the centre of attention. In that connection, the Company has taken the
following steps:
Sale of Guava Communication A/S
With effect as from 1 July 2009, Guava has sold all its shares in Guava
Communication A/S for DKK 1. Guava Communication A/S' EBITDA result for the
financial year 2008/09 was minus DKK 16.6 million and will be recognised in the
Annual Report 2008/2009 as terminated activity. Among the reasons for this
deficit is the declining market as a result of the financial crisis with losses
caused by insolvent clients, integration expenses in connection with the merger
of the CPH Group ApS and Guava Communication A/S, which were merged as at 1
July 2008, slow lead generation and great expenses involved in giving notice of
dismissal in connection with the reduction of the staff from 45 to 12 employees
in the financial year.
In connection with the transaction, Guava A/S has acquired 2,579,727 own shares
from a controlled company of the buyer for total DKK 997,247.65, which is equal
to DKK 0.386571 per share and equal to the average price in the month of August
plus additional 10%.
It should be noticed that the company, Guava Communication Vest A/S, which is
an independent legal entity and domiciled in Aarhus, continues its success
under the Guava umbrella.
Guava Communication A/S was acquired for total DKK 78 million for both the CPH
Group
ApS and Cubizz Communication A/S. The capital value was recognised in the
Annual Report for 2007/08 by the total value of DKK 78 million. In the Annual
Report 2008/2009 this capital value will be fully written down.
It has not been possible for the management of Guava A/S to see the desired
improvement of the result of Guava Communication A/S, nor has Guava
Communication A/S been able to currently stay on budgets. As the management of
Guava A/S desires all business units to produce a positive result and it could
not feel it justified to accept continuous operating deficits in Guava
Communication A/S, it was decided to sell Guava Communication A/S to the
manager Jacob Nyborg.
In connection with the sale, Guava is discharged for a range of liabilities and
obligations in relation to employees, etc.
Before 15 November 2009, Guava Communication A/S is to change its name and
cannot use
the Guava brand any longer. However, the working relationship will continue,
enabling the two companies to offer a wider range of products to their clients.
Guava Communication A/S remains in the lease concerning Guava A/S' premises
situated at Amaliegade, Copenhagen.
Sale of Adfair
Guava A/S decided to sell Adfair ApS as at 22 January 2009.
Adfair has been part of the Guava Group since February 2008 and carried on its
activities within the affiliate marketing area of the Group. After the end of
the earn-out period at the end of 2008, the company was to be integrated into
the other parts of the Group, but the management considered that the costs
involved in the integration and the synergy opportunities were not commensurate
with each other, and furthermore Adfair's strategy and approach to the market
was different from that of the other individual companies within the affiliate
area of the Group. During the period of ownership of the company, the
management had carefully watched the cooperation opportunities and Adfair's
possibilities for integration into the Group, but was not convinced that
integration would be successful.
The buyer of Adfair was the Company's manager, Henrik Sode Kærgaard
Adfair was sold for DKK 9 million cash. In connection with the acquisition of
Adfair, the Company agreed upon an earn-out for the financial year 2008. As at
30 June 2008, the Company had set aside DKK 16 million for payment of this
agreement. In connection with the sale of Adfair, the Company pays DKK 2
million in full and final settlement of the earn-out, so that provisions in the
amount of DKK 16 million are to be reduced to DKK 2 million and the Company's
goodwill reduced by DKK 14 million.
Please read the entire financial statement in the enclosed PDF-document.
Kind regards,
Brian Mertz Pedersen Ole Sigetty
Managing Director/CEO Chairman of the Board of
Directors
For further information, the following persons can be contacted:
Guava A/S Horwath Revisorerne (Approved Adviser)
Amaliegade 3-5 Strandvejen 58
DK-1256 Copenhagen K DK-2900 Hellerup
Brian Mertz Pedersen Søren Jonassen
Managing Director/CEO State Authorised Public Accountant
Phone.: +45 70 27 80 89 Phone.: +45 39 29 25 00
Mail: ir@guava.com Mail: s.jonassen@revisor.com
