The report describes a difficult first half of 2009, in which the group's consolidated revenue has fallen 13.1% from H1 2008, while the company's earnings before income tax (EBIT) fell by DKK 138 million to DKK 12 million, which the report says "is not considered to be satisfactory".
Furthermore, Schouw says that its earnings difficulties are "predominantly attributable to Martin".
"Revenue failed to meet expectations, and Martin continues to be hard hit by the knock-on effects of the global financial crisis. Geographically, the recession is broadly founded, and investments in large parts of the events and rental industry in particular have nearly come to a halt," says the report.
The lighting manufacturer's accounts show that net revenue fell sharply during H1 2009, to DKK 293.8 million compared with DKK 558.7 million in H1 2008. In Q2, revenue was DKK 159.9 million in 2009 and DKK 280.3 million in 2008. This represents a fall of around 47.5% for the first half of the year, compared with the same period in 2008.
The report continues: "Despite extensive cost-saving initiatives and major cut-backs, it has not been possible to offset the sudden fall in revenue."
Martin incurred a loss before tax of DKK 96.5 million for H1 2009, compared with a profit of DKK 35.7 million in H1 2008.
The report also said: "To a large extent, Martin managed to generate liquidity to cover the operating loss for the period by reducing the company's working capital which constituted DKK 445.1 million as at June 30, 2009 compared with DKK 505.1 million as at 31 December, 2008."
(Lee Baldock)
