The Group's position on our relevant markets improved further in 2009. We have intensified our cooperation with existing partners and also established new interesting business connections. At the same time we have succeeded in cutting the Company's risks drastically by reducing the Company's working capital significantly.
Profits for 2009 were recorded despite lower revenue, but based on a substantial hike in the gross margin, up from an extraordinary low margin in 2008 of 3.5% to 6.3% in 2009. The boosted gross margin is attributable to introduction of new products, and favorable business conditions, particularly in the first half of the financial year. The gross profit amounted to DKK 105.0 million versus DKK 70.5 million in 2008.
Total expenses were up by DKK 1.9 million on 2008. Accordingly, earnings before interest and tax (EBIT) amounted to DKK 44.5 million versus DKK 10.6 million in 2008.
The post-tax profit on ordinary activities amounted to DKK 36.9 million versus DKK 7.6 million in 2008.
The Balance sheet total of the Nowaco A/S Group stood at DKK 270.6 million at 31 December 2009 versus DKK 419.7 million at 31 December 2008. The main reason for the reduction of the balance sheet total was a drop in inventories of DKK 124.7 million.
As of 31 December 2009, the shareholders' equity stood at DKK 107.6 million compared with DKK 71.3 million at 31 December 2008. at 31 December 2009, the Group's solvency ration amounted to 39.8% versus 17.0% at 31 December 2008. DKK 20.0 million is proposed to be distributed by way of dividend for the 2009 financial year.
Outlook
The continued expansion of the Group's network of customers and suppliers generates an expectation as to consolidation and expansion of the Group's position in 2010. We have constant focus on expanding our network of representative offices and expect to establish new ones during the next few years. On this basis, we expect profits in 2010 to be at a satisfactory level.
