Venture capital company bmp AG has announced earnings before interest and tax of -E6.1m for 2000 but “is confident of concluding the year 2001 well in the black”.
The company increased its turnover by 149 per cent, from E19.6m to E48.9m in 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 272 per cent, from 4.6m to E17.1m.
Reflecting last year's market turmoil however, bmp has made accumulated value adjustments of E23.2m for the year 2000 compared with E3.3m in 1999. “On account of the sustained negative situation on the capital markets, the board has resolved to significantly increase risk provisions,” a company statement said.
The company remains upbeat about the year ahead and clearly intends to capitalise on lower company valuations. “Do not forget that the present competitive environment also presents numerous opportunities with far higher than average value growth potential,” said Ralph Günther of bmp's executive board.
Oliver Borrmann, chairman and chief executive of bmp, said: “Our quick liquidity was around E50m as of 31 December 2000. As the company already adjusted its cost structures according to the prevailing market situation at the beginning of the year 2001, costs will be reduced by around 25 per cent in the current financial year.”