Comrod Communication Group has experienced significant growth both organically and trough acquisitions during the last year. To be able to take advantage of further growth opportunities and capitalise on the strong work done, the company needs to invest and establish a more dynamic and modern production facilities at the company headquarter at Tau. The Group has an ambition of reaching total revenues of NOK 500 million by year 2010-2011 and the expansion of the Tau facilities is a key milestone in reaching this goal.
The decided investment is planned to commence summer 2008 and be completed during first half of 2009. The enlargement of totally 1.500 M2 of buildings, includes expansion of the production facilities, laboratory, wardrobes, warehouse, canteen, meeting room and offices.
The new investment is fully financed by a new serial loan facility from DnB Nor at NIBOR + 1 percentage point margin with quarterly down payments over 20 years from 30.6.2009 and covenants on equity ratio and NIBD/EBITDA on similar levels as existing finance to the Group.
The Comrod subsidiary at Tau has increased its revenues from NOK 103 million in 2006 to NOK 157 million in 2007, which is more than the current facilities allow for. Consequently the company has the latest quarters been obliged to use some temporary solutions for storage and also rent some production facilities of other companies in the area. After the investment all the Norwegian production will be concentrated at one site, and the company will be prepared to increase revenues till NOK 3-400 million. The new facilities will give improved production flow, increased efficiency per employee and improved profitability for the business area Antennas from second half of 2009.
This expansion of the Tau facilities come in addition to Comrods investment in establishing own production capacity in Hungary, which was announced by the Group last week.
For further information please contact:
Ole Gunnar Fjelde, MD of Comrod AS and acting CEO of Comrod Communiaction Group, mobile phone +47 95934541 or ogf@comrod.com
Kjell Ove Hatlem, CFO, mobil phone +47 48131065 or koh@comrod.com
