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The company is now working to find alternative sources of financing.
The Corona pandemic has significantly affected the auto industry, with production halted in much of Europe, North America, and to some extent Asia.
Bendiksby, Terje / SCANPIX
published:,
Auto parts maker Kongsberg Automotive announced in early April that it wanted to raise more than NOK 1 billion through a capital increase, in order to meet an expected sharp drop in revenue in relation to the crown crisis.
On Wednesday afternoon, the company writes that it has not received enough interest and, therefore, has not completed a capital raising, which probably would have been done through the issuance of bonds and convertible shares, before the meeting. extraordinary general previously announced tomorrow, Thursday April 30.
This is because some investors have asked for “more time to better understand Kongsberg Automotive.” Therefore, the company cancels the extraordinary general meeting. The Board of Directors wrote in the notice to this effect that it planned to begin collection in advance.
Work to raise money
Kongsberg Automotive explains that it continues to seek alternative sources of financing, where it is experiencing progress in improving liquidity without injecting fresh capital.
The company also notes that the gradual startup of closed auto factories may reduce the need for capital.
The Corona pandemic has significantly affected the auto industry, with production halted in much of Europe, North America, and to some extent Asia.
The situation has reduced Kongsberg Automotive’s share, which has dropped 87 percent on the Oslo Stock Exchange this year. The market value of the auto parts manufacturer now exceeds NOK 358 million.
PROFITS
Kongsberg Automotive posted an after-tax profit of € 12.1 million negative in the first quarter, compared to a profit of € 13.8 million the previous year. This was stated in the company’s quarterly report last week.
Profit before tax was less than 10 million euros, compared to positive 19.1 million euros in 2019. Gross operating profit (ebitda) of 19.4 million euros for the quarter, compared to 32.1 million euros from the previous year.
At the same time, turnover reached 262.1 million euros, compared to 306.5 million euros the previous year, and under the company’s own guidance of 278 million euros. The drop in revenue was mainly due to the decline in North America and Europe due to the virus outbreak.
Kongsberg Automotive had a cash balance of € 57 million at the end of the quarter.
