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Tecnotree will recognise EUR 16.7 million in impairment, gives preliminary information on its result in 2017 and will publish its financial statement release earlier than announced
As a result of the goodwill impairment testing made in connection with the preparation of financial statement Tecnotree has decided to write-down the goodwill of approximately EUR 16.7 million in its consolidated balance sheet.
In accordance with the IFRS accounting standards an impairment test is required for the cash generating units at least once a year in order to ensure that a unit’s assets are not carried at more than their recoverable value. In Tecnotree, eventual impairment of all cash generating units has been tested based on strategic financial key ratios.
The goodwill in the balance sheet of Tecnotree is mainly related to the business transaction implemented in 2009, and a write-down of EUR 1.5 million was made in 2012. The write-down is made now, because the business development in Middle East, Africa and Americas has not met with expectations. The delay of financial arrangements has also contributed to hindering the growth of business volumes.
The write-down is recorded as a one-off item and it has no cash flow impact.
Based on the preliminary financial statements the company estimates that the Group’s revenue for 2017 will be approximately EUR 55 million. The Group’s operating result without the write-down described above is estimated to amount to EUR 7.5 – 8.5 million.
Tecnotree will publish its financial statement release for 2017 earlier than previously announced, i.e. already on Monday, 5 March 2018.
Board of Directors
FURTHER INFORMATION Padma Ravichander, CEO, tel +91 984 504 1137 Kirsti Parvi, CFO, tel. +358 50 517 4569 DISTRIBUTION NASDAQ Helsinki Main Media www.tecnotree.com