The Bøg Madsen Groups annual result 2008

Also the market for plants is hit by the general financial situation in Europe. The result for 2008 was not satisfactorily in the Bøg Madsen Group.

Bøg Madsen Holding is the mother company of the operating company Bøg Madsen A/S, and the owner of the group’s buildings and owner’s shares in a number of small and medium sized companies in the plant export and related companies.

In 2008 Bøg Madsen Holding ended up with a deficit of 32.5 million DKK after taxes. Hereafter the equity is 53.5 million DKK. The turnover of the group totalled 903 million DKK in the financial year and is so increased by 32 million DKK equalling an increase of 3.6% on last year.

The CEO of Bøg Madsen Holding, Jens Bøg Madsen says in connection with the result: "we are not content with the result of the year. We have in our primary area of business had considerable extraordinary expenses and difficult market conditions. Also our holdings have been influenced by the market. The financial year is affected by not realised losses of ca. 11.8 million DKK.

The principal activity in the Bøg Madsen Group is Bøg Madsen A/S with development and marketing of plants and concepts. In 2008 several new concepts have been developed with a view to contribute to the increase of plant sales at the European retail customers of the company. Especially the concept HOUSE OF FLORA®, www. Houseofflora.eu, has been well accepted on the market. Further the company focussed on value creation in co-operation with customers and producers which bears fruit for all parties.

CEO Hans Schultz is not satisfied with the result development, however he says:" The work on developing the competences and competitiveness of the company is – in spite of the difficult frame conditions – very positive. Synergies between the companies in the group means strengthened competitiveness, strong market positions and advantages for our customers in still more binding forms of co-operation, which we are starting up with the customers".

The year has been characterised by large changes and adjustments in Bøg Madsen B.V. Holland, subsidiary of the group. In recent years the financial results have been unsatisfactorily and caused changes in the management as well as a considerable reduction of the staff.

Further Bøg Madsen A/S has taken over the activities of the competitor Floravision A/S during the year. The losses in connection with the take over were significantly larger than expected. The take over was made for the sake of the Danish nursery trade, which is under a strain, and where the maintenance of the market positions and the sales employees are of importance for the Danish nurseries.

At the end of 2008 a merger of Bøg Madsen A/S and the two subsidiaries, Florea A/S and Daniber A/S was accomplished. Both companies worked on strained markets as the need for liquidity called for the merges with Bøg Madsen A/S.

The Bøg Madsen Group has also contributed to development of competences in the trade in general. The E. Bøg Madsen Foundation donated 1 million DKK to the foundation of Bøg Madsen Academy. The Academy offers competency development in management and sale to the whole trade. Of course this also contributes to the development of the employees at Bøg Madsen.

The management in Bøg Madsen expects continued large challenges, but is convinced that the initiatives which were carried out last year and the competitiveness achieved also in the future will place The Bøg Madsen Group among the best and strongest in the trade.

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