Doug Peterson pointed out that my previous link to the public accounts of Victor Hasselblad AB did not reflect the overlying Hasselblad AB holding company. This is true, however to get the full picture, it seems one needs to look higher up in the company structure which Ventizz established when they took over in 2011. Nowadays the main holding company is called Hasselblad Holding s.a. r.l., and is registered in Luxembourg. The main operational units are Victor Hasselblad AB in Sweden (Development, manufacturing and service) and Hasselblad A/S in Denmark (Sales, marketing and administration, previously Imacon). The public accounts for the whole Hasseblad-group (with 16 subsidiaries around the world) are included with the public accounts of Hasseblad AB, and can be ordered from
www.allabolag.se. I don't want to spam a thread related to the new back, however the new Hasseblad products are a major part of the financial picture. Some interesting tidbits from the annual report of Hasseblad Holding:
Sales for the group as a whole was 33,6 MEUR (20,58 MEUR in 2011). Operating loss 13,68 MEUR (operating profit 13,49 MEUR in 2011), net loss 18,62 MEUR (profit 13,88 MEUR in 2011). Some quotes from the report, with my emphasis and comments in brackets:
"On June 27 2011, HSE [Ventizz] acquired 100% of the share capital of Hasselblad AB, Sweden
for TEUR 9,678. [this has never been reported before, as far as I can see - the press release stated "The parties have agreed not to disclose the purchase price."]...
As the purchase price allocation show negative goodwill of TEUR 18,707 arising from the acquisition, ...
[this] indicates that the acquisition was a bargain purchase. The negative goodwill is mainly attributable to the fact that
HSE [Ventizz] will have to make significant additional investments in the Hasselblad Group for development of the future products and activities that is expected to provide HSE a positive return on the Investment. ...
In the budget period 2013-2014
revenue is expected to increase by approximately EUR 100 million.
By the end of 2014 it is Managements expectation that more that 90% of the revenue will come from new products based on or new improved versions of existing Hasselblad products. Therefore, the results of the on-going product launches are an inherent risk in relation to the valuation of intangible assets including the brand.
...
The value of the brand (as well as all other assets} were also assessed in connection with the purchase price allocation in 2011
and the brand was at that time found to have a value of EUR 18.0 million (see F.3)....
The brand refers to the name ''Hasselblad" and has been classified as having an indefinite useful life time. When determining the useful life time it has been considered that the brand name for decades has been well known among professionals and photo enthusiasts.
In addition, maintaining and further expanding the utilisation of the Hasselblad brand is included in concrete plans for the future....
From its owner the Group received capital contributions in 2011 of TEUR 14,340 and loan of TEUR 2,500.
In order to fund the daily operations of the Group and the ongoing launch of new products the Group has received significant capital contributions from the Group's shareholder Tomese S.a r.l [Ventizz] as the Group has not been able to generate sufficient cash flows from operations to cover the cash requirements from daily operations and the investments in the ongoing launch of new products. In 2012 the Group received TEUR 28,703 in total
and in 2013 the Company has received further TEUR 13,700 In total in capital injections. Management assess that the daily operations and the launch of new products requires further funding in order to ensure that the Group can continue its operations.
Therefore, the Group's basis as a going concern is depending on contribution of liquidity from the shareholders or external lenders. Management has assessed that in order to cover the Group’s short-term liquidity needs contribution of further liquidity from the shareholders or external lenders is required. So far the shareholders have provided bridge financing to cover the Group’s short-term liquidity need. On July 12, 2013 a loan agreement was signed with an external lender regarding loans to the Group In the amount of TEUR 9,000.
...
Should the [loan] conditions precedent not be met it is Managements view that the Group will receive required liquidity either from the shareholders or external lenders when needed. Management's assessment is based on the shareholders support to the Group in the past, and indications from the shareholders.
Furthermore it is Management's expectation that the result for 2013 will show significant improvements compared to 2012. These expectations are mainly due to the launch of new products and changes in the Group's cost structure, which will have positive impact on the operating income. [The CEO was fired in january of this year, which I guess speaks for itself] Therefore, the results of the ongoing product launches are an inherent risk relating to the group’s basis as a going concern in a medium and long-term perspective.
Based on the assessment carried out Management finds it appropriate to present the annual report on a basis of going concern.
F.34 Events after the reporting period
The partner Tomese S.a r.l [Ventizz] has in 2013 provided additional funding for the Group amounting to TEUR 13,700 and a TEUR 8,000 loan agreement with an external lender has been signed to finance the Group's growth relating to launch of new products.(see F.33)
[The audtiors (PWC) are not in agreement with management's analysis:]
Emphasis of matter
Without qualifying our opinion, we draw attention to Note F.33 which indicates that the Group incurred a net loss of TEUR 18,620 and negative cash flows from operations and investments of TEUR 23,077 during the year ended 31 December 2012 and to Note F.10 regarding impairment of intangible assets. The valuation of intangible assets and the going concern assumption are highly dependent upon Hasselblad Holding S.a r.l. Group's ability to successfully launch its new products. Therefore, the Manager’s assessment regarding the expected results of the on-going product launches and its assumptions regarding the growth rates of revenue is an inherent risk in relation with the valuation of the intangible assets amounting to EUR TEUR 23,873 as at 31 December 2012. These conditions, along with other matters as set forth in Note F.33, indicate the existence of a material uncertainty that
may cast significant doubt about the Company’s ability to continue as a going concern.... END
I hope they manage to survive somehow, and would like to report some more positive news, but the numbers look pretty bleak. Maybe I'm too cynical, but basically Ventizz paid 10 million euro for Hasselblad and went "all in" on the new cameras/back being a success. If they don't, maybe it's not too far fetched to see them sell of the brand for the reported 18 million euro its valued at. The report is dated 31. july 2013, so the next report for 2013 should be out any day now.
Dag