ROBIT WRITES DOWN GOODWILL OF DOWN THE HOLE BUSINESS

15.10.2018, 07:00 CET

ROBIT PLC STOCK EXCHANGE RELEASE 15 OCTOBER 2018 AT 8.00 A.M.

ROBIT WRITES DOWN GOODWILL OF DOWN THE HOLE BUSINESS

Robit expanded Down the Hole (DTH) business significantly through acquisitions in the summer of 2016. The acquisition was based on increasing the product portfolio to meet wider customer demand. The growth expectations associated with the acquisition have not been realized as planned and the company has not achieved its growth and profitability targets in this business area.

The company has tested the valuation of goodwill arising from acquisitions and as a result of the testing, will make goodwill impairment charge of EUR 18.9 million. The item will be presented in the income statement of the company's 2018 financial statements in the depreciation and impairment losses category.

After the impairment loss, remaining goodwill value arising from acquisitions is EUR 5.1 million. Robit will continue to develop the DTH business and it remains a significant part of the company.

The write-down does not have a cashflow effect. After the impairment loss, the company's solvency ratio remains at a good level.

ROBIT PLC

Mika Virtanen, Group CEO

Further information:

Robit Plc
Mika Virtanen, Group CEO
+358 40 832 7583
mika.virtanen@robitgroup.com

Robit is a strongly internationalized growth company selling and servicing global customers in drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into three product and service range: Top Hammer and Down-the-Hole products as well as Digital Services. Robit has 19 own sales and service points as well as active sales networks in 115 countries. The manufacturing units are located in Finland, South Korea, Australia, UK and USA.

Distribution:        
Nasdaq Helsinki Ltd
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www.robitgroup.com