03-03-2005 SE no. 10/2005 - Annual Report 2004



Significant improvement in the Company's capital resources and operations. 



Columbus IT Partner's revenues in 2004 totaled DKK 581m (DKK 543m in 2003),
with operating profit (EBITDA) at DKK 25m (DKK 11m in 2003), which was in line
with the Company's most recently expressed forecasts, cf. Stock Exchange
Release no. 17 of 9th December 2004. 
 
The Company had lost more than half its share capital at 30th June 2004, which
was one of the reasons for calling the Extraordinary General Meeting in
December 2004. 
 
In July 2004, Columbus IT Partner redeemed debts to a series of subsidiaries by
issuing shares in Columbus IT Partner A/S, amongst other things so as to
strengthen the Company's capital resources. A subordinated loan from Gaardboe
Holding ApS and debt to the director of a subsidiary were also converted into
shares in the Company. Finally the Company acquired, also against payment in in
shares, 9.7% of the share capital of the Swiss subsidiary from one of the local
shareholders. These transactions had a favorable impact on equity of approx.
DKK 7.5m, and saw consolidated debt reduce by DKK 6.8m. 
 
As at 9th December 2004, Consolidated Holdings A/S acquired 12,625,000 shares
from Nordea and Gaardboe Holding ApS (in liquidation) and also granted the
Company a subordinated loan of DKK 34m. Consolidated Holdings is also
underwriting a 3:2 rights issue (three existing shares giving entitlement to
subscribe for two new) at a price of DKK 3 per share. The rights issue is
expected to be held in April 2005, when the Company's share capital will be
reconstituted. 
 
Pre-tax earnings improved by DKK 12m in 2004 to a deficit of DKK 18.8m. This
was not satisfactory. 
 
Vladislav Martynov took up his duties as CEO of the Company on 16th February
2005. 
 
In January, the Company acquired minority holdings in the American subsidiary
and on 28th February 2005, agreed to buy minority holdings in the Russian
subsidiary. Completion of the deal will see the most significant subsidiaries
in the Group being wholly-owned by Columbus IT Partner. 
 
Columbus IT Partner is forecasting revenues of approx. DKK 615-625m in 2005,
with EBITDA at DKK 35-40m and pre-tax earnings of DKK 15-20m