LRM indirectly one of the largest employers in Limburg
Hasselt, 14 June 2010. Today, the investment company LRM presents its 2009 annual report at the Beringen mining site. With investments totalling 53.6 million euros directly for the benefit of companies and employment in Limburg, 2009 proved to be a record year for LRM.
Record year
Never before has LRM invested more in the Limburg economy than in 2009 - 53.6 million euros cash went out directly into companies and employment in Limburg. These funds were invested as venture capital and typically represent an extra leverage of 3 to 4 within the individual portfolio companies. These funds allow the companies to attract additional regular resources. LRM’s increased investment activities manifested themselves in each of the investment domains of ICT & Media, Life Sciences, Cleantech & Energy, SME and Large Enterprises. Extra efforts were recorded in all of these disciplines.
LRM’s 2009 activities included investments in three large automotive companies: Alro group, Punch Powertrain and VCST - each of them great companies offering considerable employment opportunities.
The number of investment files increased significantly from 27 in 2008 to 40 in 2009.
The increased investment activities are a result of a proactive investment policy, as well as the crisis, which fully unfolded in 2009.
Profit thanks to and for the benefit of Limburg
The economic downturn also affected the results of the portfolio companies. Diminishing results equal decreased shareholder value. For this reason, selling participations proved unsuitable in 2009. Capital gains on exits are the key source of income for investment companies, and a profit drop therefore seems obvious. Nevertheless, LRM realised a consolidated profit (group share) of 12.7 million euros, representing a return on investment of 5.14%. The 2009 profit mainly resulted from sales of individual plots within developed business parks, interest from loans and healthy cost management.
Given the slow recovery of the economy, LRM expects just a slight improvement of the exit potential for 2010.
The General Assembly of LRM approved a dividend payment of 8 million euros. These means flow first to the Flemish Region and then to the ‘Stichting Limburg Sterk Merk’ (Limburg Strong Brand), also named LSM, which uses it to finance social projects in Limburg. This mechanism provides an additional leverage from LRM for Limburg.
Employment
In the area of direct employment, LRM takes the position of an SME. The company employed 43 staff by the end of 2009. Seven new vacancies were launched during the last quarter of the year to realise LRM’s increased activities. Each investment domain is being further developed.
In the area of indirect employment, however, LRM grew into one of the largest employers in Limburg. LRM’s portfolio now comprises more than 90 companies offering consolidated employment for no less than 9,400 people, an increase of 2,700 as compared to 2008. The rise is a result of the growing investment activities and the new participations originating thereof.
Challenges
“The LRM team has done a great job in 2009, but many challenges still lie ahead. LRM must and will continue its investments in the Limburg economy. Limburg will have to continue its transition from a traditional production economy to both a highly technological economy and a carbon-neutral economy. And finally, the newly launched, proactive Limburg acquisition policy must be rolled out. LRM will fully support these developments through investments in innovative companies and infrastructure” stated Hugo Leroi, Chair of the LRM Board of Directors.
About LRM
LRM is a profit-driven investor, offering entrepreneurs a unique combination of risk capital and real estate. Oxygen for growth!
Although LRM is a generalist, it has built up specific competences in ICT, Life Sciences and Cleantech. Aiming at all sectors and companies, from starter companies via growing SMEs to large corporations, LRM’s activities contribute to the economic development and general employment of the province of Limburg.
Access to LRM runs across five domains: ICT & Media, Life Sciences, Cleantech & Energy, SME and Large Enterprises.
www.lrm.be
For more information please contact
LRM
Jeffrey Alenus
Sales & Marketing Manager
T +32 11 24 68 19
M +32 475 93 03 61
E j.alenus@lrm.be