Hasselt, June 20, 2011. Today, in conjunction with the inauguration of the Kristalpark III business park, the investment company LRM presents its 2010 annual report. 2010 was a record year for LRM with 56.4 million euros in investments for the benefit of the companies and employment in Limburg.
Record year
In 2010, LRM invested 56.4 million euros in Limburg-based companies and projects. These funds were used as risk capital, and typically represent an additional leverage of 3 to 4 over regular bank financing, within individual equities.
The number of investment portfolios increased from 40 in 2009 to 45 in 2010. This also represents an unprecedented number.
The investments were spread over the five investment areas of LRM: ICT & Media, Life Sciences, Cleantech & Energy, SMEs, and Large Enterprises. However, in particular, the number of investments within the domain of Cleantech & Energy catches the eye - 21 million euros in nine portfolios. The investments in Punch Powertrain and Ducatt, the manufacturer of high quality glass for solar panels, form an important part of this trend.
Considering the reluctant economic recovery in 2010, the increase in investment activities did not result from the crisis, but from a proactive investment policy, and a number of initiatives from the past of which the benefits are now being reaped.
Profit by and for Limburg
Capital gains on investment exits are the main source of income for an investment company. The limited revival of the economy in 2010 has not yet led to an attractive exit climate. A proactive exit strategy was not addressed. Of six of the portfolios, LRM sold its shares to the shareholding families.
"The sale of our shares to the shareholding families shows that financing with risk capital does not necessarily preclude the familial nature of companies" emphasised Stijn Bijnens, General Manager of LRM.
In 2010, the consolidated net assets of LRM before payment of dividends rose to 12.45 million euros, fully in line with the results of 2009. Half of this increase in net assets can be attributed to positive consolidation effects, which were added directly to equity, and not included in the profit and loss account. The consolidated net profit of LRM (according to the Belgian accounting rules 'Generally Accepted Accounting Practice') amounted to 5.97 million euros.
The General Meeting of LRM approved a dividend payment of 11 million euros. Via the Flemish Region, these funds will flow to the Foundation Limburg Strong Brand, or LSM in Dutch. This mechanism provides LRM with an additional advantage for Limburg. LRM is a profit-driven investor. Its activities provide economic growth for Limburg. Profits from our activities are partially used to finance our own growth, but a part also flows to LSM in order to finance social projects that are in the interests of everybody living in Limburg.
Employment
In terms of direct, internal employment, LRM holds the position of an SME. At the end of 2009, there were 47 employees employed directly. In order to realise the growth of its operations and expand the knowledge within the investment domains, seven new employees were employed in 2010.
In terms of indirect employment, LRM is one of the largest employers in Limburg. The LRM portfolio holds over 80 companies with a consolidated employment of no less than 9,230 people.
Foreign investors
The coordination of attracting foreign investors to Limburg takes place under the name of 'locateinlimburg.com', which is chaired by Governor Herman Reynders. 'Locate in Limburg' is an initiative of LRM, POM Limburg, the Enterprise Agency, and Flanders Investment & Trade. Sixteen actors that work together to provide potential investors with a single contact point and a one-stop shop for all of their possible questions. In 2010, eight companies took the positive decision of investing in Limburg.
Continuity
At the end of 2010, the activities of LRM over the period 2005 - 2010, and the activities in the framework of its cooperation agreement with the Flemish Government, were evaluated. This assignment was awarded to Arthur D. Little, and LRM received an exceptionally good report. "The LRM-team performed excellent work in 2010. In order to expand our strategy, we plead for continuity in the new cooperation agreement" stated Hugo Leroi, Chairman of the Board of LRM.
About LRM
LRM is a profit driven Investment Company offering entrepreneurs a unique mix of risk capital and real estate. Oxygen for growth!
LRM is a generalist, but has built up specific expertise in ICT, Life Sciences, and CleanTech. LRM’s activities support the economic development and overall employment in the province of Limburg. LRM focuses on all sectors and companies, from start-ups to growing SMEs to large enterprises.
LRM’s activities are focused on five domains: ICT & Media, Life Sciences, CleanTech & Energy, SMEs and Large enterprises.
www.lrm.be
About locateinlimburg.com
‘Locate in Limburg’ is the platform to attract foreign investors to the province of Limburg (Belgium). It is an initiative of LRM, POM Limburg, the Enterprise Agency, and Flanders Investment & Trade, and is chaired by Governor Herman Reynders.
'Locate in Limburg' combines the forces of 16 partners, and offers foreign investors a one-stop-shop for all of their questions. Under the name locateinlimburg, we proactively seek investment opportunities on a global scale, in the sectors of logistics, automotive, cleantech & energy, life sciences, and ICT & Media.
www.locateinlimburg.com
Further Information:
LRM
Jeffrey Alenus
Sales & Marketing Director
T +32 11 24 68 19
M +32 475 93 03 61
E j.alenus@lrm.be