NOM 2019 preliminary figures

NOM today presents its preliminary result for 2019. NOM is expected to make a financial loss of between 6.5 and 8.5 million euros. Final figures, after audit, will follow in April 2020.

When she took office in September 2019, director Dina Boonstra knew that NOM was heading for a negative annual financial result. NOM receives income from interest, dividends and exits, but if, as in the past year, few companies are successfully sold, dividend income is disappointing and NOM faces an unforeseen bankruptcy, then red figures are automatically the result.

NOM is now experiencing firsthand what it knows better than anyone as an investment company: success in business cannot be forced. 'Of course a loss year is confronting,' Boonstra believes, 'especially since NOM has always posted positive results (average net result NOM 2010 to 2018: + 5.5 million euros per year). Moreover, we realize that a healthy financial result is important to continue doing our work well.' For that matter, the director is confident. 'An investment and development company like NOM is a risk financier that takes high risks and often invests where the market does not yet dare. The underlying value of the NOM portfolio has remained stable and looking at the developments in the portfolio we expect to close 2020 positively again.

Boonstra emphasizes that NOM keeps a sharp eye on its own financial position, but also points to the organization's core purpose. 'NOM is there primarily to create value for the northern Netherlands. Through our investments, knowledge and networks, NOM actively contributes to a powerful economic region. This does not automatically translate into immediate profit; that often requires a longer lead time. NOM has always been able to cope well financially, but in 2019 things turned out differently and we have to make do with a disappointing result for our own organization.'

'There were also results that we look back on with satisfaction,' said Rudy Rabbinge, Chairman of the Supervisory Board. 'After all, through our investments and projects we have again contributed positively to economic growth, employment and innovative projects (see some examples below). It is this social impact that NOM focuses on. To continue doing that work well, however, healthy financial results are a prerequisite. Therefore, in 2020, we will examine how we can focus even more sharply on the factors that influence a more even investment result. We are fully aware, however, that our results can never be fully managed and predicted.

Some highlights in 2019

  • In 2019, with a total volume of more than 25 million euros, 99 financings (including refinancings) were provided. The total portfolio (=number of companies financed) consists of 174 companies. This includes all NOM and NOM-managed funds.
  • A clear vision of greening has been formulated by Chemport Europe. This ensures that companies from outside the region, such as Avantium and Photanol invest in the Northern Netherlands. The successful approach in Chemport Europe has led to approval for extension of the program by 4 years. NOM is actively involved in this.
  • NOM is the lead agency for Region of Smart factories (RoSF). This focuses on digitization for the northern manufacturing industry. A new program is currently being developed in which the results of RoSF will also be made available to the broader SME sector in the Northern Netherlands. As a result, the coming years will see an acceleration of growth in efficiency.
  • NOM has become a partner of FundRight. We believe in equal access to funding and opportunities for all founders of startups and scaleups, regardless of background or gender. After all, diversity means higher returns. We therefore have the ambition that all startups and scaleups we put (or have put) money into have a management team with at least 35 percent women within three years. The same percentage should apply to NOM itself in three years.
  • The Investor Readiness program (through Flinc) has resulted in 21 funded companies with a total of 145 jobs.