Impairment risk to SRV from Primula Herkkutehdas Oy’s bankruptcy

Primulan Herkkutehdas Oy’s filing for bankruptcy on 8 November 2011 may present an impairment risk to SRV. SRV has built for Varma Mutual Pension Insurance Company a bakery property located in Järvenpää. The property is leased by Primulan Herkkutehdas Oy. At the time of the bankruptcy filing, the parties held differing views on payment responsibility for extension and conversion work totalling around EUR 4 million. SRV may have to make for the receivable an impairment provision in the 2011 fourth-quarter result, which may correspondingly weaken the company’s earlier profit guidance (at least EUR 10 million).

SRV Group Plc
Taneli Hassinen
Director, Communications and Marketing
Tel. +358 40 504 3321
taneli.hassinen@srv.fi

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