Cash at BEFORM NORGE slipped to NOK 1.5m

BEFORM NORGE AS, an Aksjeselskap based in Hønefoss, Norway, reported revenue of NOK 157m for FY2025, down 11.2% from NOK 177m a year earlier. Over two years the picture is different: revenue was NOK 69.1m in FY2023, an average growth of 50.9% a year. The loss grew faster than sales fell. Operating loss widened to NOK 35.2m from NOK 17.2m, and net loss to NOK 51.9m from NOK 17.1m. The net margin now stands at -33.0%, down 23.3 pp.

Fast growth usually means that staff, locations and financing were built for more sales than the company now makes. When revenue dips, those costs stay. The balance sheet shows the strain: the equity ratio fell to 22.1% from 29.8%, total assets rose to NOK 193m, and cash slipped to NOK 1.5m. Equity held at NOK 42.8m, so the loss was covered by something other than retained earnings. I would watch the cash line. Growth that does not turn into cash has to be financed by someone.