German venture capital firm, bmp will initiate an extensive cost reduction programme to ensure it has sufficient liquidity to continue through to 2003. The decision follows first half results that record a drop of 67 per cent in sales revenues.
Cost reduction measures include a refocusing on its core business through the sale of its two consultancy subsidiaries bmp telecommunications Consultants and ISBAC.
As a result of these disposals, the headcount at bmp will be significantly reduced. The number of employees at the firm has already fallen from 105 last year to a current total of 90. By the end of this year, it is thought the headcount will not be more than 30.
The sale of the two subsidiaries will mark the successful completion of the firm’s concentration on its venture capital division. By the end of 2001, all core activities will be within bmp, with the exception ofbmp Polska, which handles venture capital activity in the Central and Eastern Europe region.
The firm is focused on furthering the development of its existing portfolio rather than committing to new investments. Chairman of the board, Oliver Borrman looks favourably on the trade sales market and hopes to attain at least four exits by year-end, having received initial corporate
takeover proposals for several companies in the portfolio.
Borrman is, however, realistic about the future. “We are currently experiencing a period of great difficulty and tension and are not in a position to predict when the market environment will improve.
We have taken all precautions necessary to reinforce our position within this unsettled market,” he said.