In Q3, NedSense enterprises n.v. (“NedSense”) finalized the sale of the NedGraphics division, an important milestone in the transformation of the company to allow full focus on the development of its LOFT division. The agreement (SPA) with the buyer, Constellation Software Inc. ("CSI") headquartered in Toronto, Canada, was announced in August and the sale was unanimously approved by the extraordinary shareholders’ meeting held on October 7th. The transaction was completed on October 8th at a purchase price of EUR 7,525,000.

On closing, NedSense received an initial payment of EUR 5,883,092 in cash. The holdback amount of EUR 1,641,908 mainly consists of the balance of tangible assets and liabilities as agreed in accordance with the SPA (EUR 1,141,908 negative) while the remaining amount is meant to cover any claims CSI may have under the SPA. The proceeds of the transaction will be used to reduce debt and further invest in LOFT to enter new markets and in order to stay ahead of competition.

Q3 Financial results
NedSense’s revenue, excluding NedGraphics, for the first nine month of 2014 was equal to the same period last year, despite a negative USD effect. NedGraphics’ revenues year to date increased (6%) compared to the same period in 2013. Continuing cost control actions have been effective and the operating costs of the NedGraphics division have decreased both year-on-year (-8%) as well as on a quarterly basis when compared to 2013.
Including the divested NedGraphics division, NedSense’s revenue increased 6% versus the same period last year. While operating costs decreased by 4%, the operating result, although negative, improved by 37% versus the same period in 2013.

LOFT division
The LOFT business has continued to invest in its promising Real Estate offering. The major new customer projects (Havertys, Thonet, DFS and Kravet) that were contracted end of 2013 are successfully being implemented during 2014. Revenues remained stable in the first 9 month of 2014 compared to the same period last year. Mainly due to reduced new product investments, operating costs for LOFT have decreased (6%) compared to 2013.

In the fourth quarter of 2014, LOFT will launch the marketing version of its Real Estate solution. This easy to use mobile platform will prove to be an inspiring 3D design experience servicing the needs of the real estate industry, the interior retail industry and the consumers. Users of the platform will be in control of the creative process to dress up their desired space while providing a new sales channel for interior retailers. The platform facilitates promoting and displaying the retailers’ catalogue at the exact moment people are considering buying a new house. The new platform will also empower real estate brokers, investors and owners to leverage their portfolio and perform add-on services for existing and prospect customers.

Over the past years, NedSense laid the foundation for its growth strategy, in which the development of LOFT plays an important role. After the successful launch of this highly innovative 3D customer experience technology, NedSense has continued its focus on the development of the LOFT suite of products. Following completion of the NedGraphics sale, NedSense can focus all its efforts and capital on the further development of LOFT.