“The market situation in Europe remains challenging although we are seeing a gradual improvement, which indicates that we are heading towards a more stable situation. Meanwhile, our Global Sales business continues to grow. One of our objectives has been to reduce the tie-up of cash in operating capital and thus adapt to the difficult business environment. We have succeeded in this, and our interest-bearing debt is now approximately DKK 70 million lower than at the same time last year,” says CEO Kent Arentoft.
• Turnover for the first nine months of the year totalled DKK 1,582 million against DKK 1,727 million last year, corresponding to a fall of 8%. In Q3, turnover totalled DKK 524 million, which was 5% lower than the same quarter last year.
• For the first nine months of the year, Global Sales posted a turnover 13% higher than last year whereas the European business saw a fall of 20% as a consequence of a generally lower activity level combined with a long winter in Europe. Global Sales achieved an increase of 9% for the quarter whereas turnover in Europe fell by 14%.
• The Group’s gross margin for the first nine months of the year fell by 1.5 percentage points as a result of a significant imbalance between supply and demand together with the fact that Global Sales’ back-to-back business, where the gross margin is lower, accounts for a larger proportion of the turnover.
• The lower turnover and the lower gross margin have resulted in lower earnings. This has, in part, been offset by significant cost reductions in the region of DKK 30 million. EBIT was minus DKK 13 million against last year’s DKK 1 million. In Q3, EBIT was minus DKK 6 million against minus DKK 1 million last year, which was positively affected by a DKK 3 million payout relating to an insurance matter.
• DLH has continued to reduce its net interest bearing debt, which, at the end of Q3, totals DKK 270 million against DKK 337 million at the end of Q3 last year. DLH is continuing its NWC project to reduce operating capital. As part of this, the winding up of the inventory-based business in Benelux and Germany was announced on 26 September 2013.
• DLH maintains its outlook, as announced on 22 August 2013, for a turnover at the level of DKK 2.2 billion and EBIT at the level of minus DKK 30 to 40 million.
• As a consequence of the winding up of the inventory-based business in Benelux and Germany, this business has been reclassified as discontinued operations. Adjusted for this, a turnover in the region of DKK 2.1 billion and an EBIT of between minus DKK 25 and DKK 35 million are expected for the continuing business.
For further information about this announcement, please contact President/CEO Kent Arentoft on tel.: +45 4350 0101.
