Lauritz.com Group A/S interim report January – December 2019
No. 3/2020
Copenhagen, 27 February 2020
Growth in EBITDA
EBITDA in 2019 is DKK 7.7m compared to DKK 2.3m last year (excluding sales gains and the reservation for losses on receivables). EBITDA in Q4 is DKK 2.0m, DKK 47.3m above last year mainly due to the reassessment of the gain from the sale of the fine Art business and the reservation for loss on receivables included in Q4 2018, as well as a DKK 2.4m improvement in EBITDA from operations.
Auction Turnover for the year declined 2 percent compared to last year, primarily due to a weak Q4 2019, resulting in a revenue decline of 3.4 percent compared to last year.
The commission to partners was reduced as a result of the lower Auction Turnover and due to the purchase of auction houses.
The like for like business has reduced cost by 3 percent compared to last year, partly offsetting the increase in cost from acquired businesses, primarily the fine art business.
The Cash Flow from Operations in Q4 is DKK 24.2m a decrease of DKK 12.1m compared to 2018. The Cash flow from operations for the full year improved by DKK 33.4m compared to last year. The improvement is partly driven by seasonality in the business significantly impacted by timing of Fine Art auctions, and partly due to improved EBITDA.
To support and strengthen the positive development we will continue the intensified sales- and marketing initiatives and further increase the focus on operations of the business.
Commercial initiatives
Several commercial initiatives are showing positive effect on the results. Among them, a continued increased focus on sales management, business control and execution both internally in the headquarters and in relation to the individual auction houses.
The comprehensive optimization process that all auction houses have gone through in terms of logistics and handling of the auction supply chain, has released resources for intensified sales activities.
Apart from targeting more private sellers, we are continuously targeting professional sellers to consign larger lot stocks or one-off sales within both vintage items and newly produced items.
In terms of marketing activities, we are continuously focused on creating local activities including an increase in our outreach via focused social media, which is still showing a positive effect and strengthening our presence in the local and regional communities.
With regards to Stockholms Auktionsverk, we have observed a continuously positive steady development throughout the year. The implementation of Lauritz.com’s sales management system is expanding the commercial skills among our Swedish experts whose role is currently changing from a more internal role to a more external role, proactively contacting potential sellers for consignments. Moreover, our focused brand related collaborations with other strong brands and ambassadors are are influencing the results positively, and we have strengthened our Stockholm based marketing department to support the positive development further.
Negotiations regarding financing structure
Negotiations are ongoing with various investors regarding a new financing structure. These negotiations include a group of large existing bondholders. The negotiations are constructive, and it is expected that a solution will be found. Amortizations are put on hold during these negotiations which also include a new amortization structure.
Further we are continuing negotiations with another group of investors headed by Tianrong Investment Group about establishing a joint venture for entering the Asian auction market, and for a new financing arrangement to replace the current bond debt with new equity and a new senior loan.
Guidance for 2020
Our guidance for 2020 is an expected growth in Auction Turnover and Revenue of 0-5 percent, and EBITDA of DKK 10-15m.
Bengt Sundström, Chairman of the board
Carsten Rysgaard, CEO
Preben Vinkler Lindgaard, CFO
Highlights 2019
| October – December 2019 | |
| |
| January – December 2019 |
|
| Lauritz.com Group A/S key figures | ||||
| October – December | January – December | |||
| DKK million | 2019 | 2018 | 2019 | 2018 |
| Auction turnover | 202,704 | 228,179 | 723,537 | 738,217 |
| Revenue | 61,403 | 71,042 | 220,228 | 227,962 |
| Number of Knockdowns (excl. QXL) | 71,133 | 75,847 | 270,530 | 272,248 |
| Average Knockdown price (excl. QXL) | 2,850 | 3,008 | 2,675 | 2,712 |
| EBITDA | 2,016 | -45,311 | 7,723 | -2,025 |
| Auction Turnover Margin1 | 1.0% | -19.9% | 1.1% | -0.3% |
| Profit | -9,985 | -84,573 | 55,088 | -67,161 |
| Earnings per share | -0.456 | -2.073 | 1.353 | -1.662 |
| Cash flow from operations | 24,223 | 36,343 | -3,920 | -37,320 |
1 Auction Turnover Margin = EBITDA/Auction Turnover.
For press enquiries, please contact:
Susanne Sandsberg Klubien,
E-mail:
For other enquiries, please contact:
Preben Vinkler Lindgaard
CFO
Certified Adviser: Erik Penser Bank AB
Telephone number:
E-mail:
Market place: Nasdaq First North Growth Market Premier Stockholm
This information is information that Lauritz.com Group A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 09.00 am CET on 27 February 2020.
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