Lauritz.com Group A / S – Interim report January – March
Copenhagen, May 31, 2021
In the first quarter of 2021, the activity of the Lauritz.com group continued the growth posted since July 2020. Growth is strong in continuing operations as well as in the part of the activity sold in May 2021.
The M&A process was finalized in May 2021 with the sale of Stockholms Auktionsverk, Karlstad Hammarö auction house and 3 auction houses in Germany. Following the sale, the group is now fully focused on developing the Lauritz brand internationally.
Evolution of EBITDA
Auction turnover for all activities increased by 28% compared to the same period last year (where Covid-19 had a significant impact on the Nordic region after March 10). For continuing activity, the growth in auction turnover compared to the first quarter of 2020 is 20%.
Auction revenues increased 25% year over year for all businesses and 16% for continuing operations, while operating costs only increased 3% overall operations and 0.5% for continuing operations.
EBITDA in the first quarter of 2020 increased from DKK 4.2 million from continuing operations to DKK 0.1 million (-4.1 million).
Cash flow from operations for continuing operations in the first quarter increased to DKK 5.4 million (-1.8 million). This change is mainly due to the improvement in EBITDA and the change in working capital requirements.
To take Lauritz.com to the next level in terms of both short and long term revenue and profits, including the planned deployment of new business areas, a future central management team has been defined. Thus, a new Country Manager Denmark joined the central management team in January 2021, a new CTO joined in April, while a new CMO is expected to join by September.
Our continued focus on sales management, business control and enforcement, both internally at HQ and across all auction houses, is paying off, and the rebound far exceeds the losses caused by Covid-19 in the first quarter of 2020.
The comprehensive optimization process that all auction houses went through in terms of auction logistics and supply chain management freed up resources for intensified sales activities focused on local valuation and sourcing. auction items.
In terms of marketing activities, we are continuously intensifying our digital footprint, showing positive effects and strengthening our position within international, national and local communities interested in the sale and purchase of high quality, sustainable vintage items. in art, design and collectibles.
Towards the end of 2019, a review of the group’s capital structure was carried out, culminating in the merger-acquisition process which started in April 2020 and ended in May 2021.
The result of the process is that the activities in Sweden, Finland and Germany have been sold. Most of the proceeds from the sale will be used to reduce the group’s debt by around DKK 60 million in June 2021 and an additional DKK 11 million in May 2022, after which the remaining bond debt will be DKK 102 million. In addition, the terms of the remaining bond debt have been adjusted, lowering the interest rate and modifying amortization so that the bond debt is a permanent loan until the maturity date in December 2024.
Impact on 2020 financial reporting due to the sale of activities
The presentation of the activity in the financial statements is impacted by the sale because the sold activity is presented as discontinued operations in the statement of comprehensive income, the balance sheet and the statement of cash flows. The part of the business sold has been reclassified as discontinued operations and the value of assets included in assets available for sale has been written down to reflect the realized sale price.
The sale of the Swedish, Finnish and German subsidiaries results in a book loss as the book value of the divested activities exceeds the realized sale price, resulting in an impairment loss of DKK 29 million. This loss is included in 2020 in the result of discontinued operations.
Orientation for 2021
Following the sale of the Swedish, Finnish and German activities, our forecasts for the continuation of the activities remain unchanged at:
- Growth in auction turnover of 5 to 15%
- Revenue growth of 10 to 20%
- EBITDA from 0 to 8 million Danish kroner.
Bengt Sundström, Chairman of the Board
Mette Margrethe Rode Sundstrøm, CEO
Preben Vinkler Lindgaard, Chief Financial Officer
Highlights Q1 2021
January – March 2021 (continued operations)
|Key figures Lauritz.com Group A / S|
|(Continuation of operations)||January March|
|Number of Knockdowns (excluding QXL)||39 670||34 635|
|Average knockdown price (excluding QXL)||2 897||2 756|
|Auction turnover margin1||0.1%||-3.6%|
|Earnings per share (DKK)||-0.024||0.013|
|Operating cash flow||5 426||-1 776|
1 Auction turnover margin = EBITDA / auction turnover.
For press inquiries, please contact:
Email: [email protected]
For any other request, please contact:
Preben Vinkler Lindgaard
Certified advisor: Erik Penser Bank AB
Phone number: +46 8-463 83 00
Email: [email protected]
Marketplace: Nasdaq First North Growth Market Premier Stockholm
This information is information that Lauritz.com Group A / S is required to make public in accordance with the European Market Abuse Regulation. The information has been submitted for publication through the agency of the contact person mentioned above, at 7:00 p.m. CEST on May 31, 2021.
Company announcement 2021 nr 11 – Groupe Lauritz.com – Interim report January – March 2021
Lauritz com Group AS – Interim report January-March 2021