In connection with its "Go to Market" strategy DLH decided to divest the group’s hardwood activities in the United Kingdom and Germany (cf. announcement no. 18/2010 of 13 December 2010).
In continuation hereof, DLH has entered into an agreement with James Latham Plc, DLH’s largest customer in the UK market, that James Latham Plc. today takes over DLH UK Ltd. in the UK. The transaction will free approximately DKK 35 million in liquidity and combined with the reductions of the inventories and the debtors of DLH’s German activities DLH thereby reduces its working capital by almost DKK 70 million as was expected.
The planned organizational changes in the UK and Germany have thus been completed and, in future, these markets will be served by DLH’s Trading organisation. The divestment has proceeded according to plan and it improves DLH’s cash flow but, being a precondition to the forecast, the divestment will have no effect on the company’s most recent forecast revenue and profit for 2011.
Please direct any inquiries relating to the announcement to President and CEO Kent Arentoft on telephone no. +45 43 50 01 01.
