The Board of Directors have approved the Annual Report of STYLEPIT A/S for the financial year 1 July 2013 - 30 June 2014. The consolidated financial statements are presented in accordance with International Financial Reporting Standards as adopted by the EU. Further, the annual report is prepared in accordance with Danish disclosure requirements for listed companies. The Annual Report is accessible in Danish at STYLEPITs website: www.stylepit.com
Summary
STYLEPIT A/S generated revenues of DKK 471.1 mill. delivering a growth of 6.4%. Net-sales are in line with the expectations announced in December 2013.
EBITDA before special items amounted to DKK - 32.7 mill. which is in line with recent guidance on EBITDA before special items.
Outlook for 2014/15
For the financial year 2014/15, STYLEPIT A/S expects consolidated revenues of DKK 400 – 425 mill. and EBITDA excluding earnings impact from issuance of warrants of DKK - 9 mill. to DKK - 18 mill.
Management will be focusing its efforts on ensuring an improval of operating margins and to a lesser extent on generating revenue growth. Management expects that an increase in sales of own brands, either through an organic process or through an acquisition of brands will ensure an increase of margins. It should be noted that if the Letter of Intent with Conseptor results in a final agreement; STYLEPITs revenue and earnings contributions will be at a significantly higher level. Consolidated operations for a combined group based on a pro forma merger with activities mentioned in announcement no. 17 / 2014 is expected to result in annual net sales of around DKK 850 mill. with positive EBITDA before synergies and possible integration costs in a pro forma 2014/15 year.
A transformational year with non-recurring items
During the financial year, it was decided to change the company name to STYLEPIT to consolidate marketing efforts by consolidated brands and domains in Denmark, Norway and Sweden under the STYLEPIT brand. This has led to changes and investments in the STYLEPIT brand with increased focus on the Nordics - where an improvement in growth and profitability is expected. The change in identity has resulted in a more selective procurement process where the number of brands is reduced over time; STYLEPIT wants to source fewer but more relevant brands.
During the financial year 2013/14 the company has launched a series of measures to restore earnings. The results therefore reflect a transformational year, with a significant level of non-recurring costs and impairments. In the course of the year the company completed a merger of online platforms into one online retail brand and the company has relocated the warehouse and photo production to Poland. Non-recurring operating items amounted to a loss of DKK -48.0 mill. in 2013/14. Special items represent costs incurred in connection with the transfer to Poland and a write-down of inventories in connection with the change in strategy. Net income was also affected by a write-down of properties of DKK -21.5 mill. in 2013/14. Profit after tax amounted to DKK -129.7 mill. in 2013/14.
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Questions regarding this notice should be addressed to Chairman Nicolai Kærgaard on mobile number +45 26 22 99 11 or CEO Marc Jeilman on mobile number +45 20 35 25 80.
STYLEPIT A/S
