Today the supervisory board has approved the annual report of BoConcept Holding A/S for the 2014/2015 financial year. The 2014/2015 annual report contains the following highlights:
- Revenue rose to DKK 1,148 million, corresponding to an increase of 9.3%. Growth is primarily driven by progress in brand stores and a positive effect from foreign exchange rates
- Same-store-sales in terms of order intake were up by 11.5%. For the first time in years, same-store-sales increased month on month as a result of new collection and sales-promoting initiatives
- The reorganisation of the chain has led to the closure of 38 brand stores, primarily in Denmark, Spain and the USA. Taking into account 25 openings in the course of the year, there were 253 brand stores in the franchise chain at the end of the financial year
- Profit before special items (EBIT before special items) amounted to DKK 15 million, equalling an EBIT% of 1.3%
- The strategic optimisation under Horizon 16/17 resulted in special items totalling DKK 66 million for reorganisation, including the closure of own stores, provisions for losses and write-down of intangible assets
- The loss for the year was DKK 57 million
- Cash flow from operating activities improved to DKK 19 million. After net investments totalling DKK 13 million, cash flow before instalments on long-term debt was an inflow of DKK 5 million, or 0.5% of revenues
Forecast for the financial year 2015/2016
- The store closures under Horizon 16/17 will have their full impact and affect revenues in the 2015/2016 financial year. However, the momentum from our campaign activity, a powerful collection and the activity level in the newly opened stores together with increased sales to contract customers should absorb the decline so that revenues will increase by approx. 2% on the 2014/2015 financial year. We expect to raise EBIT% to approx. 4% in the 2015/2016 financial year, as collection update costs and provisions for bad debts are expected to decrease considerably. Our forecast is based on the premise that current market conditions and foreign exchange rates continue to prevail.
Torben Paulin, CEO of BoConcept, says:
The 2014/2015 financial year was a landmark year for BoConcept. First and foremost, we launched the largest ever collection update in the company's history. On the same occasion, we rolled out an update of our concept and communications platform, and we increased same-store-sales by 11.5% and revenue by 9.3%. At the same time, we introduced a stricter credit policy towards stores with poor payment records and rolled out the implementation of Horizon 16/17 - a strategic optimisation of our entire business base.
With Horizon 16/17 we have mapped our optimisation options in order to reduce complexity and increase differentiation and efficiency in BoConcept, so that the additional earnings capacity of the business model is increased.
The 2015/16 financial year will thus be characterised by adjustments and transformation, ensuring that we from the 2016/2017 financial year will have a considerable basis for realising the growth and earnings potential of our business model by gradually expanding the chain with the right store openings and the right franchisees.
Annual general meeting
The annual general meeting will be held at the company's office, Mørupvej 16, Herning on 27 August 2015 at 4 pm.
Motions for consideration at the general meeting must be submitted in writing to the supervisory and executive boards no later than six weeks before the general meeting, i.e. no later than 16 July 2015.
For further information, please contact CEO Torben Paulin or CFO Hans Barslund on tel. +45 70 13 13 66.
