IC GROUP A/S
ANNUAL REPORT/ANNUAL ACCOUNTS
The Group’s continuing operations generated a revenue of DKK 2,638m for 2014/15
corresponding to an increase of 2.9% in local currency (4.9% in local
currency). The operating profit of DKK 207m was in line with expectations. The
Board of Directors has resolved to propose that IC Group A/S distributes an
ordinary dividend of DKK 68m corresponding to DKK 4.00 per share.
* Peak Performance generated a revenue of DKK 953m (DKK 929) corresponding to a
growth rate of 2.5% (4.1% in local currency). The operating profit amounted to
DKK 107m (DKK 72m) corresponding to an EBIT margin of 11.2% (7.8%).
* Tiger of Sweden generated a revenue of DKK 943m (DKK 883m) corresponding to
a growth rate of 6.9% (10.1% in local currency). The operating profit amounted
to DKK 112m (DKK 93m) and the EBIT margin was thus improved from 10.5% to
11.9%.
* By Malene Birger generated a revenue of DKK 342m (DKK 326m) corresponding to
a growth rate of 4.8% (6.0% in local currency). The operating profit amounted
to DKK 29m (DKK 28m) and was thus in line with the level of last financial
year, as was the EBIT margin which amounted to 8.5% (8.6%).
* The Group’s Non-core business, which failed to meet expectations, generated
a revenue of DKK 400m (DKK 425m) corresponding to a decline of 5.8% (a decline
of 5.0% in local currency).
* Overall, revenue of continuing operations amounted to DKK 2,638m (DKK
2,563m). According to the Group’s most recent outlook, revenue was expected in
the region of DKK 2,600-2,650m.
* The Group’s gross profit of continuing operations amounted to DKK 1,446m
(DKK 1,470m) corresponding to a gross margin of 54.8% (57.3%).
* Capacity costs amounted to DKK 1,239m (DKK 1,249m) and, as a result, the
expense ratio was reduced to 47.0% (48.7%).
* The operating profit for the Group’s continuing operations amounted to DKK
207m (DKK 221m) leading to an EBIT margin of 7.8% (8.6%). The operating profit
was negatively impacted by idle capacity costs of DKK 26m relating to the
divested Mid Market division as well as extraordinary provisions of DKK 12m in
the second quarter. Adjusted for idle capacity costs and extraordinary
provisions, the EBIT margin amounted to 9.3%.
* The Group’s profit after tax amounted to DKK 140m for 2014/15 compared to
DKK 165m for 2013/14.
* Investments amounted to DKK 87m (DKK 99m) corresponding to 3% of revenue.
According to the most recently announced outlook, the Group expected
investments to constitute 4% of revenue.
* Cash flows from operating and investing activities increased by DKK 68m to
DKK 241m (DKK 173m) as a result of reduced cash flows from operating
activities, which was more than outweighed by lower investment in the working
capital and the sale of securities during the year under review.
* The Board of Directors recommends that the annual general meeting resolves
to distribute an ordinary dividend of DKK 68m for the financial year 2014/15
corresponding to DKK 4.00 per share.
OUTLOOK FOR 2015/16
The Group expects its core business to continue its positive development, and
thereby driving the Group’s overall revenue and earnings growth.
Specifically, the Group expects revenue to increase by approx. 4% and the EBIT
margin to settle at approx. 10%.
Investments are expected to attain a level of 3-4% of the annual revenue.
Provided that the Group’s performance is in line with expectations, the Board
of Directors expects to distribute an extraordinary dividend of approx. DKK 75m
during the financial year 2015/16.
GROUP CEO MADS RYDER COMMENTED;
”We have a clear and well-defined focus on the Premium segment, and we have
three strong brands which have delivered solid and satisfactory results during
this financial year. We have now implemented a structure which supports the
growth targets set out for each of these three brands. They all show a strong
potential for further international expansion. This potential must be
exploited, and we must seize all future possibilities. We need to improve our
performance in respect of both growth and earnings and we are determined to do
so.”
IC GROUP A/S
Mads Ryder
Group CEO
PLEASE DIRECT ANY QUERIES REGARDING THIS ANNOUNCEMENT TO:
Jens Bak-Holder
Investor Relations Manager
+45 21 28 58 32
This announcement is a translation from the Danish language. In the event of
any discrepancy between the Danish and English versions, the Danish version
shall prevail.
