Herning, Denmark, 2011-06-29 07:59 CEST (GLOBE NEWSWIRE) --
- Revenue was DKK 1,001 million in 2010/2011, up 10% on the previous year. The revenue growth, driven by increased activity in franchise stores, was realised at the high end of the 5-10% range of predicted growth
- Despite low store traffic, same-store-sales grew. For the full financial year, same-store-sales grew by 5.7% in terms of invoicing and by 5.0% in terms of order intake
- With 39 new brand store openings and 21 closures, the chain recorded a number of stores on a par with the highest number ever and improved its health at the same time
- With the added earnings potential of BoConcept's business model, the increase in activity translated into higher profit. As predicted, the group realised an operating profit (EBIT percentage) of 3.5% compared with 1.4% in the past financial year
- Profit before tax rose to DKK 30 million in the 2010/2011 financial year, up by DKK 21 million compared with last year
- More funds were tied up in working capital as a result of the increase in activity. After investments in non-current assets totalling DKK 29 million, cash flow before financing activities was DKK 4 million
- The management expects a revenue growth of 7-10%, an operating margin (EBIT percentage) of about 5%, and cash flow before financing activities of 2% of revenue
'Following a period characterised by recession, stable market conditions and an effective and targeted effort to optimise our business base brought BoConcept A/S back on the growth track. Through strengthening of the brand, roll out of promotional activities, a substantial number of new store openings worldwide and increased efficiency, we have been able to increase the activity level, win market shares and increase our earning capacity in the 2010/2011 financial year. In brief, we are implementing our growth strategy,' says Viggo Mølholm, President & CEO of BoConcept Holding, and continues:
'The market prospects are stable, yet still influenced by hesitant consumer behaviour. In order to further strengthen our market position and sales, we will be focusing on increasing our promotional activities – both in the stores and on the internet – and boosting the expansion of the franchise chain, thereby ensuring that the number of stores is increased. The increased activity level and the economies of scales related to the business model will increase the group's earning capacity and cash flow in the 2011/2012 financial year, enabling us to take another step towards realising our long-term goals.'
Annual general meeting
The annual general meeting will be held on the company's premises, Mørupvej 16, Herning on 31 August 2011 at 4pm.
The supervisory board has decided to table the following motions for consideration by the company in general meeting:
1. In view of BoConcept Holding's sound capital base, the supervisory board recommends that dividend is distributed for the 2010/2011 financial year in the amount of DKK 2 per share with a nominal value of DKK 10, corresponding to total dividend distribution of DKK 5.7 million or approximately 29% of the profit for the year after tax
2. Authorisation of the supervisory board to acquire up to 10% of the company's share capital before the next annual general meeting with reference to current legislation
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 20 July 2011.
The published annual report is expected to be available in early August 2011.
BoConcept Holding A/S
Ebbe Jacobsen Viggo Mølholm
Chairman President & CEO
For further information, please contact President & CEO, Viggo Mølholm, or Vice President & CFO, Hans Barslund, on telephone number: +45 7013 1366.
