‘In Q1 we experienced a continuing lower level of activity in Europe combined with an unusually long winter. With the prospect of both difficult and unpredictable market conditions, we’re continuing to focus on strict cost and balance sheet control,” says CEO, Kent Arentoft.
- Turnover for the first three months totals DKK 486 million against DKK 622 million for the same period last year.
- Global Sales posted a turnover on a par with last year, whereas the European business saw a fall in turnover of 30% as a consequence of a generally lower activity level combined with an unusually long winter in Europe.
- The lower turnover and lower gross margin have impacted on the results for the period. EBIT was minus DKK 15 million against last year’s DKK 3 million, whereas last year’s results benefitted from non-recurring income of DKK 4 million.
- DLH has maintained its net interest bearing debt at a low level in that the debt at the end of Q1 totals DKK 290 million against DKK 597 million at the same time last year.
- As a result of the usual seasonal factors, the debt increased by DKK 42 million in Q1 when inventory is being build up to prepare for sales in the subsequent quarters of the year. DLH is continuing its efforts to bring down its net interest bearing debt through a reduction in the working capital as well as disposing of minor assets.
- On 12 March 2013 the Group announced that it expected a turnover and an EBIT margin on a par with that achieved for 2012. On 8 April 2013, the Group maintained these expectations conditional upon a positive shift in activity level.DLH maintains the announced expectations. However, the latest indicators for the development in the European economy for 2013 make it difficult to predict if the expected boost in the activity level for the remainder of the year will materialise.
For further information about this announcement, please contact President & CEO Kent Arentoft on tel: + 45 4350 0101.
