Financial statement first half of 2018Posted on 06.09.2018
The transport- and logistics company FREJA Transport & Logistics Holding A/S announces a satisfactory result for the first half of 2018. The merger with Transcargo has been completed in Denmark. Despite the one-off costs of the merger, Denmark comes out with a stable result. The subsidiaries in Norway and Finland continue to deliver results which are markedly above market level, just like the ”youngest” subsidiaries in Poland and China make positive contributions. A serious and solid sales promotion focusing on developing efficient and value-adding solutions for both FREJA and the customer creates strong customer relations. Focus on developing the business and investments in IT, RPA and employees remain high-priority and are contributing factors to the continued growth of the privately-owned Skive company.
Despite the effects of acquisitions and investments, the result of the first half of 2018 is satisfactory
FREJA Transport & Logistics Holding A/S ended 2017 by acquiring Transcargo in Padborg. The merger of the Danish activities was completed on 1 June, when Transcargo became part of FREJA Denmark. As anticipated, both turnover and revenue have been affected by the merger. It has been possible to retain both revenue and a positive development in the EBIT margin, which has increased by 0.1% in the six months from 2017 to 2018. However, the pre-tax profits have been affected by one-off costs in the sum of DKK 5.3 million relating to the acquisition of Transcargo and the subsequent merger of Danish activities in Transcargo. Add to this, significant investments in expanding logistics activities in Norway and the implementation of new, significant logistics customers who only contribute from Q3 onwards. In 2017, revenues were up in the sum of DKK 18.5 million from the sale of premises in Tumba, Sweden. This results in a total net decrease in pre-tax profits of DKK 17 million in comparison to the previous year. If the result is corrected for one-off income and expenditure, the result is a significant increase in ordinary operations.
The following key figures for FREJA Group are published with respect to the first half of 2018
FREJA Transport & Logistics Holding A/S reports a 19% growth in turnover for the first half of 2018 compared to the previous year. The total turnover for the first half of 2018 ends at a total DKK 1.55 billion.
EBIT for the first six months of the year total DKK 27.2 million in 2018 compared to DKK 21.4 million in 2017. The pre-tax profits of the year total DKK 21.2 million in 2018 compared to DKK 38.1 million for the same period of 2017.
The group equity capital has increased from DKK 241.1 million as of 30 June 2017 to DKK 275.1 million as of 30 June 2018. The solvency ratio decreased to 27.4 % as of 30 June 2018.
The development in the subsidiaries in Norway and Finland continues to be positive, Denmark continues the trend of stable growth whereas, in Sweden, there have been challenges during the first half of 2018. After a couple of years of investing in China, we now see a positive development providing a stable return. Poland is a new FREJA country after the acquisition of Transcargo and contributes positively to the overall revenues.
High quality and new post-merger markets ease sales promotions and provide unique possibilities for continued growth in FREJA
Jørgen Hansen, Group CEO, has on several occasions stated that FREJA is focusing on developing long-term relations with both customers and suppliers. While focusing on streamlining, FREJA is aware of the fact that people remain the most important resource in collaborations. The key traits in a strong collaboration are openness, trust and credibility. FREJA’s is based on a strong set of values and the mission is to develop the collaboration with customers on a daily basis. The first half of 2018 has been a busy time with the implementation of a number of significant customers in both Denmark and Norway.
”A reasonably satisfactory result for the first six months of 2018, taking into consideration the costs of acquisitions and the merger of Transcargo as well as the implementation of many new significant contracts. Given the new FREJA map, feeling optimistic about our ability to do even better is not difficult” – says Jørgen Hansen, Group CEO, and continues, ”Our new platform in Poland has provided us with new possibilities – we now have to take advantage of the competitive advantages on offer – both in Poland and in the FREJA Group as a whole. In addition to a unique platform, we have motivated and well-trained employees who, every day, are prepared to do better for our customers than the previous day. We look for possibilities that take us one step ahead of our competitors. This is why we train our ”organisation” in the skills necessary to do so. We will continue developing and investing in IT, RPA, training and people”, concludes Jørgen Hansen.
For further information, please contact Jørgen Hansen, Group CEOStatement first half 2018