People’s Business, modern technology and a lean platform are still keywords for ambitious FREJA
The transport & logistics group FREJA Transport & Logistics Holding A/S presents a satisfactory but not flashy result for 2018. Once again, the subsidiaries in Norway and Finland are the ones to deliver results above market level. In 2018 the Swedish subsidiary disappoints once again. 2018 was “year one” after the acquisition of Transcargo, which has resulted in some integration costs. The Danish part of Transcargo is 100 % implemented and merged into the Danish FREJA, and the result in the Danish subsidiary meets the expectations for 2018. In 2019 focus is on the Polish subsidiary, where the trucking part operates as an independent company. Furthermore, we have started construction of a brand-new HUB on a 75,000 m2 site in Szczecin. Our ambition is, that the new center will be ready on May 1st, 2020, and that the Polish subsidiary will transfer onto FREJA’s it-platform during the third quarter of 2019. The development in the Group and the integration during the course of the year, have progressed according to plan, so we have good reason to believe in continued growth as well as optimism.
The FREJA Group continuous the stabile development and is profitable in 2018
FREJA Transport & Logistics Holding A/S has a growth in turnover from 2017 to 2018 of 22,5 %. The total turnover in 2018 amounts to a total of DKK 3.12 billion.
EBIT amounts to DKK 51.4 mill. in 2018 against DKK 41.6 mill in 2017. The result before tax amounts to DKK 38.0 mill in 2018 compared to DKK 59.4 mill in 2017. The result in 2017 was influenced positively by non-recurring revenues, and 2018 is influenced negatively by transition and integration costs related to the purchase of Transcargo.
Group equity has increased from DKK 252.2 mill in 2017 to DKK 285.5 mill in 2018. The solvency ratio decreased from 37.2 % to 29.6 % at the end of 2018. The development in Denmark – including a controlled integration with Transcargo’s former Danish activities, has been positive resulting in increased revenue. In Norway we have opened a new office in Aalesund and in general the development in the subsidiaries in Norway and Finland are very positive.
Sweden does not live up to expectations for 2018. The continuing negative trend has resulted in a change in management in the beginning of 2019 and management resources have been added from Denmark as well. The Air & Sea segment has been strengthened by new employments, and we have invested in a stronger sales organization. The Swedish company still estimates a deficit for 2019 and the parent r company has added the necessary capital.
The newly acquired company in Poland has shown an excellent development and the potential for continuing growth is large. Likewise, China has had a fine development in as well turnover as earnings – a development we predict to continue in 2019.
In spite of massive investments in new technologies, transport is still a People’s Business
During more than 10 years, FREJA has invested massively in it’s it-platform and 2018 is no exception. We invest partly to optimize our own business, partly to become more competitive, but also to give our customers advantages in the value chain. We have launched MyFREJA to the delight of our customers, and we participate in a research project concerning exchange of data with customers and suppliers. We expect, that the final product will give significant financial advantages to all parties and thereby help lift the Danish transport business.
“Our focus is to continue to develop long-term relations with customers as well as suppliers. In spite of our large focus on efficiency improvements, we are also aware that humans are still the most important resource in the cooperation – transport is a People’s Business. The key-words for us in a cooperation are openness, trust and credibility. We have always run our business on the basis of strong values. We work on a daily basis to make a difference for our customers and make sure that together we will become a little bit better every day”, says Jørgen Hansen founder of and Chairman of the Board in the FREJA Group.
Readiness, humility and continued ambitions sets the agenda in the always hungry Jutlandic Group
“A reasonable annual result for 2018, but we are ready, and we have the ambition to show that we can do better. Our focus in 2018 has been on utilization of new technologies and integration of Transcargo. This year, our biggest focus will be on our new position on the Polish market together with re-establishment of the Swedish subsidiary, however it will not influence our development in China, Norway and Finland. The development for the first quarter of 2019 shows that we are on the right track. We have the platform and we are ready to reap the benefits of past years’ massive investments. And should there be further consolidation possibilities, we are also ready to take a look at that,” Jørgen Hansen finishes.