Lauritz.com Group A/S – Interim report January – June 2022 (Correction of Headline only)

 

 

No. 7/2022

Copenhagen, 25 August 2022

 

In the first half of 2022 the business of Lauritz.com group delivered EBITDA of DKK 3.4m an improvement of DKK 6.1m compared to last year.

The earnings in the first half are positively impacted by cost savings in HQ and owned auction houses, as well as from lower cost due to more auction houses now being owned and due to changes in relation to partner owned houses. Furthermore, the development towards higher yielding business is contributing to the improvement in earnings.

During the first part of Q3 Knockdown has been above last year, and we have reduced the decline compared to last year from 4.6 percent in the first half of the year to 1.9 percent year to date by mid-August.

 

Auction Turnover

Auction Turnover amounted to DKK 201.5m (211.3), a decrease of 4.6 percent compared to last year.

The development is primarily impacted by the closing of the auction house in Esbjerg, and the opening of an auction house in Kolding, resulting in a period with lower activity in the southern part of Jutland.

Furthermore, the development in the macro environment with increasing consumer prices has impacted the knockdown development in the first half of 2022 negatively.

 

Development in EBITDA

For the period January to June revenue is 4.3 percent below last year driven by lower auction turnover, and partly offset by improvement in fees and commissions. Operating cost has been reduced significantly, with a 13 percent reduction.

As a result, EBITDA in the first half of 2022 is DKK 3.4m (-2.7m). The DKK 6.1m improvement is primarily driven by the reduced cost.

Cash flow from operating activities is DKK -3.9m (-24.4m). The change is mainly driven by improved earnings, changes in working capital items and lower interest payments.

 

Future organization

To bring Lauritz.com to the next level as to turnover and earnings on shorter and longer terms, including expected roll out of new business areas, a future central management team has been defined. The new Country Manager Denmark and the new CTO onboarded during the first half of 2021 and a new CMO in February 2022.

 

Commercial initiatives

Our continued focus on sales management, business control and execution both internally in the headquarter and in all auction houses is showing results.

The comprehensive optimization process that all auction houses have gone through in terms of logistics and handling of the auction supply chain, has released resources for intensified sales activities focusing on the local evaluation and sourcing of items for auction.

In terms of marketing activities, we are continuously intensifying our digital footprint, showing positive effects and strengthening our position within international, national and local communities interested in selling and buying sustainable vintage items of high quality within art, design and collectables.

 

Financing

The group is funded by a bond. Currently the bond has an outstanding debt of SEK 140m and a fixed interest rate of 4%.

As planned the last instalment for the sold business was received in Q2 2022 (SEK 15m), and a repayment on the bond debt of SEK 15m was made. The remaining bond debt is now a standing loan of SEK 140m until maturity in December 2024.

 

Guidance for 2022

Our guidance for 2022 is:

• Growth in Auction Turnover of -5 to +5 percent
• Growth in Revenue of -5 to +5 percent
• EBITDA of DKK 5 - 10m.

 

 

Bengt Sundström, Chairman of the board

Mette Margrethe Rode Sundstrøm, CEO

Preben Vinkler Lindgaard, CFO

 

 

 

 

 

 

 

2022 Highlights

January – June 2022 • EBITDA increased by DKK 6.1m to DKK 3.4m (-2.7m). • Cost reduced by 13 percent compared to last year. • Average Auction turnover price up by 8.1 percent. • Number of knockdowns decrease of 11.7 percent. • Auction Turnover decrease of 4.6 percent. • Revenue decline of 4.3 percent.

 

 

Lauritz.com Group A/S key figures
(continuing operations)

 

	April – June		January – June
000 DKK	2022	2021	2022	2021
Auction turnover	92,285	97,731	201,529	211,269
Number of Knockdowns	33,563	36,67	67,125	76,055
Average Auction turnover price, DKK	2,75	2,686	3,002	2,778
Revenue	29,446	31,985	61,66	64,42
EBITDA	4,476	-2,826	3,449	-2,688
Auction Turnover Margin1	4.9%	-2.9%	1.7%	-1.3%
Profit	4,191	-7,405	990	-8,365
Earnings per share, DKK	0.103	-0.182	0.024	-0.206
Cash flow from operating activities	-8,364	-11,554	-3,862	-24,435
1 Auction Turnover Margin = EBITDA/Auction Turnover.

 

 

 

 

Link to the financial report:

https://corporate.lauritz.com/financial-information/interim-reports/

 

 

 

 

 

 

For press enquiries, please contact:

Mette Jessen

E-mail: press@lauritz.com

 

 

 

For other enquiries, please contact:

Preben Vinkler Lindgaard

CFO

E-mail: Preben@lauritz.com

 

 

 

Certified Adviser: Erik Penser Bank AB

Telephone number: +46 8-463 83 00

E-mail: certifiedadviser@penser.se

 

Market place: Nasdaq First North Growth Market Stockholm

 

 

 

The information was submitted for publication through the agency of the contact person set out above, at 9.20am CEST on 25 August 2022.

 

Attachments

• Lauritz com Group AS - Interim Report January - June 2022
• Company announcement 2022 nr 7 - Lauritz.com Group - Interim report January - June 2022