Divestment of the logistics function
Today, IC Group A/S has signed an agreement to sell its logistics function to Scan Global Logistics Group with an expected final closing date as at 30 June 2019. Subsequently, Scan Global Logistics Group will provide logistics services to Tiger of Sweden and By Malene Birger.
The cashflow effect from the sale including transaction costs is expected to be neutral while the accounting effect is expected to amount to a loss of approx. DKK 20 million which will be included in non-recurring costs for the financial year 2018/19.
Expectations for non-recurring costs for the financial years 2018/19 and 2019/20
The transformation of IC Group is being executed faster and more efficiently than planned, which, among other things, will lead to a reduction of the originally anticipated non-recurring costs for both the financial years 2018/19 and 2019/20 as well as the current running costs of IC Group in 2019/20.
Non-recurring costs are now expected to amount to approx. DKK 45 million in total (previously approx. DKK 55 million) of which approx. DKK 30 million (previously approx. DKK 35 million) is expected to be recognised in the financial year 2018/19 and approx. DKK 15 million (previously approx. DKK 20 million) is expected to be recognised in the financial year 2019/20.
When including the divestment of the logistics function, the non-recurring costs are expected to amount to approx. DKK 65 million in total of which DKK 50 million relates to the financial year 2018/19.
The exact amounts as well as the distribution between the individual financial years will still depend on the implementation of the transformation. As of the financial year 2020/21, the annual savings are still expected to be in the region of DKK 25 million.
Outlook for the Group’s continuing operations before non-recurring costs for the financial year 2018/19
The expectations for the Group’s continuing operations for the financial year 2018/19, which were announced on 28 January 2019 (Company Announcement no. 1/2019), are unchanged except from a changed investment level which is now expected to amount to approx. 2% (previously: approx. 3%) of the annual revenue. The decrease is driven by Tiger of Sweden.
|DKK million|| Realized
|Revenue growth (local currency)||(7.3)%||Minor reduction||Unchanged|
|Tiger of Sweden||(9.0)%||Minor reduction||Unchanged|
|By Malene Birger||(4.0)%||Moderate reduction||Unchanged|
|EBIT margin before non-recurring costs||6.0%||1-2%||Unchanged|
|Tiger of Sweden||47||Moderate decline||Unchanged|
|By Malene Birger||18||Substantial decline||Unchanged|
IC Group A/S
Please direct any questions regarding this announcement to:
Karin Hjort Jensen
Executive assistant to the CEO
+45 32 66 75 43
This announcement is a translation from the Danish language. In the event of any discrepancy between the Danish and English versions, the Danish version shall prevail.