Press Releases

Earnings guidance and update on M&A process

Published: 2021-01-22 16:30

No. 1/2021
Copenhagen, 22 January 2021

Result for 2020
We have achieved the guidance for 2020 in 2 of 3 parameters despite the challenging situation created by the Covid-19 outbreak.
Auction turnover increased by 1% (guidance 0-5%).
EBITDA will be approximately DKK 12m (guidance 10-20m)
Revenue decreased with 3% (guidance 0-5%), mainly due to the Covid-19 outbreak requiring offensive campaigns with attractive seller commissions to maintain an in-flow of items to sell on auction. 
The second half of 2020 showed a positive development following the challenging first half of 2020, resulting in an acceptable result for the full year.

Guidance for 2021
The positive trading in the second half year of 2020 was driven by a sound growth in the large majority of our 28 auction houses. This development has continued in the start of 2021, where our auction turnover continues to show resilience with a good momentum in consignments from private sellers in spite of the Covid-19 challenges in society. Furthermore, we see an increase in forced sales from the professional market as a consequence of Covid-19’s negative impact on e.g. retailers during lock-downs. 

We expect this to continue for a foreseeable future and effect 2021 positively.
Naturally, there are still some uncertainty as to whether the Covid-19 situation will change dramatically to the worse. To mirror that we have a larger span than usual in our expectations for 2021:
•          Auction turnover will increase with 5-15%
•          Revenue will grow with 10-20%
•          EBITDA will reach DKK 20-40m

M&A process
Lauritz.coms M&A process has been ongoing throughout 2020 with a number of separate lines of negotiations including converting the bond debt to another type of loan, new investors injecting equity or divesture of a smaller part of the groups activities.  Due to the Covid-19 situation, the M&A process is developing positively however delayed as travelling, meeting etc. has been more difficult than usual. We are continuing the process in close cooperation with the bondholders, and we are expecting the M&A process to conclude within the next months.

Best regards Group A/S
Bengt Sundström

For press enquiries, please contact: Susanne Sandsberg Klubien,
+45 26891909

Certified Adviser: Erik Penser Bank AB
Telephone number: +46 8-463 83 00

Market place: Nasdaq First North Growth Market Premier Stockholm

This information is information that Group A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 17.30 CET on 22 January 2021.