Herning, Denmark, 2012-06-22 08:08 CEST (GLOBE NEWSWIRE) --
- Profit before tax increased by 30% to DKK 39.6 million in the financial year
- Revenue rose by 2.1% to DKK 1,022.2 million. Revenue growth was in line with forecast and was affected by the challenging market conditions
- Same-store-sales in terms of order intake increased by 4.7% over the full financial year. Progress was particularly strong in the third and fourth quarters of the financial year, where the company's massive efforts to position the brand and promote sales helped increase same-store-sales by 9.2% and 10.0% respectively
- The group opened 23 new brand stores and closed 24, resulting in a total of 255 stores at year-end. Retail trade trends and tough financing conditions have delayed the scheduled expansion of the chain of stores
- Increased sales and greater efficiency increased the gross profit margin to 44.2% while the added earnings potential of the business model increased the operating margin (EBIT percentage) to 3.6%
- Financial resources and scope increased during the year. The equity ratio is 41.5%
- The improved operations have increased cash flows. After net investments totalling DKK 21.2 million cash flows before financing activities amount to 3.1% of revenue, or DKK 31.9 million, which is an improvement on the most recent forecasts
FORECAST 2012/2013
- If current market conditions continue to prevail, BoConcept's management expects revenue to increase by 5-7% in the 2012/2013 financial year. The operating margin (EBIT percentage) is expected to increase to approximately 5%, while cash flows before financing activities are expected to amount to about 2% of revenue.
'Despite positive economic trends at the beginning of 2011, the 2011/2012 financial year turned out to be yet another challenging year characterised by the European crisis. The situation challenged the motivation and ability to act decisively of our organisation, and BoConcept has since then made every effort to increase brand awareness, strengthen the market position and increase store sales. In the face of tougher market conditions we have been able to increase revenue and same-store-sales in the financial year, while we have improved our bottom line and cash flow for the third year running,' Viggo Mølholm, CEO of BoConcept Holding, says and continues:
'The market conditions continue to be subject to great volatility in the western markets. At the beginning of the financial year 2012/2013 year I see a BoConcept that is stronger than ever before. We have a clearly defined concept, a firm strategy for growth and expansion, and the efficiency of our business model has never been better. In the coming financial year we will maintain direction and momentum and focus on extending the chain and strengthening BoConcept's brand, business base and performance. In this way we expect to continue the positive development and market position and earnings in BoConcept's 60th anniversary year.'
Annual general meeting
The annual general meeting will be held at the company's office, Mørupvej 16, Herning on 29 August 2012 at 2 pm.
The supervisory board has decided to table the following motions for consideration by the company in general meeting:
1. In view of BoConcept Holding's sound capital base, the supervisory board recommends that dividend is distributed for the 2011/2012 financial year in the amount of DKK 2 per share with a nominal value of DKK 10, corresponding to total dividend distribution of DKK 5.7 million or 22% of the profit for the year after tax
Motions for consideration at the general meeting must be submitted in writing to the supervisory and executive boards no later than six weeks before the general meeting, i.e. no later than 18 July 2012.
The published annual report is expected to be available in early August 2012.
For further information, please contact President & CEO, Viggo Mølholm, or Vice President & CFO, Hans Barslund, on telephone number: +45 7013 1366.
