Lauritz.com Group A / S – Interim report January – March

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No. 11/2021

Copenhagen, May 31, 2021

In the first quarter of 2021, the activity of the Lauritz.com group continued the growth posted since July 2020. Growth is strong in the continuing activity as well as in the part of the activity sold in May 2021.

The M&A process was finalized in May 2021 with the sale of Stockholms Auktionsverk, the auction house in Karlstad Hammarö and 3 auction houses in Germany. Following the sale, the group is now fully focused on developing the Lauritz brand internationally.

Evolution of EBITDA

Auction turnover for all activities increased by 28% compared to the same period last year (where Covid-19 had a significant impact on the Nordic region after March 10). For continuing activity, the growth in auction turnover compared to Q1 2020 is 20%.

Auction revenues increased 25% year over year for all businesses and 16% for continuing operations, while operating costs only increased 3% overall of activity and 0.5% for continuing operations.

EBITDA in the first quarter of 2020 increased from DKK 4.2 million from continuing operations to DKK 0.1 million (-4.1 million).

First quarter cash flow from continuing operations increased to DKK 5.4 million (-1.8 million). This change is mainly due to the improvement in EBITDA and the change in working capital requirements.

Future organization

To take Lauritz.com to the next level in terms of both short and long term revenue and profits, including the planned deployment of new business areas, a future central management team has been defined. Thus, a new Country Manager Denmark joined the central management team in January 2021, a new CTO joined in April, while a new CMO should join by September.

Commercial initiatives

Our continued focus on sales management, business control and execution both internally at HQ and across all auction houses is paying off, and the rebound far exceeds the losses generated by Covid-19 at first quarter 2020.

The comprehensive optimization process that all auction houses went through in terms of auction logistics and supply chain management freed up resources for intensified sales activities focused on local valuation and sourcing. auction items.

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 the sale and purchase of high quality, sustainable vintage items. in art, design and collectibles.

Funding

Towards the end of 2019, a review of the group’s capital structure was carried out, culminating in the merger-acquisition process which began in April 2020 and ended in May 2021.

The result of the process is that the activities in Sweden, Finland and Germany have been sold. Most of the proceeds from the sale will be used to reduce the group’s debt by around DKK 60 million in June 2021 and an additional DKK 11 million in May 2022, after which the remaining bond debt will be DKK 102 million. In addition, the terms of the remaining bond debt have been adjusted, lowering the interest rate and modifying amortization so that the bond debt is a permanent loan until the maturity date in December 2024.

Impact on 2020 financial reporting due to the sale of activities

The presentation of the activity in the financial statements is impacted by the sale because the sold activity is presented as discontinued operations in the statement of comprehensive income, the balance sheet and the statement of cash flows. The sold portion of the business has been reclassified as discontinued operations and the value of assets included in assets available for sale has been written down to reflect the realized sale price.

The sale of the Swedish, Finnish and German subsidiaries results in a book loss as the book value of the divested activities exceeds the realized sale price, resulting in an impairment loss of DKK 29 million. This loss is included in 2020 in the result of discontinued operations.

Orientation for 2021

Following the sale of the Swedish, Finnish and German operations, our forecasts for the continuation of the activities remain unchanged at:

  • Growth in auction turnover of 5 to 15%
  • Revenue growth of 10 to 20%
  • EBITDA from 0 to 8 million Danish kroner.

Bengt Sundström, Chairman of the Board

Mette Margrethe Rode Sundstrøm, CEO

Preben Vinkler Lindgaard, Chief Financial Officer

Highlights Q1 2021

January – March 2021 (continued operations)

  • 20% increase in auction turnover.
  • 16 percent revenue increase.
  • The average withdrawal price in the first quarter was 2,897 DKK (2,756).
  • Number of reversals 39,670 (34,635).
  • Cost in line with last year.
  • EBITDA improved from 4.2 M DKK to 0.1 M DKK (-4.1 M).
  • The result for the period is less impacted by currency gains than last year.
  • Operating cash flow improved by DKK 7.2 million compared to the first quarter of 2020.
Key figures Lauritz.com Group A / S
(Continuation of operations) January March
Million DKK 2021 2020
Auction turnover 114,910 95,448
Returned 32,435 28,043
Number of Knockdowns (excluding QXL) 39 670 34 635
Average knockdown price (excluding QXL) 2,897 2 756
EBITDA 138 -4 106
Auction turnover margin1 0.1% -3.6%
Profit -960 516
Earnings per share (DKK) -0.024 0.013
Operating cash flow 5 426 -1 776

1 Auction turnover margin = EBITDA / auction turnover.

For press inquiries, please contact:

Put jessen

Email: [email protected]

For any other request, please contact:

Preben Vinkler Lindgaard

CFO

[email protected]

Certified advisor: Erik Penser Bank AB

Phone number: +46 8-463 83 00

Email: [email protected]

Marketplace: Nasdaq First North Growth Market Premier Stockholm

This information is information that Lauritz.com Group A / S is required to make public in accordance with the European Market Abuse Regulation. The information has been submitted for publication through the agency of the contact person mentioned above, at 7:00 p.m. CEST on May 31, 2021.

  • Company announcement 2021 nr 11 – Groupe Lauritz.com – Interim report January – March 2021

  • Lauritz com Group AS – Interim report January-March 2021



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