Lauritz.com Group A/S interim report January – December 2019
Copenhagen, 27 February 2020
Growth in EBITDA
EBITDA in 2019 is DKK 7.7m compared to DKK 2.3m last year (excluding sales gains and the reservation for losses on receivables). EBITDA in Q4 is DKK 2.0m, DKK 47.3m above last year mainly due to the reassessment of the gain from the sale of the fine Art business and the reservation for loss on receivables included in Q4 2018, as well as a DKK 2.4m improvement in EBITDA from operations.
Auction Turnover for the year declined 2 percent compared to last year, primarily due to a weak Q4 2019, resulting in a revenue decline of 3.4 percent compared to last year.
The commission to partners was reduced as a result of the lower Auction Turnover and due to the purchase of auction houses.
The like for like business has reduced cost by 3 percent compared to last year, partly offsetting the increase in cost from acquired businesses, primarily the fine art business.
The Cash Flow from Operations in Q4 is DKK 24.2m a decrease of DKK 12.1m compared to 2018. The Cash flow from operations for the full year improved by DKK 33.4m compared to last year. The improvement is partly driven by seasonality in the business significantly impacted by timing of Fine Art auctions, and partly due to improved EBITDA.
To support and strengthen the positive development we will continue the intensified sales- and marketing initiatives and further increase the focus on operations of the business.
Several commercial initiatives are showing positive effect on the results. Among them, a continued increased focus on sales management, business control and execution both internally in the headquarters and in relation to the individual auction houses.
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.
Apart from targeting more private sellers, we are continuously targeting professional sellers to consign larger lot stocks or one-off sales within both vintage items and newly produced items.
In terms of marketing activities, we are continuously focused on creating local activities including an increase in our outreach via focused social media, which is still showing a positive effect and strengthening our presence in the local and regional communities.
With regards to Stockholms Auktionsverk, we have observed a continuously positive steady development throughout the year. The implementation of Lauritz.com’s sales management system is expanding the commercial skills among our Swedish experts whose role is currently changing from a more internal role to a more external role, proactively contacting potential sellers for consignments. Moreover, our focused brand related collaborations with other strong brands and ambassadors are are influencing the results positively, and we have strengthened our Stockholm based marketing department to support the positive development further.