Coor intends to dispose of its operations within Damage Services Norway
After a strategic evaluation, Coor has initiated a process for the disposal of the operations within Damage Services in Norway. This disposal will contribute to a further focus on the operations within Facility Management (FM), and will improve income and cash flow.
Damage services is a market with an entirely different volume fluctuation, competitive situation and pricing than applies to FM and, as a consquence, it is deemed that the premises do not exist to achieve, over a period of time, a profit level in line with the Norwegian FM operations. Coor’s damage service operations reported, during the 12 month period up to and including the first quarter 2017, revenues of approximately MSEK 340 and an operating loss (adjusted EBITA) of MSEK -3. The operations have also implied a significantly larger amount of capital tied up than in the FM operations.
The damage services operations will be reported in the half-yearly report 2017 as a so-called disposal group and, as a result, will not be included in net sales and operating results. One-time costs referring to Damage Services totaling approximately MSEK -100 will, however, impact net income for the second quarter 2017. These costs are primarily related to the write-down of intangible assets based on their assessed sales value, as well as to restructuring costs. The total cash flow effect of the disposal is deemed to be limited and, therefore, the disposal is not expected to have any negative impact on the capacity for dividend distribution or potential acquisitions.
In order to provide shareholders and analysts with information regarding this disposal, we attach the restated historical figures for net sales and operating profit (adjusted EBITA) to this press release.
For additional information, please contact:
Olof Stålnacke, CFO and IR Director, Coor
+46 10 559 59 20, olof.stalnacke@coor.com
Åsvor Brynnel, Communications and Sustainability Director, Coor
+46 10 559 54 04, asvor.brynnel@coor.com
This is information that Coor Service Management Holding AB 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 3 pm CET on 30 June 2017.
Coor is a leading provider of facility management services in the Nordics, focusing on integrated and complex service undertakings (IFM). Coor offers specialist expertise in workplace services (soft FM), property services (hard FM) and strategic advisory services for development of customers’ service activities. Coor creates value by executing, leading, developing and streamlining its customers’ service activities, ensuring that they provide optimal support to the core business over time. Coor’s customer base includes many large and small companies and public-sector organisations across the Nordic region, including AB Volvo, ABB, Aibel, Det Norske Veritas, E.ON, Ericsson, EY, NCC, Politiet (Danish Police), Saab, Sandvik, SAS, Skanska, Statoil, Telia, Swedish Transport Administration, Vasakronan and Volvo Cars.
Coor was founded in 1998 and is listed on Nasdaq Stockholm since 2015. At March, 31, 2017, the company had 6,500 employees based mainly in Sweden, Denmark, Norway and Finland, and annual sales of SEK 7,700 million. Coor takes responsibility for the operations it conducts, in relation to its customers, employees and shareholders, as well as for its wider impact on society and the environment. Read more at www.coor.com
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