Green Team report on 2013/14 financials

Danish Christmas tree company Green Team is looking ahead to a boost from its new majority shareholder after "unsatisfactory" profits in 2013/14.

Green Team Group are "delighted to be operating in a stable market both in relation to supply and demand, which has ensured steady pricings for all parties in the value chain," says chief executive officer Hans Schultz.

He added that 2014 has been an "exciting year" because in August, "our foundation was further strengthened when Adelis Equity Partners AB became majority shareholder".

Schultz said: "Our 6 other partners will continue as owners and to be active in the daily operation, which has created an even stronger foundation.

"The latest milestone in our development was the acquisition of the activities of Green Attitude in Belgium. Thus, we achieved a strengthened position on the French market. During the past month, we have integrated these activities and created synergies which ultimately will benefit our customers and partners.

"Additionally, we have completed the financial statements 2013/14 which ended by the end of June. A year we have denoted a transition year. We experienced a decline in earnings in the financial year 2013/14 due to extraordinary depreciations and expenses in relation to the successful capital injection, where Adelis Equity Partners Fund entered the company as majority shareholder. At the same time, the change of ownership secured access to more than hundred million (DK) in expansion capital, which ensures that the Green Team Group can continue the growth in the coming years.

He added that operating profit (EBIT) was "unsatisfactory" and amounted to -88 million DKK (£9.39m) in 2013/14 compared to 153 million DKK (£16.32m) last year.

He said: "The underlying business developed steadily, and the lower profit was mainly attributable to extraordinary expenses as a result of a more conservative valuation of the plantations and receivables from previous years. In addition, extraordinary costs associated with the restructuring of ownership and capital structure was defrayed, as well as the results were negatively affected by direct and indirect costs associated with the bankruptcy of a major customer in the fall of 2013.

"At the end of the financial year the equity of Green Team Group was 364 million DKK (£38.83m), compared to 360 million DKK (£38.4m) last year. The equity ratio was 39.3 per cent compared to 43.3 per cent in 2012/13 after Adelis's capital injection in connection with the change of ownership.

"We are obviously not happy with the result, which above all was due to extraordinary costs resulting from the change of ownership at the end of the financial year. The operation was basically stable and Green Team Group continues to focus on growth and the ambition to double the sales of Christmas trees by 2020. With Adelis on board, we move strengthened towards the task and next year we expect to deliver a positive result.

"However, before we get there, we will do our best to serve and create a good working relationship with our customers, suppliers and other partners in the last month before Christmas. We are pleased to provide the last Christmas trees, and is ready with Nordmann plants of high quality and safety in the spring."

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