The performance for the 2012 financial year can be characterized by very tough market conditions in some business areas, and highly positive growth and business development in others.
The development of new business areas was very successful in 2012, both in terms of sourcing and selling. This enabled us to optimize our orders and thus create value, not only for NOWACO but also for customers and suppliers.
The year’s operations and profit development
The total revenue of DKK 1,997 million is the highest ever achieved in the trading division, a 13% growth compared to the level in 2011. The gross margin went down to 4.9%, compared to 5.7% in 2011. Total earnings before tax amounted to DKK 38.2 million against DKK 44.8 million in 2011.
When taking the 2012 market conditions into consideration, the company’s Management considers the performance for the year satisfactory.
The growth in activity had an intrinsic effect on the balance sheet total, amounting to DKK 448.0 million at 31 December 2012. The most significant asset item is receivables from customers, amounting to DKK 389.8 million. The company’s equity
totalled DKK 139.7 million, which is DKK 12.0 million higher than the total equity at end-2011. The solvency ratio came to 31.2% at 31 December 2012.
Outlook for 2013
Competition intensified and market conditions became more challenging during 2012, but Management still sees great potential ahead, particularly in light of our concept of building close partnerships with customers and suppliers and NOWACO’s extremely strong financial platform. Against this background, we expect to generate a profit for 2013 that exceeds the level in 2012.