Interim Report, January 1 – June 30, 2018
Focus the first half of 2018 has been to continue the overhaul of our business operations to increase efficiency and develop our ways of working.
Our client’s needs are changing due to the digital transformation that affects all industries, as well as society. In the beginning of 2017, Nordic Morning Group was made up of the parent company, Nordic Morning Group Plc, as well as six Finnish and six Swedish subsidiaries. During 2017 and the first half of 2018, the repackaging of our capabilities and services to better meet today’s client needs and the digital business environment of tomorrow, have been in focus. We have done this work in close collaboration with our clients to deliver a superior customer experience, driving growth and customer loyalty.
In the beginning of 2018 we continued the overhaul of our business operations step by step to develop our ways of working and increase efficiency. In line with the repackaging, organizational structure and the management and steering structures have been simplified. A special focus is now put on our fragmented information system structure in order to harmonize it to support our business in an optimal way.
As expected, the Group’s consolidated net revenue declined slightly due to restructuring measures carried out in 2017, but the operating profit excluding non-recurring items is still expected to be well in the positive for the full year 2018.
The Group’s consolidated net revenue was EUR 41.8 million (EUR 51.3 million. The Group’s gross margin before non-recurring items decreased from EUR 29.6 million to EUR 24.9 million and EBITDA before non-recurring items decreased from EUR 4.9 million to EUR 3.4 million. Operating profit for January–June amounted to EUR 1.1 million (EUR 4.0 million). Operating profit before non-recurring items was EUR 1.1 million (EUR 1.9 million). The equity ratio at the end of the review period was 37.8 percent (36.9 percent). Cash and cash equivalents amounted to EUR 0.3 million (EUR 3.7 million), and net debt was EUR 14.2 million (EUR 7.7 million).
Anne Årneby, CEO Nordic Morning Group
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