A police entered and fired former CEO, nervous negotiation of banking conditions and constant aktieras. Eniro continues his history with Wednesday’s profit warning and a billion write-down.
As late as April 24 this year repeatedly Eniro forecast that this year’s EBITDA, operating profit excluding depreciation and amortization, would end up at the same level as last year. But today, four weeks later, Eniro announces that the forecast will not be met.
– We have underestimated how long it would take. We have believed too much on the actions we have taken and we believed in a much faster effect when we brought in new people so that we could deliver in line with what we promised, says Eniro’s CEO Stefan Kercza.
However, many, including SvD Enterprise’s stock market columnist Patricia Hedelius has been very skeptical that Eniro could reach its forecast, which was given in connection with the shareholders entered with 1 billion in a rights issue to help the company on the right course.
Do you think that the owners feel blown?
– The company still makes a nice profit, and we keep all our agreements with banks, says Stefan Kercza.
But you lowers forecast as you reiterated as recently as four weeks ago.
– That’s right. We now say that the result will be worse than forecast, but it inspires no worries if you ask me. What is important now is the overhaul as the company is going through. We have so many great activities going on with the new CEOs of Sweden and Denmark on the spot, and they start taking the responsibility they should. It will be a big win for the company that we are now to drive sales in the right way.
“It’s a huge disappointment not to be able to do what we say.”
Stefan Kercza, CEO Eniro
What is it that happened in four weeks, forcing you to profit warnings?
– When you look at the fourth quarter and the first quarter it is clear that we had some challenges with getting sales in place in the different countries. Now we have people on board, but we underestimated how long it would take to get them at the level they should be at. It has struck more than we had expected.
How much below last year’s result of 631 million do you expect?
– It’s worse than the forecast we had given. We have made a decision not to issue any new forecast for 2015, except that the result is lower than the 631 million that we looked at before.
Stefan Kercza says he just the last four weeks was surprised that it took longer than he expected to get started sales of new employees were on site. He denies that he had a hunch already four weeks ago when the forecast was repeated.
– We did not know this then. We still believed we would succeed in taking back what we lost. But recently we have realized that it is not gone. During the short time we have looked through everything and concluded that it is better that we win now warning about the full year forecast, rather than bringing negative information later.
Has all this happened in four weeks?
– It’s been going on recently. We have been too optimistic in the belief that we could turn this. But what we see now is that we can not achieve the forecast, and it is a huge disappointment not to be able to do what we said.
Of the countries in which Eniro has operations are primarily Denmark, weighing on earnings expectations, according to Stefan Kercza.
– It is not so much in Sweden, where we have good track.
Eniro’s former CEO Johan Lindgren has been reported to the police for suspected accounting tricks. It was after SvD Business review that Eniro’s Board of Directors realized the extent of fiddling. But the erroneous periodization, where revenues reportedly been booked for early, according to the company just happened in Sweden and Norway. In Denmark, where the current CEO Stefan Kercza former country manager, it has not happened.
Is there any reason to suspect that this is why Denmark has a negative impact now?
– We already told you about each country and auditors have been through it. There I have no more to say.
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