IC Companys – Annual Report 2008/09 0 - IC Companys A/S

Over a number of years, the Group’s costs were on
the rise. Consequently, the first half year of the fi-
Executive Board launched a number of initiatives in
the first and the second quarter, which among other
things aimed at reducing costs. In conjunction with
an increased focus on costs in the entire Group,
these initiatives resulted in decreasing capacity
costs in both the third and the fourth quarter. Capacity
costs for the full year 2008/09 are thus realised
at the same level as last year.
In connection with the H1 Interim Report, a further
number of initiatives were launched with a view to
reducing the cost base in the region of DKK 200-250
million relative to the financial year 2007/08 – adjusted,
however, for the opening of new stores.
These initiatives will take full effect in the financial
2009/10 and progress in line with the targets set by
the Executive Board.
Operating profit
Operating profit decreased to DKK 162 million (DKK
349 million) which corresponds to a 54% decrease.
This brings the EBIT margin to 4.5% (9.3%). Adjusted
for the non-recurring impacts of DKK 115 million in
total, (DKK 40 million) the EBIT margin would have
been 7.7% (10.4%).
Net financial items
Net financial items decreased DKK 21 million to
DKK 11 million (DKK 32 million).
The Group continuously hedges revenue in foreign
currencies. However, the actual revenue for
IC Companys – Annual Report 2008/09
nancial year 2008/09 reported a 4% increase in
capacity costs adjusted for non-recurring costs. The
2008/09 is in many countries realised on a lower
level than the budgeted. Short term forward contracts,
which thus hedge non-realised revenue, resulted
in a profit of DKK 27 million, which will be
recognised under financial items.
Income tax
Calculated income tax was recognised in the
amount of DKK 42 million (DKK 93 million), which
constitutes 28% (29%) of the pre-tax profit.
The lower tax rate is mainly attributable to the fact
that the Group had fewer tax-related losses in Spain
and China, as measured against last year and therefore
has been able to offset such assets. Further, the
number of discrepancies in foreign subsidiaries as
compared to the applicable tax rate of 25% in Denmark
was lower than previously.
Tax payable is calculated to DKK 43 million and is
composed by tax payments in countries, in which
the Group possesses no tax assets or cannot offset
such assets in full against the revenue of the year.
In addition, DKK 5 million of the tax assets recognised
in previous years was used.
Net result
Net result for the financial year 2008/09 decreased
by 51% to DKK 109 million (DKK 224 million).
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