Bilia AB
Company Announcement

Bilia leaves Denmark

Gothenburg, Sweden, 2015-03-02 11:56 CET --
  

The Board of Directors of Bilia AB has decided today that the operation in Denmark will be sold or shut down. The background of the decision is that the operation has been reporting a loss for a long time and that the competition from other dealers in the Copenhagen area who sell the same brands has increased in recent years. The assessment is that the business will not be able to live up to the Group's profitability goal.

Over the past ten years, Bilia's Danish operation has reported an average pre-tax loss of about SEK 34 M. The cost of selling or winding up the operation is estimated to be about SEK 150 M after tax, which will be charged to first-quarter earnings in 2015. The sale or closure will have only a marginal effect on cash flow.

Bilia's Danish operation had a 2014 turnover of about SEK 1.0 bn, and the number of employees was 222.

Gothenburg, 2 March 2015

Bilia AB (publ)

         For further information, please contact Per Avander, Managing Director and CEO, or
         Gunnar Blomkvist, CFO, Bilia AB, tel. +46 31 709 55 00.