Transport and logistics company FREJA Transport & Logistics Holding A/S announces a new earnings record in the first half of 2017. However, the record has not come through primary operations but through divestment of a property in Stockholm.

FREJA Group with weak growth in revenue but unchanged number of consignments and drop in EBIT

FREJA Transport & Logistics A/S reports revenue growth of 4% compared to the first half of 2016 amounting to a total of EUR 172 million. Gross profit drops from EUR 21.3 million to EUR 20.7 million while EBIT drops from EUR 4.1 million to EUR 3.1 million. The final profit before tax for the first half of 2017, however, amounts to EUR 5.5 million against EUR 4.1 million for the same period 2016.

Per 30/6 2017, equity amounts to EUR 32.5 million and the solvency ratio is 37.9%.

The consignment is on the same level as for the first half of 2016 although fluctuating between countries.

The decline in EBIT is primarily due to challenges in the Swedish subsidiary and a slight decline in both Norway and Denmark, as well as the investment in the construction of pharma-related logistics facilities continues. In Sweden, a major process has begun on the construction of a new management team, which is finally in place by the end of 2017.

During the period, FREJA's competencies in Pharma and Healthcare have been upgraded, and the activities in China have been expanded with an office with two employees in Guangzhou.

In the second half of 2017 FREJA expects that growth will increase marginally. We expect a turnover for the whole year 2017 to be EUR 350 million and a pre-tax profit in the range of EUR 8.1 – 8.8 million.

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In April 2017, FREJA secured a project of two transformers + accessories (incl. an oil tank) to be sent from China to Denmark. The transformers have a weight of 56 tons each. In May the transformers and accessories started their journey from China and end June they arrived in Denmark.

The cargo has been on storage in Aarhus before delivery to the jobsite in the beginning of July. The accessories were transported into FREJA's warehouse and have been delivered afterwards according to client's request per order.

During the process, FREJA was present at port and at jobsite to ensure a smooth operation. FREJA China and FREJA Denmark have handled the shipment with care and to the customer's satisfaction.

FREJA has the pleasure of sending out a newsletter today telling about social responsibility as part of FREJA's DNA, daily groupage departures to all Europe, Steelcon's choise of FREJA, and world-class golf in Himmerland.

Enjoy reading and have a wonderful summer!

At the moment there is a great pressure on the European transport business because of new legislation which forbids drivers and hauliers to take their mandatory weekly 45 hours' rest in their trucks, which has always been standard practice.

Lately, Germany has forbidden drivers to take their weekly rest of 45 hours in the truck. The ban was introduced without warning effective of May 24th 2017.

In this connection, the German authorities have notified to carry out inspections/issue penalties, well knowingly that there are no alternatives of accommodation for several hundred thousand drivers in Germany nor in the rest of Europe.

It seems very difficult to observe these new regulations and if they will be enforced, the business will suffer severe financial challenges, which may cause serious consequences for the transport of cargo generally in Europa with Germany being the largest and most used country of transit.

As we have not yet seen political suggestions to carry out the new legislation, nor do we know the content of the controls, we have decided to await the situation. Therefore, we do not have further information about the consequences of the legislation. You can now turn any wifi tablet into a killer gps. Whether you have a gps enabled tablet or not.

We will keep you updated on all relevant news.

FREJA Transport & Logistics A/S and PNO Danmark A/S have signed an agreement regarding delivery of 300 brand new trailers to be delivered to the Scandinavian market during 2017.

"For many years FREJA and PNO have had a strong and professional cooperation and we are therefore very happy that we have signed this new agreement regarding the delivery of trailers to FREJA Transport & Logistics' divisions in Sweden and Denmark," says Jacob Ørnstrand, Group CEO in PNO.

"It is FREJA's desire to operate new and modern equipment. Therefore, we replace about 20 % of the total fleet per year," says Jørgen Hansen, Group CEO and founder of FREJA.

"PNO has the largest selection of quality trailers at the market in combination with the most flexible customer adjusted rental solutions. For PNO the relations to our customers are crucial, because this gives us a knowledge of which features will create the most optimal flow and value for our customers," Jacob Ørnstrand concludes.

[caption id="attachment_822" align="alignnone" width="600"] Hanne Johannsen, Country Manager hos PNO Danmark A/S and John Skov, FREJA[/caption]

Knowledge and Full Service Provider status create strong customer relations for FREJA Group

The transport and logistics provider FREJA Transport & Logistics Holding A/S presents a satisfying result in 2016 with continuous progress in all key figures. The subsidiaries in Norway and Finland deliver results significantly above marked level. During the year, FREJA has invested massively to reach the status as Full Service Provider. The investment ensures a strong basis for creating long-term partnerships with the customers. The Danish owner foresees significant opportunities to improve the result in the years to come.

A continues positive development in earnings in 2016
FREJA Transport & Logistics Holding A/S reports an increase in earnings from 2015 to 2016 of 1 percent. The total turnover in 2016 amounts to EUR 327 mill. EBIT amounts to EUR 6.3 mill. in 2016 compared to EUR 5.9 mill. in 2015. The result of the year before taxes amounts to EUR 6.2 mill. in 2016 compared to EUR 6.0 mill. in 2015.

The equity of the Group has increased from EUR 24.7 mill. in 2015 to EUR 28.4 mill. in 2016. The solvency ratio has increased from 29.8 % to 33.9 % at the end of 2016 - a positive development in all financial key figures. The development in the Norwegian and Finnish subsidiaries is very positive whereas the Swedish subsidiary has not met the expectations of the year. The Danish company has invested in new business areas by adding competent knowledge resources. Since March 2016, a new subsidiary in China has been running and contributes better than expected in the first year.

FREJA is ready to meet all customer needs as Full Service Provider
FREJA is renowned for the company's massive IT investments to optimize its own business and to offer the customers the opportunity to attain better insight and more safety as regards the transport solution. In 2016, the overall business is strengthened further through investments in new business areas. FREJA has invested to solve complicated project assignments just as a unique Pharma division and a standard Air & Sea division have been established. Furthermore, FREJA offers the customers to utilize the knowledge resources from FREJA to optimize the internal logistics from A to Z.

"We are convinced that building partnerships with our customers will create a win-win situation for all parties involved. If we get a deeper insight in the customer's value chain, we are able to offer a customised solution, which meets and optimizes the customer's logistics demands. Trust and credibility are keywords in the cooperation. To take responsibility is a natural part of our way of working in FREJA. We have always run the company FREJA based on strong values. We work daily to make a difference to our customers and to ensure that we improve together day by day," says Jørgen Hansen, owner and CEO in FREJA Group.

It takes more than a reasonable result to impress a modest temper
"We reached an acceptable result in 2016 but we also think there is room for improvements. We need to challenge ourselves continuously as regards the investment income. Our aim is to improve the result significantly in 2017 and a property sale in Sweden will contribute positively to a result that we can take pride in", Jørgen Hansen concludes.

For further information please contact Group CEO Jørgen Hansen by phone +45 96 70 51 01 or by e-mail jh@freja.com