Share Issue/Capital Change • Oct 5, 2015
Share Issue/Capital Change
Open in ViewerOpens in native device viewer
NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.
Kid is the leading and most profitable retailer in the Norwegian home textile market, typified by products like duvets, pillows, curtains, bed linens and other accessories and decorating items. As of 30 June 2015, Kid operated a total of 128 wholly-owned stores in Norway, in addition to an established e-commerce platform. Kid traces its history back to 1937, and has since the 1950s renewed Norwegian homes by offering attractive and practical curtains, bed linens and other interior articles. Kid is among the best known brands within retail in Norway, with 97% of Norwegian women being familiar with the Company1 .
In 2014, Kid had a market share of 31% among the Norwegian pure-play home textile retailers, making it the largest player in the market in terms of revenue. From 2012 to 2014, the Company was the fastest growing by revenue of the Norwegian home textile retail chains, with a CAGR in operating revenue of 11%, relative to the market growth of 2%, taking its market share from 26% to 31% in the period.
Kid's key strength is its highly enthusiastic and competent employees, and the Company has a fully integrated value chain from the design phase, until the products are displayed and sold in stores across the country. Accordingly, the Company has an in-house design team that ensures all products are tailored to the Kid concept. Furthermore, direct sourcing ensures that the Company has full control over the price and quality of its products, and its employees in the stores across the country are inspired by the unified Kid culture and work towards delivering outstanding service to the customers.
Since Gjelsten Holding bought 100% of Kid in 2012 the company has had a positive and profitable development, having increased revenue from NOK 928 million in 2012 to NOK 1,136 million in 2014, and EBIT from NOK 115 million in 2012 to NOK 164 million in 2014, corresponding to an EBIT margin of 14.5% in 2014. KID has the last three years worked purposefully and structured to develop and renew the assortment, store portfolio and expertise among the staff, and there has been significant investment in upgrading the stores. This has resulted in Kid today having a position as an attractive brand towards consumers, with stores with a distinctive profile and warmth. The Company has a solid financial footing with the industry's best earnings and cash flow.
1 Opinion brand research March 2015, among women aged 20+
"I am proud of having been part of the Kid team over the last five years, where our employees have refocused the chain and renewed the store portfolio, all with the goal of delivering a strong value proposition and helping our customers to create beautiful homes. The Company has delivered strong growth in both revenue and profitability over the last years, and I am confident that we have many exciting opportunities to improve even further in the future. We look forward to offering both new shareholders and our employees the opportunity to invest in our Company and to help us continue to improve and grow Kid in the coming years".
"Gjelsten Holding has been a proud and dedicated owner of Kid over the past three years, and it pleases me to see that we in Gjelsten Holding, in collaboration with the Company's talented employees, have succeeded in developing the Company both in terms of sales and profitability. I am convinced that Kid has potential for further profitable growth in Norway and Gjelsten Holding will therefore remain a significant shareholder following an IPO".
Kid delivered the Company's strongest result in 2014, and continued the trend of growth and profitability, reaching NOK 1,136 million in revenues driven by 6.1% like-for-like growth and 11 net new store openings in 2014, contributing to 11% revenue CAGR since 2012. The like-for-like growth has been driven by a healthy mix of underlying sales growth as well as effects from refurbishments and relocations. Growth in profitability was even stronger, with EBIT reaching NOK 164 million, representing an increase in EBIT margin from 12.4% in 2012 to 14.5% in 2014 and an EBIT CAGR of 20% in the period. So far in 2015 the Company has been affected by negative exchange rate fluctuations, as approx. 90% of its products are sourced in USD. The strengthening of the USD
against the NOK has affected the Company's gross margins in the first 9 months of 2015. Unfavourable weather conditions during, with cold spring and summer months and a warm August, have also affected revenue development negatively. However, the company has so far in 2015 increased its market share compared to the market for pure home textile players in Norway. The Company has a positive outlook for the remainder of the year, which also is the most important in terms of generating profits.
| NOKm | 2012 | 2013 | 2014 | H1 2014 | H1 2015 |
|---|---|---|---|---|---|
| Revenues | 928 | 1,032 | 1,136 | 441 | 468 |
| % Growth | 25.7% | 29.1% | 6.1% | ||
| Gross profit | 575 | 627 | 697 | 270 | 273 |
| % Margin | 62.0% | 60.8% | 61.3% | 61.2% | 58.3% |
| EBITDA | 132 | 170 | 184 | 33 | 24 |
| % Margin | 14.2% | 16.4% | 16.2% | 7.4% | 5.2% |
| EBIT | 115 | 152 | 164 | 24 | 13 |
| % Margin | 12.4% | 14.7% | 14.5% | 5.3% | 2.7% |
| Adjusted net income2 | 52 | 98 | 111 | 6 | 0 |
| % Margin | 5.7% | 8.2% | 9.8% | 1.4% | 0.0% |
Through an IPO, the Company will secure access to the capital markets, which will contribute to realizing the Company's future growth ambitions. Moreover, an IPO will also enable employees to become shareholders in the Company and take part in future value creation.
The IPO will comprise a public offering to institutional and retail investors in Norway and a private placement to certain institutional investors internationally, where the current majority owner in the Company, Gjelsten Holding, will reduce its ownership in the Company.
ABG Sundal Collier ASA and Arctic Securities AS are acting as Joint Bookrunners in the IPO.
Further announcements relating to the process will be made in due course.
| Kjersti Hobøl, CEO Kid, | +47 918 35 965 |
|---|---|
| Petter Schouw-Hansen, CFO Kid, | +47 482 24 534 |
Kid is the leading and most profitable retailer in the Norwegian home textile market, typified by products like duvets, pillows, curtains, bed linens and other accessories and decorating items. As of 30 June 2015, Kid operated a total of 128 wholly-owned stores in Norway, in addition to an
2 Adjusted for non-recurring items (related to the Company's relocation to new premises in 2015, IPO costs and management incentives), unrealised gains/losses on derivatives, and interest expense from an interest swap that will be discontinued in conjunction with the IPO)
established e-commerce platform. Kid traces its history back to 1937, and has since the 1950s renewed Norwegian homes by offering attractive and practical curtains, bed linens and other interior articles. Kid is among the best on creating value through active ownership known brands within retail in Norway, with 97% of Norwegian women being familiar with the Company3 . Kid has approximately 900 employees with headquarters in new modern facilities in Lier, Norway. Kid is a wholly-owned subsidiary of Gjelsten Holding. For more information visit www.kid.no
Gjelsten Holding is an investment company with a goal of creating sustainable value through active ownership. The company has investments in real estate, retail and the industrial sector through portfolio companies such as Fabritius, Profier, Kid, Sport1 Gruppen, Norsk Avfallshåndtering (NOAH) and Ultimovacs. Gjelsten Holding was established in 2000 and had in 2014 annual revenues of NOK 2.6 bn and approximately 1,100 employees. Gjelsten Holding is wholly owned by Bjørn Rune Gjelsten. For more information visit www.gjelsten.no
This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company.
Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Hong Kong, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.
The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and accordingly may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States. Any sale in the United States of the securities mentioned in this announcement will be made solely to "qualified institutional buyers" as defined in Rule 144A under the Securities Act.
Any offering of the securities referred to in this announcement will be made by means of a prospectus. This announcement is not a prospectus for the purposes of Directive 2003/71/EC (as amended, together with any applicable implementing measures in any Member State, the "Prospectus Directive"). Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in a prospectus.
In any EEA Member State that has implemented the Prospectus Directive, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.
This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and
3 Opinion brand research March 2015, among women aged 20+
Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only for relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.
Matters discussed in this announcement may constitute forward-looking statements. Forwardlooking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in public sector investment levels, changes in the general economic, political and market conditions in the Norwegian market, the Company's ability to attract, retain and motivate qualified personnel, changes in the Company's ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward‐looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update or revise the statements in this presentation to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this document.
The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward‐looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.