Last year’s improvements at Scan Global Logistics continued in the first quarter, prompting the logistics firm to up its outlook for 2022’s operating result. Meanwhile, the company confirms a potential ownership change.
Photo: Scan Global Logistics / PR
Scan Global Logistics has seen a turbocharged first quarter of 2022, resulting in an upgrade to the company’s full-year guidance, according to the quarterly interim report.
Whereas the company used to predict adjusted earnings before interest, taxes, depreciations and amortizations (EBITDA) of USD 145-155m, now it expects the level to lie at USD 170-180m.
The financial report states that this upgrade owes very much to high activity, strong improvements in Q1 and, finally, that things are going well with the integration of the company’s most recently acquired businesses.
As to the quarter’s development, all key items have advanced.
Deficit turned to profit
Revenue climbs 137% compared to the same quarter of 2021 and lands at USD 903m, with the gross result up by 124% at USD 123m.
EBITDA come to USD 60m against USD 13m in the same period the year prior, while adjusted EBITDA – as also highlighted by Scan Global – increase from USD 9m to USD 55m.
The freight forwarder bags USD 24m in profit on its bottom line against a deficit of USD 5m last year. Besides improved operations, this can be ascribed to lower financial costs.
Since the same time last year, net interest-bearing debt has risen by USD 30m to USD 356m, owing to the issuance of new company bonds, which have helped finance some of the many takeovers that Scan Global carried out last year.
In management’s statement, there is a brief mention of this quarterly result being the best to date as well as the development being driven by fresh income from the new acquisitions and, not least of all, organic growth.
However, Scan Global’s management does say that the company feels the effects of increased prices from major transportation providers. This means that, although the gross result has increased, the gross margin declines to 13.6% from 14.3% in the same period last year.
”The decline mainly relates to Air & Ocean due to increasing costs for transport services. The increase in costs has been pushed through to customers resulting in higher revenue and lower gross margin but limited effect on unit level gross profit,” the company writes.
Confirms potential ownership change
In a separate statement accompanying the report, Scan Global confirms on paper that the firm may be facing an ownership change.
The statement reads that shareholders in the parent company have hired British bank Barclays ”to explore strategic alternatives for the Company, including a potential sale by the Company’s institutional shareholders.”
It goes on to mention investment manager AEA Investors, one of the main owners of the freight forwarder since 2016, which has Scan Global’s management as the remaining co-owners.
The information on the company’s engaging Barclays was previously relayed by media InsideBusiness, and in a recent interview with MobilityWatch, Chief Executive Allan Melgaard said that an ownership change was likely within a relatively short time span prior to seeking an initial public offering.
”We have an owner, which we have been very pleased with, and the journey together has been fantastic,” he said.
”But one could easily imagine a new financial partner coming in together with the management, and that the company with a new financial sponsor could be listed within 3-5 years. That is the ambition,” the CEO continued, adding that a change in ownership is likely to happen within the next 12-18 months.
(This article is provided by our Danish sister media, MobilityWatch)
English edit: Jonas Sahl Hollænder
