Annual Report 2015
Letter of Chairman
We hereby file the UCP 2015 year-end report. The complete report can be viewed here. ln addition to the report, we want to highlight the following in the UCP group development in 2015;
net revenues revenues and media billings
Net revenues are 19% lower in 2015 compared with 2014. The revenues have increased in the last quarter of the year. For the nine months ended September 30, the net revenues were 26% less than last year.
Conkibuting to the lower net revenues is the shift from traditional to digital media as well as some of our clients reducing their media investments in 2015.
ln the year 2015 clients' media investments, including minority interest companies, decreased with 10% compared to 2014. Our share of the aggregated media spend for all companies in the group decreased by 6%
(S'5.4 MUSD)in 2015. The new business won in the second half of 2015 will have a positive impact on growth.
Gross profit and loss of operations
Gross profit for the group decreased 10.9% in 2015 compared to 2014. At the same time the gross profit margin increased from 7.4% last year to 8.9%. The latter confirms that made investments in specialist resources and new services is and will continue to generate profit in the future.
Loss from operations decreased with 92.6% in 2015, to S117,000. Our strategy to increase efficiency in operations has meant that we have been able to slim our organisation by focusing on having specialists and
high end staff. During the year 2015, the number of staff in the Group has decreased with six (6)compared to last year. Cost control implemented have also had an effect. Tre Kronor Danmark is successfully growing its business with many new clients won in the last quarter and reached break-even in 2015.
We firmly believe that our chosen strategy of development and sales of new services in an increasingly competitive and faster changing market is going to contribute to improve the profitability in the future and
view the past year as a step in the aimed direction.
Loss before taxes and minority interest
This year loss before taxes and minority interests was limited to 5148,000 compared to a loss of $497,000 in 2014. The loss available to shareholders for the twelve months ended December 31, 2015, is 5203,000.
Taking into account that the result last year included profit from the sale of Nyheter365 of S$818,000 the improvement is substantial, not saying that we are content with the result, far from it. We work hard
implementing our strategy to ensure profit in the future.
Overall, the group's development is showing good improvement and we will continue to implement our plans for further improvin8 profitability in the Group and strengthen our position in the market going forward.
AI
